The rise of platforms like OnlyFans has revolutionized how creators can monetize their content and engage with their fans. However, as with any industry, along with opportunities, there are those who seek to exploit young and trusting talents through unscrupulous contracts. This article will discuss a recent case where a client approached the Daily Law Group for advice on a proposed talent management contract for their OnlyFans account, highlighting the red flags and providing guidance on how to protect yourself from unfair agreements. It is crucial for talent, to be aware of their rights and the potential pitfalls of entering into contracts with unscrupulous management companies — even if you know someone else who has done it too. A $2,500 investment with a lawyer to review a contract pays dividends that last. In the original contract, the management company would have owned all intellectual property rights to the talent’s content, including their image and likeness. This type of clause allows the management company to use the talent’s image in ways they may not approve of, even using AI technology to create content that the talent never agreed to participate in. In the revised contract we drafted, the talent retains all intellectual property rights, including copyrights, to their content created and shared on their OnlyFans account and related platforms. This ensures the talent maintains control over their image and likeness and prevents the management company from exploiting their content without consent. The original contract included a termination clause that required mutual consent from both parties to end the agreement. This could potentially trap the talent in an unfavorable contract, as the management company could refuse to consent to termination, effectively holding the talent hostage within the agreement. Our revised termination clause allows for unilateral termination by the talent under specific circumstances, such as the management company’s failure to meet its obligations. This provides the talent with an escape route and ensures they maintain control over their career. In the original contract, the management company would have taken a large percentage of the talent’s earnings, leaving them with a disproportionately small share of their own revenue. This type of arrangement is not only unfair to the talent but also disincentivizes them from producing high-quality content. Our revised contract recommends a more equitable profit-sharing structure that aligns the interests of both parties and fairly compensates the talent for their work. The original contract proposed a long-term exclusivity arrangement, restricting the talent from working with other management companies or pursuing other opportunities. This would have limited the talent’s career growth and potentially stunted their income potential. In our revised contract, we shortened the duration of the exclusivity clause and included provisions that allow the talent to explore additional opportunities outside of the management company, promoting their long-term career development. The original contract allowed the management company to hold the talent’s earnings, potentially delaying or preventing the talent from accessing their own income. This is a major red flag, as it could lead to financial exploitation and abuse. Our revised contract ensures that the talent’s earnings are paid directly to them or held in a trust account with clear terms for regular payment. Given the numerous red flags and unfair terms in the original contract, we advised our client to avoid working with the proposed manager. It is crucial for talents to partner with reputable and trustworthy management companies that prioritize their best interests and career growth. When entering into a talent management agreement, it is important to establish trust and transparency between both parties. In this case, the original contract raised significant concerns about the management company’s intentions, and we advised the talent to seek a more reliable and transparent partner. Young OnlyFans creators must be vigilant when entering into contracts with management companies. It is essential to thoroughly read and understand the terms of any agreement and seek legal advice if necessary. By being aware of potential red flags in talent management contracts, creators can protect themselves from exploitation and focus on building successful careers on platforms like OnlyFans. At the Daily Law Group, we are committed to empowering and protecting content creators by educating them about contract law and the importance of understanding the terms of any agreement they enter into. With the right knowledge and support, creators can navigate the world of talent management contracts with confidence. If you wish to consult with an attorney about your agreements, contact the Daily Law Group, today. info@dailylawgroup.com (949) 662-6000
Protecting your Rights: A Cautionary Tale for OnlyFans Creators
1) Intellectual Property and Image Rights
2) Termination
3) Unbalanced Profit Distribution
4) Exclusivity and Duration
5) Holding the Money
6) Legitimate Talent Agency
7) Trust and Transparency
Conclusion
