Payments
Product-Only Compensation
An arrangement where a creator receives free goods instead of cash, which may still carry tax implications.
What it means in practice
The parties should record the product's agreed value, required deliverables, shipping responsibility, and return conditions. Disclosure duties and tax treatment depend on the arrangement and applicable local rules.
Why it matters
A creator must assess whether the product's usable value justifies the production effort and related obligations.
How it is used
A brand provides a product in exchange for an agreed UGC review or social post.
Also called
gifted collaboration, product in lieu of payment
Related terms
- Per Post RateThe price a creator charges for one published post on a specified platform and format.
- InvoiceThe itemized billing document a creator issues stating deliverables, amounts, taxes, dates, and payment details.
- Withholding TaxTax deducted at source from a payment and remitted to the authorities on the recipient's behalf.