Brand sponsorships are a major source of income for content creators and influencers, so it’s a huge point of frustration when your payments from contracts fall through. The last thing creators want to do after spending hours working with a brand is spend additional time chasing down payments for the work they performed.
If you are struggling with collecting payments from your contracts, you’ve come to the right place. We sat down with DUPAY to get their tips on how content creators can collect unpaid invoices and how their services help you collect unpaid invoices so you can focus on what you like doing best: creating amazing content!
Watch Our Full Interview With DUPAY!
The Struggles With Unpaid Invoices
1099s are the norm in the creator economy. From major platforms like YouTube and Twitch, to partnerships with brands and sponsored content, your payments are going to come through as 1099 income. Unfortunately, that means that it is up to you to track your income and request payments if they don’t come through.
While it is uncommon for creators to have to reach out to major platforms for payment, it does happen. Creators are more likely to reach out to brands and sponsors to ensure they are paid on time. Some of the most common pitfalls creators can fall into are late payments, endless loops of customer service emails, cancelled work, and companies ghosting or failing to pay.
Luckily, there are strategies to help! Here’s the biggest advice from DUPAY:
Go In With A Written Agreement
Most collaborations and partnerships start in DMs or through emails. When you’re scrolling through Instagram, a message notification shows up, and boom, it’s a brand asking you to feature their product on your feed. While your conversations in DMs and email count as a verbal agreement, a written agreement is a more effective way to protect yourself.
Drawing up an official contract that outlines the work you are providing and the amount you are expecting to get paid will protect you from unpaid invoices. Even if you’ve worked with a brand before, a written agreement should be a standard part of your process. Contracts are legally binding and can be used to make demand letters in situations where they may be needed.
Done-for-you taxes and bookkeeping for creators
Important Terms To Include In Your Contract
In addition to the expected work and how much you should get paid, there are a couple of things you can add to your contracts to further protect your work.
Termination: There are cases when brands change their direction or decide to cancel a project. It isn’t always a clean break and often, creators have already done some of the work that was expected. Having a termination clause will ensure that you can receive at least a portion of your payment because you’ve already done a portion of the work.
Revisions and Reshoots: Brands often request edits once you’ve sent them your post. It’s to be expected. Of course, there should be limits to how much they can ask of you. If you are spending a lot of time revising or reshooting to complete a project, it cuts into your earnings. Be sure to outline how many revisions you will allow before charging an additional amount for edits.
No matter how much time you spend on a project, you should feel fairly compensated. Adding these terms to your contract will help ensure that your time is well valued.
How DUPAY Helps You Get Paid
Tracking down payments can really cut into your time as a creator. The more time you spend doing that, the less time you have to work on other content and even other brands. That’s where DUPAY comes in. They offer a lot of great services that are aimed at helping creators like yourself get paid on time and in full.
DUPAY’s services include:
- Invoice Generator and Tracking System
- Contract Red Flag Alert
- Advocacy for an Unlimited Amount of Unpaid Invoices
If you want to spend less time on invoices, contracts, and demanding payments, DUPAY has all the tools you need to ease payments when working with brands. Check out DUPAY to get started!
Paying Taxes On 1099 Income
Finally, that income you’re earning? Yep, it’s taxable. Be sure to track every payment you receive to ease your tax return at the end of the year. We’ve got a handy income and expense tracker that you can fill in every time you get another check in the mail!
Also, if you’re spending money on these sponsored posts, that’s tax-deductible! New equipment, studio rentals, travel expenses, and much more can be deducted if it’s necessary for you to perform your job. Keep track of your expenses so you can lower your taxable income and maximize your tax savings.
Conclusion
Content creators and influencers depend on their sponsorships and brand partnerships to pay their bills. DUPAY and Cookie Finance are here to help creators with services that offload all the busy work that comes with content creation. If you are in need of additional support with your finances, accounting or taxes, please book a call so we can chat about your needs!