Some jobs operate on a partial payment policy where the first 50% is paid up front, then 25%-25%, or perhaps first & last 50%. The problem is that, some client’s concept of “up front” is “30 days+”. This is no good for you since you may have to run expenditures for tape stock, a freelance assistant, outside facilities and so on, and the costs will come out of pocket unless the client pays up. There have many instances where I had completed a job, the master has shipped, and I still hadn’t received first 50% up front. This presents a real problem since you are obligated to pay your expenses on reasonable terms, but you cannot antagonize your relationship with your client such that they will see you as an “unsavory resource”.

What if I don’t get paid?

There have been very few instances where I have heard of an editor or facility literally holding a master tape hostage because the client did not pay, but it has happened. I highly recommend never doing this simply because the world of post production is small, and word gets around very quickly. No potential client will ever work with you if they think you will hold their master for any reason, legitimate or not. This is further compounded by the tendency of many production companies and advertising agencies to be astoundingly slow payers – some as long as 6 months! So a producer who works for such a company will already know that they will be in trouble with you if you have this reputation. In other words, the guilty know who they are, but they won’t tell you. If you are known as a hostage taker, you could be blackballed. It is a tough call, and there have been many editing companies who have had to bite the bullet and hope the client comes through eventually. Luckily, there is a thing you can get from your bank called a Line of Credit!

I have always tried to insulate myself from the filth of finance mainly because I want to remain the “good guy” in the client’s eye. Try not to get involved with the tension of making collection calls if you don’t have to. If you are a freelancer or a small boutique, you have fewer choices in the matter. I suggest speaking with an accountant directly rather than the producer who hired you, unless you are asking the producer to speak to the accountant on your behalf after many attempts for a response have failed.

I have never been completely stiffed by a client. I have, however, “stiffed” a couple freelancers when they grossly misrepresented themselves or failed so terribly in executing their work according to specifications. One editor said he had experience editing corporate promotional videos and spent three days assembling selected interview quotes, but made no progress whatsoever on structuring the program, designing the look of the graphics, or coming up with a narrative outline. He begged to be given another day, and the results were astoundingly bad. I paid him for only the three days, though he had essentially given me only one day’s work out of four. Despite the experience he claimed, he was a creative dry well.

On another occasion, I contracted a graphics compositer based on the recommendation of a peer to make some green screen composites. This person claimed to have lots of compositing experience and did not hesitate to accept a very high profile job involving uncompressed HD footage, with a tight schedule. He, in turn, sub-contracted the job to a group of mostly inexperienced rookies who proceeded to make a mess of the work. When pressed on the issues that needed repair, he promised to come through and meet the deadlines. The next round of work was equally bad as if none of the issues had been addressed at all, and precious time had been lost. When confronted again, he literally froze in his seat, unable to speak. When asked “yes or no” if he would be able to finish the job at all by the deadline, he said “No.” He was paid only a fraction of his contract. The final product was diminished because of his misrepresentation of his skills, and it cost me thousands to hire someone else at an emergency rate, for 3 days around-the-clock straight to get the job done.

It’s hard to believe that some people would call themselves a professional and do their business so poorly. Please don’t be one of them.

Last, when you finally receive your check, be sure to photocopy and staple it to copies of your invoices in case their check bounces. You may need to fax a copy of the check to the client.

Remember to pay your quarterly taxes!

• Invoice number, billing date.
• Name, address, business or SS identification number
• Name of the project and producer (the one who hired you).
• Client’s purchase order or job number, if any.
• An itemized list of days that you worked, and the overtime hours if necessary.

Production companies and ad agencies are notoriously disorganized and your invoice can get lost in the sauce if you do not provide every detail possible.

Whenever I have negotiated a price for my services, I have preferred to offer a day rate rather than an hourly rate. It is generally accepted that a “day” is an 8 to 10 hour day, so the hourly rate “in your head” should add up to an 8 hour day. I charge 1.5 times the hourly rate from the end of the prescribed day for the next four hours (usually from 8 p.m. to midnight), then double-time after midnight. Be sure to indicate in your invoice if there were any events that incurred overtime. Obviously, your client should know about this up front so it bears saying that they should expect these overages when they receive them. If you did not discuss an overtime contingency, you really shouldn’t bill for it unless you discuss it first with the producer.

I recently encountered a situation where I was booked freelance a month in advance for a period of three weeks. Just before the job began, however, I was offered a much higher paying job. I had to decline the job because I had already been firmed by another client. Unfortunately, the client who booked me for three weeks unexpectedly released me for a whole day twice, and a half day twice, amounting to three days. The producer would not permit me to bill her for the days I did not work even though I she had firmed the entire three weeks. This is bad policy on her part, and I expressed myself about this breach of protocol, but to no avail. I lost a lot of money.

You must express your policy up front before you begin a working relationship with a client. You might not get the terms you wish, but at least you have a say in the issue.