I have a confession. I had to consult Google to find out what a UGC Creator was. But when I did, I had a face-slap moment and quickly realised I already knew what user-generated content (UGC) was.

Why didn’t I know the term? Because we watch user-generated content all the time across all types of platforms and the news without realising what it is. It is that seamless.

I am writing this article because I want you to be able to connect the dots too. And, as a small business owner in Australia, you should consider using user-generated content for your brand.

This article is for:

• business owners looking to implement user generated content in their business;

• UGC content creators wondering how to get a start or formalise their contract arrangements; and

• for anyone who wants to understand what UGC is and how it works in Australia.

Thing 1 - what is UGC?

User-generated content (UGC) is a general term that describes content created by people or customers (users) rather than brands.

UGC can include:

• photos;

• videos;

• reviews;

• testimonials; and

• social media posts

made by the customers or followers of brands (called UGC Creators).

Sometimes the content created by a UGC Creator is the result of a gifted product from a brand to the UGC creator in exchange for a review or exposure online. But other times it can be spontaneous and unsolicited just because the UGC creator is a fan of the brand (or hopes the brand might start sending them free stuff if they get enough exposure).

For example, if someone buys an outfit from a business and posts a photo wearing it on Instagram, that's UGC. In fact, I have done this myself because I loved the service or the product - I certainly haven’t been gifted any items.

Clever brands are creating “community” hashtags or places where the content can be stored and featuring some of that content in their own posts. This can create some ownership issues where content is concerned, but we will get to that below!

When potential customers see real people enjoying the products, they're more likely to trust the brand. Because UGC is often a murky mix of unsolicited and solicited content, it feels more authentic. And it is this authenticity that boosts the credibility of a brand.

The fact that some of the videos go viral on platforms like Tik Tok and Instagram help too.

Thing 2 – why business owners should consider UGC

UGC can be incredibly beneficial for business owners and brands.

First up, when compared to an influencer post it can be far more cost-effective with it being free, a gifted product or at the most a couple of hundred dollars a post (where it is paid). Whereas an influencer can cost a lot and you never know how much exposure it will get and if the influencer will take it seriously.

And honestly, when I see an influencer living a life so far removed from mine I am less inclined to connect with them and whatever product they are spruiking. But when I see an everyday peri-menopausal woman my age with a shirt that looks nice on her, then I probably AM going to pay more attention and give my money to that brand.

This rawness or authenticity can create trust and boost engagement for the brand. It makes potential and existing customers feel more connected to the brand and want to support a brand that keeps it real. This in turn creates brand engagement.

Thing 3 – how to find UGC Creators

Finding UGC creators is probably easier than you might think and you can look at a few different ways to do this including:

• creating a community or brand hashtag – this allows you to discover posts from unsolicited UGC Creators who love your brand and give you love just because they love your stuff. If they have followers and have created something really fun, you might decide to gift them product in exchange for more. This is particularly effective for cosmetics and fashion (from my extensive social media research, aka scrolling on Instagram!)

• look for social media tags – like the hashtag, you will find customers who tag your brand in their posts or stories. This is a goldmine and worth investing some time into leveraging.

• Contests and campaigns – consider running a campaign to encourage customers to share their experiences with your products. Offering incentives like discounts or giveaways can help encourage participation. But, just be careful your competition complies with the law and that you have the right competition Ts & Cs in place!

• UGC marketplaces – these are marketplaces matching brands and UGC creators online now. Platforms like Creator Flow and StarNOW are good examples – you can put a call out and then one UGC Creator can lead you to others as they are a tight community out there

  Thing 3 – how to find UGC Creators

  Finding UGC creators is probably easier than you might think and you can look at a few different ways to do this including:

Thing 4 - how does the brand make sure the UGC Creator does what they want?

Ideally a brand wants a genuine review and should make sure it’s product is great. But, there are a few things you can do to make sure your UGC aligns with the brand and marketing goals when you are a small business in Australia wanting to use UGC creators. You do this by:

• creating a clear brief to your UGC creator - these are clear guidelines and instructions on what kind of content you are looking for, it can be a specific theme, style or message let them know where it should be filmed, eg at home, in nature, in a shopping centre etc.

• share inspiration of great UGC examples with your creators to inspire your customers to join in the fun and get featured on your site. If they will get more eyes on their posts, they may be motivated to join a trend.

• engaging and acknowledging your audience - make sure you engage with users who create user generated content and show appreciation. This will encourage other customers or users to also create content and content that it genuinely spontaneous.

Thing 5 - do you need a UGC creator contract between a UGC Creator and a brand?

It is difficult to create a contractual relationship for the unsolicited UGC creators. BUT, where your user-generated content is a strategy, you are running a larger campaign or where you are a UGC Creator and do this as a side hustle or your main hustle, a contract between a UGC Creator and Brand is essential.

These are the reasons why it is a must:

1. it solidifies the deliverables the UGC creator must deliver to the brand;

2. it makes sure everyone is on the same page;

3. it sets expectations and timelines;

4. it gives the brand usage rights - until those rights are granted, the ownership of the content remains with the UGC creator; and

5. it offers protection to both the UGC Creator and brand.

This contract in our online store, covers these items and more.

The future of UGC in marketing

As you can see from this article, user generated content in your marketing is powerful. It is a great way to build trust and authenticity and connect to audiences.

By understanding what UGC is, how to find creators and the importance of having an agreement in place, brands can effectively use it in marketing and UGC creators can grow their business. Happy content creating!

PS. If you are after a UGC Contract - you can find one here!