Quick Tip: Kill Fees
Published by Matt Glover February 28th, 2007 in Quick TipsWhether we like it or not, most clients see what we do as light weight and wince at having to pay anything for it. Then, when they finally do decide to spend some money, they consider themselves experts, yet can never tell you what they really want.
Can you tell I’m in a mood?!
One of the most difficult clients to work with is the one who is incredibly picky and then halts a project part way through because they don’t like what you’re doing. All clients, picky or otherwise, are entitled do so this if they want to, but they also have a responsibility to pay you for the work you’ve done to that point. This is where the ‘kill fee’ comes in.
Despite what you might think, a kill fee is not what you pay an assassin to execute your mother-in-law, but an amount you charge a client for pulling out of a project early. This is usually in the order of 50 - 75% of the expected total fee. You should negotiate this to be written into your contract before you start and send a kill fee invoice as soon as a project is stopped.
I’ve found it difficult to get clients to pay the kill fee, so have instead asked for a 50% deposit before I start. If they pull the plug, I still keep the money - and already have it in my hot little hand.
So whether you charge it upfront or invoice it later, make sure you include a ‘kill fee’ in your next contract.
Great tip Matt.
I never start on a project without having a 50% deposit as well.
Not only is cash in the hands a good feeling, but it tends to give me some assurance that the client will go through with it—usually they feel more invested with half already paid.
And it also has the effect of spreading out my income a little more evenly. There are always bills to pay DURING a project too, and starving while you paint (or draw) is never fun.
Ditto what Dan said. I just charge 50% up front and make sure the client understands that it’s not refundable (so they can’t pull out half way and ask for their deposit back). This is probably easier to do than ask for the 50% AFTER they’ve become dissatisfied and pulled out.
Although the idea of a “kill fee” sounds pretty good.
THIS…is a great idea (not that your others are too shabby either). I must include this in my contract which I am currently in the process of making…
…any advice on contracts for the beginner? And possibly on negotiations?
You’re reading my mind John. Should have a post or two about contracts in the next few weeks.
I echo everyone’s comments so far. Thats an excellent tip!