Wreckless Eating
YouTube Space LA Alumni
Great blog post/article by Big Frame. Everyone who is in a network or wants to join a network should read this:
Anatomy of a YouTube Contract: Ten Questions to Ask Your Network
Posted on February 19, 2013
Contracts. They’re confusing and can be scary. They contain words like “warranties” and “indemnification”. Lawyers are expensive and often YouTube content creators don’t have access to the legal guidance they would like to assess which network, if any, is a good match for them. It may seem like a good idea to click “accept” and get started. Yet time and time again we hear of talent getting locked into strict contracts with no end in sight.
Below are ten questions that you should ask before signing with a network. Really, you should ask a lot more than ten, but make sure you understand at least these basics.
1. Why are you joining a network? Networks aren’t magic wands that will automatically make your YouTube career take off. They can provide resources and open doors, but it’s ultimately up to you to walk through the doors. Take time and reflect on your goals for your channel and your career and ask what a network will do to advance that. Are you signing just to be signed somewhere, or is the network giving you the support infrastructure you need?
2. What is the length of the contract? Think way back to 2009. YouTube was a LOT different back then. The top 5 channels were Fred, NigaHiga, Smosh, UMG and JonasBrothersMusic. There were no TrueView prerolls and no ads on mobile devices. That was just 4 years ago. If you are going to make a long term commitment, does it protect your long term interests? Things that sounded good in 2009 don’t sound nearly as good in 2013. If you don’t think you’re signing a four year deal, look for phrases like “automatic renewal” and make sure you understand those. A 2 year deal can quickly turn into a 4 year deal if you aren’t paying attention.
3. What rights do you maintain? One of the greatest things about YouTube is that you own your own content. If your network wants to take a stake in that, there should be financial compensation. Otherwise, you should keep ownership over your content [which, by the way, includes Twitter, FB, Instagram etc].
4. What rights do you give up? Can the network act on your behalf? Can they make your channel like a video without your permission? Can the network sell your content in other locations? If so, what is your financial participation in that? Can they use your likeness without your permission? Are you giving up brand logo space to the network? If so, how are you compensated for it? Is the language around network rights vague?
5. What are you contractually obligated to do? Some contracts require a certain number of uploads and other obligations on the content creator’s side of things. Make sure these are things you can do otherwise you’ll be in breach of contract and the network may drop you.
6. What is the network contractually obligated to do? This is extremely important! If the contract is vague and lists things like “promote the channel” or “provide resources to the channel” then there’s no way you can ever hold them to the bright shining promises they made in your first meeting with them. If they’re going to “make you a star, kid” have the contract explicitly state what the network will do to make that happen. Make sure it’s in writing. And per point #2 above, can you terminate the contract if they don’t meet their obligations?
7. Do you get to see your channel earnings? Some networks [like Big Frame and Maker] let partners see their earnings. Others do not. If they don’t, it may be because you are getting a fixed CPM and the network doesn’t want you to see what the network is making/losing on your channel each month. If transparency is important to you, sign with a network that allows you to see your earnings. When it comes to brand deals, are you getting paid based on gross revenue (what the client pays) or net revenue (after the network has taken out commissions and expenses)? Do you have to pay for any direct deposit or ACH fees?
8. If you are getting a guaranteed CPM, how does it really work? How is the CPM calculated? Is it on total views? Monetized views? US monetized views? Those are all very different numbers and it can be quite a surprise to learn that you thought was based on total views was actually something much smaller… for the whole length of the contract. Does your contract give the network rights to adjust your CPM? Can they terminate the contract at any time? If so, you’ve basically allowed them to bet that your channel earnings will rise above the fixed CPM and they can simply dump you if it doesn’t.
9. Can I have a manager or agent outside of the network? Big Frame fully manages some of our talent and some of them have separate managers and agents. Most networks aren’t management companies however and you should be able to have someone represent you outside of the network if that’s the case. You should always be communicative about pending deals in both directions to avoid conflict and double-pitching. It would stink to get booked on two television shows that filmed at the same time.
10. And finally, can you explain the contract to your mom? If not, you probably don’t fully understand it. That is, of course, assuming your mom understands what it is to be a YouTuber. The point is, if you are signing a legal document, you should understand it inside and out.
Sarah Penna
Head of Talent, Co-founder
Anatomy of a YouTube Contract: Ten Questions to Ask Your Network
Posted on February 19, 2013
Contracts. They’re confusing and can be scary. They contain words like “warranties” and “indemnification”. Lawyers are expensive and often YouTube content creators don’t have access to the legal guidance they would like to assess which network, if any, is a good match for them. It may seem like a good idea to click “accept” and get started. Yet time and time again we hear of talent getting locked into strict contracts with no end in sight.
Below are ten questions that you should ask before signing with a network. Really, you should ask a lot more than ten, but make sure you understand at least these basics.
1. Why are you joining a network? Networks aren’t magic wands that will automatically make your YouTube career take off. They can provide resources and open doors, but it’s ultimately up to you to walk through the doors. Take time and reflect on your goals for your channel and your career and ask what a network will do to advance that. Are you signing just to be signed somewhere, or is the network giving you the support infrastructure you need?
2. What is the length of the contract? Think way back to 2009. YouTube was a LOT different back then. The top 5 channels were Fred, NigaHiga, Smosh, UMG and JonasBrothersMusic. There were no TrueView prerolls and no ads on mobile devices. That was just 4 years ago. If you are going to make a long term commitment, does it protect your long term interests? Things that sounded good in 2009 don’t sound nearly as good in 2013. If you don’t think you’re signing a four year deal, look for phrases like “automatic renewal” and make sure you understand those. A 2 year deal can quickly turn into a 4 year deal if you aren’t paying attention.
3. What rights do you maintain? One of the greatest things about YouTube is that you own your own content. If your network wants to take a stake in that, there should be financial compensation. Otherwise, you should keep ownership over your content [which, by the way, includes Twitter, FB, Instagram etc].
4. What rights do you give up? Can the network act on your behalf? Can they make your channel like a video without your permission? Can the network sell your content in other locations? If so, what is your financial participation in that? Can they use your likeness without your permission? Are you giving up brand logo space to the network? If so, how are you compensated for it? Is the language around network rights vague?
5. What are you contractually obligated to do? Some contracts require a certain number of uploads and other obligations on the content creator’s side of things. Make sure these are things you can do otherwise you’ll be in breach of contract and the network may drop you.
6. What is the network contractually obligated to do? This is extremely important! If the contract is vague and lists things like “promote the channel” or “provide resources to the channel” then there’s no way you can ever hold them to the bright shining promises they made in your first meeting with them. If they’re going to “make you a star, kid” have the contract explicitly state what the network will do to make that happen. Make sure it’s in writing. And per point #2 above, can you terminate the contract if they don’t meet their obligations?
7. Do you get to see your channel earnings? Some networks [like Big Frame and Maker] let partners see their earnings. Others do not. If they don’t, it may be because you are getting a fixed CPM and the network doesn’t want you to see what the network is making/losing on your channel each month. If transparency is important to you, sign with a network that allows you to see your earnings. When it comes to brand deals, are you getting paid based on gross revenue (what the client pays) or net revenue (after the network has taken out commissions and expenses)? Do you have to pay for any direct deposit or ACH fees?
8. If you are getting a guaranteed CPM, how does it really work? How is the CPM calculated? Is it on total views? Monetized views? US monetized views? Those are all very different numbers and it can be quite a surprise to learn that you thought was based on total views was actually something much smaller… for the whole length of the contract. Does your contract give the network rights to adjust your CPM? Can they terminate the contract at any time? If so, you’ve basically allowed them to bet that your channel earnings will rise above the fixed CPM and they can simply dump you if it doesn’t.
9. Can I have a manager or agent outside of the network? Big Frame fully manages some of our talent and some of them have separate managers and agents. Most networks aren’t management companies however and you should be able to have someone represent you outside of the network if that’s the case. You should always be communicative about pending deals in both directions to avoid conflict and double-pitching. It would stink to get booked on two television shows that filmed at the same time.
10. And finally, can you explain the contract to your mom? If not, you probably don’t fully understand it. That is, of course, assuming your mom understands what it is to be a YouTuber. The point is, if you are signing a legal document, you should understand it inside and out.
Sarah Penna
Head of Talent, Co-founder
