This guide to end “kill fees” and unffair payment practices could save freelancers from financial ruin

A movement of freelance professionals is demanding an end to the controversial practice of “kill fees” and unfair payment practices

What are kill fees?

Kill fees are prevalent in industries where upfront investment is high and project cancellation is a constant risk. This includes journalism, photography, videography, design, copywriting, but also software development and consulting.

In these sectors, freelancers often commit significant time to research, conceptualisation, and initial production phases, all before receiving final approval (see the section below on how software developers can reduce their risk when it comes to “kill fee” and payment agreements).

These fees, a common clause or practice within freelance contracts offer a partial payment when a client cancels a project after work has begun, sometimes after or even before completion. However, if for example, such a fee was not agreed in advance or within the freelancer contract, a freelancer may receive nothing. It’s a situation of if you don’t ask, you don’t get.

While seemingly a safety net, many freelancers argue that kill fees undervalue their time, effort, and expertise, ultimately devaluing the creative process. However, kill fees are just one area of freelancing that needs revising.

Guidelines to help protect freelancers from financial risk

New guidelines have been issued, for example, to print editors by a group of female freelance journalists advocating for the complete abolition of kill fees and for payment to be issued when an article is supplied, not when the publisher decides to publish (another prevalent practice).

The guidelines have been developed and published by Donna Ferguson for Women in Journalism, in conjunction with Emma Wilkinson and Lily Canter for Freelancing for Journalists and Anna Codrea-Rado, the author of the freelancing handbook, You’re The Business.

“Many journalists, particularly women, are drawn to the flexibility and variety of freelancing only to find themselves struggling to make ends meet when, for reasons beyond their control, they are paid 50% of what they were promised for the work – known as a kill fee,” says freelance journalist Donna Ferguson, who led the development of the guidelines. “Others have to wait months to get any fee at all, because their articles have not yet been published. It’s not right and we wanted to call it out.”

Anna Codrea-Rado, who also collaborated on the guidelines says: “Journalism’s core function is to hold power to account, yet a flawed system undervalues the freelancers who perform this essential work.

“If we want a diverse, fair, and robust press, we must start by addressing how we treat those who work in the sector. These guidelines are a positive and necessary step forward for the journalism industry.” 

Addressing power imbalances for freelancers

Critics of kill fees argue that these fees rarely reflect the true value of the work already completed. Often, they are a small percentage of the total project fee, leaving freelancers significantly underpaid for their time and resources. Furthermore, kill fees don’t account for the lost opportunity cost – the potential income from other projects that were turned down due to the commitment to the cancelled one.

Arguably, kill fees create a power imbalance. Clients can essentially ‘option’ a freelancer’s time and talent with minimal financial risk, while the freelancer bears the brunt of the uncertainty.

The new guidelines also address other crucial aspects of freelance journalism, including:

• Rate and fee transparency: Publishers should be upfront about their payment rates and any associated fees.
• Timely payment processes: Freelancers should be paid promptly upon completion of their work.
• Clear pitching guidelines: Editors should provide clear and accessible guidelines for pitching stories.
• Fair copyright and byline policies: Freelancers should retain appropriate rights to their work and receive proper credit.

Organisations getting on board with new guidelines

Journalism organisations have welcomed the guidelines as a positive step forward. The National Union of Journalists (NUJ) and Journo Resources have both expressed their support for the initiative.

This movement signals a shift in the freelance economy, with freelancers within the creative industries asserting their value and demanding recognition for their contributions. As more professionals choose the flexibility of freelancing, the demand for fair compensation and respectful working conditions is becoming increasingly urgent.

Here are the guidelines addressed to editors when engaging with freelance journalists. However, the guide could easily be transitioned to other freelance work and used as a template or checklist for freelancers:

Payments and fees

Initiate payment when work is filed and always pay in full for work that meets the agreed brief. Payment for an article should be initiated as soon as a piece of work has been filed to the agreed brief. Fees should be paid in full even if publication is delayed or an article spiked.

Provide a written contract as standard
Any freelance commission should include a written contract outlining the freelancer’s rights, what they will be paid and a clear brief, which includes the word count, deadlines and any other assignment details and expectations (such as whether photos need to be sourced or provided). Fees and expenses should be agreed at this point. The contract will also state the company’s policy on late payment fees, expenses and other policies pertinent to the assignment, such as copyright, licensing and insurance.

Rate and fee transparency
Organisations should publicly list their minimum or standard writing rates per word for freelance print journalists on their websites and in any freelance job adverts, including on social media.

Clarity on the detail of how freelancers will be paid for their work

When an organisation pays per word, for example, the organisation should state whether they will pay freelancers per word commissioned or published, and what they will pay in cases where one is higher than the other.

Fit-for-purpose payment processes

Editors should provide upfront details and instructions on the payment process and any forms that need to be completed, when they commission an article. Invoices should be paid within 30 days of receipt and late fees should be honoured in line with the Late Payment Of Commercial Debts (Interest) Act.

Offer help with late payments

Organisations should provide a point of contact in their accounts department who is responsible for ensuring that freelancers are paid on time.

Regular rate review

Organisations should make a commitment to review freelance rates regularly to determine whether it is possible for the business to increase rates, ideally by at least the rate of inflation.

Clear policy on expenses and reimbursements

Organisations should provide clarity on the kinds of expenses freelancers should expect an editor to reimburse them for [a self-employed journalist would have to include these as part of their itemised fees when they invoice however, make sure you get it in writing they will cover certain expenses]. The guidelines outline how and when freelancers should approach their editor about expenses.

Clarity on how additional work outside the original brief will be compensated

Editors should state, before commissioning the work, how additional work outside the original brief will be compensated, if it is required later.[FI’s tip For example, a set number of revisions before new fees will be charged by the freelancer.]

Pitching and writing

Publicly available pitching guidelines

Organisations should provide transparency on their website around who commissions content with regularly updated contact details of commissioning editors published online. This could also include an explanation of the type of content and ideas editors want to see from freelancers, including pitching examples and the best time of day/day of the week to pitch. A statement about whether the publication welcomes pitches from inexperienced writers or how much experience freelancers need to pitch an idea would also be welcome.

Processes to ensure commissioning editors are aware of these guidelines

Organisations should commit to train relevant staff on best practice interactions with freelancers and make them aware of these guidelines and the need to set transparent pitching guidelines for their desks.

Rights

Clear policy on safety and insurance

Where necessary, freelance journalists should have access to the same risk assessments and insurance as staff journalists. This should also happen if they are travelling or working abroad or where there may be a safety concern about the assignment. [FI’s tip: A freelancer who often works in war zones or dangerous areas should take out life insurance as standard and ensure their type of work is covered before going on assignment. However, they may also have to consider proposing a personalised fixed-term contract with a client/publisher if certain protections such as kidnap insurance, repatriation, etc. should be considered and paid for by the hiring company.]

Clear policy on bylines

Editors should explain whether the freelance journalist will or will not get a byline on the piece at the outset.

Fair copyright licences

Copyright licences should follow National Union of Journalist guidelines and ask freelancers to licence their work, rather than seeking to buy ownership of copyright or asking the freelancer to assign all their rights to an organisation. Best practice, as per the NUJ’s recommendation, is for a contributor to keep copyright and licence uses of his or her material.

How software developers can navigate kill fees

Kill fees are less common for freelance software developers than they are for creative professionals like writers or photographers. However, they are becoming increasingly relevant as more developers work on fixed-bid projects rather than hourly contracts.

Fixed-bid projects: If a project is cancelled before completion on a fixed-bid contract, a kill fee can compensate the developer for the work already done.

Significant upfront investment: If the developer has invested significant time and resources in the project before cancellation, a kill fee can help recoup those costs.  

Client-initiated cancellation: If the client cancels the project for reasons unrelated to the developer’s performance, a kill fee can protect the developer from financial loss.  

If you’re a freelance software developer considering using kill fees, here are some things to keep in mind:

• Clearly define the conditions: Specify the circumstances under which the kill fee will be applicable, such as client-initiated cancellation or project termination due to external factors.
• Determine the amount: The kill fee amount can be a percentage of the total project cost or a fixed amount based on the estimated effort.  
• Include it in your contract: Ensure the kill fee clause is clearly stated in your contract with the client.

Ultimately, whether or not to use kill fees is a personal decision for freelance software developers. It’s essential to weigh the pros and cons and consider your specific circumstances and project types.

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