It’s a common misconception that creatives earn low figures because their work isn’t valuable or in demand. In reality, creative work is crucial in today’s market. According to recent studies, nearly 60% of businesses identify creative content as a key factor in driving consumer engagement and sales. Yet, many creatives struggle with low earnings, not because their work lacks value, but due to the emotional and personal sentiments often attached to creative collaborations.
Beyond these sentiments, the issue of pricing and contracts is seldom discussed or emphasized within the creative community. Creatives shy away from these conversations, focusing instead on branding needs and art direction. However, things can quickly spiral out of control when legal considerations are overlooked. Contracts are not just formalities; they’re essential safeguards that ensure both parties are on the same page, protecting the creative’s interests and defining clear terms of engagement.
Our featured creative for the weekend is a videographer with an impressive portfolio, including work with high-profile clients like MTV Base.
For privacy reasons, we’ve withheld their name, but our guest operates primarily in the social and finance sectors. Their journey through the ups and downs of the industry highlights the critical need for contracts and the potential negative consequences when legal agreements are neglected.
If you’ve ever wondered whether you need a legal document before starting a job or if you’ve taken on projects without clear, agreed-upon terms, this piece is for you. Dive in and learn why contracts are indispensable for creatives today. Enjoy!
What’s your take on drawing up contracts as a creative?
Contracts are essential for every creative. Always have one in place.
What about when working with family, friends, or small businesses?
Absolutely, you still need a contract. When things go wrong, no one remembers verbal agreements. Even a small job of ₦10,000 can cause big problems. For example, if you work on the text for a video and the captions are wrong after it’s uploaded, clients often look for someone to blame, and you might get called out for not cross-checking. The contracts I draw up protect me from these situations, ensuring I’m not liable for any errors, especially if the client has approved the work. It’s also the client’s responsibility to review and approve the work.
Have you ever done favors without contracts, and it backfired?
Yes, especially when I was younger and more naive. Many clients lure you in with promises of exposure, and I fell for it. I once got called to shoot for another musician while on set with a different artist. I quoted my daily rate, and it was accepted, but as the work progressed, more tasks like video edits kept coming up. I took everything in good faith and did the work without extra charge, but looking back, that was a mistake.
Was that the only experience?
No, there was another time I followed a musician on a video shoot outside Lagos. This time, travel was involved, and I expected higher pay, but surprisingly, I received the same amount despite all the extra work. Another instance was when a client requested an additional video to be edited. They assumed they could demand this extra work as part of the original agreement, but since I didn’t have a contract, they got their way because I decided to do a favor.
Would a contract have helped in those situations?
Definitely. If I had a contract, I could have clearly stated my terms before any engagement. If they didn’t agree, we could have gone our separate ways.
How do you approach work with contracts now?
I’m much smarter about it now. For example, when I did “Road to the Hades” for MTV Base, I made sure to include a daily fee for my movement and personal expenses, separate from my service charge. This covered payments for hotels, bookings, and other expenses. Interestingly, the same musician called me when we were in Namibia, asking me to shoot again. I let them know that things had changed, and they were shocked. But to avoid bad blood, I bent a little, though I made sure it was on my terms.
So, favors don’t always hurt?
Not necessarily. Favors can be beneficial if they showcase your skills for future jobs or if they’re strategic. But no matter the favor, always have a contract to protect yourself.
Have you ever had to lawyer up?
Yes, twice. Once, a company demanded the raw footage I had shot, aside from the final edited work. This wasn’t part of our agreement, but they insisted they had rights to it because it was their brand. I lawyered up and had our signed contract to back me up. They saw I was serious and agreed to settle out of court, and I got paid to release the raw footage.
Do clients take advantage of freelancers more?
Not necessarily. It’s all about being prepared. Clearly state your terms, protect yourself, and charge extra for extra work. Clients take you more seriously this way. Plus, if anything goes wrong, you can always refer to your contract. Whether you’re on a first-name basis with the client or operate under a business name, always work with a contract.
Sounds like contracts help you earn more.
Creatives need to learn how to segment their work to earn more. I charge separately for shooting and editing, and I’ve been paid for both several times. If a client wants both services, they pay for each separately. This way, I generate additional value for myself as a creative. I also consider raw footage mine and clients have to pay for this also. This approach helps me make extra money on a single project.
Contracts: The Foundation of Professional Relationships for Creatives
Contracts sound self-serving, but they are essential in setting the tone of your relationship with clients. You might wonder if Auntie Gbemi now needs to wade through four pages of legal jargon just because we’ve emphasized the necessity of contracts. Fortunately, that’s not always the case. In fact, Artistjd.com suggests that a contract can be as simple as an offer and agreement exchanged via online platforms like WhatsApp, even without a formal signature. The key is always to have a referable agreement that both parties can rely on.
However, the complexity of the project often dictates the formality of the agreement. As steven aptly puts it, “A six-month contract with 50 million Naira upfront” requires a comprehensive plan to ensure that payment terms and deliverables are respected.
While you don’t always need a lawyer to enforce a contract, it’s a good idea to create a basic template and have it reviewed by a legal professional to ensure enforceable terms and remove any ambiguity.
Going into a comprehensive gig? Here are some terms to consider
Key Elements to Include in Creative Contracts:
- Parties Involved: Clearly state who is hiring you and who will be performing the work.
- Term: Define the start and end dates of the design work, proposed timelines, and handover dates for deliverables.
- Payment Terms: Specify how much you will be paid, when payments are due, how you will be paid, and any provisions for expense reimbursement or penalties for late payments or deliveries.
- Deliverables and Scope Changes: Clearly outline what is expected to be delivered and how changes to the project scope will be managed.
- Confidentiality and Non-disclosure Agreements (NDA): An NDA ensures that any sensitive information shared during the project is protected. From a designer’s perspective, it’s crucial to honor these agreements to maintain trust and professionalism.
- Ownership and Rights to Authorship: Define who owns the work once it’s completed and whether you retain any rights to use the work in your portfolio.
Mystie Chamberlain from Medium encourages creatives to shed the fear of standing up for themselves. She advocates for creatives to secure the right to use images in their portfolios or even demand a percentage when their work is used for profit, such as in merchandise sales. This way, creatives can enjoy recurring payments and long-term benefits from their work.
Boost your understanding of design as a business
Looking for more insightful pieces on the business of design?
- I Am Quitting Design in 2 Years
- I Don’t Expect Anyone to Leave a Well-Paying Job
- Cold-emailing for freelancers
- Social Media for graphic designers
- LinkedIn for graphic designers
