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Richard Herdplease confirm I'm doing this correctly...
by on Sep 2, 2010 at 5:28:07 pm

A venture capitalist start-up wants me to animate some products.
I said, no problem, I need a contract and purchase order.
They said cool, contract will be there "tonight."
Next day, no contract, but the assets to animate are in my in-box.

My phone call will say something like, "I can't move forward without the contract and I also need the purchase order."


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Nick GriffinRe: please confirm I'm doing this correctly...
by on Sep 2, 2010 at 6:04:05 pm

Yes. But too late now to ask for a 50% deposit. A P.O. can't protect you from late pay.


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walter biscardiRe: please confirm I'm doing this correctly...
by on Sep 2, 2010 at 6:24:59 pm

[Richard Herd] "My phone call will say something like, "I can't move forward without the contract and I also need the purchase order.""

Yep, that's correct. And as Nick suggests, you should have requested a 50% deposit to start the job.

Walter Biscardi, Jr.
Editor, Colorist, Director, Writer, Consultant, Author, Chef.
HD Post and Production
Biscardi Creative Media

"Foul Water, Fiery Serpent" featuring Sigourney Weaver coming soon.

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Richard HerdRe: please confirm I'm doing this correctly...
by on Sep 2, 2010 at 6:50:47 pm

Okay, a contract, a PO, and 50% deposit.

This is a series of videos.

Does that mean, the 50% deposit is on the total contract value?

For example, 10 spots at $1/ea means $5 to begin the job.

OR

.50 to begin each spot?

Thanks again!
Richard


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Nick GriffinRe: please confirm I'm doing this correctly...
by on Sep 2, 2010 at 7:05:14 pm

Every business is different. The 50% deposit (or more) in our business is for new people or those who have proven to be less than timely in their payments. Once we get to know them, and have a relationship, that changes.

We deal mostly with companies and organizations who provide an ongoing stream of business. They expect, and are invoiced, for entire net amounts virtually always after a job is done. It's expected and a workable system as long as they continue to play nice and send checks.

Years ago we were serving as the radio production house for a less than reputable ad agency. (Hey, I was young. I didn't know any better.) Their philosophy of business was to draw out their payables as long as possible. For us this meant that the only time we would get paid was when they needed to book the next session. I mention this because it's the perfect example of a company who should be required to pay at least a sizable deposit up front EVERY time.


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Mark SuszkoRe: please confirm I'm doing this correctly...
by on Sep 2, 2010 at 10:09:42 pm

Go ahead and do the work but get oaid in full before you deliver ANYTHING. If they insist on getting "samples", watermark or otherwise render them unsuitable to be pirated. Do not dare to waver from this policy.


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Mike CohenRe: please confirm I'm doing this correctly...
by on Sep 2, 2010 at 10:35:29 pm

Put a timecode burn in the lower third, but over some of the content so they cannot crop it.

However since you did not stipulate payment up front, you may be stuck being the bank here, since they likely need the final work before 30 days have elapsed. Some customers won't let you invoice them until the work is done.

As other have said, and as has been repeated numerous times on this board, it depends upon the customer. If this is a new client, then get something up front - even a signed contract with clauses about payment terms in lieu of payment up front - something you can use in the event of non-payment. But if it is a customer who gives you work repeatedly, and they pay consistently, then you can float them the downpayment if you think they are good for it.

Mike Cohen


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grinner hesterRe: please confirm I'm doing this correctly...
by on Sep 3, 2010 at 12:56:49 am

You don't need a PO. You need half down.



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Scott CarnegieRe: please confirm I'm doing this correctly...
by on Sep 3, 2010 at 2:10:49 pm

Don't start work until you hav a contract AND a deposit of 50%. Send an invoice for the total of all of the work you have agreed upon, and say AMOUNT DUE and make it half of the total. The invoice you send at the completion of the project will be for the rest, and once you get paid you turn over all of the deliverables.

http://www.MediaCircus.TV
Media Production Services
Winnipeg, Manitoba, Canada


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Dan AsselinRe: please confirm I'm doing this correctly...
by on Sep 6, 2010 at 12:38:44 am

Speaking of contracts I'd like some opinions about an agreement I have drafted for upcoming use. Yes I have worked without an agreement and have learned to regret it. Do you think that the overall tone is too informal? Can you think of anything I should include that isn't there?
Thanks;

Here is the link

http://www.effectivebusinessvideo.com/images/How%20Things%20Work.pdf


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