First time working with client, payment question...

[Blade Borge]

So a lot of the time it's the norm to be paid 1 month- 2 months after the job is done, right? At least that's my experience.

So what if I'm working with a client for the first time, I don't really know them, do I require payment upfront before giving the footage or something else?

 

[Barry_Green]

What kind of job? If it's full-service video production, I always specified 33% down, 33% before start of principle photography, and the final 33% before delivering them the final product.

Only time I've ever been stiffed was the one time I broke that rule and let the client have a copy before he paid the last 33%.

 

[Blade Borge]

Yeah, full-service video production. Do you apply this rule to new customers or to everybody? Thanks for the tip!

If you apply this rule to everybody, do you ever run into clients that act outraged like, "How dare you set the terms, I'll pay you when I can." type of thing?

 

[Erik Olson]

Those terms, or something derivative of them, is commonplace in the industry. Production companies will require a deposit to bind the proposal to contract. Because labor is usually estimated based upon preliminary specifications, the final third might fluctuate up or down. The onus is on the production company to communicate when labor, rentals or other ancillary costs are going to go up for any reason - including the agency or end-client making changes to the scope of the original project.

 

[Steve House]

Yeah, full-service video production. Do you apply this rule to new customers or to everybody? Thanks for the tip!

If you apply this rule to everybody, do you ever run into clients that act outraged like, "How dare you set the terms, I'll pay you when I can." type of thing?

There' a good chance a client who says "I'll pay you when I can" won't ever pay you at all, that's just not the way reputable businesses operate. "Time is of the essence" is a fundamental concept in contract law. A valid contract should include a specific, agreed upon, time frame in which both parties must perform their side of the bargain. It is an essential part of every contract.

cxh