Gettin’ paid

[Dan Humphrey]

Thank you everyone for taking the time to reply. This is all very useful to me. I eventually want to leave my day job as a web designer and move into freelance video production. Any suggestions for resources that will answer newbie questions regarding the business end of video production? (Other than the business forum of course. =D )

[David Roth weiss]

[Mark Suszko] “You have it exactly backwards. Never charge a flat fee, sometimes a flat RATE is okay.”

Of course!!! Somehow I managed to type exactly the opposite of what I intended. Guess my fingers are dyslexic?

DRW

[Walter Biscardi]

[Mark Suszko] “So I NEVER advise a flat FEE. But for an open-ended project that could go on indefinitely, yes, a flat RATE means you keep getting paid more the more you work, as you go, that can be good…”

Most of the projects we do here involve a flat Project Rate. BUT there is a stipulation in every agreement that outlines the amount of hours expected to complete the project per the client’s specifications. If the project exceeds those hours, they are billed hourly or daily per the terms of the contract.

This does two things. Gives the client a definitive budget to have in hand for a completed project. Puts the pressure on the client to ensure that I have everything I need to complete the project on time.

It’s a win-win formula that has worked extremely well for us. If the project is completed on time. I get paid per the project rate. If the project goes over, I get paid the project rate + hourly and the client knows that the overage is due to their changes or inability to deliver materials in a timely fashion.

Walter Biscardi, Jr.
https://www.biscardicreative.com
HD Editorial & Animation for Food Network’s “Good Eats”
HD Editorial for “Assignment Earth”

“I reject your reality and substitute my own!” – Adam Savage, Mythbusters

[Rich Rubasch]

Walter’s trend is getting poplular around here as well. Seems we always seem to discuss a project rate based on an estimated number of hours and an hourly rate…usually the project rate is agreeable to both parties. Then, as Walter states, if there is pretty compelling evidence that the client caused overages we can get a little more. Sometimes we bill less than the project rate if we came well under the estimated hours. In every case we try to make sure that we are happy with the project’s outcome and that the client felt they got more than their money’s worth!

Rich Rubasch
Tilt Media