Streaming Sponsorship Red Flags

Streaming Sponsorship Red Flags

Alex Pickett
Alex Pickett

November 14, 2022

Streaming Sponsorship Red Flags

Sponsorships are a great way to earn more money from streaming and to make streaming a profession instead of a hobby. But a bad sponsorship can be a massive headache that costs you time, energy, and money, and could even damage your brand. It is very important that you always understand the terms of a deal clearly, and that those terms are laid out in an understandable and clear format.

Immediate Red Flags to Look Out For

Here are some immediate red flags to look out for:
  1. Unclear deliverables/payment terms
  1. Agreements that list ‘using your likeness’ without specifying an end date
  1. The sponsor is asking for exclusivity in terms of your streaming content or schedule without specifying scope
  1. The sponsor is asking for access to your personal information or data that is not related to billing or falls beyond the scope of what is required to fulfill your sponsee obligations
  1. The sponsor is asking you to promote a product or service that is not relevant to your stream or audience
  1. The sponsor is asking you to do something that goes against your personal values or beliefs
  1. Slow to respond and unreliable communication

Vetting Stream Sponsorship Deals

Doing Your Research

If you are approached about a sponsorship deal, be sure to do your research and due diligence before signing anything. Look into the sponsor's reputation and track record in the industry. Read reviews from other streamers who have worked with them, and see if you can find any recurring issues or complaints.

Trust Your Gut

If a sponsor asks for something that makes you uncomfortable, it is probably not a good deal. Trust your gut, and don't be afraid to say no if something doesn't feel right.

Working with Agents

Agents play a huge role in vetting and managing sponsorship deals, and usually offer contract review. A good agent can make your life a lot easier as they handle most if not all of the business overhead related to sponsor deals. Just be sure to work with an agent that treats you well, and whom you trust. You should know exactly how much they take from each deal and the exact terms of your agreement with the agency.

Alternative Services

For creators who have bad experiences with agents or simply want to remain completely independent, you can use services like! It’s a great alternative to traditional sponsorships, and it offers a number of benefits that streamers can take advantage of.

Understanding Sponsorship Contract Terms

Payment Terms and Deadlines

Make sure you have a clear understanding of how and when you will be paid. This should include information about payment methods, frequency, and any potential deductions or fees that may apply.

Termination Clauses

Understand the terms under which either party can terminate the sponsorship agreement. Be aware of any penalties or consequences for early termination and ensure they are fair and reasonable.

Intellectual Property Rights

Clarify who owns the rights to any content you create as part of the sponsorship, and ensure you retain the rights to your own content and brand.

Liability and Indemnification

Ensure that the contract outlines each party's responsibilities regarding liability and indemnification, so you are not held responsible for the sponsor's actions or any legal disputes that may arise. You may want to look into setting up a business to handle of your liability. This will offer a lot more protection while making deals and offer a wide range of Tax benefits!

Building a Network of Trust

Reach Out to Other Streamers

Connect with other streamers who have experience with sponsorships to share advice, recommendations, and warnings about potential red flags.

Join Online Communities

Participate in online forums, social media groups, and Discord channels focused on streaming and sponsorships to stay informed about industry trends and best practices.
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