by A.E. Derby

Created on: February 05, 2007   Last Updated: May 08, 2007

Having your clients sign a contract or agreement letter before you begin work cuts down on misunderstandings and confusion. You can be more certain your client understands your billing rates and payment policies and other pertinent information up front. After having signed a contract, a client will be less likely to come back to you and say, "We didn't agree on this." If someone does argue with you, you can simply point to the contract. Should a legal dispute arise, your contract will give you leverage. So, what should you include in your contract? Here are the basic issues to consider:

1) Services
The service you provide will be the writing job at hand. Since the job will probably be different for each client, what you put in this section will change each time you type up the contract. Add as much detail to this section as possible, because this is the part of the contract that your client can point to when making claims about dissatisfaction or refusing to pay. If you offer a satisfaction guarantee, say so.

2) Copyrights
Specify what rights you are selling and what rights you will retain. If you are granting one-time or first rights to the client, say so. Mention when rights will revert back to you (i.e., after publication or when your work appears in print, one year later). You also want to discuss electronic rights if applicable to the work you are doing. If you are granting electronic rights or the right for the client to archive your work on his/her website, you will want to specify these terms.

3) Billing Rates
State your regular rate, whether you charge by the hour, by the word, or for the entire project. If you are giving the client a discount, it is wise to keep your regular rate listed in this section and make a note that you will give a percentage discount to be factored in at the end. You will be less likely to have clients debate your rates or assume you will always give them a discount in the future. If you charge extra or want reimbursed for mileage or travel, long-distance calls or other expenditures the job includes, make sure to state so.

4) Terms of Payment
Be clear on your payment terms. Some freelancers expect payment as soon as the job is complete, while others bill their clients and allow a month or 90 days for the client to pay. Tell the client exactly what your policy is about payment. If you will be invoicing the client, say so, and say when you will require the bill to be paid (i.e., 30 days from the invoice date). If you will require an advance payment, or a retainer fee, before you begin work, state the amount or percentage here.

5) Late-Payment and Non-Payment
If you tell clients upfront how you will handle late-paying or non-paying clients, your clients will be more apt to pay on time. If you will require an additional fee for late payments, say so, and state what that fee will be. It is not a bad idea to state in this section that you will use any and all resources available to you for collecting payment, including collection agencies and small claims court. (Even if you don't plan to go through with it in every case, because sometimes it's just not worth it, adding this language to the contract will let clients know you mean business.)

Learn more about this author, A.E. Derby.
Click here to send this author comments or questions.