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Originally Posted by Curtis Cunningham  Never having done this kind of work before, I would like to know if you have any recommendations as to how I go about managing the payment side of things. How does a photographer generally receive payment for this kind of work? Is it all up front, or a deposit up front with payment later upon delivery of final product? Or full payment upon image delivery? What works best?
The lady I mentioned in this thread has just been in contact with me and she wants to go ahead with a couple test images. So I would like to be as prepared as I can be when she comes by. |
Good business ALWAYS means getting paid immediately upon completion of work, so my standard terms are always "Due on Receipt". My interpretation of that means that money and work exchange hands at the same time.
Of course, this is usually not practical, as most of the time the person that you are working with, is not the person that is writing the checks. Still, 'Due on Receipt' means that it is paid as soon as logistically practical.
If the project is large, then I might ask for a portion in advance, and the same if there are a large amount of expenses. I have my own guidelines as to what expenses I am willing to 'front', and what I am not. I will also break large (multi-day) projects down into seperate invoices, usually on an as-delivered basis.
Then, I always qualify the client to determine how I should get paid. For example, if I am working with an individual that is working for somebody else, I am more than likely going to want payment immediately. If I am working for a large company, then I will discuss in advance our agreed payment terms, with the appropriate department manager. If it is a small company, I am going to be very strict regarding terms, as small companies often will prioritze my payment way down their list. And, often they can't pay me until they get paid, and I don't like relying on their collection ability.
Every company is different. Most large companies will have established vendor payment policies and check writing schedules (they always seem to arrange for you to receive the check on Friday afternoon, so you can't cash it until Monday). Advertising agencies are notoriously late payors. A large part of their income is derived from floating large amounts of money for long periods of time, and your debt will be part of that. (it is not uncommon to wait 90 to 120 days or longer)
Generally, however, all companies should be able to pay within a 30 day cycle.
The key, is to discuss the terms in advance with the right people, agree to something, and then stick to it. If the terms are long, consider adding a 'cost of money' factor into your rate. After all, you are not in the 'free banking' business.
Remember, it is easy for them to simply agree to whatever you state, and then pay whenever they please. But if have it writing, in advance, I can easily hound them when they go late, and bring that to their attention on the next job, and adjust accordingly if necessary.
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