Copywriting Contracts: The Best Defense is a Good Offense

Newbie freelancers are often so thrilled to get a new project that they assume they'll be paid when it's all over.  And 90% of the time, they do. 

It's the other 10% of the time you have to worry about!

I'm happy to report that the vast majority of my clients are ethical and honest. I even consider a couple of them friends. But believe me, it wasn't always that way.  I was burned by clients many, many times in my early freelance career-mistakes, I'll assure you, will never happen again.

Dealing with difficult clients is never, ever easy.  I've worked on many projects when what I call the "torture line item" just got too high.  In other words, the time, energy and effort involved trying to please a client who is never happy just wasn't worth the fee I was paid.

One way to guard against this to make sure you have a signed agreement before you start your project. Write down everything the job entails. Get detailed about what you're providing - this includes copy, research you may have to do, concepts, any rough layouts, your fee structure, and your estimated start date and due dates.

But time-and experience-taught me that there were several other line items you should add to your contract as well.  We'll discuss a few of them here.

Copywriting Contracts: Before You Write a Single Word...

1. Always ask for a deposit, usually 50% of the total fee. This is important for a couple of reasons. 

First, some writing assignments can take several months before you get the final nod of approval. And you have to eat in the meantime!  A deposit will provide some cash flow to tide you over until you can bill for the balance. 

Second, a deposit locks in your time with the client. Remember, while you're working away on this project, you may have to turn away other clients who want that slot.

Finally, a deposit also guards you from wasting a lot of time and effort working on a project that gets killed mid-stream … and may be difficult for you to bill for.

Ideally, a client should overnight you a check.  That's a demand I always make for rush jobs, but it's not a sticking point if my start date is a couple of weeks away.

** TIP ** Also note on your contract that your deposit is non-refundable! That's your 'kill fee' if the project gets cancelled.

2. State the number of revisions you will provide in your fee.  Typically, your fee should include the first draft plus two rounds of revisions.  That's the industry standard, and that's what you should stick to.  For additional revisions, the client is back on the meter at your hourly rate (which shouldn't be less than US$50, by the way. The standard rate is $75.00)

This protects you against clients who make endless (and in most cases) silly revisions. You know who I'm talking about - the clients who don't know what they want until they see it. But once they realize their indecision will begin to cost them … well, it's simply amazing how suddenly the copy changes aren't all that important any more.

3. Lawyers do it. Master Card does it. Why can't you? Charge interest, that is. The part I hate most about my job is chasing people down for payment. Most of my clients do pay within a reasonable amount of time…but you have to protect yourself against the ones who don't.

My terms are usually "Payment Upon Receipt," but I don't send a reminder until an invoice is 25 days old. And I make it very plain on my contract that invoices over 30 days old are charged 1-1/2% interest per month until the balance is paid. 

Yes, we're talking only a little bit of money, and yes, it may be hard to hold a client to it-but it does show that you treat your freelance business like… a business. Remember, you're just as much of a professional as an attorney, a doctor, or an accountant.

4. The client company that hires you is fully responsible for payment. Period. If you provide copy services for marketing consultants or advertising agencies, this is a must-have line item.

Why? Because advertising agencies are notorious for not paying freelancers with the excuse, "our client never paid us."  What they conveniently forget is that they hired you, not their client.  Therefore, according to your contract, they're still responsible-no matter what. State on your contract that "[name of company here] is totally responsible for full payment. Payment of your fee is not contingent on any monies due from a third party."

A Fee Agreement is a important step that protects you and protects your client. A client will tend to take you more seriously as a business owner and a professional when you send them a fee agreement.  When he sees all that copy and work you're planning to do for him, they will be much less resistant about your fee.

What's more, a signed contract gives you legal documentation in case a client tries to wriggle out of paying you.  And as our mothers told us, an ounce of prevention…

Donna Doyle
www.copybydoyle.com

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Reprinted by permission from Donna Lynn Doyle. Donna has created results-driven copy for some of the largest direct marketing companies and publishers throughout the U.S. and Canada. Named "2006 Copywriter of the Year" by the American Writers and Artists Institute (AWAI), she is also a Partner of 3Chix Seminars http://www.3chix.com as well as a sought-after copywriting coach. Sign up for her Free ezine, The Inside Track, at http://www.copybydoyle.com.

©2007 by Donna L. Doyle, all rights reserved.