(this post is a feed post from my comments on reddit)
r/Entrepreneur
i used to run a digital agency (actually a few)
1. scope of work- be detailed and specific, make sure there are clear deadlines, and very clear deliverables (at one point i attached examples in an appendix) make sure you highlight instances for over time for example (see below, i include an amazing clause from my lawyer, unrelated, but an amazing example of how they prevent scope creep) – make sure the client explicitly signs of at milestone deliverables, and if the client goes back on what they previously signed off on, there are penalties
2. contract- make sure you have VERY CLEAR payment terms and outline penalties for late payment, again clarify the scope and deliverables, again clarify penalties and work hours and contact hours. – specify the ownership and usage of any works (especially in the instance of nonpayment by the client) highlight any 3rd party fees (eg. images from getty images or media fees) and related payment terms
3. timeline and roadmap for the project
4. budget breakdown and allocation, include payment terms, specify what happens in the event of non payment or late payment – dont get too specific until they sign with you
the main things your trying to protect against
1. non payment
2. late payment
3. scope creep
4. excessive re-working and client communication
5. changing mind after sign off
6. what happens once the work has been done – ownership and usage rights
examples of instances i’ve personally encountered –
1. client make a ridiculous amount of changes, once signed off, asked for all the versions and ended up with 5x the number of ads they paid for.
2. client approves everything, then when final sign off – said it all sucked and demanded a discount
3. client demanded the work, then delayed payment for over 18mths expecting a discount to finally transfer funds
4. client got all WIP then ghosted us with non payment, then used the WIP for their ads
5. client asked for loads and loads of media plans and proposals, then didnt give us the contract, gave all our plans to a competitor who was hired to implement our plans
6. client took our WIP creative, got a cheaper chop-shop to render the real ads