In short: Money reaches a UGC creator in three ways: through a platform that takes the brand’s payment and passes it on, through an invoice you send to the brand, or as a commission when something sells. Each has its own timing and its own deductions. Check three things before you start: when you are paid, what is taken from the payout, and what you must report to the tax authorities. This is general information, not tax advice.
Three ways the money arrives
A platform pays you
The platform collects the brand’s payment and passes it on to you.
When you are paid: Usually after the brand approves the work. Collabstr’s pricing page, for example, says brand payments are held in escrow and released after approval.
Watch for: Fees taken from your payout, minimum payout amounts and identity checks.
You invoice the brand
You agree terms in writing, deliver, and send an invoice.
When you are paid: On the date in your agreement. One contract guide’s example is payment within 30 days of invoice, with a late fee.
Watch for: Chasing late payments. Get amount, due date and late-payment terms in writing; see the UGC contract checklist.
Commission
You are paid when a sale or a referral happens, as in affiliate and referral programs.
When you are paid: After the sale completes or on the program’s schedule. TikTok Shop affiliate commission is paid automatically from the product’s retail price once a sale completes; Referral Rock and GrowSurf describe affiliate payouts as often monthly. JoinBrands and Contra pay referral rewards 60 and 30 days after the qualifying payment.
Watch for: It only pays if sales happen. Treat it as a bonus.
What gets taken from your payout
The payout amount shown on a campaign and the amount that lands in your account are not always the same. Platforms differ, so read the fee terms first:
- Collabstr’s pricing page says creators pay a separate 15% fee on their payout.
- Billo’s pricing page says its fee is part of what brands pay and is never deducted from creator pay.
- Payment providers can charge their own fees or convert currency. Look at the provider’s fee page for your country.
Whatever the platform, work out your rate on what you keep. The method for pricing is in what UGC creators charge and the real costs are in how much a UGC creator can earn.
How long it takes
Stripe, which processes payouts for many platforms, says that after an account receives its first live payment, the initial payout is typically scheduled to complete within 7–14 days, depending on industry, country and risk level. Later payouts follow the account’s payout schedule, and your bank may need extra time to make the funds available. Platforms add their own rules on top, such as a minimum balance before a payout is made, so the first payment is usually the slowest.
Identity checks come first
Payment platforms are required to know who they pay. Stripe’s documentation says platforms using Connect collect information about the person receiving funds and that Stripe then tries to verify it; in some cases it asks for more, for example a scan of a government-issued ID or a proof of address. Stripe temporarily pauses payouts if requested information is not provided or verified. Doing this at sign-up, with documents ready, avoids a delay at the moment you are waiting for money.
Invoices
Whether you must issue an invoice, and what it must contain, depends on your country and on whether the platform issues documents for you. This is a general checklist, not tax advice:
- Your name and address, and the client’s name and address.
- An invoice number and the date.
- What the invoice is for, for example “3 UGC videos for the [campaign] campaign”.
- The amount and currency, with any tax shown the way your country requires.
- Payment terms and where to pay.
Taxes: what to look up
Income from making videos for brands is generally business income, and rules differ by country. Two examples of official guidance:
- United States. The IRS says self-employed people generally pay Social Security and Medicare tax (self-employment tax) as well as income tax, generally pay estimated tax in quarterly installments because no employer withholds it, and must file a return if their net self-employment earnings were $400 or more.
- United Kingdom. GOV.UK says that if you work for yourself you may need to report your income to HMRC.
For other countries, check your tax authority’s page for freelancers or sole traders. If you charge VAT or a similar tax, find out whether the price you agree includes it. When you are unsure, ask a tax adviser; it costs far less than a mistake.
Keep records from day one
- Every payout: date, brand or platform, amount and what it was for.
- Every invoice you issue, and every statement the platform gives you.
- Costs you incur for the work, such as props or equipment, with receipts.
- The agreement for each job, in case you need to show what was promised.
On Usicri
A brand’s card is charged when it approves a video, and Stripe processes the payment (section 6 of the Terms of Service). Approved videos add up to a balance, and once it reaches the minimum payout of 20 USD a transfer to your connected Stripe account is issued automatically; there is nothing to request. Until you have connected a working Stripe account, the amount stays reserved for you. You keep 100% of the payout amount, and a partner commission is paid out together with it and counts towards the minimum. A payout can be delayed while a payment is disputed, refunded or charged back, and Stripe verifies your identity when you connect.
On taxes and invoices (section 7): every user is responsible for their own taxes. The payout amount is the total price for the video, so unless you and the brand agree otherwise in writing it includes any VAT you owe on it. Usicri invoices the brand for its fee; it does not issue invoices on your behalf, and on request it gives you the details of each approved video and payout (date, brand, campaign, amount) that you need for your own. Platforms like Usicri can also be legally required to collect tax information from creators and report it, and may hold payouts until it is provided. How to keep your first weeks simple is in how to become a UGC creator.
The steps from picking a campaign to payout are in how Usicri works for creators.