An escrow would likely be more trouble than it's worth and the client may take it as a sign of mistrust. I've taken on similar assignments and only been burned by one (a Canadian firm). I did finally get paid when I wrote a DMCA takedown to the web host where they posted the video for their client.

>An escrow would likely be more trouble than it's worth and the client may take it as a sign of mistrust.

Steve, I had that thought too. But then I thought it really protects them too if they have concerns about paying 50% up front and never getting anything. This is a fairly small job and I find I can employ an escrow service for 5% of the total fee. But because it is a small job I will probably go with your and ushere's thoughts on this and just trust them.

/jerry

I would either get full payment up front (he is asking you for a service after all) or get 50% up front, then render a watermarked web version and upload to vimeo or youtube so he can see the work. Get the remaining balance and then ship the footage.

Q: What's the actual difference between him buying something from someone on E-Bay on the other side of the country?
A: The E-Bay brand name.

So if you've got references and so does he, there's not much to worry about here. Except that he might see this thread, realize it's you and wonder that because you're asking how to do this you might not be the right person to do this with. :)

You can get a free Square credit card account that will allow you to take credit cards; you pay only 2.75% of each transaction. They will also give you a free card reader that plugs into any smartphone so you can process real credit cards.

squareup.com

Jerry,

We're usually on the other end of your equation, west coasters hiring someone to do a remote interview. The usual practice out here for locals is to pay net 30. However, when I worked as a grip/electric I almost always insisted on a payment at the end of a job if the company was from out of state and we didn't have prior history. I'd often let that slide if I knew enough about them to warrant it, like whether they'd set up an account with someone whose process I trusted.

I think it'd be reasonable to ask for 50% up front. The worst that can happen is they say no. If it's an Arizona or Nevada company or a company from a "Right to be Worked" state I might ask for 100% if it seems feasible.

For that matter, I might ask for cash if they're based in LA...

Rob

>For that matter, I might ask for cash if they're based in LA...

Ha ha, good one Rob. And thanks for the other good insights from the other end of the equation.

/jerry

I deal with out of state clients in my day to day business.
First off I want to know who I am dealing with and if they are a real company.
So I ask for:
a Duns#
Tax ID#
Physical address
Billing address
3 buisness references


I have a standard contract stating :
My fee for the project.
Delivery date, and what is be delivered
Delivery format and vehicle....email....disc...hardcopy
Purchaser P.O.# or billing reference #
50% prior to the begining
50% to be billed on completion
Net 30.
Sometimes offer a 1-2% discount if paid in 10 or less.

I no longer accept credit card payment due to the fees.

Good luck!

Duff

I just thought of another one. Ask them for a W-9. If they pay you more than $600 over a year, you have to file one anyway. A legit company won't hesitate.

If they pay you more than $600 over a year, you have to file one anyway.

As far as I know, if they pay you more than $600 in a year, they have to report it. If they do so they'll send you a 1099, but you don't then forward that form to the IRS. So basically it's a notice that you better make sure the income you report exceeds the total of the 1099s you receive.

And of course we always report all of our income so the 1099 is kind of superfluous, but the fact that they ask for the W9 is a sign that this isn't their first barbecue, Dad.

You've got two goals: Get the job, and get paid for the job. The simplest approach with a new client is to get some or all of the payment up front. If YOU need to lay out money to pay crew or hire gear then you really must arrange for some of the payment up front. But trying to bury them in paperwork might just convince someone to look elsewhere.

It's really not unreasonable to get paid in advance, especially if the client has no history with you. But you might make it clear that this is the way you'll do it for the first job and then invoice them at net-something for future jobs.

It's also possible that they might pay you through an agency or payroll company and that might require you to invoice for gear while the labor goes through payroll. And you might need to fill out paperwork for the payroll company.

It's good to find out if they use anything like a purchase order, not because it implies legitimacy but because it implies bureaucracy. If the agency doesn't pay anyone without first issuing a PO then you want to know about that.

My comments about people from other localities might come off as a little cavalier, but different regions have different relations to money and employment. For example, I've never heard of a 2 hour job in the SF Bay area. They're usually days and half days, with the half day billed at something like 66% of the whole day. It's not possible to fill a day with 4 or 5 2-hour jobs. If you take a booking they've taken your day whether they use it or not. The half-day rate is an accommodation.

It's good for each party to get their terms agreed to in writing so there's no surprises later on. If they say 2 hours and it really goes 16, will they pay for that? Or should they expect you to pick up your gear and leave after a certain point?

Rob