What is an Escrow?

In short, an Escrow is a third party provider whose job it is to ensure the safety of payments, contractual agreements, and possible mitigation of associated risks are handled. 

In simple terms, imagine that you want to pay a Creator $500 to promote a new post on Instagram without using Glewee. You can tell the Creator that you will pay the $500 up front for the post, and just hope they execute and promote the product. If they just run off with the money then you are out of $500. On the other hand, if you tell them that you are going to deliver the compensation after the post is live - without proper contractual agreements they may never get around to posting it. Both scenarios are not ideal to be dealing with as a Marketing Manager at any company. 

With Escrow Systems in place, the brand can agree upon an amount of money the recipient is getting once contracts are completed. The brand sends the money to the Escrow before the contract is complete to ensure the Creator that there are funds waiting for them if they hold up their end of the contract. Once the contract is complete and both parties are satisfied, the money is safely released from the Escrow account and into the Creators’ account. 

Think of it as a virtual bank that safely and securely holds your funds until the contract is complete!