Maximize Your Brand Deals: Understanding and Negotiating Kill Fees

Contract terms are often overlooked in the influencer world. It’s easy to get so excited about a brand deal and sign you life away. Trust me, I speak from experience and did this at first! If you’re new to contracts, there are a few items you need to watch out for. I’ve rounded up a bunch of them in this post about how to carefully read branded contracts, but there’s one more you NEED to know about — it’s called a kill fee.

What is a KILL FEE and why do you need one?

Collectively defines a kill fee as a term that keeps the advertiser/brand on the hook to pay the creator something if they cancel the deal for a reason other than the creator’s breach of contract.

A kill fee protects you as a creator in the case that the brand cancels the contract.

In the world of influencer marketing, contracts can often be overlooked or rushed through in the excitement of a new brand partnership. However, understanding the terms of your contract, especially when it comes to a kill fee, is crucial to protecting yourself and your business.

A kill fee is a term in a contract that ensures the advertiser or brand must pay the creator a portion of the agreed-upon fee if they cancel the deal for reasons other than the creator’s breach of contract. This fee serves as a form of compensation for the creator’s time, effort, and potential lost opportunities.

Why You Need a Kill Fee

Having a kill fee in your contracts protects you as a creator in a few ways. Let’s dive in to the ways a kill fee can help to:

Protect Your Time

It takes time out of your day & schedule to create content! You may even work a 9-to-5, full-time job that you have to plan around. As a content creator, your schedule is valuable. A kill fee ensures that you are compensated for the work you’ve already put into a campaign if it is unexpectedly canceled.

Maintain Your Schedule

Many creators plan their content schedule around branded campaigns. A kill fee protects you from losing out on other opportunities because you’ve committed to a campaign that is later canceled.

Financial Security

For many creators, branded campaigns are a significant source of income. A kill fee ensures that you still receive a portion of the payment, even if the campaign is canceled. If you’re relying on income from these campaigns to pay your bills, factor this in!

Exclusivity

What if you signed an exclusivity contract with a brand and couldn’t work with other brands in that category for a contracted amount of time? If you’ve signed an exclusivity contract with a brand, canceling the campaign could mean missing out on other opportunities in that category. A kill fee helps mitigate this risk.

Bottom line

Having a kill fee in your contracts allows you to protect yourself in the case the brand cancels the campaign. I recently negotiated a 30% kill fee with an agency after they cancelled my contract due to brand guidelines changing. I had already created all of the assets for the campaign prior to the guidelines changing, so this kill fee protected me as I was able to reclaim 30% of the contracted campaign payment for the work I had done thus far.

Update Your Contracts to Include a Kill Fee

Don’t wait until you get burned by a brand. Consider adding a kill clause to your contracts to protect yourself in the event the campaign is cancelled — I know I will moving forward!

While it may seem easy to just sign on the dotted line, DON’T! Branded contracts require careful review –– keep these items in mind to protect yourself.

Don’t wait until you’re in a difficult situation with a brand to consider adding a kill fee to your contracts. Protect yourself and your business by carefully reviewing and negotiating your contracts to include this important clause.

Maximize Your Brand Deals: Understanding and Negotiating Kill Fees

What is a KILL FEE and why do you need one?