How To Make Sure You Get Paid For Your Words
Everything a copywriter needs in their client agreement contract
As a copywriter, your words carry power. But the words in your services agreement/copywriting agreements carry legal weight that deserves your full attention—now more than ever before.
Let's pause for a moment and highlight something crucial: Just because a clause exists in your copywriting agreement doesn't mean it's legally enforceable. (Yes, that deserves a second read!).
Your clients are becoming increasingly savvy about their contractual rights, particularly around termination clauses. Why? Because significant changes to unfair contract term laws came into effect in November 2023, and they directly impact how you structure your copywriting agreements.
Unfair Contract Terms: The New Reality for Copywriters
As of November 2023, small businesses—including independent copywriters and content agencies—can no longer include unfair contract terms in their agreements. If you do, you could face serious consequences.
This change resulted from the Treasury Laws Amendment (More Competition, Better Prices) Act 2022 under the Competition and Consumer Act. And yes, if you're a small business copywriter, this absolutely applies to your copywriting agreements.
What Makes a Term "Unfair" in a Copywriting Agreement?
Unfair contract terms create a significant imbalance in the parties' rights and obligations, aren't reasonably necessary to protect your legitimate interests, and would cause detriment to your client if enforced.
One of the most common examples we see in copywriting agreements involves cancellation and termination clauses. Many copywriters include provisions stating that clients cannot terminate a project early except for breaches by the copywriter, or that clients must pay substantial fees (often deemed a penalty) regardless of whether all the content has been delivered.
These clauses often fail to account for situations where a significant portion of the writing hasn't been completed at the time of cancellation. In such cases, clients are asked to pay for value they haven't received—making these terms potentially unfair and unenforceable.
Creating Fair Termination Clauses in Your Copywriting Agreements
To develop reasonable termination clauses for your copywriting business, consider:
What protections are genuinely necessary to safeguard your business interests?
How does your workflow operate? Have you turned away other projects to accommodate this client?
Do you maintain a waitlist? Can you fill the slot with another project if given adequate notice?
Can you itemise time spent researching, drafting, and editing content to date?
If your services include content strategy or campaign planning, how much work has already been invested?
The Serious Consequences of Unfair Terms
If challenged, a copywriting agreement found to contain unfair terms can be entirely voided (not just the problematic clause), and you could face financial penalties ranging from $50,000 to $2.5 million or more.
The risk simply isn't worth it.
Beyond Fairness: Getting the Sequence Right
When developing your copywriting agreements, ensure your terms are fair and reasonable. But equally important is the sequencing of your business processes.
Australian Consumer Law requires that clients have advance notice of your terms and conditions and have an opportunity to review them BEFORE deciding to engage your services. This means sending your agreement before they commit to working with you—not after they've approved your proposal or paid a deposit.
This sequencing issue is one of the most common mistakes we see copywriters make, usually due to a simple lack of awareness (after all, we don't know what we don't know).
Taking Action with Your Copywriting Agreements
As a small business owner, take proactive steps now to review and update your copywriting agreements. This includes examining both your contract terms and your client onboarding process.
This is no time to be taking sort-cuts or using generic templates (as I always say, DIY is for Bunnings, not for your legals). Engage a business lawyer to ensure your agreements comply with current legislation, are tailored to YOUR business and will be enforceable when you need to rely on them.
My hot tip here is that your copywriting agreements should be reviewed annually or whenever your offerings or business model changes. This helps you stay current with legal requirements and ensures your services and pricing remain up-to-date.
The removal of exemptions for small businesses regarding unfair contract terms represents a serious focus on consumer fairness that's here to stay.
By ensuring your copywriting agreements are fair, transparent, and compliant with Australian Consumer Law, you're not just protecting your business—you're maintaining positive client relationships and avoiding costly legal disputes that could damage your reputation in the competitive copywriting market.
Need help reviewing your copywriting agreements? Reach out to us today and book a Complimentary Introduction Call here.
