How do you handle payment for freelance services?

[Workaphobe]

I didn't really expect to get much of a response from a few feelers I put out recently. But, suddenly I'm being approached for a few freelance VO/production jobs. Now I'm realizing I'm not really prepared to handle the business end of things.

The first thing I'm wrestling with is how to ask for payment. There's a potential client that contacted me out of the blue, and I don't know him. His media business has a website with his contact info but that's really all I know. Should I demand payment in advance? I'm a little worried about getting stiffed, but then I don't feel like I can ask for advance payment since I don't have much of a reputation at this point.

Do any of you folks draw up a contract in advance, or do you just invoice after you do the work? It's a small job that I'm charging $100 for, so it's not going to break me if I get stiffed. I just want to cover my posterior.

 

[jimron]

you can ask for half up front and the balance upon delivery. or you can invoice after you deliver the final product. it's really up to you. but if you want to ensure you don't get stiffed, the half up front half upon delivery is the best option. open a paypal account if you don't have one so they can send you a payment via credit card right away.

never demand payment up front; in fact never demand anything from a potential client. let them know your policy is to request half up front and the rest when all is said and done. some have no problem with that, and you'll find others that do. or you can send them a final mix or track with audio watermarks, with the stipulation you'll send them the high quality files after payment has been received; though that can be construed as a "ransom".

as you do more jobs, you'll find what works best for you, which clients you can trust to pay you within a reasonable amount of time, and which clients are scum.

 

[stench]

The first thing I'm wrestling with is how to ask for payment.

Half and half is a good way to go. PayPal charges 3 to 4% fee though (just so you know). Simple letter that spells out details of job so there aren't any misunderstandings also a good idea. This is where you cover how you will handle do-overs, copy changes, updates etc. Should have your own invoice and always mail it with the snails to their business address. If anything should ever blow up in your face with any client, you will need an address if you were to take them to small claims, web addresses don't cut it. Anticipate and you'll be fine.

 

[marketweis]

Man, sounds like what I was going through recently (still am when it comes down to it.) I've been in radio for YEARS and have always wanted to fire up the VO side business and finally just did recently.

I wasn't sure how to do much of anything w/the "business" aspect of it. I spent a lot of time reading boards like this and vo-bb and others, and just jumped in. So far.....I have worked with a guy whom I've invoiced after the work was done. Anxiously waited for the first check from him...it arrived about a week after I invoiced him, and it didn't bounce, and I've gotten repeat work from him. So, good there. I have worked with another guy who told me he pays via PayPal. So, I opened a dedicated VO checking acct and tied it into the Paypal acct I opened. Have done several reads for that guy and he's paid w/out issue. Yes, the % Paypal takes out, albeit small, kinda sucks. Now, I just began working for a guy who pays twice/month and sent me an invoice template to fill out and send back to him. He runs a very reputable biz, so I don't think there will be a problem w/him paying.

So far, I haven't had any kind of agreement or "contract" that I've made people aware of before I've done the work for them, and there have been no problems. I'm SURE down the road there might be, and I'll probably have to adjust the way I do things. What I have now is a FAQ section on my website that tells people about re-reads, payment, yada yada. Obviously that's not a binding agreement with anybody who reads it, but at least they know whay I expect.

I'll tell ya, I really thought that the half payment before the job was what I was going to do, and I still don't think there's anything wrong with asking for it, but a guy I work with has been doing VO for quite some time and never does that. He just invoices and expects pymt within 60 days (think that's his time frame.) Says he's only been stiffed twice in many years. He's either lucky, or there aren't many people who stiff you in this line of work.

Experts......what's your experience with non-pymt from clients.....rare???....hopefully.

 

[jimron]

PayPal charges 3 to 4% fee though (just so you know)

you can build that into your fee so you don't lose that percentage. pay pal has a calculator you can use.

an "agency" (i say that loosely cause it was just one person) i dealt with almost stiffed me once. chased them down for close to a year to get payment. invoicing every other day through e-mails and paypal. guess they finally got fed up.

it's really up to you and what you feel comfortable with. yes some people have never had a problem collecting payments; some people have. 30-60 days is standard in any industry. 90 days is also sometimes acceptable. any more than that though and there's something wrong.

don't know if anyone has ever tried to assess and collect late fees. i've been toying with the idea... like 1.5% every day/week it's late, but that would definitely piss people off. but what are you to do when people don't pay on time? small claims court is another way, but is it worth it if the payment you're looking to collect doesn't even cover the court fee?

 

[Workaphobe]

Thanks for the replies so far. The client I wrote about in my OP simply went ahead and sent a money order before I even finished the job. I hadn't even asked for advance payment. I turned the project around for him quickly, so technically he had the finished job before I had the money. But it all worked out in the end.

I suppose at this point, since I'm just getting small jobs, I'll ask for payment afterwards.

Thanks everyone!

 

[uppendowndadial]

I spent a lot of time reading boards like this and vo-bb and others,

there are OTHER boards??

 

[Hart]

there are OTHER boards??

Ha! Nice to see so many other VOBB'ers here.

 

[DeadAudicy]

Been doing the freelance for many years. A few quick rules of thumb that have benefitted me tremendously:
Get a rate card established. Cut "sweetheart" deals with the clients, below top of the card. Give them the incentives, i.e. an option to pay in advance, for a discount. Also discount multiple spot packages, discount to get the work, etc. Make your leverage seem to their benefit, and always have that top of card rate established, whether used or not.

Put a legal qualifier at the bottom of every piece of copy any client sees. In that fine print state that the copy and any production thereof is owned by the author. Be specific that use is allowed for a billed fee. Be specific about where the spot can be played (which markets, for how long, etc. Be reasonable. The local market, 13 weeks is a good place to start), and billing terms. State that any abuse of terms will result in collection at full rate. That way if they don't pay in 15, 30, 60 or whatever, the contract will revert to full rate. Any action you need to pursue at that point will allow full rate, plus legal fees...that's big incentive to pay up.

Agreed, it rarely comes to that.