3 Easy Methods to Royally Muck Up Your Freelance Contracts

A deal is never really done before ink is dry. Here are several common mistakes in order to avoid as you build your empire.

Among the first things you’ll learn upon launching your freelance career or starting a business is that handling paperwork is roughly 10 times more tedious than you may have imagined. Customizing a typical agreement can save time, but even savvy solopreneurs can your investment need for starting new partnerships on the proper foot — that’s, with a sound contract.

Here’s a (very) likely scenario: You jump out of a promising Google Hangout with a potential customer, or waltz back again to your WeWork desk the morning after an effective networking event, and all you have to to accomplish is start the project. The ideas are flowing, the partnership is new, you’re excited, they’re excited. It’s go-time.

Not fast, kids.

In my own past life, I worked at an ad tech startup that operated in a fairly volatile space where clients were notorious for changing their tune with the times of the week. I rapidly learned a deal is never really done before ink is dry.

Related: Ways to get Clients to Pay You Upfront

At a more substantial company, whole teams focus on negotiating the terms of an agreement before work ever begins. But, as a solopreneur, you’re by yourself. Self-sufficiency is among the most admirable traits exuded by entrepreneurial types, but periodically doing your homework is the better (and only) plan of action.

Among those times? Drafting freelance contracts. Here are a few common mistakes in order to avoid as you build your empire.

Mistake No. 1: Starting work with out a signed agreement.

Look, I’m an optimist. I love to think that a lot of people aren’t total jerks. It’s difficult to assume that the type of one who would skip out a contract may be at the helm of a credible and trusted entity, but discuss with: Freelancers get shafted. A WHOLE LOT.

The Freelancers Union reports that 70 percent of freelancers have already been stiffed, which doesn’t include the numerous others who’ve faced frustration or uncomfortable circumstances because of devoid of a contract set up before you start work.

That is why, it is best to formalize the agreement in some recoverable format prior to starting the gig. Do it each time. By the way, having the capacity to execute a timely and accurate agreement isn’t simply for your benefit. Articulating the terms in an in depth yet straightforward manner will reinforce with clients that you’re a complete pro who is seriously interested in your end of the bargain, aswell. So, basically, rock-solid contracts help protect your clients’ interests, too.

Related: The Freelancer’s Method of Managing Expenses and Getting Paid

Mistake No. 2: Phoning in the statement of work section.

Just about the most notoriously time-intensive parts of a freelance contract may be the area where you explain your services and fees, aka the Statement of Work (SOW).

Business and employment lawyer Nancy Greene says the largest mistake freelancers make is to neglect to adequately describe the merchandise or services they plan to deliver. “Ambiguity stops you from getting paid, and could, actually, get you sued,” she said. “Creatives are particularly at risk because of this mistake as from what a ‘finished’ product is could be at the mercy of interpretation.”

Here’s an especially heinous exemplory case of what never to write in your contract: “Consultant to supply graphical design support at negotiated rate.”

Yikes. First, what does “support” mean in this sense? Are you supporting by creating from scratch? Are you merely editing and finessing in-progress work? Second, just how many revision cycles should be expected? Are these one-and-done tasks, or will you be CCed on 34-email-long strings of backwards and forwards from a whole brand and agency marketing team on the way? Finally, what’s the negotiated rate? Even if it’s written elsewhere, you’re likely to want to copy over those terms within the contract itself.

“When critical details are vague, the parties start on the incorrect foot, and disputes become difficult to reconcile before litigation,” said J.R. Skrabanek, senior counsel with the Snell LAWYER in Austin, Tex.

Related: Here’s How This Freelancer Made the Proceed to BUSINESS PROPRIETOR

Here’s steps to make the prior example better: “Consultant to concept, sketch and execute graphical design elements, which is delivered as source files along with print-ready PDFs within five business days of receiving the brief. Each element includes three revisions before additional scope is incurred. Company can pay Consultant for a price of $100 per element. Additional revisions after three will incur a $20/per element fee.”

For creative professionals, stipulating the amount of revision rounds is particularly critical.

Natalie Bidnick Andreas, an electronic strategy consultant greater than a decade, says she used to help make the early mistake of failing woefully to establish boundaries and hourly maximums. “This led to clients getting 3 to 4 times more services than they payed for,” she said.

One method to do avoid scope creep is to convey what you would NOT be doing within the terms. Adding “anti-deliverables” will help you to manage client expectations and offer a smoother customer experience from your day you sign the contract to your day you receives a commission.

Mistake No. 3: Failing woefully to Nancy Drew the heck out from the situation.

It’s your responsibility to leave no stone unturned with regards to asking about, investigating and ultimately reporting on any potentially “unknown” section of the agreement.

Just about the most basic questions to cover has been regard to your employment status: W4 vs. 1099 status. “Freelancers have strict rules with regard to tax laws: Follow them,” says Donna Lubrano, an adjunct business professor at Northeastern University’s College of Professional Studies. The short of it: Ensure that your status is consistent with your expectations.

Related: JUST HOW MUCH YOU HAVE TO BE Charging For Your Freelancing Gigs (Infographic)

Some questions to consider as you review the agreement:

  • How does one desire to be paid and within what timeframe? Net 30 may be the standard, nevertheless, you shouldn’t hesitate to ask for what you would like. I understand consultants who won’t begin work without payment upfront. Make an acceptable request, and negotiate from there.
  • Are you considering reimbursed for expenses, such as for example travel, utilities and so on? Will the client offer the tools or utilities you must complete the task?
  • Will there be a non-disclosure agreement mixed up in partnership? What exactly are its terms?
  • What goes on if the terms change? Add a provision for how things will be handled if the scope or ask shifts on the way. Most probably to flexibility, but protect yourself, too.
  • For creatives, it’s also advisable to inquire about ownership and trademark rights. Who owns this content you create? Is it possible to share it on your own portfolio? If you’re in advertising, are you considering listed in the credits and for that reason qualified to receive awards? “Contractors own the copyrights in the works they create, unless the contract assigns those rights to your client,” says Jessica Childress, managing attorney and founder of the Childress Firm PLLC in Washington, D.C.
  • Finally, how do either partner check out terminate the agreement if things aren’t training? When is this acceptable, and within what timeframe?

Drafting agreements ought to be a great exercise — in the end, you’re at the precipice of a thrilling home based business relationship — and with the proper guidelin