Money Matters

If you want to be treated like a professional, be very clear about fees and payment.

I know a few people who are in this business for the sheer joy of creativity. It's all well and good if you don't have property taxes to pay, a daughter in college, or the bad habit of wanting to eat regularly.

And while we're assured by the politicos that the economy is recovering, there are still many companies that believe they can hold up payment to freelancers for weeks or even months. That's especially true if it's a large company and you're the low person in the money chain.

When you buy groceries or gasoline, the shopkeepers want their money at the time of the sale. Even the dentist wants her money up front. But we videographers, as a collective group, tend to be trusting and will do the job on credit for just about anyone who asks. Given the number of times we work for unknown, out-of-town companies, how often do we really check their standing with Dun and Bradstreet?

I know when I hire larger production companies in towns where I'm a stranger, they often ask for money up front, or right at the end of the job. But a freelancer may let the bill ride for 30, 60, or even 90 days. I'm guilty of this myself.

There are ways you can protect yourself. First, let the client know you want to be paid within a reasonable amount of time, if not immediately upon wrapping up the project. Invoices should be printed with a disclaimer that a certain percentage will be tacked onto the bill if it's not paid within 30 days. Also, you can offer a discount for prompt payment.

Manufacturers do this all the time, giving anywhere from 2% to 10% discounts. Aha, you say, but I'll lose money. To compensate, raise your rates by this amount so you won't be taking a loss if your client accepts the offer. If you're expected to shell out money for a lighting truck, other crew members, or meals and lodging, it's fair to ask for that money before shooting begins.

Even if you're a one-man band, you can accept credit card payments. The credit card company will take a fee up front, but it will also be there with you when it comes to collecting money from a delinquent client. Talk to your local banker or a major Visa or MasterCard bank about setting up an account. (You can carry the card-swiping machine on your belt right next to your cell phone and beeper).

One way not to get burned is to be very clear up front about your fees. Are you on an eight- or 10-hour day? Is lunch included in the eight hours? What equipment comes with your package and what is extra? It's fair to charge for travel expenses, especially if you own a truck in which to haul the gear, but often these charges don't kick in unless the job is outside a specific geographical area.

If you want to be treated like a professional, you have to be professional in your approach to the job. This means being very clear about money matters. No one likes to talk about them, but they go with the territory. After all, if we didn't get paid for the work we do, we would be amateurs. And no one wants to be called an amateur.