Delivering an asset versus distributing one
A UGC creator is hired to make content — the brand takes the file and runs it wherever it likes, and you are paid a flat fee for the deliverable whether it performs or not. A clipper does the opposite: you keep the distribution, posting to your own accounts, and are paid for the views your clips actually earn.
So UGC decouples pay from performance, and clipping ties them together. Neither is strictly better; they suit different temperaments and goals.
Where UGC creator work genuinely wins
If you want predictable, negotiated pay and you are comfortable delivering to a brief, UGC is the more certain income. A signed deal pays the agreed fee regardless of how the video does, and strong creators can command high rates and repeat clients. It also does not require you to have any audience of your own.
The trade is that a UGC fee is capped per deal and you own neither the audience nor the upside if the content goes viral. Clipping's earnings depend on the views your clips receive — less certain, but with no ceiling set by a single contract.