Contracts for Freelance Copywriters and Designers?
If you ask a lawyer, they will tell you that a freelance copywriter or designer needs a legal contract for every project.
If you ask me, you need a detailed estimate containing everything relevant to that project.
What's the difference?
The key difference between a contract and a detailed estimate is that a lawyer’s contract is full of lawyerly language.
Typically, it includes sections on “enforceability, governing law, and arbitration”. Lawyers love it; clients not so much.
A detailed estimate is all the details about the project without the legal stuff.
Instead of a Legal Contract, Do This
Before we go any further, the necessary disclaimer:
“I am not a lawyer, and this is not legal advice. Do what feels right for you. Here’s what worked for me over years of freelancing and running two successful agencies.”
What should you do instead of a legal contract?
Write your estimates in a way that is clear to you and the client. There should be enough detail so there’s no confusion.
Important: Review the estimate with the client in person to avoid future misunderstandings and disputes. Don’t just send it over and assume the client has read every word. Review it with them, word by word.
Your estimate should include terms and conditions that ensure you get paid upfront and along the way.
Avoid Legal Contract Language in Your Estimates
Why should you avoid legal contract language in your estimates?
For us, it was simple. We never wanted to hire a lawyer or go to court to enforce a contract. It would cost thousands of dollars, take up days (weeks?) of our time, and completely distract us from our business.
It would be emotionally draining, and in the end, not worth it. (Again, my perspective. I know some people seem to enjoy “lawyering up”.)
If you’re not prepared to go to court to enforce a term, then why have that kind of language in the agreement?
If you find yourself in a client disagreement that can’t be solved despite everyone’s best efforts, walk away from it. Learn your lesson.
No matter how expensive it may seem, it will be less than legal arbitration.
Quick story: We once walked away from over $6,000 in fees. We simply couldn’t come to an agreement with a client. He kept changing his mind, he wouldn’t pay until it was over, and we knew it would never be over. So, we pulled the plug.
Could we have enforced this legally? Perhaps. But we chose to move on. Should we have collected a deposit upfront? 100%, yes.
Despite the money, we felt so much better to have this behind us.
Even Small Projects Need Written Estimates
Yes, even your smallest project needs a written estimate. It’s much easier than it sounds. Create a template for yourself, and you’ll be able to generate estimates quickly.
Don’t skip this. It can be tempting to exchange a few emails about a project and proceed. The problem is that you don't have one complete document that summarizes your project.
Don’t be casual about your estimates. That’s where disputes begin.
What to Include in Your Estimate Template
In my post, How to Write Estimates That Win Projects, I included this list for estimate templates. There’s much more detail in that post for each item.
Date
Client company name and address
Prepared for (name)
Executive Summary
Project Summary with details taken from brief
Deliverables – what you're providing, broken down in stages
Calendar with a timeline
Rounds of revisions included
Sales Tax details
Terms & Conditions – payment terms, deposits, kill fees
Legal Terms – usage and copyright where appropriate
Acceptance and approval to start
Where You Need More Detail in Your Estimate
There are two areas where you need the most detail in your estimate:
What you’re going to deliver (the deliverables)
How you’re going to deliver it (working process)
In your deliverables, include as much detail as you need to outline the project and also limit it.
If you’re writing, can you define it by the approximate number of words or pages?
For a design project, will you provide rough concepts first? How many? How many charts and graphs, how many photographs? Quantify whatever you can. Bracket it where necessary.
You’re doing this to set client expectations and to protect yourself. Think about every deliverable and how you could limit it so it doesn’t get out of control.
When you review this with the client, you may get feedback that will require you to change some of these terms. Take the opportunity to increase your estimate if the changes to deliverables mean there is more work.
For example, you may propose three options for rough layouts. If the client asks for five, increase your estimate accordingly.
For your working process, be sure that you and the client agree on how you will do the project. On larger projects, you’ll need client approval of a phase before moving on to the next step. This will have an impact on your schedule. The client should understand the importance of meeting their deadlines for approvals along the way.
I wrote more about Terms and Conditions for Freelancers here.
Define Rounds of Revisions
In our estimates, we usually said:
“Includes up to two rounds of revisions. Further revisions will be estimated as necessary.”
Read that carefully. “Up to two rounds”. There's no discount for fewer revisions. Note that for further revisions, we provided estimates.
Do not get caught providing endless revisions without the client knowing how much each revision costs. In our case, if we hit revision #3, we would quickly write an estimate outlining the details and cost and get approval to proceed. If there was revision #4, another estimate to approve.
It may seem like a lot of admin, but there was never a surprise about costs when we finished the project. Also, when our invoice hit their accounting department, we had backup for the costs. That helped speed up payment.
Two Reasons for Getting a Deposit Before Starting
The first reason is obvious—money in your bank account. Keep your cash flow healthy by collecting deposits.
The second reason is subconscious. The client now has “skin in the game”. They’ve committed by paying you. This will encourage them to take the project seriously and get it done according to your agreement.
Keep in mind that if the client hasn’t paid you anything, it's easy for them to delay the project or walk away from it. Money makes it real. Get that deposit.
Get Formal Approval for Your Estimate
Make your client “sign on the dotted line”. Whatever approval system you use, you want written confirmation from the client.
Some software platforms allow the client to check a box or put in a digital signature. At the very least, they can send you an email indicating their approval.
If they phone you, follow up with them by email to get it in writing.
It can be as simple as: "From our call, I understand you've approved our estimate for ABC Project. I’ll send you an invoice for the deposit, and once we’ve received payment, we’ll schedule our kick-off meeting.”
Keep the Language Positive
I have seen estimates that feel very negative to me.
Lots of “legalish” jargon about policies, penalties, or additional costs if the client delays the project, or does X, Y, or Z.
We avoided it. We stated everything positively, even limitations.
I included an example above: "From our call, I understand you've approved our estimate for ABC Project. I’ll send you an invoice for the deposit, and once we’ve received payment, we’ll schedule our kick-off meeting.”
It could have been: "From our call, I understand you've approved our estimate for ABC Project. I’ll send you an invoice for the deposit. Please note that according to our payment policy, we can’t schedule our kick-off meeting until we’ve received the deposit.”
See the difference? The first one is all positive, and forward-looking. The second version puts the brakes on the project. They both mean the same thing.
The feeling we wanted to leave the client with was that we’re a delight to work with, we know what we’re doing, and we’re eager to get going on this project.
Check your language. Does it leave everyone with a happy feeling?
Be Confident, Be in Control
A detailed estimate shows that you know what you’re doing, and how you’re going to do it. Your confidence shines through. It makes clients feel secure.
You may get some feedback on how you propose to do your projects. Listen, make little adjustments if necessary, but don’t let a client change it too much. You should be confident that your process will deliver successful projects. Your business, your rules.
Last Piece of Advice From “Not a Lawyer”
You’re having a meeting with a prospective client. You can already tell that you're not seeing this project the same way. Walk away now.
If they don’t want to pay your deposit, don’t want to follow your process, think they know everything better… note the red flags and suggest you’re not the right person for them. You’re not going to change them.
No contract or detailed estimate can force a person to follow a process.
If you choose the right clients, you’ll never have “legal problems” with them. You’ll both understand the job and work together to get it done. Your life will be so much easier. You won’t need lawyers, and you won’t see the inside of a courtroom.
For more on this, see 7 Red Flags for Freelancers and How to Fix Them.
Tips on choosing the best clients: Hierarchy of Client Types from Best to Awful.
Learn more about contracts vs. detailed estimates in my book, How to Start a Successful Creative Agency. It’s the essential business guide for graphic designers, copywriters, filmmakers, photographers, and programmers.
Buy the Book Here
Over 300 pages and 23 chapters, available at Amazon (Paper & Kindle), Kobo (ebook), Apple Books (ebook), and Gumroad (PDF).
The book is packed with useful information to help creatives start and grow their business.
Truly Spectacular Book!
“Sat down and went through @StroteBook's magnificent new work in the course of half a day.... and promptly began rethinking a great many things. Truly spectacular book, and at a time when it was exactly what I needed.
Thanks, Andy. (How did we not cross paths in Toronto?)”
Neil Hedley, Knopf Studios, Toronto & Orlando, from Twitter
Want a free taste first?
Sure! Sign up below to get a free PDF of Chapter 14, Working With Clients.
This chapter covers essential areas such as Clients vs. Projects, Corporate Clients vs. Small Business Clients, How to Create an Opportunity Document, Benefits of Finding a Niche… and much more.
Questions? On Twitter, I’m @StroteBook. D.M.s are always open. Ask away.