Fuck you, pay me!
You probably don't want to deal with contracts negotiations or client management, but it is a necessity. If you follow a few basic rules, you'll be much more confident doing the projects you love, while getting paid for it.
Get a lawyer
Yes, lawyers are expensive, but a good lawyer saves you a ton of money. Their primary job is to keep you out of court, and protect your interests by negotiating good contracts terms on your behalf.
Have a contract
Everyone starts a business agreement with the best intentions, but sometimes things go wrong. When that happens, you want to have a contract that stipulates what happens next.
Define the project scope
Clearly define what needs to be done, what the project goal is, what the acceptance criteria are, and what the budget and timeframe is. When your client changes any of these terms, you need to re-negotiate the contract.
Know when to walk away
You can fire a client just as easy as a client can fire you. You fire your client when:
- They don't want to sign a contract, or they don't want to include crucial things like payment terms.
- The client changes the contract one-sided. At least you re-negotiate the contract.
- They involve a competing business. They hired you to do a job, if they don't trust you, it's better to walk away than to compete with the new party.
6 things you need to know about a contract
1. Contracts protect both parties
A contract should be fair to both parties.
2. Don't start work without a contract
When you start work without a contract, you lose all leverage you have. To use Mike Monteiro's words: "it's like putting on a condom after a pregnancy test".
3. Don't blindly accept their terms
Circling back to the first point: a contract should be fair. What makes a contract fair is the negotiations. Don't just roll over and sign what's been presented to you.
4. Anticipate negotiations, but don't back down on important stuff
The important stuff:
- IP transfer after full payment
- Definition of a termination fee: make sure the client has to compensate you when they terminate the contract without good reason. This does not replace the advance payments, but is due on top of them.
- Liability: limit it as much as you can
5. Lawyers talk to lawyers
When they get legal involved, you end the conversation and involve your lawyer. A lawyer is there to protect them, you don't want to agree to things under pressure.
6. Be specific and confident about money
When you answer a question about how much something is going to cost with 'uhm...', you just lost money.
Watch the full talk
This is a summary of Mike Monteiro's presentation at the San Francisco chapter of CreativeMornings, talking about how to get paid for the work you do as a creative professional. Watch the full talk on YouTube.
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