| This is valuable content from my free online | | | | whom you work with, or what market you're |
| newsletter, the FREELANCER'S BUSINESS | | | | working in. For instance, ad agencies may ask you |
| BULLETIN. In the April 2004 issue I shared with | | | | to collect 100 percent at the back end, especially |
| my subscribers the secret to getting at least | | | | if the job is small and fast. |
| 50% of your freelance fee up front, plus a whole | | | | For very large jobs, paying in thirds is also |
| host of other important requirements for your | | | | common. And small businesses may prefer to pay |
| freelancer's business. | | | | in thirds if their budget is tight (and it usually is). |
| It was FREELANCER'S BUSINESS BULLETIN | | | | And then, of course, there are those pay |
| subscriber and copywriting expert Susan Fantle | | | | arrangements that include bonuses or |
| who asked for a discussion of this topic because | | | | royalties,which you will most often find in the |
| she had recently encountered some difficulties | | | | business-to-consumer side of direct marketing, |
| with clients. In her own words: | | | | among very large mailers. More and more I'm |
| "I've been in this business for 23 years and only in | | | | seeing commission arrangements - a very good |
| the last two years do I finally see the need to | | | | thing for the copywriter who also can bring |
| have a contract with new clients." | | | | valuable marketing expertise to the table. |
| Now I've seen a lot of contracts in my freelance | | | | Does anyone ever get paid 100 percent up front? |
| life, but none more complete or protective of a | | | | The answer is yes, but I've seen it rarely. |
| freelancer's interests than my own. And I'll share | | | | Recently one of my coaching students was paid |
| its elements here so you can create your own | | | | 100 percent up front for a very small job worth |
| contract, or perhaps improve the one that | | | | $300. And another student was paid in the four |
| youuse. | | | | figures from a sole-proprietor entrepreneur, who |
| But before we get started I'll make a couple of | | | | obviously understood that the copywriter realized |
| points: | | | | the risk involved with working with a risk-taking |
| The first concerns semantics: Somewhere along | | | | marketer. |
| the line I read that the word "contract" is | | | | My advice is to try for 50 percent, and if the |
| negative and off-putting, and after some thought, | | | | client balks, proceed very carefully if you proceed |
| I had to agree. So I call my contract a "Fee | | | | at all. If the client has problems paying you now, |
| Agreement," which I think is friendlier and sets | | | | before you do the work, it's a very serious red |
| thetone for the positive and equally respectful | | | | flag. You're better off to say no, and spend your |
| working relationship to come. You might think | | | | time marketing yourself to find a better client. |
| about doing the same for your own contract. | | | | A Quick List of What Should Be in Your Contract |
| Point two is that you should always, always use a | | | | if You're a Copywriter or Other Business |
| Fee Agreement and get it signed and faxed (or | | | | Freelancer: |
| emailed) back before starting any work. When | | | | - A very detailed description of the job, listing |
| you work with the proper forms you are telling | | | | virtually everything you will do |
| your client that you are a professional, and your | | | | - A deadline for the work to be completed |
| client will then treat you with the respect you | | | | - Revision terms |
| deserve. Much of the success of the freelancer | | | | - Payment terms |
| client relationship is built upon how you conduct | | | | - Late payment terms |
| yourself in your financial transactions. | | | | - A description of what will be included in your |
| In my Fee Agreement I always make it clear that | | | | services |
| I will Invoice for half the fee up front, upon | | | | - A description of what will not be included |
| receipt of the signed Fee Agreement. That way | | | | (interviewing and creating testimonials, for |
| the client has agreed to pay an up front fee of | | | | instance) |
| 50 percent. | | | | - A policy on how change orders are handled (you |
| Then I email the Invoice, which instructs the client | | | | charge more if they make a significant change |
| to send the check via FedEx or another overnight | | | | after work has been done) |
| delivery service. Since I tend to work with | | | | - Ownership (you own the copyright until you've |
| mid-size to large companies, I never have a | | | | received full payment) |
| problem getting my up front fee or having it | | | | - Indemnity (a legal disclaimer holding you |
| delivered over night. | | | | harmless against any legal charges such as libel |
| My feeling is that clients are in a hurry to get their | | | | and copyright infringement; you don't need to add |
| copy and are at their most agreeable at this | | | | false advertising since you won't be doing that |
| stage. However, once they've received their | | | | anyway) |
| copy, there is no incentive the rush the check. So | | | | - An agreement for the client to share work |
| I send a final Invoice "due and payable | | | | samples and results (so you can use them in your |
| uponreceipt," instructing the payment to be sent | | | | promotions) |
| via regular mail. | | | | Don't be so anxious to get the work that you fail |
| Since I work directly with the client, this | | | | to get a signed Fee Agreement and payment up |
| arrangement works well for me, however you | | | | front. Getting payment up front is an effective |
| may need to be more flexible depending on | | | | screen, and evidence that you are a professional. |