The Project Agreement: Terms of Payment


comment now!

Okay, so let’s talk about something that is critical to your success: the terms of payment section of your project agreement. Now, there’s a good chance that you can lay out the project details, define the project scope, outline the milestones and deadlines, and even clearly state the project fee and exactly what work is entailed in that price…and still end up shooting yourself in the foot.

Setting Expectations
If you say in your agreement “here’s how much it’s going to cost, and here’s the deadline” most clients are just going to assume that they’ll write you a check at the end of the job. Unfortunately, many writers assume that as well. The end result there is that you can have a handful of active, well paying gig…and not see a dime of that money for two months or more.

You may be okay with that…but MY kids get hungry, so in the terms of payment for my clients, I break the payments up. For most jobs, I request 50% upfront, and 50% once they sign off on the final project. This actually works out well for both parties. I can now be reasonably sure that the client isn’t going to stiff me at the end, and the client actually has leverage to ensure that I’ll finish the work (he paid me, so legally he has a right to expect that the work will get done).

For Bigger Jobs
For bigger, long-term jobs, I go even further. I get 50% up front, 25% upon delivery of the initial copy, and the remainder at sign-off. You could just as easily break it up into 33% up front, 33% upon delivery, with the remainder due upon sign-off. Or break the payment down based on any agreed-upon milestone you wish.

Warning Signs
If a client balks at the idea of an upfront payment (especially a new client), beware. Most clients will readily agree to an upfront payment…and hesitance to do so is a red flag that this client is going to be a pain to deal with or maybe even a deadbeat client who decides not to pay. Not all the time, mind you…trust your gut. If the client’s unwillingness makes you uneasy, don’t be afraid to walk away.

|comment now!

Comments

Leave a Reply