Are you a freelancer with clients scrapping work you’ve spent time doing without compensating for it? Are you getting a little tired of it? If yes, you should consider implementing a kill fee into your freelance services. Read on to learn more about what a kill fee is and how to use it to value your time and services.
What is a kill fee?
A kill fee is a payment made by a client that decides to scrap the work they have commissioned you for.
In other words, a kill fee is a polite acknowledgement from your client to you- the freelancer- of the time you have taken to work.
Why should you use a kill fee?
Depending on how you price your work, as a freelancer, you’re not usually compensated in the same way an employee would be. For example, an employee is paid per hour or by day rate. This means that if they work a day and the employer says they should scrap that work, they are still compensated for it because their time is compensated at the day rate or per hour.
However, as a freelancer, if you are not using this system to charge clients, you are being paid only for the work you do, and that the client accepts.
For example, as a freelance writer, I charge per word/piece I write. I’ve been in situations where I’ve started writing a piece, and the client suddenly decides to change direction. This can be due to unforeseen circumstances, or it could be due to a lack of planning. For whatever reason, they have chosen to scrap the piece.
If I do not implement a kill fee, it means that not only have I wasted my time doing work, but I’ve also lost out on money in some ways as I could have been using that time to work on another project, for example.
Therefore, creating a kill fee is the best way to protect your time. It helps clients know that your time is VALUABLE. It also makes them more cautious of cancelling commissioned work so frivolously.
How To Decide on a Kill Fee
This kill fee amount you choose is completely up to you. However, as a guide, there are a few ways you can go about this. For example:
- You can use a percentage of the overall work done. The kill fee could be 50% of the agreed commission work.
- You could have a flat fee for all work the client decides to scrap.
- You could also create a fee based on how much you think your time is worth if a client cancels the project.
When to let your client know
To establish your value as a freelancer, let your client know before you start working with them. This also helps prevent them from being shocked if they decide to scrap a piece and find out there is a kill fee. It will help eliminate stress on both sides.
You can include a kill fee clause in your contract before working with a client so that they have a written agreement agreeing to these terms.
Why are kill fees controversial?
Kill fees can be controversial for several reasons. Some people think a kill fee can scare off clients – especially if they’re new and haven’t worked with you before. They may think paying for something they haven’t fully received is unfair.
On the other hand, those who are for kill fees believe they are an act of protection for the freelancer. Also, if the client is aware of the kill fee before starting work, it lets them know that they should consider the freelancer’s time and that they are dealing with a serious business owner.
When are some best practices of a kill fee?
The way you structure your kill fee is completely up to you, but when you are considering implementing a kill fee, here are some things worth considering:
- Keeping ownership of the work you have completed until kill fees have been administered
- The set method you use to calculate your kill fee
- What do you define as being killed? Is it when the project is cut back partially or cancelled altogether?
Ultimately, as a freelancer, you should remember that you are a business owner; therefore, time is money. You want to ensure that any time you give towards a project is compensated for your business. Just consider this when writing up contracts for lengthy projects in particular.
