We interrupt VeganMoFo to address a question I was sent regarding payment after completing a project without having a contract.
What sucks most about this type of situation is that you can end up looking like the bad guy if you don’t resolve the matter in a diplomatic fashion. Especially when dealing with companies that do not understand or appreciate the cost of design services. Not only am I going to help you get your money, I’ll even tell you how you can win over potential clients that balk at your hourly rate!
So I made a dumb mistake a few months ago. I took a job without a contract, only because it was a small project and referred to me by a guy I’ve been working with for a couple of years. I built a flash image map for [redacted].
6 hours for initial build, 2 hours on changes they asked for. They thanked me and I sent my invoice (Aug 25). They asked for me to fill out a w9, even though my invoice was only $450.00 “in case of future work.” I did of course.
Anyway, long story short, now that I’ve delivered the product, I’ve yet to receive a check or replies to my e-mails. I let my friend know because he still has regular meetings with them for whatever reason. First thing out of him? He sent me a threaded e-mail between him and the VP in which she voiced concern over how much my invoice cost ($450!). My friend met with them that day for other reasons, but took the time to inquire for me. “They say your contact there is only in 15 hours a week.” Uhm, how much time does someone need to cut me a check?
What can I do? Any words of wisdom? Any stock e-mails you have prepared for situations like this? I want to be as diplomatic as possible, but I’m seething at this point and would love to e-mail the VP something along the lines of “Believe it or not I have bills to pay. I’m sorry you feel that my $450 invoice is exorbitant, but the fact is 8 hours is the time it took to build your image map, period, so please be the professional that you are and send my $450 check.”
Am I being impatient? Help!
$450 for 8 hours of Flash Design & Development is a steal. Straight up. I’m guessing that the VP et al don’t understand how cost-effective you and your work are to the company.
Get in touch with your contact at the company, be sure to Cc your friend; inquire about the company’s policy with paying invoices. Unless you agreed in advance, in writing, that you expect payment upon delivery of invoice, they can take as long as they like to pay you. Most companies have a standard Net 30 policy but I know other corporations that pay Net 60.
I don’t know the copyright laws in every state, but in California an artist owns all copyrights to a work unless the company states, in writing, that it has paid the artist for his/her work as well as all rights. God did I love living in California—only for that reason. Technically, because you don’t have a contract with the company, you still own the rights to the Flash file. Note: it’s within your legal rights to revoke privilege of the Flash file until you receive payment. Unfortunately, this action can also result in the termination of any future work.
Let’s wear our diplomacy caps and resolve this situation!
Hi, [Contact];
I’d like to begin by apologizing {stay with me} for not securing a written agreement between both parties before starting the project I completed for [Company Name] on [Date]. It was my responsibility to submit a written agreement to [company name] which I failed to do. As such, both parties have questions and concerns about their rights and responsibilities which would have been addressed in a written agreement:
- information/details about [final product] requested by [Company Name]
- information/details about my responsibilities to complete [final product]
- my hourly rate for services rendered, specifically Flash Design & Development for this project
- [Company Name]’s terms of payment (e.g. Net 30)
- rights of ownership upon receipt of payment
I completed a [final product] for [Company Name] and submitted my final invoice on [Date]. I will assign all rights of ownership of [product name] to [Company Name] upon receipt of payment.
In case of future work, I can provide a written agreement in a separate e-mail that will ensure this situation does not occur a second time, I’d hate to sour what has been an amicable working relationship.
Please let me know your company’s policy with paying invoices from contract resources and when I can expect payment for services rendered.
Best,
[Your Name]
Sending a response today may not guarantee a reply until later next week, be patient. You can tell the company in a later e-mail that it’s important to be paid for your services in a timely manner since you make your living as a contract designer.
The lesson here is always, always, get a signed contract before you start any design work.
Also? Quickly learn how to identify potential clients that think they can get whatever they need at Wal-Mart prices whilst treating resources like slave labor. These are people you can win over with your services and hourly rate. How? Find other designers in your area that work in your field, especially those who charge less than you, and create a compare/contrast presentation for your potential client. Sure, the company could go with another designer that charges $10 less per hour than you, but just look at the lack of quality in their work! Point out every. little. detail. in your competitor’s designs. You are visually demonstrating that your work is worth its value, and humans are visual creatures. When a potential client can see the differences in quality, cost is less of an issue.
Good luck!