How to Safeguard Your Business Using Contracts

I made one costly agency mistake last year. and it cost me $210,000 in revenue I won't get back... I failed to bulletproof our contracts, and more importantly, to stick to them and take legal action when needed. Contracts means nothing if you do not enforce them. And contracts can work against you if you don't craft language properly. We have non-negotiables in our contracts now. If a client does not agree or wants to change them, we part ways. We will not risk our company revenue — aka money we need to support 50 people's lives that work for us — for a single client. START HERE: 1. Hire a lawyer. Suck it up, pay the fees, and have them build you a bulletproof contract. 2. Stick to the contract template. Do not cave. If a client does not want to abide, tell them to hit the road. There are plenty of clients out there. If someone is trying to take away all of your terms, that's a red flag already. 3. Get a collections firm on retainer. They'll take 7-15% of collected money, but do all of the work. Plus, they have full legal teams to escalate and litigate on your behalf. This has helped us collect $70,000+ in the last year that otherwise was lost. BULLETPROOF YOUR CONTRACTS: 1. Strict, clear cancellation terms. State how they can cancel, when, and for what reason. 2. Make deliverables / work product objective, not subjective. For example, do not say "we will deliver content to your liking" but "We will deliver XX words with XX score on XX tool, with XX words for revision." There should be no room for interpretation and he said/she said. 3. Collect payment upfront, before work is started. Your contract should read "Agency shall invoice Client by the 1st day of each month in advance of any Services being performed for that month. Agency will not begin services until payment is received." This holds the client contractually obligated to pay you, and enables you to not do any work until paid. Meaning the client could refuse to pay, you can send it to collections, get paid, and then do the work, and the client cannot say "you didn't give me any work, so I won't pay you." 4. Always add late fees, and make them meaningful. Late fees should be added daily or weekly based on nonpayment, and should sting. Give them a free pass one time, but never twice. 5. Always set the term and length of engagement a client is committed to. Not having these in my contract process cost me $200k in money I cannot collect. Some of the best lessons are learned the hard way. Implement my advice above and save yourself the pain 😂

Let’s bust some myths about contracts in the creator economy. Spoiler: It’s not just about getting paid—it’s about protecting your future. In the fast lane of the creator economy, contracts can seem like just another obstacle before the paycheck. But here’s the truth: a solid contract is your secret weapon. It guards your creative rights, sets the tone with brands, and lays the foundation for long-term success. Here are five things creators often overlook: (1) IP Ownership: Who owns your content after it’s created? If you’re not careful, you might give away your IP—and with it, control over your brand. Always ensure you retain ownership or, at the very least, have a say in its future use. (2) Exclusivity Clauses: Are you tied down to one brand? Exclusivity can limit your chances to work with others. Know the duration and scope (e.g., promoting one lipstick shouldn’t block you from promoting ALL other makeup and skincare) to avoid stunting your growth. (3) Moral Clauses: If your deal has a morals clause, the brand can cut ties if they think you could damage their image. But what about your image? Negotiate mutual moral clauses so you can walk away if the brand’s actions threaten your reputation too. (4) Payment Terms: It’s not just about the amount—it’s about when and how you get paid. Clear terms keep your cash flow steady and save you from chasing unpaid invoices. (5) Term and Termination: How long is the contract, and when/how can it be terminated? Understanding this gives you the flexibility to move on when the time is right—no surprises. Contracts aren’t just about the present; they’re about securing your future. Before you sign, make sure you understand every clause, and don’t hesitate to get expert advice (entertainment lawyers like me can help you with this!). Your future self will thank you.

When it comes to risk, you can only control what you can control. This can be scary for an entrepreneur. How do you alleviate some of that fear? Take advantage of every opportunity to be the one who controls your risk. Last week, a friend reached out to me for advice. She was struggling with a consulting gig that was not going well and wanted to know if she had any options besides terminating the contract. What she was really asking was: Does my contract give me any leverage to renegotiate? So, I took a look. And what I found was one of the most poorly drafted contracts I have ever seen. Worse yet, it offered my friend almost no protection at all. The problem? The other party drafted the contract. And—unsurprisingly—it was heavily skewed in the other party’s favor. How could my friend have better protected her business? By having the contract drafted herself. Too often, entrepreneurs let the other party take the lead in drafting agreements. And by doing so, they miss a golden opportunity to proactively PROTECT THEMSELVES FROM RISK. But being the party who writes the contract gives you significant advantages: ✅ Control the Terms – You shape the deal to align with your business needs. ✅ Limit Risk – You ensure key protections like indemnification, dispute resolution, and favorable payment terms are included. ✅ Avoid Surprises – A well-crafted contract prevents loopholes that could hurt you later. ✅ Save Time – Reviewing a contract you wrote is always easier than fixing someone else’s biased document. ✅ Enhance Negotiation Power – Starting with your terms puts you in a position of strength instead of reacting to someone else's. My advice to my friend? Try to renegotiate the terms. It's always worth a conversation—especially if the current agreement isn’t working. Lesson learned: The best way to protect your business is to take control from the start. If you are letting the other party draft the contract, you are giving away your power.