Let’s be real: most designers don’t get into this business because we love reading contracts. But after years of white labeling, I’ve learned to pay attention, because the fine print is where your freedom either lives or dies.
Recently, a fellow WL designer sent me a contract they were asked to sign. And whew. Let’s just say… it was a masterclass in how not to write an independent contractor agreement.
The Red Flags in This Contract
On the surface, it looked like a standard agreement: scope, payment terms, contractor status. But the deeper I read, the more my jaw dropped. Here’s just a taste:
- Termination Terms That Penalize the Contractor If the contractor left before finishing a project, they were on the hook for the agency’s economic damages. Excuse me? That’s not partnership, that’s hostage-taking.
- Payment “At the Company’s Discretion” The contract literally gave the company the right to decide if work was “satisfactorily performed” before paying the contractor. Translation: we’ll pay you if we feel like it. 🚩
- Payment Contingent on Agency’s Client Paying Yep, you read that right. The contractor only got paid if the agency’s client paid them first. If the client defaulted, the contractor got nothing. Seriously, WTF?
- Suspension Clause Buried in Section 2(b) was a line saying the contractor agreed not to accept another project for at least five business days after suspension. Translation: if they put a project on hold, you’re forced to sit around, unavailable to take on other paid work. That’s not a suspension — that’s control without compensation.
- Portfolio Rights Revoked at Any Time Contractors were granted permission to share work in their portfolio… but the company could revoke that at any time. Which means you could lose the right to showcase your own work even years later.
- Indemnification All on the Contractor If something went wrong, the contractor had to indemnify (aka cover the legal costs for) the company. One-sided liability much?
- Control Without Benefits The contract went out of its way to declare the contractor was not an employee (no benefits, no protections), while still layering in rules that looked a lot like employer-level control. That’s not independence, that’s misclassification.
- “Bonuses” That Aren’t Actually Bonuses I’ve seen contracts frame things like “being featured in our masterclass” or “included as a case study” as if they’re perks. Exposure is not a benefit. If you’re adding value to their program, that’s work , and work should be compensated.
- Other “Extras” That Don’t Belong in WL Contracts Think vague deliverables being tacked on after the fact, referral kickbacks (like 30%) with no prior conversation, or even language claiming ownership of your code snippets. None of that belongs in a healthy White Label contract.
Why This Matters
White Label designers are independent business owners. We’re not employees, and we’re not interns. When a contract skews this far in one direction, it creates an unhealthy power dynamic where the agency holds all the control, and the designer holds all the risk.
And let’s be honest: that’s not a partnership. That’s exploitation.
What a Fair WL Contract Should Include
Contracts don’t have to be scary or one-sided. A strong agreement protects both sides. Here’s what should be in a healthy White Label contract:
- Clear scope + deliverables → no gray area about what’s included.
- Fair payment terms → deposits upfront, balance due on delivery, with timelines spelled out.
- Reasonable termination clauses → if either party leaves, the contractor is paid for work completed, period.
- Mutual confidentiality + indemnification → responsibility is shared, not dumped on one side.
- Portfolio rights → contractor can showcase the work (with proper credit rules if needed), not have it yanked at random.
- Independent contractor status that’s real → freedom over how/when work is done, not pseudo-employment without benefits.
For Agency Owners
If you’re working with WL designers, contracts like the one I reviewed are doing you zero favors. You’re not protecting your business, you’re burning bridges with talented people who could’ve been long-term partners. Fair contracts = better partnerships = better client outcomes.
The Bottom Line
Bad contracts kill good partnerships.
White Label work thrives on clarity, trust, and fairness, not on fear-driven clauses that punish one side while protecting the other.
So if you’re an agency, review your contract today and ask: Would I sign this if the roles were reversed?
And if you’re a WL designer, remember: your contract isn’t just paperwork. It’s your safety net.
For Agency Owners:
Want contracts that actually attract long-term WL partners instead of scaring them off? Start with fairness. I offer WL support that’s rooted in clear agreements and mutual respect. Learn more.
For Designers:
Ready to build WL partnerships where contracts support you instead of trapping you? The White Label Way shows you how to set boundaries and protect your value.
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