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Hi. Just because you changed your mind or the event got cancelled, your designer/writer/planner/publicist still has to be paid. It may not be in full, but you're not due a refund for work done because you changed your mind.
If you're a designer/writer/planner/publicist your agreements need to have a cancellation clause... and it needs to spell out what happens if either of you need to cancel, how much is due the client, or how much is due you... ESPECIALLY if you've already provided samples. HA!
Imagine going to work all week, boss tells you they don't need you anymore AND they want back the money they already paid you.
And then... THEN... they take the work you did and give it to someone who will finish it for much less. And they use it. With your name on it.
Right.
And then... THEN... they take the work you did and give it to someone who will finish it for much less. And they use it. With your name on it.
Right.
I don't charge by the hour but I do keep track of the time I spend working so that if a client needs to stop work, I can make the math.
This is kinda how it works... I'm going to use $50/hour as the hourly rate, for demonstration purposes.
#30DaysofThreads
This is kinda how it works... I'm going to use $50/hour as the hourly rate, for demonstration purposes.
#30DaysofThreads
So buss it...
Erica hires you to create a website for her. Your rate for what she needs is $1500.
The deposit is $750 and the balance is split over 2 consecutive monthly payments.
You have a cancel fee of $250.
Erica hires you to create a website for her. Your rate for what she needs is $1500.
The deposit is $750 and the balance is split over 2 consecutive monthly payments.
You have a cancel fee of $250.
You've started work and are at the point where it's time for Erica to see her first draft, when she hits you with the:
"Oh, my cousin said she can do it for me for $500, so I need my money back".
"Oh, my cousin said she can do it for me for $500, so I need my money back".
This is where you direct Erica to Section C, Part 2 of the agreement she signed which states:
If project is cancelled after works has begun, the refund/balance is calculated in the following manner:
If project is cancelled after works has begun, the refund/balance is calculated in the following manner:
Deposit paid ($750)
- cancel fee ($250)
- [number of hours worked * hrly rate]
_________
Let's say you worked 6 hours so far, so that's $300.
- cancel fee ($250)
- [number of hours worked * hrly rate]
_________
Let's say you worked 6 hours so far, so that's $300.
You need to send Erica her $200... AFTER she signs off on the "this project is closed and I am accepting this refund in lieu of further action" or something like that... ask your lawyer friend how to word yours.
HOWEVER dot dot dot
HOWEVER dot dot dot
If you've worked 10 hours, there's no refund.
If you've worked 15 hours, technically Erica owes you.
If you like Erica, you can let that $250 owed you be covered by the cancel fee.
Now, some rules:
If you've worked 15 hours, technically Erica owes you.
If you like Erica, you can let that $250 owed you be covered by the cancel fee.
Now, some rules:
- that deposit isn't all the way yours until you've earned it, so a good rule of thumb is to get to work on them hours ASAP
- the terms need to be spelled out in your agreement at the beginning of the project. You can't just spring it on Erica.
- the terms need to be spelled out in your agreement at the beginning of the project. You can't just spring it on Erica.
- link to your payment/refund terms on your website, like next to your privacy policy. It may give you an extra line of defense if Erica files a dispute.
- don't bypass signed agreements. It also helps if you walk through what's in the agreement during your onboarding
- don't bypass signed agreements. It also helps if you walk through what's in the agreement during your onboarding
What you don't define, you leave to interpretation. Your agreements, policies, and processes are to protect you AND your clients.
I can help you with the policies & processes part... right here https://suite369.com/make-it-make-sense
I can help you with the policies & processes part... right here https://suite369.com/make-it-make-sense
Also... I use Dubsado for my agreement templates and getting paid... 20% off your first billing with SUITE369 using my affiliate link http://bit.ly/dubs369
Their Black Friday sale is coming up too...
Their Black Friday sale is coming up too...
