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Many freelancers new to the industry tend to avoid contracts because they think it lowers their chance of getting work. Unfortunately they may be setting themselves up to be taken advantage of and that’s the last thing we want. Let’s spend some time understanding the importance of contracts and why we should use one regardless of the type of client or scenario we’re in.
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[MUSIC]
0:00
Working on fun projects with great clients
is what makes freelancing rewarding.
0:05
Unfortunately, this isn't always the case.
0:10
Sooner than later, you're going to run
into someone
0:13
who will completely turn you off to the
profession.
0:15
And this will happen more often earlier on
in your career as you
0:18
try to understand what makes for a good
client that you're happy working with.
0:21
There are certain things that you can do
to make
0:26
life easier if you end up with a bad
client,
0:28
but one of the first lines of defense
should be
0:31
your ability to identify what makes for a
bad client.
0:33
It's hard to tell if someone's a bad egg
before working
0:36
with them, but there are certain
characteristics you can look out for.
0:39
If you encounter any of the following,
that's a
0:43
sign that they may be difficult to work
with.
0:46
They won't be the worst clients ever, but
it's up to
0:48
you to judge whether you'd be okay working
with them or not.
0:50
If they are a poor communicator, if they
take a long time to get
0:55
back to you or are hard to understand in
their emails or calls with
0:58
you, you will have a hard time trying to
figure out what the project
1:01
is about, and an even harder time getting
the client to review and approve work.
1:05
If there are other stakeholders involved,
and the client is your
1:09
only point of contact, expect to spend a
lot of time emailing.
1:12
If they can't explain the project
properly,
1:16
the client shouldn't have to provide
solutions.
1:19
That's your job as a freelancer.
1:21
But the client should be able to either
describe the problems
1:24
they have or give a general idea of what
they need.
1:26
I'm a photographer and I need a website to
1:29
display and advertise my photos, is a
perfect example.
1:31
If a client can do either of those things,
they'll turn out to be
1:35
those clients that tell you they will know
what they want when they see it.
1:38
If they're hesitant to talk about costs,
if the client doesn't mention a budget or
1:42
dodges the topic, you will find it equally
hard to get them to pay you.
1:47
If they don't sign contracts, this is
crazy.
1:51
Walk away immediately.
1:54
Your contract isn't an option and you
shouldn't be
1:55
doing business with clients who refuse to
sign contracts.
1:58
Then there's other things, like if they
worked with a few
2:02
other freelance designers before you, but
couldn't get the right product.
2:04
These are all signs that they're
impossible to work with.
2:08
Unfortunately, it can be hard to see these
signs.
2:11
Or you might not have a choice when you
first start out, and
2:14
are in need of experience, working your
portfolio, and money in the bank.
2:16
You have no choice but to work with these
types of clients.
2:21
In such cases, a contract is your best
friend.
2:24
While the experience of working with the
client won't be any
2:27
less pleasant, a contract will make sure
you're protected along the way.
2:29
So what are contracts and why do we need
them?
2:34
A contract is simply something that
defines
2:37
a relationship between you and the client.
2:40
It covers many different things in four
main areas.
2:42
Working relationships, payment, copyright
use, and one large category
2:45
full of miscellaneous stuff that we'll
just call legal.
2:50
Notice I used the word something when
2:54
describing a contract instead of a
document.
2:56
That's because contracts aren't always
long form legal documents.
2:58
Contracts can be detailed, multi-page
tomes or short documents
3:03
with the minimum needed to get a project
started.
3:07
There isn't a right way and it all depends
on the type
3:10
of freelancer you are and the clients you
want to work with.
3:12
But all contracts should cover these four
important areas,
3:16
working relationships, payment, copyright
and any other legal issues.
3:19
At its basic level a contract should
provide a definition
3:24
of the project you will be working on,
terms and
3:28
conditions regarding payment, copyright
protection and limitations on the use
3:31
of your work, and protection in the event
of a dispute.
3:35
Contracts define the rights and
obligations of all parties involved
3:39
but most often benefit only the party that
created it.
3:43
Well written contracts should benefit all
parties equally,
3:46
but that is quite a hard task to
accomplish.
3:50
Once the parties agree to the terms of the
contract and
3:52
sign off on it, the contract forms a
legally binding agreement.
3:55
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