How to Get 50% of Your Freelance Fee Up Front
Each and Every Time

by copywriter and marketing coach Chris Marlow

How does a freelancer get 50 percent of the fee up front?

One of my copywriting colleagues, Susan Fantle, asked me for a
discussion of the topic since she had recently encountered some
difficulties with clients. In her own words:

"I've been in this business for 23 years and only in the last
two years do I finally see the need to have a contract with
new clients."

Now I've seen a lot of contracts in my freelance life, but
none more complete or protective of a freelancer's interests
than my own. And I'll share its elements here so you can
create your own contract, or perhaps improve the one that you
use.

But before we get started I'll make a couple of points:

The first concerns semantics: Somewhere along the line I read
that the word "contract" is negative and off-putting, and
after some thought, I had to agree. So I call my contract a
"Fee Agreement," which I think is friendlier and sets the
tone for a positive and equally respectful working
relationship to come. You might think about doing the same
for your own contract.

Point two is that you should always, always use a Fee
Agreement and get it signed and faxed (or emailed) back
before starting any work. When you work with the proper
forms you are telling your client that you are a
professional, and your client will then treat you with the
respect you deserve. Much of the success of the
freelancer/client relationship is built upon how you conduct
yourself in your transactions.

In my Fee Agreement I always make it clear that I will
Invoice for half the fee up front, upon receipt of the signed
Fee Agreement. That way the client has agreed to pay an up
front fee of 50 percent.

Then I email the Invoice, which instructs the client to send
the check via FedEx or another overnight delivery service.
Since I tend to work with mid-size to large companies, I
never have a problem getting my upfront fee or having it
delivered over night.

My feeling is that clients are in a hurry to get their copy
and are at their most agreeable at this stage. However, once
they've received their copy, there is no incentive the rush
the check. So I send a final Invoice "due and payable upon
receipt," instructing the payment to be sent via regular
mail.

Since I work directly with the client, this arrangement works
well for me, however you may need to be more flexible
depending on whom you work with, or what market you're
working in. For instance, ad agencies may ask you to collect
100 percent at the back end, especially if the job is small
and fast.

For very large jobs, paying in thirds is also common. And
small businesses may prefer to pay in thirds if their budget
is tight (and it usually is). And then, of course, there are
those pay arrangements that include bonuses or royalties,
which you will most often find in the business-to-consumer
side of direct marketing, among very large mailers.

Does anyone ever get paid 100 percent up front? The answer is
yes, but I've seen it rarely. Recently one of my coaching
students was paid 100 percent up front for a very small job
worth $300. And another student was paid in the four figures
from an entrepreneur, who obviously understood that the
copywriter realized the risk involved with working with a
risk-taking marketer.

My advice is to try for 50 percent, and if the client balks,
proceed very carefully if you proceed at all. If the client
has problems paying you now, before you do the work, it's a
red flag. You're better off to say no, and spend your time
marketing yourself to find a better client.

A Quick List of What Should Be in Your Contract:

• A very detailed description of the job, listing virtually
  everything you will do
  
• A deadline for the work to be completed
  
• Revision terms
  
• Payment terms
  
• Late payment terms
  
• A description of what will be included in your services
  
• A description of what will not be included (interviewing
  and creating testimonials, for instance)
  
• A policy on how change orders are handled (you charge more
  if they make a significant change after work has been done)
  
• Ownership (you own the copyright until you've received full
  payment)
  
• Indemnity (a legal disclaimer holding you harmless against
  any legal charges such as libel and copyright infringement;
  you don't need to add false advertising since you won't be
  doing that anyway)
  
• An agreement for the client to share work samples and
  results (so you can use them in your promotions)
  

Don't be so anxious to get the work that you fail to get a
signed Fee Agreement and payment up front. Getting payment up
front is an effective screen, and evidence that you are a
professional.

Chris Marlow, all rights reserved

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