As you might have seen, Lowe’s has been heavily promoting their new Creator program, where influencers can “generate income with affiliate links, cash bonuses, sponsorship deals, and earn project-based funding.”
It’s not actually the “first and only creator network dedicated to home improvement,” at least not anymore.
Home Depot moved quickly to launch their own influencer program, where creators get more connected.
Advertisement
Via their public page, Home Depot says their program will offer affiliate commissions and a “one-stop-shop” for creators to “find the resources you need to grow your community and inspire your audience.”
The invite email I received mentions similar potential opportunities as Lowe’s.
Interestingly, Lowe’s has exclusivity terms that I didn’t see in Home Depot’s documentation anywhere. Lowe’s says:
You may not offer or provide services, including influencer services, which include, but are not limited to, authorizing, appearing in, or engaging in any sponsored media coverage, for The Home Depot two (2) days before and two (2) after posting content to promote Lowe’s for products, brands or companies without the prior written consent of Lowe’s.
If they’re paying you a flat fee for sponsored content, a 5-day exclusivity period doesn’t seem like a big deal – brands and retailers usually ask for a lot more.
If you’re an influencer or content creator first starting out with sponsorship arrangements, ALWAYS READ THE CONTRACT.
Advertisement
Some of Lowe’s other terms are a bit scary. For example:
You grant us [Lowe’s] an irrevocable, non-exclusive, royalty-free, unrestricted, unconditional, unlimited, perpetual worldwide right and license (with the right to sublicense) to (1) feature and repurpose Your Identity, along with any use of Your Statements, Your Marks and Your Content on any Lowe’s Sites and within third party digital and broadcast platforms and print platforms, including but not limited to: ad networks, email marketing, paid search listings, radio, newspapers, magazines and brochures, Facebook, Instagram, TikTok, Twitter, Tumblr, YouTube, Pinterest, Vine, Google+, website and blogs to advertise, market, promote and publicize in any manner the Program, your participation in the Program and/or that promote Lowe’s or our Products; and (2) adapt, modify, re-format and create derivative works of your Influencer Materials for any purpose.
That’s a big wall of text, so here’s what I see as the most important part:
[you grant to Lowe’s an] irrevocable, non-exclusive, royalty-free, unrestricted, unconditional, unlimited, perpetual worldwide right and license (with the right to sublicense) to (1) feature and repurpose Your Identity,… and Your Content
I wonder if Mr Beast had to agree to these same terms. See Lowe’s Partnered with MrBeast, Not a Joke.
There’s also this part:
adapt, modify, re-format and create derivative works of your Influencer Materials for any purpose.
So does that mean Lowe’s can use your content and likeness in a Super Bowl commercial without paying you anything extra?
And here is Home Depot’s Creator Checklist, also from the public website:
Clear FTC disclosure included
Product shown in authentic, natural use
No restricted content, unsafe behavior, or IP infringement
No political, sexual, or competitive references
Content aligns with brand tone and values
These and Home Depot’s other terms that I’ve seen seem fairly standard.
Home Depot’s creators program seems like it might have been rushed to match Lowe’s in a timely manner, but they also have extensive prior experience in the influencer space. I’m not seeing any red flags.
Both influencer and creator program seem to offer far greater incentives – or at least much higher compensation rates – than their affiliate programs.
Both programs also mention a lot of potential opportunities and greater rewards.
Competition like this is good for content creators. Unfortunately, the potential for rewards and further opportunities can steer content, and I’m worried about what that will mean.
There are interesting times ahead and it will be interesting to see how things play out.
Scott K
I’m not sure which part of that Lowe’s agreement is scarier. The combination of the irrevocable perpetual use and the ability to reformat and modify content could result in future content tied to you that is wildly different than the originally intended product.
Stuart
There’s also this part:
And:
I read this as “we’re going to exploit your feedback in marketing and advertising materials and not give you an [extra] penny for it.”
All of this is pretty terrifying.
I guess that, rather than negotiate on a case by case basis how content might be used beyond the influencer’s social media channels, they squeezed all of this and more into the “standard terms and conditions.”
Andrew
Not surprising for a Fortune 50 retailer. Can only imagine the back and forths their marketing teams went through with Legal.
After a certain point, they stop becoming retailers and instead become Law Firms that happen to sell hammers and fertilizer.
Robert
Stuart, I’m new ti all this, but in the potentially scary part of the Lowe’s contract you highlighted, it seems an influencer could be paid by Lowe’s for one session, and then Lowe’s doesn’t need to pay them anymore. Lowe’s can reuse and modify that imagery in perpetuity and works wide. Particularly with AI.
Stuart
A lot of contracts allow for that.
The scary part – at least to me – is “the right to sublicense.”
Usually this kind of stuff is agreed upon for specific campaigns.
I’m looking at a past contract, and it allows for rights to content to “third party affiliates and business partners of Client.”
But Lowe’s includes all this stuff in their standard terms that it seems you must agree to even enter the program.
I’ve requested reasonable modifications to contracts before, and they’ve always been accommodated.
This all just seems a bit much as a blanket agreement.
It’s not too far from what I guess are industry standards, and it needs to be highlighted because few people read terms and conditions these days. Less experienced influencers might not be aware of what they’re getting themselves into.
OR, they might accept lowball rates not knowing their content will be leveraged into advertising materials.
Years ago I refused to sign a brand ambassador agreement, but the actual opportunity sounded fun. To participate, even for free, required that I sign a contract, and so I ended up charging a fee just for the “rights to reuse” part that was obligatory.
Lowe’s terms seem to be written not just for influencer content, but freelance-type work. It actually reads much more like freelance content-for-hire work, rather than content primarily intended to reach just the influencer’s audience.
Lowe’s is also large enough that there’s no telling how content might be reused, whereas brands tend to reuse content more predictably, if at all.
There’s also a possibility that Home Depot has similar terms in flat-fee or other campaigns, rather than standard terms and conditions.
ALWAYS READ THE CONTRACT.
Jim Felt
I’m so glad ToolGuyd exists. These other captive bozos will doubtless come and (mostly?) go. I’ve zero interest. Maybe even less.
Rich
How many SKU’s does Home Depot have now? They are addicted to Sku’s – aimlessly. They are nuts. This 3rd party pimpin’ plan is the quickest way for me to bail on their “name brand”. A textbook case study of “How to go from 1st call to last call”. That’s (my) 101.
Mopar
I guess this explains all the DIY type videos I’ve been seeing (and ignoring) from various people I don’t know that were “sponsored by” Lowe’s.
Funny, those folks never get me to buy anything, but I often purchase based on ToolGuyd posts. Like buying more Tstak boxes from Amazon this morning.
S
Remember kids. If you’re not paying for a product, YOU are the product.
Between the unbelievably-real AI video edits, and their rights to edit anything involved to their own liking perpetually for all of time, this has every potential to bite every ‘creator’ back harder than a tank of starving piranha’s. Every day. For the rest of their life.
Doresoom
Lowe’s contacted me about being in their creator program at the end of 2023. At the time, setting up an account required granting them direct access to my entire YouTube account analytics, which I was not OK with. Providing them analytics reports on a video for a specific product are one thing, but not the whole channel!
Maybe they’ve changed the requirements since, but I’m surprised so many big name YouTube channels have apparently signed up under those terms.
Stuart
Home Depot looks to have the same requirement – there was no way to apply without connecting at least one social media account, so I went with the TikTok I never use.
I can understand why, but I also don’t like the idea of anyone poking around. I feel it’s akin to tracking pixels on a website, and I don’t allow those either.
Jared
It might just be an overenthusiastic lawyer making sure there’s no liability for Lowes related to this program and their use of the ensuing content. If Lowes holds all possible rights to use and modify it, then no one came come back later and complain when Lowes does something unexpected.
That doesn’t mean it’s a good deal or fair of course. In fact, those terms seem so unusual and onerous that there could be an argument that they actually only apply if Lowes takes special care to bring them to the other parties’ attention. Instead they seem to be relying on people not reading the contract…
Bill
When it comes down to it, Lowe’s needs to get people into the store. I only go there because they are closer and only if I already know what I want. I have lost count of the number of times workers at the Glendale, AZ Lowe’s don’t even acknowledge that I am there. Fix that first then expand.
Brian
How old is the Lowe’s program? It mentions Vine, which shut down way back in 2017. Could be boilerplate they haven’t updated, but still odd.
Walt Bordett
Influencer Campaigns: Yet another in the near infinite attempts to obscure the difference between facts/experience and opinion/feelings in this age of social media. Not to mention the plethora of unqualified influencers filling the bandwidth with drivel.
“Caveat Emptor”(the principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made.) still remains the best advise ever.