Everything You Need to Know About: UGC Usage rights
As the UGC (User-Generated Content) space in advertising continues to explode, the conversation around usage rights is heating up… and for good reason. If you’re a Meta ad buyer, creative strategist, or brand owner sourcing user-generated content to power your e-comm performance, understanding how to lock down perpetual usage rights is no longer up for debate, it’s absolutely necessary to the success of your advertising efforts.
In this blog, we’re cutting through the chaos of creator pricing structures and inconsistent deliverables to get to the bottom of: who owns the content, how usage rights are structured, and what to watch out for when negotiating with creators. Spoiler alert: there’s a lot of fluff out there, but usage rights don’t have to be complicated.
This conversation started as a Slack thread in the Foxwell Founders Membership, helping members navigate UGC sourcing and… yep, you guessed it: usage rights. The Founders Membership is a community of expert ad buyers, brand owners, creative strategists, email marketers, and more, and we’d love to have you. Click the link below to take a tour of the membership and see what it’s all about, and if it’s a good fit for you.
Who Actually Owns UGC Once It’s Delivered?
Short answer: it depends on the contract. The right answer: The person, brand, or agency who PAID for the content to be created should always own it (in our opinion).
Once a brand (or agency, or whomever) pays for content, they should retain full ownership of the deliverables. No ifs, ands, or usage fees. The only gray area is whether the creator includes raw footage and B-roll alongside the final edit. That can be negotiable to an extent, but the finished asset? That should be yours outright. Other caveats here are if the creator or influencer is posting to their feeds and the brand is profiting off of their account (name, image, likeness) by running ads via their page (aka Whitelisting). In this case, a monthly usage fee is fair and should be expected. There’s more on this further down in this blog, so keep reading. But keep in mind, in this case, you’re paying to use their account for ads, not paying for the usage of the content itself – there’s a difference.
Too many brands assume payment automatically implies ownership. It doesn’t. Spell it out in writing. Make “full marketing usage rights” a non-negotiable clause in your briefs, contracts, and plain text emails to the creator.
Why Addressing Usage Rights Upfront is Non-Negotiable
Most UGC creators won’t bring up usage rights unless they’re planning to charge extra. That’s why the one paying for and sourcing the creative needs to bring it up first.
From a creative strategy perspective, you need clean, clear permission to use content wherever and however you want: Meta ads, TikTok ads, mashups, email marketing, product pages, retargeting carousels—the list goes on. Without perpetual rights, you're either limiting your scale, ruining future ad performance by having to turn off an ad that’s working, or risking platform policy violations or legal issues with creators due to breach of contract.
Here’s what to do:
Include a simple clause in your briefs:
“Brand will own all usage rights in perpetuity. Content may be used for paid and organic campaigns across any marketing channels.”Flag any issues or misunderstandings early. If a creator wants to negotiate usage, you’ll know before production begins.
Ensure you have listed what content you will own in writing. This doesn’t have to be in a signed contract - written in email and an email response with the creator agreeing to your terms is sufficient.
What Do Usage Rights Usually Look Like?
The UGC space is still the wild west. There’s no standard, and every creator’s rate card is different. But here’s what we’re seeing:
Some creators ask to include 1–3 months of usage in the base price, then charge a recurring fee (usually monthly) to continue running the content.
Others tack on usage as a fixed percentage of the base rate (e.g., 30% of the video rate per month).
A few try to gate repurposing their content, like disallowing mashups or edits—unless you pay more.
Every creator is different, but many will agree to a base rate (one-time fee) that includes usage rights in perpetuity at a slightly higher rate than their standard UGC package without usage rights.
This fragmented model may work for influencers or ambassador partnerships. But for performance creative? It’s a logistical nightmare.
Managing dozens of assets with different expiration dates is an operational burden most media buyers don’t have time for. It’s easy to lose track, get dinged for unauthorized usage, or under-leverage great content just to avoid extra fees.
The Case for Perpetual Rights (and How to Get Them)
Every brand should aim for usage in perpetuity. No recurring charges. No follow-ups. No confusion.
Here’s how to position it:
Ask the creator for their base video rate.
Then ask: “What’s your rate for this video including full usage rights in perpetuity?”
Don’t accept add-on fees. Offer a slightly higher flat rate instead.
Example:
Creator charges $400/video + $200/month for usage.
You counter: “We don’t pay monthly usage fees. We require perpetual usage. Would you do $500 flat for the video with all rights included?”
Nine times out of ten, they say yes.
Why? Because most creators don’t want to lose the deal—and in this oversaturated market, the power has shifted back to brands. If one creator walks, there are ten more ready to shoot tomorrow.
A Note on Whitelisting: The Only Exception
The one caveat to perpetual rights? Whitelisting. If you're running paid ads through the creator’s handle, you’re not buying the content—you’re renting their account. That typically does come with a monthly cost, and it's justified.
Even then, clarify expectations:
Can you only run their content through their handle? Any exceptions to running other content there?
Are mashups allowed?
Will you be in charge of invoicing the brand monthly and keeping track of requesting payments?
Do you need notice (if so, how long) should the brand decide to stop whitelisting through your account?
Final Thoughts: Don’t Overcomplicate It
Usage rights don’t have to be a headache. The best creative strategists are clear, firm, and consistent:
Include perpetual usage rights in all briefs
Don’t pay monthly usage fees
Offer fair, one-time compensation
Walk away if a creator overcomplicates things
UGC is powerful. But the ROI only works when you actually own the assets you’re optimizing.
And in this market? Ownership is leverage.
Need help building a scalable UGC sourcing system that includes airtight usage rights and creative briefs that convert? This is exactly what we do in the Foxwell Founders Membership — we’ve got templates, creator outreach scripts, and strategies that’ll make sourcing UGC feel like a breeze.