Unfortunately, some NIL deal offers are scams. From one-sided deals that require lots of time and effort from you for very little (or no) return to companies actively looking to steal money from you, bad actors in NIL exist.
To avoid NIL scams, here are 8 things to look out for.
Check for generic email addresses
Nearly all legit NIL deals with come from a company email address, typically formatted name@brand.com or name@agency.com.
If you receive an offer from an unknown email ending in @gmail.com, @outlook.com, @yahoo.com, or another generic provider, ignore it.
Block mass emails
Watch out for emails with a bunch of general text and details automatically pasted in. If the email has typos and a bunch of exclamation points and emojis, that’s even worse.
Here’s an example email I received along with a list of “undisclosed recipients.”
Now we can offer you 2 pairs of our leggings and an exclusive 20% discount code for you and your followers in exchange for a video of TIKTOK. We are looking for TIKTOK influencers in the US region. We look through your social media and we love all your contents! I think you’re exactly the kind of influencer we’re looking for!!! So, dear! Here are our little requirements:
With bot-powered mass outreach, some “brands” are looking for any creator to promote their product. You have zero leverage in the situation, and it’s not worth responding. No matter what, DO NOT send your mailing address and contact info for the “brand” to send free product.
You’ll probably get a bunch of follow ups or other offers from the same address, so it may be a good idea to block the sender.
A lot of these emails come from a brand@gmail.com email address. If so, you can be confident it’s a scam.
Delete “DM to collab” messages
Some scammers leverage bots to “recruit” influencers on social media. They’ll use fake accounts to automatically reach out to influencers with direct messages like…
- Hi there! I’m working with [brand] and they wanted to reach out to discuss a potential sponsorship! Please DM them @fakeofficialbrand
- Hey! I’m a brand supervisor at [brand]. I love your page and think you’d be a perfect addition to our ambassador program with free products each month. Check out our official IG page @fakeofficialbrand and let us know if you’re interested!
Other times, you’ll get spammy comments like…
- We love your page – DM to collab!
- Collab? DM @brand
These schemes use new random accounts to send messages, so their main page doesn’t get shut down. Major red flag. If you check the main accounts, you’ll often find very low engagement (typically 100K+ followers with less than 1000 likes per post). This low engagement signifies the followers were likely purchased.
Just delete it all. The hassle of falling for these scams is not worth your time. To avoid getting these messages in the first place, you can adjust your hidden words preferences under Instagram settings.
Escape urgent messages
If you get an email with a subject line that starts with URGENT or ACT NOW, the deal is likely a scam.
Sometimes, agencies are looking to fill influencer campaigns quickly. If it’s legit, they’ll politely inform you of the tight timeline. Regardless, it’s often a more pleasurable experience working with companies who want YOU more than speed, and they are willing to work with your schedule.
Beware of upfront payment
Suspicious collaboration offers will sometimes offer to pay up front. Scammers will send a fraudulent check then ask you to electronically reimburse them for some related purchase, product, tax, or fee. By the time the check bounces and drains your account, you’ve already paid them something.
One particularly popular scam: someone DMs you saying they love your appearance, they want to create artwork of you, and they will pay you for it. I’ve had at least 100 bots tell me they would love to paint a mural of my face. No thank you.
Legit sponsorships will typically pay you once deliverables are completed. Some longer-term NIL deals will offer a signing bonus, but in this scenario, you’ll should have a detailed contract in place.
Read more about how legit brand deals work.
Avoid things that seem too good to be true
Real companies with legit offers have systems in place to negotiate NIL deal details before solidifying a partnership. One time, a brand offered me $30,000 in their first message without even detailing any partnership details! I had 12K Instagram followers at the time. The offer was not legit.
Any deal that offers an unfairly large sum of money is probably a scam, especially if you don’t have to sign a contract. Do your research before responding.
Make sure to have a contract in place
All paid partnerships should have a contract. Contracts are designed to protect you and the brand. They hold you accountable for completing deal deliverables, and they hold the company accountable for paying you!
If a brand doesn’t want to put a contract in place – run!
Some product gifting activities don’t require a contract. If a brand wants to send you free product in hopes you’ll promote their brand, great. They should never make you pay for the product, and you are not legally obligated to post about your experience!
Be careful with tax form and direct deposit requests
I recently received this email:
Good Morning. I am sending you a W-9 on behalf of [NIL Marketplace]. For them to issue you the 1099 needed for your taxes, Please fill out this short form and send it back to me. ASAP.
Guess what? W-9 forms ask for your social security number. This request was sent from a gmail.com mailing address.
I’m glad I was careful and didn’t get my identity stolen!
Brands and marketplaces will often need your information for tax purposes. Feel free to ask for a more secure and confidential way to upload your documents! For example, many companies can send a DocuSign form for you to fill out.
Another variation on this scam is to ask you to fill out a direct deposit form so they can pay you. Unfortunately, it’s also all the banking details they need to be able to make purchases or even drain your account. Unless it’s a well-known brand asking you to submit this information through a secure platform, I would decline to share your bank account number and routing details with any brand.
Do your research!
There are many great NIL deal offers out there, but unfortunately, you’ll often have to weed out a few scams. While I’ve covered several of the most common scams here, there are many con artists out there with other creative schemes.
If something feels a little off, use your best judgement and do thorough fact-checking. If you’re feeling unsure, ask around! As always, it’s a good idea to have an agent or attorney review any NIL deals you are considering.
Real NIL deals will seem genuine. You got this.
