Brittany RatelleOwner, Ratelle Law · Creator Attorney at Ratelle Law

Online Biz Attorney's Top 3 Tips for a Product Collab-Part 1

Name: Online Biz Attorney's Top 3 Tips for a Product Collab-Part 1
Uploaded: 2023-03-31T15:31:37+00:00
Duration: 45 s
Channel: Brittany Ratelle
Description: In this concise instructional video, an online business attorney outlines three essential steps creators and small businesses should follow when entering…

31 Mar 2023 · 1 min

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In this concise instructional video, an online business attorney outlines three essential steps creators and small businesses should follow when entering a product collaboration. First, she stresses the necessity of a written agreement, urging parties to formalize the partnership with a contract. Second, she advises clearly defining the collaboration term—whether it’s a set time frame, a licensing period, or contingent on inventory depletion—so both sides know the duration and renewal expectations. Third, she recommends specifying the financial arrangement, distinguishing between profit sharing, revenue sharing, royalties, licensing fees, flat fees, or contribution‑based payouts, to ensure each party understands how compensation will be calculated and distributed.

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Thinking about doing a collab with someone? Here are my top 3 tips to make sure that this relationship is successful. Okay, and you want all of these in writing. Shocker, I know, the lawyer thinks that you should have a contract. Number 1, let's talk about term. Okay, how long are you going to be working together? Is it for a certain amount of time or a licensing period, or until the inventory runs out and then you're going to maybe renegotiate or meet again and see if you want to keep going? Number 2, let's talk about price. Okay, let's talk about who's getting what out of this deal. Are you going to be doing a profit sharing or revenue sharing? Those are actually different things. Are you going to be going to be paying a royalty or a licensing fee or percentage of each thing that sold, or is there going to be a payout based on the services or the contributions that one party is making into this collaboration, a flat fee no matter how many you sell?