Helping Creatives Get Paid! How clear legal documents can help you make more money
Imagine a scenario where a new client approaches you, eager for a complete brand overhaul. They want a new logo, fresh colours, an updated website, and revamped copy. They’re excited, and so are you. You feel aligned and ready to help your new client transform their brand. They want to dive right in, so in you go!
But… as the project progresses, issues arise. The client thought copywriting was included in your scope of work, but it wasn't. The client assumed you would take care of it.
The client does not resonate with your concepts despite your meeting the brief. You feel you’ve gone above and beyond to meet every request, but it’s missing the mark.
Misaligned expectations lead to frustration. You have unpaid invoices, and the project is stalling. Your workflow is impacted, your other clients are impacted, and you aren’t onboarding new work into your workflow.
This is where the importance of legal documents becomes apparent. You thought your legals had you covered – but now you realise they didn’t.
The Power of Legal Documents
As a lawyer for creatives, I can honestly share with you, based on real, practical experience, that your legal documents are not just formalities; they are powerful tools that can set you up for success right from the very beginning of a new client relationship. Your legals, when tailored properly for your business and when sequenced correctly, can ensure smooth project delivery, satisfied clients (not only will you meet their expectations, you are set up to exceed them!), and timely payments (cash flow, after all, is the cornerstone of every small business).
Here’s how you can use your legal documents effectively:
1. Client Journey and Professionalism
From the very first touchpoint, whether that’s via your website or your social media, to the discovery call, and then to proposal/quotes and all the way throughout the entire project – your touchpoints are consistent, reliable, and on-brand. You exude professionalism, delivering precisely what you promised, when you promised, and how you promised.
Solid legal documents tailored to your business (combined with effective processes and systems) form the foundation for avoiding misunderstandings, frustrations, confusion and invoice queries – ultimately, this means you get paid on time, every time.
2. Client Journey and Professionalism
Your legal documents should outline clearly what you are engaged to do. They should set out what you will do, and what you won’t do. They need to address what’s included in your services, and be specific with exclusions (paying attention to pain points common to your industry). It’s important to focus on service/project phases or stages, relevant timelines and dates. This helps manage client expectations from the start.
Proposals/Quotes/Scopes of Work documents/Client Service Ts & Cs should all be sufficiently detailed (and beautifully branded – of course!), outlining the services, payment terms, and processes for dealing with changes or additional requests (scope creep is real, but it can be managed).
3. Dispute Resolution and Client Communication
As a lawyer for creatives, my view is that a well-considered dispute resolution clause is one of the most important clauses in your Ts & Cs/Client Agreement. Be sure to have a framework that provides how misunderstandings or disputes are to be handled – and know this inside and out. This will set you up well to address issues promptly and professionally, helping avoid delays and disputed invoices.
Remember, unexpected issues will come up. They always do in business. The way you handle your client communication can be the difference between resolving these issues swiftly and effectively, maintaining a positive relationship with your client, OR causing a storm in a teacup to result in an out-of-hand contract termination with a claim for damages.
4. Payment Terms and Cash Flow Management
Be intentional about your payment terms. Think about what works best for you and the way you operate your business. There’s no one size fits all when it comes to payment terms, because no two businesses are the same. Think about what deposits you require, when they need to be paid, milestone payments throughout the project, and staged payments to ensure steady cash flow. And always ensure you receive your final payment before you finalise your handover (this is a big one that I see missed far too often!).
Being intentional, clear and consistent with your payment terms will reduce your financial risk and will set you up to be paid for your stellar services, as you should be.
The magic happens when you have rock solid Implementation.
Having your legal documents drafted properly for you by a lawyer for creatives, and knowing your service delivery processes is one thing. Implementation is another. And without rock-solid implementation you may as well not have your documents in the first place. Truly!
To set your business up for success and have a consistent and seamless client journey, taking the time to integrate your legal documents into your processes and systems is vital. Think about these pillars when it comes to implementation:
Proposal - after the discovery call, ensure your proposal/quote/scope of work steps are swift and thorough.
Engagement – know how you are engaging your clients when they say Hell Yes to your proposal.
Are you providing your Ts & Cs with your proposal documents, or are you issuing a separate client agreement? Each to their own here, there’s no right or wrong provided you get the sequencing right.
If you use a CRM like Dubsado, consult a lawyer for creatives who knows the Australian Consumer Law obligations inside out (aka – me!) so you don’t miss an important step here and end up with legals that can’t be enforced (which is what can happen if the sequencing isn’t right).
Regardless of how you are legally engaging your clients, get the sequencing right, have the wording right in your emails or your proposal documents, so you can have peace of mind knowing everything is being done in a way that is legally binding.
Project Phases and Milestones: Be crystal clear when outlining project phases/stages, deliverables, and payment schedules. Keep your client informed and updated, and be clear with what you require from your clients and when (think revisions, sign offs and approvals – make sure they know what’s expected of them).
Handling Changes: Know your variation request processes, and stick to them. Clearly outline how changes or variations will be managed, and be consistent with these along the way, always taking care to ensure the client is aware of fee increases, additional charges and so on. This not only helps avoid surprises when you issue invoices, leading to challenges and delays in payments, but it positions you to manage, meet and exceed your client’s expectations throughout the entire client journey (and that’s a win-win).
Regular Communication: Always maintain clear and regular communication with your client – I honestly can’t say this enough. Setting yourself up for success with your client requires clarity and consistency.
By taking the time to get your legal framework right, tailoring your legal documents to YOUR business, and integrating your legals into your processes and systems, you are setting your creative business up for long-term, sustainable success – and this is what I want for every creative business.
This approach is tried and tested, and I know from experience as a lawyer for creatives that when you set your business up for success and consistently meet and exceed your client’s expectations, this leads to more word-of-mouth referrals, more positive Google reviews, more testimonials for you to share widely, and ultimately develops your business’ reputation with integrity.
If you want to dive in and listen to more on this topic, take a listen to episode #154 of the Rise Up in Business podcast How Your Legals Can Help You Get Paid.
If you would like to work together to set your business up with solid legal documents and have the support you need for proper implementation, reach out here and let’s start the conversation. I would love to hear from you.
