Contract & Proposal Essentials

1. Proposals vs Contracts (What’s the Difference?)

Think of your proposal as the “here’s what I recommend and what it costs” document, and your contract as the
“here’s how we’re going to work together and protect ourselves” document.

Proposal:

• Client-facing, usually more visual and persuasive.
• Focuses on outcomes, scope, timeline, and investment.
• Helps the client say “yes.”

Contract:

• Legal agreement (ideally reviewed by a professional).
• Covers boundaries, responsibilities, and risk.
• Protects both you and the client when things go right or wrong.

2. An Offer that Sells: Proposal Structure

A good proposal is clear, simple, and focused on what the client actually cares about: outcomes, clarity, and what happens when.

Use this basic structure:

1. Overview: 2–3 sentences summarizing the project and goal.
2. Objectives: What success looks like from the client’s perspective.
3. Scope of Work: What you will and will not do (clear bullet points).
4. Timeline & Milestones: Key dates and checkpoints.
5. Investment: Price, payment schedule, and what’s included.
6. Deliverables: Exact formats, quantities, and where things will live.
7. Next Steps: How to accept, sign, and pay the deposit.

Sample “Next Steps” Section:

“To move forward, please confirm you’d like to proceed, review and sign the project agreement, and pay the initial
invoice of [X%]. Once those are complete, I’ll lock your start date and begin pre-production.”

3. Core Contract Essentials

Contract language can get dense, but most creator contracts center around a few key areas. These are topics to cover and/or discuss with a legal professional:

A. Scope & Deliverables

• What you’re creating (and what you’re not).
• How many concepts, drafts, or versions.
• What “done” looks like.

B. Revisions

• How many rounds are included.
• What counts as a revision vs. new scope.
• How additional revisions are billed.

C. Timeline & Delays

• Estimated start and end dates.
• Client responsibilities (e.g., providing assets or feedback on time).
• What happens if the client goes quiet or misses deadlines.

D. Payment Terms

• Deposit amount and due date.
• Milestone payments or payment schedule.
• Late fees, interest, or pause rules for non-payment.

E. Confidentiality & Privacy

• How client information and data are handled.
• Any NDAs or special confidentiality terms.

F. Liability & Limits

• Limitations on your responsibility for indirect losses.
• Where disputes are handled (jurisdiction/venue).

4. Payment Terms, Deposits & Kill Fees

Clear money terms protect both sides. The goal is to avoid awkward “so…about that invoice” conversations.

Deposits

• Common deposit ranges: 30–50% before work begins.
• Deposits are typically non-refundable because they reserve your time.
• Project start date is confirmed only after deposit + contract.

Milestone Payments

• Split large projects into 2–4 payment milestones.
• Examples: deposit → draft → final delivery.
• Work pauses if a milestone invoice isn’t paid.

Kill Fees & Cancellation

A kill fee covers the time and work you’ve already invested if a client cancels.

• Outline how either party can cancel the project.
• Specify what percentage or amount is owed if a project ends early.
• Clarify whether the client can use work created up to cancellation.

Late Payments

• Set net terms (e.g., Net 7, Net 14) for invoices.
• Include a late fee or interest rate after a grace period.
• State that work or final files can be withheld until payment is complete.

5. IP & Usage Rights (Who Owns What?)

Intellectual property (IP) and usage rights determine who can use the work, where, and for how long.
This is often where money is left on the table.

Key Concepts to Address:

• Creator ownership vs. client ownership: Do you retain IP until paid in full? Do you transfer certain rights only?
• Usage scope: Where can the client use the work? (web, print, ads, broadcast, etc.)
• Duration: Is the license limited (1 year) or perpetual?
• Territory: Local, national, global?
• Portfolio rights: Can you feature the work in your portfolio and marketing?

Sample Portfolio Clause (Plain Language):

“You grant me the right to display the work created in this project in my portfolio and promotional materials,
unless we agree in writing to keep certain pieces confidential.”

6. Simple Negotiation Scripts

You don’t need to argue. You just need clear language and boundaries.
Use or adapt these for email and DMs.

A. When They Ask for a Discount

“I totally understand wanting to stay within budget. The scope and time required for this project are what set the price where it is.
If you need to reduce the cost, we can adjust the scope by [removing X / simplifying Y], but I’m not able to lower the price for the full package.”

B. When They Want More Scope for the Same Price

“That’s a great idea and would add more value to the project. It’s outside our current scope, but I can put together an add-on price for that piece if you’d like to include it.”

C. When They Push Back on Your Contract

“My agreement is designed to protect both of us and keep the project clear.
If there’s a specific clause you’re concerned about, let me know which one and why, and we can see whether there’s a version that works for both of us.”

D. When You Need to Pause Work for Non-Payment

“Per our agreement, I do need the outstanding invoice settled before continuing.
Once payment is in, I’ll be able to resume work and keep us on the best possible timeline.”

Make Contracts Part of Your Creative Ops

A clear offer, a solid agreement, and a few simple scripts can change how clients treat you — and how you treat your own work.