Contracts Over Vibes
Dear creative,
When I offer my clients contracts, their first reaction is always shock and skepticism. I didn’t get it at first, but after having conversations with them, I understood why they were skeptical about contracts. One problem I found prevalent is the complexity of contracts, You feel it may be a daunting task to draft one in a language that is easily understood and applicable. Secondly, the length of a contract, You probably assume a contract would be a lot of pages thereby increasing the time it would take to get a deal done. Lastly, a lack of understanding of the need for one since verbal commitments may suffice, especially when there’s money on the table or the potential to generate earnings is immediate. You are probably working with someone you have known for a couple of years and have built trust, therefore you feel “what is the need for a contract? It may just complicate the relationship”. It may turn a relationship that was built on vibes and trust into a strictly business relationship, which you feel may hinder the ability to create.
Your reasons may differ as to why you don’t appreciate the need for a contract. But, if you have decided to build a business or earn an income from your creativity or influence, vibes or verbal agreements will not take you far.
You have probably been exploited by third parties, had the details of an agreement changed when a problem arose, or complete avoidance of payment. The work of creatives/influencers is consistently used without permission or altered from the original idea and no compensation is made for their work. The scope of work being changed Or even the responsibilities of partners in collaboration being misunderstood. You find that disagreements arise on revenue splits because there isn't a document that addresses these issues and how to properly resolve them.
Building a sustainable business is done by putting the right structures in place to protect yourself and your revenue. Therefore the most important thing you should have in your business structure is a contract.
What is a contract? An agreement between two or more parties creating obligations that are enforceable or otherwise recognizable at law. That’s the simplest definition of a contract. It’s an agreement. For you to build a strong structure, contracts have to be an essential part of your system. It’s a key-way to protect your business and ensure it’s professionalism, as well as mitigating legal risk. It is the best foundation for any business relationship to blossom.
If you take your career/business seriously you must have contracts. Here are a few reasons why is it important for your career/business?
1. Contracts provide a written document that outlines the full understanding of the business relationship and scope of the work with the intention that no one can claim any misunderstandings later down the road. The goal is to be as clear as possible on everything.
2. They specify exactly what rights are being purchased and what rights you’re retaining.
3. They’re binding and legally enforceable. You have the right to enforce your rights as stipulated in the contract in case of a breach. Where a partner or brand refuses to complete payment or tries to change its word against what was agreed in the contract you have the right to take legal action. This also binds you to keep to the terms of the agreement.
4. They protect both you and the client/partner. A verbal agreement is non-existent really. You can’t enforce it or bring action against someone on the basis of verbal commitment. Ensure to have everything in writing. This protects you and your business in case of any trouble.
5. They stipulate how and when you get paid, what needs to trigger that payment, and what resources you have if the client stiffs you.
6. They minimize risk. As a creative/influencer, you must always seek to minimize risk as much as possible. That is anything that would lead to you making a loss from a financial angle or from the battering of your reputation. Losses can be incurred when the scope of work is not clearly outlined in a written document. If there be any additions it must be with your permission and at extra cost. You have value? Protect it.
You may be worried your clients or partner would not want to sign a contract but never feel awkward about insisting a client/partner works with a contract. It’s a mark of professionalism and should actually inspire confidence, knowing that you take your business seriously. Any client or partner who refuses to work with one should be treated suspiciously as that’s a serious red flag. This is because if you don’t work with one, you will be in for serious heartbreaks along your journey.
Honestly, there are easier and simpler ways to draft a contract that do not need to be long, boring and complex.
