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08/29/2007: "More On the Copywriter's Contract - Protect Yourself"

I write a lot about copywriter's contracts. Is it because I'm obsessed with all things legal? No. I'm not a lawyer. I'm a copywriter. And as a copywriter, I have to make sure that my rights are protected and that the client fully understands what they will get for their money and --- more importantly --- what they will not get.

I won't get into the entire contract in a single post. I try and deal with one or two clauses that I feel are especially significant.

Again, I am not a lawyer and this is not legal advice. I'm discussing issues of critical importance to writers and copywriters and sharing with you from my own experience. You should always seek your own legal advice about your own contracts.

One of the toughest issues we as freelance copywriters face are those unscrupulous clients who try and stiff us with unpaid bills. They may opt to do a charge back on a credit card or stop payment on a check. Is there anything you can do about this? You bet!

After I encountered some problems several years ago, I had my lawyer add a clause that totally prevents this sort of activity and protects me should a client decide he wants his copywriting at no cost.

Below is part of the clause.

4. Collections, Stop Payments and Charge Backs
Collections, stop payment on checks and charge backs are seldom an issue with Consultant. Consultant must, however, provide for the possibility. Client agrees that all payments initiated by Client in which charges are made to Client’s credit card or bank account or a credit card or bank account over which Client has control are final and not reversible.
• Client agrees that Client will not charge back any amounts charged to a credit card or bank account by PayPal or Consultant. If Client charges back a credit card charge or amount from a bank account for a payment initiated by Client, Client agrees that Consultant or PayPal may recover the amount of the chargeback by either reducing Client’s PayPal account balance or other means or re-charging Client’s credit card or bank account for the amount of the chargeback or bounced check.
• Client agrees that Consultant may charge an administrative fee to recover costs associated with the above.
• Client agrees to pay any and all legal fees, travel expenses and other expenses Consultant incurs that are associated with any chargeback or stop pay on a check or other instrument and any attempt to collect fees due Consultant by Client.

Since I get full payment in advance, I have no collection problems. But that doesn't prevent someone from stopping payment on a check or doing a charge back. Very few people will do this. But a few people do it habitually with service providers.

You can stop these people in their tracks with a clause like the one above. Again, I am not suggesting you use this particular clause unless you first seek legal advice. But I do advice you to have a clause to protect yourself against something like this happening.

The only clients that will dislike this clause are those who plan to stiff you. Others will have no problems at all with it.

Both you and your client will feel better working under a solid contract. The client knows exactly what to expect from you and you are protected from the many things a person can do to you in the course of your work on his or her project.

As I always say, be sure and ALWAYS use a contract with every client. Yes, it takes a bit of time to prepare it or have it prepared and to get it signed. But it's time well spent. And once you have a good solid contract, you only need to fill out the new client's information and change the details of your relationship with that client. No need to change any of the clauses.

Finally, my advice to you is to never ever negotiate. Once you set your fee, stick to it. If your client wants to pay less, you can allow that. But in return for a smaller fee, you will provide fewer services.

I also suggest that you don't give refunds, partial or full. Some copywriters do and that's fine if they're comfortable with that. But I have a clause stating that I do not and will not. If you use such a clause, make it very clear.

A client can stiff you by saying he's unhappy with the work and ask for a refund. You give it and he uses your copy. Now, that brings up a whole new issue of copyright, which I won't get into. But discuss this with your attorney. See if he or she advises you to give refunds. If not, have your attorney draw up a clause stating your refund policy.

Next time you sign up a new client, either for a single project or a long-term commitment, use a good solid contract. It will prevent lots of major problems that could cost you lots of time and money and unhappiness.

Always seek legal advice about your own contract. This post is not intended to be legal advice and may or may not work in your particular situation.

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