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Subject: Re: [AE] contracts, slightly OT
From: Steve Oakley <steveo@practicali.com>
In-Reply-To: <list-4753991@media-motion.tv>
Date: Thu, 21 Jun 2012 15:25:04 -0500
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References: <list-4753991@media-motion.tv>
To: "After Effects Mail List" <AE-List@media-motion.tv>

the network gigs I get often pay if I'm lucky in 45days, usually 60-90. =
its just that they move slow. if you want the work, thats how it is... =
and believe me there are a LOT of people who want these gigs.

what it really comes down to is you need a large enough float so when =
nothing comes in for a couple of months, you just go thru and its ok... =
then you fill the well back up when it does come in. takes discipline =
and planning... and a couple bigger jobs once in a while

10% is enough sting for most corps to pay in a timely manor....=20

S

On Jun 21, 2012, at 2:05 PM, Greg Balint wrote:

> hmm.. never thought it would be illegal to charge 5% per day late.. I =
probably need to revise that then,. I kinda feel it's necessary to say, =
"look.. if you're late, you're going to be paying an amount that hits =
your wallet some.. so please pay on time..make it a point to try to."
>=20
> =46rom my point of view, How serious is 10% of an invoice that's =
$1,200? $120 bucks?  plus 1-2 percent on top of that after a couple of =
months?, so after 60 - 90 days (1/6th to 1/4th of the year), they can =
finally pay me and it only cost them $140 extra from what the initial =
invoice was?  Seems like a nice way to say "You can pay me late and =
it'll only cost you a little bit of money."  and what if the invoice is =
$250.. I charge them 30 bucks? doesn't seem like much in the incentive =
to pay field..
>=20
> I'd rather them know that there will be an undesirable fee accruing.. =
anyone doing business with me should easily be able to pay me in about =
30 days. If not, mostly likely they are choosing to hesitate with me..  =
I don't have the option to deliver late to them, why should they get =
that advantage when delivering what I want?  Obviously I have a few =
clients who i'll work with on this, as I know they are in the same sort =
of situation I'm in.. these "friend clients" as I call them, have proven =
their worth over years and years of working with them.  This is more of =
a concern with new, first time, never met you and you live in a foreign =
state or country, type of clients.
>=20
> I just read online that it's more acceptable to charge a "Late Fee" of =
a certain definite amount, which could be customized per =
project/contract.  The percentage of interest is where it becomes a =
legal issue with loan sharking of the district you live in.  As long as =
the complete and flat "fee" (which can be one time, or per =
day/week/month) is stated in the contract, and the client signs, then =
they agree to that exact amount and it is not a fluctuating percentage =
of base type of thing... So something like  "a late fee of $50 / day up =
to 20 days" may be more direct and effective.
>=20
>=20
> Maybe I'm just bitter, because I've been out of work for a little =
while, and now that I've got work going again, I'm waiting around for =
payments and they're taking the full 30 days.. even 30 days after having =
a dry spell at work, can cause some considerable problems..
>=20
> I don't have a rubber band budget to be able to allow clients a couple =
of months, and want to do everything I can to ensure they don't feel =
like that's an option.  If I get 5 new projects from current, trusted =
small indie clients, all at the beginning of the month, all with smaller =
budgets, say $750, and they all want to pay at the end because it's a =
smaller budget and they don't get paid until their client gets paid, =
etc.. then I'm stuck working all month with no pay, then when I'm done =
at the end of the month, and looking for more work they have a full =
month after I'm finished before they need to pay me.. that's already a =
very long time to wait, especially when you've had a dry spell, and the =
coughers may be getting tight..
>=20
> Bah.. sorry for the rant..  I just find it necessary to hold clients =
accountable, just as they would hold us accountable..
>=20