Be it a full-on contract or a deal memo, GET IT IN WRITING UP FRONT.
I recommend payment in thirds, and work doesn’t start until the first third clears the bank. The first “third” needs to cover any of your out of pocket expenses and pay off all the stock fees, crew and rentals. Second “third” is due at the screening of the Director’s cut. Third payment due on delivery of final, approved version.
The client does not get a clean copy without watermarks, until the last third payment clears. Under any circumstances.
You retain the project files, raw footage, and elements as proprietary, they only get the finished product. Get that initialed.
They get two edits: one after the first cut screening, and a second one after that, to cover any last, minor changes. Any more edits or changes are a new contract, separate. Edits to fix mistakes by the producer are free. Edits to fix mistakes by the client such as misspellings of titles or names given, are charged at hourly rate.
You are not liable for continued storage of the product or production assets in post unless agreed in writing and paid for.
Client is liable for continued rights payments on any stock media. A detailed report and schedule will be given.
There is a “kill fee” for terminating the project once begun. The Fee for a cancellation is zero if done at least three business days ahead of the start date. If cancelled within less than three business days, the first third down payment will be retained as the kill fee, to offset expenses and time already committed to the task.
Get in writing the name of the person at the client organization who ultimately will declare if the project is done and accepted. It should probably be the same name as the one that signs the checks.
If you hear this phrase:
“Cut us a deal on this first one, and we’ll make it up on volume with lots more jobs later”
Smile, nod, stand up, and walk out of the room. Best move you can make.
If they tell you your rate is too high, ask them what they want cut from the production to make the budget figure they want. Tailor the production to the resources available, but NEVER drop your rate. If you drop your rate, for any one-time reason, you will be stuck with that lower rate forever, going forward in that market.
A common way for businesses to stiff people like us is to tell you to fill out purchase order paperwork that commits you to a payment term of 2/10/net 30, 60, or even 90 days from delivery and mandates a delivery therefore before you get a payment. They’ll tell you they don’t have a payment mechanism to pay you any other way and that’s what they do for all vendors. That will be a lie. If the plumbing breaks on a Saturday they have a way to pay the plumber on site, I guarantee you. I refuse to deal with those purchase order thingies, but I will offer a 10 percent discount for fast payment within a week. Your best and only leverage with clients is when you have the final clean copy of what they need, and you don’t hand that over without them handing you the check first.