The Problem with 'DM Deals' and Handshake Agreements
For many emerging creators, a brand collaboration begins with an exciting direct message. The conversation moves to WhatsApp, a verbal agreement is made, and the work begins. Unfortunately, this is often where the problems start. A 2023 survey found that
41% of Indian influencers reported late payments from brands. Without a written agreement, you have little legal standing if a brand pays late, refuses to pay, or demands extra work. Handshake and DM deals fail because they lack specificity. Key details like the exact payment date, what happens if that date is missed, and who owns the content are often left unsaid. This ambiguity is the primary source of disputes, leaving creators chasing invoices instead of creating content.
Your Professional Toolkit: The Service Level Contract
A service level contract, or service level agreement (SLA), is a legally binding document that defines the relationship between you (the service provider) and the brand (the client). Think of it not as a sign of mistrust, but as a mark of professionalism. These agreements are governed by the Indian Contract Act, 1872, providing a formal framework for your collaboration. By presenting a clear contract, you shift the dynamic from an informal 'collab' to a professional business transaction. It demonstrates that you take your work seriously and sets clear expectations for both parties from the very beginning, reducing the risk of misunderstandings down the line.
Essential Clauses for Timely Payments
A strong contract is a specific one. To ensure you get paid on time, your agreement must include several non-negotiable clauses. First, clearly state the payment amount and the payment schedule. Common terms include 'Net 30' (payment due in 30 days) or even 'Due on Receipt'. For larger projects, consider a milestone-based structure, like 50% upfront and 50% upon completion. Second, and most importantly, include a late payment penalty clause. A typical fee is 1.5% to 2% interest per month on the outstanding amount. This single clause creates a powerful incentive for brands to pay on time. Finally, add a clause stating that you retain ownership of the content's copyright until final payment is received. This prevents the brand from using your work if they haven't paid for it.
Defining the Work to Avoid Scope Creep
Delayed payments often happen when there is a dispute over the work itself. Brands may withhold payment claiming the deliverables were not met. Your contract must precisely define the scope of work. Specify the exact number and type of posts (e.g., one Instagram Reel, three Stories), the platforms, content format, and the posting schedule. Attach a content brief that outlines key messages, hashtags, and handles to be used. Also include a clause on the content approval process, detailing how many rounds of revisions are included in the fee. This prevents 'scope creep'—where the client keeps asking for more work than was originally agreed upon—and ensures there are no surprises for either party.
The Power of a Standardised Template
Creating a new contract for every project is time-consuming. The solution is to develop a standardised template you can reuse. A template ensures consistency, reduces negotiation friction, and makes you look more professional. Recently, the Indian Influencers Governing Council (IIGC) launched the Indian Influencer Contract Standard (IICS) to provide a baseline for the industry. Using a standard template helps you start every negotiation from a strong, clear foundation. You simply fill in the project-specific details like deliverables and fees, while the core protective clauses remain the same. This efficiency allows you to close deals faster and focus on what you do best.
