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Brief, payment, contract and ad labels

Lesson 26 of 31 in the course “Million Dollar Sales Course”. Free, with animations and a quiz.

The brief: a one-page assignment

Last lesson you picked 3–5 creators with real audiences. Now you need to explain what you expect from them. That’s what a brief is for: a short creative assignment. Hennessy jokes that ad briefs are never brief: they’re often 15 pages with charts. Misha only needs one. What goes in it: who you are and what you sell, who the ad is for, three key messages, what must be shown, what’s off-limits, the link or promo code, and deadlines. Hennessy explains why creators must read the brief: if they don’t follow it, the brand can ask for a full reshoot or refuse to pay. So the brief protects both sides: you get what you need, and the creator knows exactly what they’re paid for.

In their own words, not off a script

A brief sets the frame, but it doesn’t write the creator’s lines. Hennessy warns that reading a script word for word makes an ad sound like a bad car commercial. The audience trusts the creator for their style, so give them three key messages and freedom in how to deliver them. Hennessy also especially values creators who try a product before agreeing to promote it: if they say yes, it means they really like it. So the first thing Misha does is give the creator free access to the course. If the creator goes through a couple of lessons and edits a video with them, the recommendation will be honest, and viewers can feel that better than anything.

Flat fee, percentage or barter

There are three ways to pay a creator. Flat fee: a set amount per post. It’s clear for the creator, but the risk is yours: if there are no sales, the money is already spent. Percentage: the creator gets a share of every sale through their link or promo code, like the partner in lesson 23. There’s almost no risk for you, but the creator has to believe in the product. Barter: product instead of money. Hennessy advises creators to work for free only if it’s a dream brand, a trip, or the brand promotes them in return. Otherwise it’s time taken from their own content. With a small budget, a mix suits Misha: the course for free plus an honest percentage of sales via promo code. If the creator wants a flat fee, he can offer a small one with a percentage on top.

What the price is made of

To negotiate fairly, it helps to understand how a creator sets their price. Hennessy gives a formula: distribution fee plus talent fee. The distribution fee depends on five things: follower count, engagement, content quality, recognition and skills, and how well the audience matches the brand’s target. The talent fee is the cost of production (photographer, location, props) plus the creator’s time. Hennessy suggests beginners start at $25 an hour and lists where the hours go: negotiating, reading the brief, scouting a location, building a mood board, shooting. As a reference, she writes that for a creator with 100,000 followers, asking around $4,000 for a shoot day and an Instagram post is reasonable. That’s the US and a 2018 book. Your small creator will charge far less, but the logic is the same: you pay for access to the audience and for the work.

The contract: five points

Hennessy repeats it: never sign a contract without truly reading it. Even a simple agreement with a creator should answer five questions. Deliverables: an exact list, like one video up to 60 seconds and one story with a link. Dates: when it goes live and how long it has to stay up. Exclusivity: which brands the creator won’t promote and for how long. Hennessy thinks one month without the top three competitors is fair, and longer should cost more. Usage: whether you may reuse the video on your channels or in paid ads, which also raises the price. Payment: the amount, the percentage and the terms, for example within 30 days of the invoice. And build a buffer into the deadline: Hennessy tells how one creator dragged out a shoot for weeks, and only the buffer before the client’s deadline saved her. If you’re under 18, sign the contract together with a parent.

Label your ads

Viewers should know when a post is an ad. Hennessy puts it this way: who wants to buy a lipstick on a creator’s recommendation and then find out they were simply paid? It’s a matter of trust and of law. In the US, the FTC (Federal Trade Commission) oversees this: the disclosure has to be hard to miss, and a platform’s built-in button alone may not be enough. A gift or free product also counts as a connection to the brand that must be disclosed. In Russia, since September 1, 2022, online ads must be labeled: the word «Реклама» (“Ad”), the advertiser’s name and an erid token issued by an advertising data operator (ORD). Violations bring hefty fines. Every country has its own rules, so check your local law before launching. And Hennessy doesn’t understand why anyone would hide an ad: if a creator follows the 70/30 rule, viewers don’t mind.

Measure what worked

Give each creator their own link or promo code so sales don’t get mixed up. After the post goes live, gather the numbers: clicks, sales, revenue and what you paid. Example: creator A got $150 and brought 9 sales at $49, which is $441, almost three times what you put in. Creator B got $60 and brought 6 sales, which is $294, almost five times as much. Even though B had fewer sales, B is the better deal and worth working with again. Hennessy adds a sign of a strong creator: their sponsored posts get as many reactions as their regular ones. That means the audience trusts them even in ads. Book the ones who paid off again. Hennessy herself keeps hiring creators who were easy to work with.

Do it yourself: launch with a creator

Put it all together with the card. Brief: one page with three key messages, what to show, what’s off-limits, a link and deadlines. Access: give the creator the product in advance. Payment: flat fee, percentage or a mix, written out in words and numbers. Contract: deliverables, go-live dates, exclusivity, usage rights, payment, and a deadline with a buffer. Label: the ad is marked according to your country’s law. Tracking: each creator has their own link or promo code, plus a table of payments and sales. Level 5 is done. In level 6 we’ll cover your team: who to hire first, how to hand off tasks and how to manage people.

Check yourself

  1. What should he offer?
    Correct answer: The course for free and a percentage of sales via promo code. There’s almost no risk for Misha: he only pays out of sales. The creator gets a product they can check for themselves and an honest income, like the partner in lesson 23.
  2. What’s the better move?
    Correct answer: Give three key messages and freedom in delivery. The audience trusts the creator for their style. The key messages from the brief stay in, and it all sounds natural.
  3. What should he say?
    Correct answer: Label the ad clearly and visibly. Hidden ads destroy trust, and in many countries they also break the law. The FTC explicitly treats a free product as a brand connection that must be disclosed.
  4. Who’s the better one to keep working with?
    Correct answer: B: every dollar came back almost five times. A: 9 × $49 = $441, about ×2.9 the fee. B: 6 × $49 = $294, about ×4.9. B paid off better.

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