You can find me on instagram at instagram.com/scottchoucino/ and I have also re opened my food photography background shop at www.tinhousebackgrounds.com
When I do video for commercial clients is 30 days if they are recurring clients, when I did weddings payments is 100% before the date of the wedding or I don't show, for photography work if is ecommerce clients already has signed a minimum of 3 or 6 month contracts and again payment is due each 30 of the month. For newcomers payment is 50% on signing the contract, and the rest before delivery, I stated on my contract that you have 1 revision after approving the files just in case you need to change something without charges, but if there are more then those are priced and stated in the contract as well so you know what to expect. I think contracts and clear communication with your client is key, once I did a government shoot and didn't know that they pay system is 90 days as a freelancer I was in trouble since I dedicated big part of the month to do the assignment without worrying to check for other job, well it was a hell of a time till I got a few micro gigs that helped me throughout those 90 days. Now I try to have a buffer and better communication with the payment department of the client of is a big one if is a small one I truly send those reminders before due date and I do have in place penalty fees if you go over 15 days after the due date, that alone has cut the payment times a lot since no one wants to have to pay more just because. I mean the banks, utilities charge you penalties and you have to pay them if you want the service why can I copy that it works!!!
I've struggled with this and changed my process many times. I currently change 50% of the estimate upon acceptance of the estimate before the work starts. I then charge the remaining fee after the work, before delivery. Typically I'll send the final invoice after the shoot and before I retouch so the client knows I'm now retouching and images will be released once payment is received.
yeah I use to do a lot of work with this method a few years back. I did find that once I got really busy though that the admin behind it all got a bit out of hand.
As usual, nodding along with what you say, If I don't trust the client, I rather not work with them. Excellent video and I really like how you put it. Thank you
Nice and succinct on an important topic - thanks Scott! But I'm a bit confused re: the difference between "payment upon delivery" (which you say adds an extra level of stress, "will they pay me? won't they pay me?" "...for the client, if they're not 100% happy they don't have to pay" ) vs. payment upon invoice (which seems to be the same scenario as the former - you've done the work, you've delivered... so now you're likewise stuck w/ "...if they're not 100% happy" "will they pay?" Also, I presume you have a late payment fee that is cumulative for unpaid invoices past 30 or whatever days, yes? As you say, often clients drag their feet on payment. And I know that even a small percentage of cumulative late fee worked like a charm back when I was building websites for clients. Not only helped me with cash flow, but cut way down on the accounting paperwork of sending/tracking repeated reminders.
It means that once I have done the shoot day my invoice goes out and they have to pay, where as if they have to say they are happy first, then I could be waiting for 3 months for sign off for payment.
@@TinHouseStudioUK I see - so it's a matter of getting a "sign-off" that they're happy with the work. But effectively you're in the same boat either way - you don't really know if they're going to be ultimately happy or not (even after an initial "sign off"), and it's still a matter of "will they pay me? won't they pay me? I understand that of course if you've worked with a client before and/or they're a large client with a solid reputation to protect, there's more reason to trust that they will pay and/or they won't suddenly decide that you didn't give them what they wanted. But it still seems that the two payment scenarios result in the same potential for stress/lack of prompt payment. Of course in any business relationship, there's always a certain amount of "trust" involved on both sides. But it just seems to me that in both these payment scenarios ("payment upon delivery" and "payment on invoice") - 100% of the risk is on you, the photographer. Do you believe there's a downside/some disadvantage to requiring at least some sort of deposit/percentage of payment prior to delivery?
Choucino Photography you’re welcome! I’ve sent you few weeks ago an email, I don’t know if you had a chance to look at it yet. Please, let me know if you received it. Thanks
here's my two cents. A third of the payment upon signing the contract, a third on the day of the shoot, and the last third on delivery. If you have production costs upfront, you add those costs to the first third. I believe it gives you and the client plenty of flexibility. Just make sure the client is happy with the work along the way and tackle problems before going any further.
When I shoot for small businesses, I require payment in advance to confirm the date. Editorial and Medium-sized Companies are 30 days while larger Advertising projects require 50% of the estimated invoice to confirm the date or dates and balance due within 30 days. I am a firm believer that the smaller business does not finance the others project.
In your video you state that you might have too many projects to be able to take on a new one and pay for the production. We call this opportunity costs. By paying for your client projects you providing free financing, it is free as you are giving them money to use to produce their photos with no % for that usage. If you simply put that moeny in the bank you would make money just on the money sitting there so in fact you are loosing money by providing free financing to your client. You are paying them to make their photos in a way. If they went to a bank they would pay a % to loan the money to give to you to produce the images, so ultimately you are providing them free money and then, like you said, "many don't pay on time" is even worst because you are out of pocket and then can not keep producing for new projects. Opportunity costs. I am a firm believer in milestone payments and this is how actual advert agencies work. Advert agencies do not take a deposit and then pay NET 30, they do milestone payment. There are a lot lot of industries that do milestone payments when they are making something, construction, architecture, communications, IT ect. There is no reason why you can not do the same. Normally I break it down into 3-4 milestone payments. This also helps to make sure you have a steady cashflow from all your projects so that you can keep producing. My business lessons after 14 years are this in very difficult markets (ASIA): 1) don't provide free financing for client projects. We are a production company, not a bank. 2) minimize the risk of opportunity cost by using milestone payments. It is not about "trust" it is really normal business. Providing free financing may get you work, but it may also stop you from working on new projects as well. In this economic climate where companies, even large ones, are not doing so hot when you are providing free financing you are take on a huge risk yourself. All good and responsible businesses understand milestone payments. Do this and you will run your business with less risk and be able to take on new projects and opportunities that other companies can not. There is a whole podcast series here on simple business principles called "Summer school" - "Opportunity costs" and "Sunken Costs" are talked about in detail with great examples here: www.npr.org/2020/07/07/888690075/summer-school-1-choices-dating There are now 4 classes on these very important and normal business practices and ideas. Highly recommend them all to understand how to run a better business: www.npr.org/podcasts/510289/planet-money
yes this would all be ideal. Sadly in the UK in advertising the studio or production house carry the cost for the client most of the time. It has kind of become the norm and is expected.
So for simple Studio Portrait, what payment method would you recommend? Payment upfront? you said it's a redflag, but is it only a redflag for big companies?
@@TinHouseStudioUK Oh! and would you have written contract? Thanks so much, You're answering things I've looked everywhere for but can't find a clear answer to.
Thank you for informations. If you are in charge with editing images is it necessary to send tif files. Would you be kind to talk about file delivery and type of files when delivered. I have a client they ask for raw, tifs and jpg . At end of the day by contract I do not edit those they supposed edit them but as I see no any editing is done to files on their end . Company is using low res jpgs . What’s the point giving raps and gifs. Appreciate in advance you suggestions. I do not do food photography( product & clothing catalog photoshot)
KMA ... It's $3,600 for the shoot... Your retainer is $,1800 due now and the rest will be due when we show up BEFORE the shoot... not during, not and the end. WHEN WE SHOW! This weeds out the people that will bail on you trying to get free product. and honestly, it's policy, retainer..due on arrival.
What if they are not happy? suppose i go to groccery store and buy something go home, eat some and i dont like it. can i go back and be like hey i didnt like it give me half of my money back. i dont think it works with photography.
![[SFM] Risky Recital](http://i.ytimg.com/vi/RzNkY1_Nk3o/mqdefault.jpg)
You can find me on instagram at instagram.com/scottchoucino/ and I have also re opened my food photography background shop at www.tinhousebackgrounds.com
Great information. Something we all need to know is how to get Payment.
When I do video for commercial clients is 30 days if they are recurring clients, when I did weddings payments is 100% before the date of the wedding or I don't show, for photography work if is ecommerce clients already has signed a minimum of 3 or 6 month contracts and again payment is due each 30 of the month. For newcomers payment is 50% on signing the contract, and the rest before delivery, I stated on my contract that you have 1 revision after approving the files just in case you need to change something without charges, but if there are more then those are priced and stated in the contract as well so you know what to expect. I think contracts and clear communication with your client is key, once I did a government shoot and didn't know that they pay system is 90 days as a freelancer I was in trouble since I dedicated big part of the month to do the assignment without worrying to check for other job, well it was a hell of a time till I got a few micro gigs that helped me throughout those 90 days. Now I try to have a buffer and better communication with the payment department of the client of is a big one if is a small one I truly send those reminders before due date and I do have in place penalty fees if you go over 15 days after the due date, that alone has cut the payment times a lot since no one wants to have to pay more just because. I mean the banks, utilities charge you penalties and you have to pay them if you want the service why can I copy that it works!!!
Sounds like you have a good system going
I've struggled with this and changed my process many times. I currently change 50% of the estimate upon acceptance of the estimate before the work starts. I then charge the remaining fee after the work, before delivery. Typically I'll send the final invoice after the shoot and before I retouch so the client knows I'm now retouching and images will be released once payment is received.
yeah I use to do a lot of work with this method a few years back. I did find that once I got really busy though that the admin behind it all got a bit out of hand.
@@TinHouseStudioUK I'm hoping that'll be a problem I have soon :)
As usual, nodding along with what you say, If I don't trust the client, I rather not work with them. Excellent video and I really like how you put it. Thank you
Right on
@@Kbkhoon you can't. Use your intuition, read the room, etc.
Good video!!! For new and small clients upfront payment is the way to go... If it's a recurring client it's good to be more flexible.
Totally agree!
This is so useful video specially for people who are starting. I have also struggled so much with payment upon sign off in a past. Awesome video!
Thanks, glad it was useful
Nice and succinct on an important topic - thanks Scott!
But I'm a bit confused re: the difference between "payment upon delivery" (which you say adds an extra level of stress, "will they pay me? won't they pay me?" "...for the client, if they're not 100% happy they don't have to pay" ) vs. payment upon invoice (which seems to be the same scenario as the former - you've done the work, you've delivered... so now you're likewise stuck w/ "...if they're not 100% happy" "will they pay?"
Also, I presume you have a late payment fee that is cumulative for unpaid invoices past 30 or whatever days, yes? As you say, often clients drag their feet on payment. And I know that even a small percentage of cumulative late fee worked like a charm back when I was building websites for clients. Not only helped me with cash flow, but cut way down on the accounting paperwork of sending/tracking repeated reminders.
It means that once I have done the shoot day my invoice goes out and they have to pay, where as if they have to say they are happy first, then I could be waiting for 3 months for sign off for payment.
@@TinHouseStudioUK I see - so it's a matter of getting a "sign-off" that they're happy with the work. But effectively you're in the same boat either way - you don't really know if they're going to be ultimately happy or not (even after an initial "sign off"), and it's still a matter of "will they pay me? won't they pay me?
I understand that of course if you've worked with a client before and/or they're a large client with a solid reputation to protect, there's more reason to trust that they will pay and/or they won't suddenly decide that you didn't give them what they wanted. But it still seems that the two payment scenarios result in the same potential for stress/lack of prompt payment.
Of course in any business relationship, there's always a certain amount of "trust" involved on both sides. But it just seems to me that in both these payment scenarios ("payment upon delivery" and "payment on invoice") - 100% of the risk is on you, the photographer. Do you believe there's a downside/some disadvantage to requiring at least some sort of deposit/percentage of payment prior to delivery?
Great video, very helpful!
Thanks :D
Choucino Photography you’re welcome! I’ve sent you few weeks ago an email, I don’t know if you had a chance to look at it yet. Please, let me know if you received it. Thanks
here's my two cents. A third of the payment upon signing the contract, a third on the day of the shoot, and the last third on delivery.
If you have production costs upfront, you add those costs to the first third. I believe it gives you and the client plenty of flexibility. Just make sure the client is happy with the work along the way and tackle problems before going any further.
When I shoot for small businesses, I require payment in advance to confirm the date. Editorial and Medium-sized Companies are 30 days while larger Advertising projects require 50% of the estimated invoice to confirm the date or dates and balance due within 30 days. I am a firm believer that the smaller business does not finance the others project.
yeah for small businesses you ahve to be really on it, they can vanish over night!
Thanks for the info!
Have a good week!
You too!
great tips! thanks so much Choucino!
My pleasure!
In your video you state that you might have too many projects to be able to take on a new one and pay for the production. We call this opportunity costs. By paying for your client projects you providing free financing, it is free as you are giving them money to use to produce their photos with no % for that usage. If you simply put that moeny in the bank you would make money just on the money sitting there so in fact you are loosing money by providing free financing to your client. You are paying them to make their photos in a way. If they went to a bank they would pay a % to loan the money to give to you to produce the images, so ultimately you are providing them free money and then, like you said, "many don't pay on time" is even worst because you are out of pocket and then can not keep producing for new projects. Opportunity costs.
I am a firm believer in milestone payments and this is how actual advert agencies work. Advert agencies do not take a deposit and then pay NET 30, they do milestone payment. There are a lot lot of industries that do milestone payments when they are making something, construction, architecture, communications, IT ect. There is no reason why you can not do the same.
Normally I break it down into 3-4 milestone payments. This also helps to make sure you have a steady cashflow from all your projects so that you can keep producing.
My business lessons after 14 years are this in very difficult markets (ASIA):
1) don't provide free financing for client projects. We are a production company, not a bank.
2) minimize the risk of opportunity cost by using milestone payments.
It is not about "trust" it is really normal business. Providing free financing may get you work, but it may also stop you from working on new projects as well. In this economic climate where companies, even large ones, are not doing so hot when you are providing free financing you are take on a huge risk yourself.
All good and responsible businesses understand milestone payments. Do this and you will run your business with less risk and be able to take on new projects and opportunities that other companies can not.
There is a whole podcast series here on simple business principles called "Summer school" - "Opportunity costs" and "Sunken Costs" are talked about in detail with great examples here: www.npr.org/2020/07/07/888690075/summer-school-1-choices-dating
There are now 4 classes on these very important and normal business practices and ideas. Highly recommend them all to understand how to run a better business: www.npr.org/podcasts/510289/planet-money
yes this would all be ideal. Sadly in the UK in advertising the studio or production house carry the cost for the client most of the time. It has kind of become the norm and is expected.
So for simple Studio Portrait, what payment method would you recommend? Payment upfront? you said it's a redflag, but is it only a redflag for big companies?
For working with the public I would charge upfront.
@@TinHouseStudioUK Oh! and would you have written contract? Thanks so much, You're answering things I've looked everywhere for but can't find a clear answer to.
love this channel
Thank you for informations. If you are in charge with editing images is it necessary to send tif files. Would you be kind to talk about file delivery and type of files when delivered. I have a client they ask for raw, tifs and jpg . At end of the day by contract I do not edit those they supposed edit them but as I see no any editing is done to files on their end . Company is using low res jpgs . What’s the point giving raps and gifs.
Appreciate in advance you suggestions.
I do not do food photography( product & clothing catalog photoshot)
Hey,
Thanks for the question. I will try and put a video together on this in the near future.
KMA ... It's $3,600 for the shoot... Your retainer is $,1800 due now and the rest will be due when we show up BEFORE the shoot... not during, not and the end. WHEN WE SHOW! This weeds out the people that will bail on you trying to get free product. and honestly, it's policy, retainer..due on arrival.
What if they are not happy? suppose i go to groccery store and buy something go home, eat some and i dont like it. can i go back and be like hey i didnt like it give me half of my money back. i dont think it works with photography.
Agent? Agent?! I want to hear more about a photographer and his agent...
I will deffo add videos on this in the future.
And here I was thinking it'll be a video about when photographers should get paid at all! 🤔
haha, it was hard to come up with a title for this. Although I might be missing something super obvious.
@@TinHouseStudioUK "You should NEVER tell your customers to pay you like THIS!" - How's that for clickbaity haha
Hi I know you read all your comments so I have a question for you. Do you know any alternative that's easy to get hold in the UK for encapso k
Hey,
Not that I am aware of no. I will ask the styling crowd and see what they say.
@@TinHouseStudioUK brilliant thanks
Tha nks