Today I want to talk about when you need a Letter of Agreement and when you should present it. The answer to the first part is that you always need a Letter of Agreement. It’s really just a fancy term for a contract, which is an agreement between two people where money changes hands.
You could have a verbal contract without writing everything down. The problem is that there are no run rules, and that’s where you can get in big trouble with a client. When you have a Letter of Agreement, you are specific about what you’re going to do. If you don’t write it down, what your client expects you to do and what you are actually providing could be two completely different things. And that can cause endless problems.
So, you always need a Letter of Agreement. It will work in your favor every time.
When you start a job, you never start designing until you have a signed Letter of Agreement and a check in hand. This is not an exception; it is a rule. You don’t start a job until you’re officially hired, which requires both the agreement and a check.
The Letter of Agreement lays out precisely what you’re going to do. It states what areas you’re going to be working in. If you’re not specific, it allows your client to ask you to look at something that wasn’t originally agreed upon. By treating this scenario as extra business, it’s to your advantage, and it only happens if you have clearly stated what you’re doing in your Letter of Agreement. You’re also prepared if a client needs to add something to the project.
It will also state how many selections or choices you will give so that it doesn’t go on and on unnecessarily. You will note how many meetings or shopping trips are included, which is all about boundaries. Having too many meetings means you won’t get paid well. Be sure to also include a stop date to ensure decisions are made, and the job comes to a definite end.
Watch the video above where I explain when to present your Letter of Agreement and click here for free access to a Letter of Agreement template that you can easily use with your clients. It’s my gift to you so that you can use it as a game-changer in your design business.
Until next time, design something beautiful and get paid what you’re worth.