When building a digital course through a co-production model, it’s easy to get excited about the creative process, launch strategies, and sales projections. However, one of the most important elements in a successful co-production is also one of the least talked about: the contract.
A co-production contract defines the rights, responsibilities, expectations, and compensation of each party involved. It’s not just a legal document—it’s a framework that protects both the expert and the co-producer, preventing misunderstandings, disputes, or financial losses.
In this article, you’ll learn how to structure a co-production contract for digital courses, what clauses to include, and how to ensure it supports a fair, professional, and scalable partnership.
Why You Need a Co-Production Contract
Whether you’re working with a close friend or someone you met online, a contract is essential. It protects the business and the relationship by:
- Clarifying who is responsible for what
- Defining how revenue will be shared
- Setting expectations on timelines and deliverables
- Addressing what happens in case of conflict or exit
- Protecting intellectual property and confidential information
Without a contract, verbal agreements can become sources of confusion or conflict—especially when money is involved.
When to Create the Contract
The ideal time to draft the contract is before you begin any course development. If you’re already in the middle of production, pause and get this agreement in place as soon as possible.
Waiting until the course is about to launch—or worse, after it starts generating revenue—can lead to complications.
Key Sections to Include in a Co-Production Contract
While the specifics may vary depending on your country or business structure, there are several essential components that every co-production agreement should include.
1. Identification of the Parties
Clearly state the legal names and contact information of all parties involved.
Example:
“This Co-Production Agreement is made and entered into on [Date] by and between [Name of Expert], located at [Address], and [Name of Co-Producer], located at [Address].”
This provides a clear record of who is entering the agreement.
2. Purpose of the Agreement
Define what the agreement is about. This sets the tone and scope of the partnership.
Example:
“The parties agree to collaborate in the development, launch, and promotion of an online course tentatively titled ‘[Course Name]’ to be offered through [Platform] under a revenue-sharing model.”
3. Roles and Responsibilities
Outline who is responsible for which aspects of the project.
The Expert Might Be Responsible For:
- Course content creation (videos, workbooks, scripts)
- Participating in lives or webinars
- Providing testimonials or social proof
- Responding to student questions (related to content)
The Co-Producer Might Be Responsible For:
- Market research and funnel strategy
- Platform setup and email automation
- Webinar or launch planning
- Paid traffic and ad campaigns
- Customer support
Include details. The more specific you are, the fewer misunderstandings will arise later.
4. Revenue Sharing and Payment Terms
Define how revenue will be split. This is one of the most critical sections.
Include:
- The percentage each party receives (e.g., 50/50 or 60/40)
- The frequency of payments (monthly, quarterly)
- Which expenses are deducted before the split (ads, tools, taxes)
- How refunds affect the revenue share
- Who handles financial processing and accounting
Example:
“All net revenue—defined as gross sales minus payment processor fees and agreed-upon ad expenses—will be divided equally between both parties. Payments will be made on the 10th day of each month via bank transfer.”
5. Ownership and Intellectual Property
Decide who owns what. This includes:
- Course content (videos, PDFs, slides)
- Marketing materials (ads, emails, landing pages)
- Brand name or trademarks
You may choose to co-own everything or assign specific rights to each partner.
Example:
“The course content remains the intellectual property of [Expert]. The funnel structure and marketing materials created by [Co-Producer] remain their respective property. Both parties have the right to use shared assets for future promotions under this partnership.”
This section helps avoid future disputes over usage rights.
6. Duration and Termination
State how long the agreement is valid and how either party can end the partnership.
Include:
- Initial term (e.g., 1 year)
- Renewal process (automatic or manual)
- Exit clause (with or without cause)
- What happens to the course after termination
Termination scenarios could include:
- One party no longer participates
- Breach of contract terms
- Personal or professional conflict
- Business strategy changes
You must also clarify whether one party can continue selling the course independently.
7. Confidentiality and Non-Disclosure
Protect sensitive information such as:
- Course strategies
- Email lists
- Ad campaigns
- Revenue reports
Include a clause preventing either party from sharing this information with third parties.
8. Non-Compete Clause (Optional)
If appropriate, you can include a clause preventing either party from launching a similar course for a set period.
Example:
“For a period of 12 months after termination, neither party shall create, market, or sell a course substantially similar to [Course Name] without written consent from the other party.”
Be cautious with this clause—make sure it’s fair and not overly restrictive.
9. Conflict Resolution
Define how disputes will be handled.
- Through mediation or arbitration?
- Under which jurisdiction or legal system?
- Will you attempt informal resolution first?
This section helps manage potential legal escalations.
10. Signature and Agreement
Both parties should sign and date the contract. Ideally, each keeps a copy (physical or digital).
You can use e-signature platforms like:
- DocuSign
- HelloSign
- PandaDoc
Make sure signatures are legally valid in your country or jurisdiction.
Optional Clauses to Consider
Profit Cap Clause
If the course becomes very successful, a profit cap clause may allow one party to buy out the other’s share at a defined value.
This is more relevant for long-term deals with evergreen products.
Responsibility Shift Clause
If one party stops performing their duties, the other may take over and adjust revenue share accordingly.
Example:
“If [Co-Producer] ceases marketing activity for 60 days, [Expert] may assume full operational control and adjust the revenue share to 80/20.”
Review and Adjustment Clause
Define when and how you’ll revisit the contract.
Example:
“This agreement will be reviewed every 12 months to assess the terms, responsibilities, and revenue structure.”
Working With a Lawyer
While many co-producers draft their own contracts initially, it’s always wise to have a lawyer review the final document—especially if:
- The course is expected to generate high revenue
- You’re working across countries or legal systems
- You plan to launch multiple products together
Legal costs up front can prevent massive financial losses later.
Contract Templates: A Starting Point
There are online contract templates available as a starting guide. However, these should always be tailored to your specific situation.
Avoid using templates meant for affiliates or generic freelancers—co-production is a unique model that requires a custom agreement.
Final Thoughts: Protect the Partnership, Not Just the Product
A co-production contract is not about distrust—it’s about clarity. It allows each partner to show up with confidence, knowing what’s expected and how they’ll benefit from their work.
Strong contracts build strong partnerships. They encourage transparency, reduce stress, and give your course business a professional foundation. Before you record the first lesson or launch your first ad, protect the collaboration you’ve built.
Because in digital business, the smartest partnerships aren’t just strategic—they’re secure.