Don’t charge late fees or enforce terms as a freelancer? Then don’t expect to be taken seriously
Why specificity is key when setting rates, terms and fees
Many industries thrive on the creativity and expertise of freelancers, none possibly more than the fashion sector. A new report from The Business of Fashion emphasises the importance of specificity when discussing pay, whether negotiating a salary or setting freelance terms, rates and late fees.
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Determine your freelance rate and terms effectively
“If you’re not looking at [your salary] as a variable, then you won’t be able to negotiate as effectively,” says Angelique Hathaway, founder of New Beginnings Negotiation Consultancy, in the report. This means understanding your living expenses, financial goals, and the value you bring to the table.
For freelancers, this specificity becomes even more crucial. Beyond basic living costs, freelancers must factor in a myriad of expenses often overlooked by clients:
- Project scope: Accurately estimating time spent on ideation, research, revisions, and client communication is essential
- Hidden costs: Income tax, National Insurance, student loan repayments, agency fees, and even software subscriptions all impact a freelancer’s bottom line. Add them up!
- External factors: Travel expenses, equipment rentals, and other project-specific costs must be clearly outlined
Get it in writing
The Business of Fashion highlights the importance of formalising these details in a contractual agreement. This includes:
- Payment terms: Clearly stating expected payment timelines (e.g., 15 days)
- Late fees: Implementing penalties for late payments to ensure timely compensation.
- Revision limits: Defining the scope of revisions to prevent endless rounds of unpaid work.
Freelance writer Nina Maria, whose work has appeared in publications including Dazed and i-D, stresses the importance of enforcing these terms. “If a payment is late, you charge late fees […] If you don’t do that, you’re not going to be taken seriously,” she says. Maria even recommends sharing legal information with clients who are habitually late, reminding them of their obligations.
The report also acknowledges the varying payment landscapes across different countries. Stylist Thais Montessori Brandao, who has worked with brands like Prada and Vogue Italia, notes that 60 to 90-day payment terms are not uncommon in places such as Italy. She advises freelancers to proactively negotiate preferred payment schedules. Negotiating terms and payments may feel uncomfortable at first, but once you make it a habit, you will see it can give you more breathing space between projects since you will not be chasing payments.
Legal payment requirements vary by country
In the UK, the legal requirement is 30 days for freelance payments. The US landscape is more fragmented, with regulations varying by state. However, the Freelance Worker Protection Act aims to standardise protections, including the right to payment within 30 days of completing work.
But that does not mean you can’t create and demand your own payment terms. You can even be creative and offer discounts for earlier payments but never do this at the expense of your worth or any costs related to the assignment.
Ultimately, The Business of Fashion’s report underscores the need for freelancers to be proactive and informed. By approaching payment discussions with specificity and confidence, they can ensure fair compensation and build sustainable careers in the competitive fashion industry and other creative sectors.