what is a net30, net60, or net90?

Let’s talk about money! In my last post I discussed different platforms that creators can use to get paid for their content, but now I'm going to dive into the specifics of working with brands, and getting that money into your hands.

As a creator, brands may reach out to you on your various platforms, or to an agent or manager on your behalf. Included in these emails are quick pitches about collaborations or partnerships they’d like to include you in as well as a brief of what they’d want from you as a creator. If you agree to work with a brand and settle on a desired rate for the campaign you will then receive a contract explaining all of the details for the collaboration, as well as specifics regarding payment. This is where you want to pay CLOSE ATTENTION.

Image Courtesy: Nick Youngson

Many creators work in exchange for products, myself included, and this is fine when you start out, but as you get more experience, you shouldn't be working for free or just in return for products. This is why it’s necessary to read over all documentation between you and a brand. Is this a paid collaboration or is this gifted? Is the rate enough for the amount of content they’re asking for? It’s important to read and get these answers and be content with what has been put in these contracts before signing and creating. Creators are paid in various different ways, and today I’d like to discuss the most common way between brands and creators which is by net payment terms.

What exactly is a net payment term?

According to Nerd Wallet, net terms mean that companies can get the goods that they need to operate when they need them, and wait for a certain period before payment is due.

For a creator this means that you provide a brand with your content whether that's images, videos, etc., before getting paid for any of your work. This is a very common practice in all industries that use contract workers/contractors, and is something to be aware of when singing a contract.

What are the different types of net payment terms?

There are various types of net payment terms, but the most common are Net 30, Net 60, and Net 90. Often there are Net 7 and even Net 15, but for the most part 30, 60, and 90 are usually the common ones.

So how exactly does this work? Let’s pretend that a creator signed a deal which ensures payment on Net60. Well, this creator would create content based on what’s asked of them from the brand and provide them with that content. Depending on what the contract states, you may have to send an invoice, or wait until your posts go live to start counting the days of your Net60. That means, if you send your invoice, your brand has exactly 60 days to pay you from the moment they receive it. Reminder that these are consecutive days, meaning that weekends and holidays are also included. A brand will usually follow up with the documentation needed for your payment to be processed (bank details, a W-2) and call for confirmation that these details belong to you and are accurate.

Here’s an example of an invoice that I sent for a Net60 payment following a collaboration with Milani Cosmetics back in July 2022.

It includes the date that it was sent and the brand had 60 days to pay me. Invoices also don’t need to be extremely decorative or snazzy; they can be very simple using a black and white template. I like to be a bit extra and use Canva for my invoices, just to spice them up a little bit. This template that I used is linked here.

I hope that this gave you all a little bit of clarity and information regarding how creators get paid by brands. This is just one of the many ways one can receive payment, so remember that it depends on what the brand wants to go with. I want to leave you with this piece of advice, please stay organized and try to stay on top of dates and remember when your invoices should clear. Unfortunately brands may pay late and you may not notice, which is unfair to you since you’ve already provided them with the work they wanted. Try to stay organized and never be afraid to reach out if anything is wrong, or payments are delayed. Content creating is a job that should be taken seriously, and brands should remember to pay you - on time!

Let me know if you’ve ever been paid late before, whether as a creator or another kind of contractor. And do you think that creators should start charging late fees in their contracts to ensure they aren’t being taken advantage of? I’d love to hear your thoughts. See you all in the next one!