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My old freelance contract had a 'kill fee' clause that cost me $2,500 on a project that fell apart.
The client walked away after I'd done half the work, and the contract said I only got 25% of the total fee. I didn't push back on that number when I signed it. It was for a branding guide for a startup that ran out of cash. Anyone have a better way to structure a kill fee so you get paid for the work you actually did?
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kim_mason554mo ago
Charge a flat rate for each project phase instead of one total fee. That way you get paid for the work you finish before they pull the plug. It saved me from getting burned on a few jobs.
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robin8964mo ago
Works great until they ghost you after phase one. Then you're just holding a smaller, sadder bag of unpaid work. The problem just shrinks, it doesn't go away.
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the_julia4mo ago
Yeah but then you're just moving the problem. What if they stall out on paying for the phase you just finished?
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colegarcia4mo ago
Flat rate per phase is the way to go, @kim_mason55 nailed it. I've seen too many people get burned by one big fee that gets cut down to nothing. Break it into smaller chunks so you get paid for every step you finish. That way if they bail, you still walk away with something for your time. It's simple math and keeps everyone honest.
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