Parc Entertainment - A Video Production Company

Based on the lessons I’ve learned by running a business, I have written several articles on this blog pertaining to entrepreneurship. Earlier this year I wrote an article providing tips on what you need to have in your contract before starting any job. As I looked back over that list, I realized that I missed something very important. What happens if your client decides to pull the plug before the project is finished?

“No problem,” you say, “my client paid me a deposit up front.” That may be true, but a deposit usually only covers certain up-front creative costs. Let’s say the time you have invested into a particular project now exceeds the amount of the deposit. Let’s assume that you are well into phase two, when all of a sudden, the project is put on hold. Your client becomes unresponsive. When he/she does finally return your calls, he/she says that the company has been forced to table the project. So, how do you recoup the cost of your time up to that point?

Since this has happened to me before, I now insert a clause into each of my contracts which says something like, “Should Client terminate the project before its completion, Client is responsible for paying Company all unpaid costs incurred in the production of this video up to the date of termination.” By inserting this sentence, I can cover myself in case my client decides to shelve the video project before it’s complete. The wording of your contract ultimately might be a bit different from mine, but the point is to make sure that you get paid for your time.

I’ve been drafting contracts recently for some new projects, and it got me thinking not only about the importance of having a contract, but the value in having the right content written up in your contract. You need to make sure that your contract covers any possible variable, so that if conflicts arise, you and your business will be covered. Of course, knowing exactly what to include can be difficult. After all, we that work in the production industry are creative folks, so the administrative tasks of running a business can be a challenge. Based on my experiences, here are a few guidelines on drafting a contract.

1. Describe the scope of the project. This may sound like a no-brainer, but it’s very important. You need to make sure that both you and your client are clear on the project as a whole. What is this video for? What are the goals? What will the video hope to achieve?
2. Based on the scope of the project, define the specific services you will perform so that the project responsibilities are fulfilled. Make sure you spell out exactly what you will be doing over the course of the production. Also spell out what you need from your client. Sometimes, in order to complete a video, I need my clients to provide me with still images, company logos, backgrounds, fonts, etc. In any contract, both parties should be clear on what their individual responsibilities are.
3. Specify the video project’s budget. Verbage is important here. Don’t say, “the budget for the video production services described herein are estimated at…” Never estimate in your contract. Be specific. Just write in what the budget will be.
4. Specify how much time you will be investing in the video. Every budget I draft is based on a number of factors, including the amount of time I plan on spending in pre-production, production, and post-production. Place these figures in your contract somewhere. It can read something like this, “The above budget includes X hours of pre-production, X hours of production, and X hours in post-production.  Should Client request changes to the project and Company’s time exceeds the budgeted time, Client agrees to pay Company its standard rate of X in order to complete the changes.” This particular clause covers you in case you get into production and your client starts making a lot of unexpected changes. If you aren’t covered in this way, you may find that you’re spending a lot of extra time on the video and not getting paid for it.
5. Define the payment schedule. I always ask my clients for a deposit before I start work on any video project. This money helps to offset initial time invested in the pre-production phase. I also make sure to specify in my contracts that deposits paid are non-refundable. This covers me in the event that a client pulls the plug on the video. In addition to the deposit, you need to specify project milestones at which time additional payments are due. For example, I usually ask my clients for a second payment after the video shoot, with final payment due after the video is approved.
6. Insert a clause to cover late payments. To help my cash flow, all of my invoices are net-15. However, net-30 is more realistic. Clients will often push that to net-45 or even net-60. To ensure that you receive payment from your clients in a timely fashion, insert a clause indicating that a late fee will be applied to any balance that is more than 30 days overdue. This will protect you in case your client is negligent about making payments.
7. Specify the delivery date. Make sure both parties understand when project milestones are supposed to take place, including delivery of the final video. Now, look back to #3 on this list. It’s important to remind the client (within the context of the contract) that any delay on their part in getting necessary materials to you will delay the completion of the video. You don’t want to be locked in to a deadline on the 10th of the month when you’re in your office on the 8th still waiting for your client to send photos, logos, fonts, etc.
8. Be sure to retain certain rights to the video. Every video completed is an addition to your demo reel that can possibly help you land the next job. So, in your contracts, specify that you retain the right to use the final video for display, publication, exhibition, awards, etc. for your own promotional purposes. I have never had a client that had a problem with this and it grants me the permission to show my work to other potential clients.

Working in video production as an independent professional or business owner can be a trial-and-error existence. Mistakes will be made and hopefully, lessons will be learned. The way I write my contracts is based on my experiences as a professional producer/director and business owner. Hopefully, these insights will help you in your own ventures.

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Based on my last post, I received another question regarding clients and client relations. My last post discussed those who like to include a little too much information into their videos. This particular question focuses on clients who can’t stick with the shooting schedule. Here’s the question:

My client is very knowledgeable about his business, but won’t follow a cut sheet to save their lives! We’ve been there to give directions and they are great about that. However, any general advice on how to shoot this smoothly (even w/o the cut sheets) so the post production isn’t a hair puller?

Let me first say that video shoots rarely stay on schedule. Once you get on location, things can get shuffled around and your day can run late. So, don’t panic if you’re at the end of the first day and you haven’t accomplished all that you hoped. I have written some articles on this blog that discuss shooting schedules. Hopefully you can find some valuable info in my archives that will help you schedule your video shoots.

Second, when you’re talking to your client about the shooting schedule, try approaching the subject from a financial angle. Staying true to the shot list will help everything run more efficiently, which will save your client money. I always tell clients that spending the time in pre-production to create and maintain a solid shooting schedule is vital to staying on budget.

Third, realize that many times you will simply have to “go with the flow.” As I said earlier, things fluctuate. Often, the activity on location will dictate how and what you shoot, not the other way around. For example, while working on a video project for a manufacturing company, I simply had to shoot the action as it happened. I couldn’t tell the foreman, “Hey, we need to shoot ‘X’ at station 2 right now,” because the manufacturing process has its own schedule. Sometimes there was no activity at station 2. I simply had to stay flexible and go where the action was. It did mean I had to jump around quite a bit, but that’s part of the documentary process. Sometimes it can’t be contained in a nice, neat shot list.

If you find that you are shooting your project in this style, remember to do one of two things (doing both would be even better):

1. Maintain a running log of what’s been shot
2. Slate everything (simply write down on a piece of paper what the camera is looking at, hold it up in front of the camera, and film it for a few seconds, just for reference).

Having a reference marker in your footage will help tremendously in post-production. That way, your editor can easily match up your shot with what’s mentioned in the script. Let’s say your video is for a drilling company and the script reads, “With our new, state-of-the-art Hole-Maker 9000, we can…” Well, if your editor has hours of footage showing different types of machinery, how is he/she supposed to know which piece of footage is the Hole-Maker 9000?

Yes, staying on schedule will make everyone happier and it will keep production costs down, but remaining open to new possibilities means that you may find a great storyline when you least expect it.

Clients come in all shapes and sizes. For some of our video projects, we simply shoot and then turn over all raw footage to the client so they can edit it themselves. Some businesses we work with have their own in-house marketing team. They create the concept, write the script, and hire us to produce the final piece. Other clients will lean on our expertise to conceptualize, write, shoot, and edit their marketing videos. Every client is different. They have different needs, different expectations, different ideas, and different ways of doing things. Your job as a video producer/director is to listen to their needs, respect their opinions, and advise them when they need guidance throughout the production process.

A friend of mine recently sent me an email asking for my advice on a particular situation. She is currently working on a video and her client has some great ideas, but there is one problem: the client is trying to put too much into the video.

I’ve been in creative meetings when the client throws a lot of information at me. But that’s not a bad thing. When you first get started on conceptualizing and writing a video, you want as much information as possible. The biggest challenge comes when you have to narrow your focus and sculpt that information into usable material for the final script. If you’re having trouble convincing your client to reduce the amount of info that he/she wants in the video, here’s some advice:

1. Listen and Take Notes - during those creative meetings, pay attention to everything they say and take notes as you go. The act of physically writing down your client’s ideas tells them that you value their input. By engaging them in this way, you will earn their respect and trust and they will be more receptive to your creative suggestions.
2. After getting all the information, it’s time to trim the fat. Ask your client a few follow-up questions. These questions will encourage your client to narrow his or her focus and concentrate on those elements of their business that are most important: a) How do you want the public to perceive you?
   b) Using one sentence, how would you describe your company’s identity/mission?
   c) What is your mission statement?
   d) What are three key selling points for your business?
   e) What objections do people have when it comes to making a purchase? i.e. what prevents them from buying from you?
3. Explain the process - As politely as you can, explain the process of creating a video. Emphasize the importance of creating a video with a strong, central theme and a simple message. Bombarding the viewer with too much information will only confuse the audience and will result in more questions being asked than being answered.
4. Make Comparisons - Show the client samples from your reel and walk them through the case study of each project. Show them through these videos how a simple approach is usually the best approach. You might also ask your client to think of their favorite commercials or favorite long-format videos. Walk through those videos and ask your client, “What makes these videos so memorable? Why do you like them? Why are they successful?” Usually, it’s because the director boiled everything down to a simple concept that an audience could easily digest.

And remind your client of that adage, “The simplest solution is the best solution.”

Video production is an industry full of variety. In my career, I have covered several different businesses, topics, people, and places. Browse through any video director’s client list and you will no doubt see a broad spectrum of projects. However, there may come a point when you are approached by one of your client’s direct competitors to produce video content. Should you take the job or should you politely refuse because of your existing relationship?

The answer to this question depends on a number of factors - most importantly, the nature of the relationship with your existing client. Here are some things to consider:

• If you signed a non-disclosure agreement with your client, then legally, you might not be able to accept a job from a competitor.
• If you signed some kind of non-compete clause, then you probably won’t be able to take the competitor’s job.
• Let’s suppose you produce a lot of content for your client on a regular basis. And let’s suppose each video requires you to be out on location meeting with your client’s vendors and other people your client does business with. Over time, these vendors might come to think of you as part of your client’s business (even though you, in fact, are an independent contractor). If those same vendors see you representing a competing company, they may take offense and the credibility of your first client could be shaken.
• If your client considers you as their “go-to” guy/gal for production work, they may get their feelings hurt if they realize that you are doing work for their competitor. In which case, they may not want to hire you for their next project. Be careful not to burn any bridges.

Ultimately, the choice you make should be handled on a case-by-case basis, because every situation is different. Obviously, if you have only produced one video for a client, and that project is now five years old, it’s probably okay to accept a job from a competitor.

It also might be helpful to address these concerns with a new client before the first project gets underway. If the new client is looking for a long-term relationship, then you probably need to discuss any non-compete policies the company may have. I know it’s tempting to jump at a good offer when it comes your way, but more important than new jobs are the relationships you have established with your existing clientele.

So now I’ll open the floor for discussion. What would you do in a situation like this? Do you agree or disagree with the considerations mentioned in this post?

Business owners, freelancers, marketing personnel, public relations officers will at one time or another have to deal with projects and/or products that simply aren’t working right. And clients who have given their time, trust, and money, will be looking to these individuals to correct the situation. They aren’t interested in excuses. They’re interested in solutions. In a previous post I gave out some advice on how to respond to a client’s concerns. Number one on that list was “Respond Promptly,” but in this post I’d like to add one more point to that list - “Be proactive.”

Case in point: I recently signed up with iContact.com to distribute my monthly e-newsletter. A few days ago, I tried to access the site to work on my newsletters, but the site was down. It wasn’t long before an email popped up in my inbox from the CEO of iContact. The company had taken the time to write their customers and explain to everyone what was happening. That email was followed up with others that detailed what went wrong and how their team was correcting the situation. They also used their Twitter account to post real-time updates.

I was thoroughly impressed with the way iContact handled the situation. I’m certain that a potentially disastrous PR scenario was quickly diffused because they took a proactive approach and kept everyone well informed.

If you are responsible for client relations, regardless of your industry, maintaining open and ongoing lines of communication between your company and your clients will reflect positively on your brand.

The office phone rings. You pick it up and on the other end is someone interested in hiring you for their services. You grab a nearby notebook and pen and start jotting down notes as he/sh discuss what their company needs. As the conversation continues, you start to realize that this will be a very exciting and very profitable project. It’s a great moment for a small business owner or freelancer, but sometimes even quality leads can fizzle. It’s the nature of the business. Projects get put on hold for various reasons - no money, new CEO, a new board rotates on, the committee can’t agree on details, your contact gets distracted, etc. Once I was very close to signing a contract with a potential client, but the project was shelved when the company started dealing with some major internal issues. Some leads are extremely courteous and will let you know what’s going on. Others simply drop off the face of the earth. What can you do as a small business owner or freelancer when projects get put on hold?

1. It’s Out of Your Control - The first and most important thing to remember is that you can’t force your contact to sign the contract and send in a deposit. It can be horribly disappointing when you are on the verge of landing a big job, but sometimes you simply have to shrug your shoulders and move on. It’s out of your hands.
2. Don’t Put All Your Eggs In One Basket - Just because that golden carrot is dangling out there in front of you, don’t neglect your other marketing efforts. Do all that you can to develop new business. Don’t count on that one project to sustain you, because it might not be there when you need it the most.
3. Fix a Limit on Your Bids - When submitting a budget to a potential client, I always insert a note that says something to the effect of, “Bid valid for up to ninety days beyond the submission date.” Over time, both the market and your rates will change. The budget you submit should reflect current conditions so that you can earn what is fair. This clause protects you if a project is shelved for many months or even years.
4. Keep Your Name at the Forefront - If you’re contact is MIA, don’t be afraid to keep your name in front of them, but this must be done in a very subtle manner. You never want to appear desperate for the job. The best way to do this is to sign your contact up for your free monthly newsletter. It lets your contact know that you’re still out there by keeping your name in front of them.
5. Check In Via Email - Don’t do this often, because (as stated in #3 above) it makes you look desperate. Usually if the contact needs your services, he/she will let you know. However, it’s okay to check in via email every few months, just to check on the status of the project. If there’s no news after three follow-ups, I wouldn’t contact the company any more regarding that particular job. I would, however, write to them if you have a new demo reel or portfolio available, or if you have some announcement related to your business.

Projects are often shelved because marketing and advertising is the first thing on the choppping block for many businesses. Try not to let it discourage you. You never know when that job might re-surface.

In the world of video production, projects can span several months, depending on the complexity of the job and the amount of people involved. And during that time, a TON of emails will pass back and forth between the client and production company. Whether you work for the client or the production company, it’s important to save and organize those e-mails. Doing so will help both parties maintain clear expectations as the project moves forward.

Defining the Scope of the Project

When a potential client calls, interested in hiring me to produce a video, they usually go over the basic scope of the project. I am always diligent to take notes and ask questions during this initial conversation. As we draw closer to signing a contract, I always send an email, outlining the project, to make sure I understand everything correctly. Having all of these details recorded in an email is a valuable asset, because it’s much easier to reference an email than try to recall what was or was not said in a phone conversation.

Changing the Project

If a video project is under the oversight of a committee, the scope of the job might change several times before the contract is signed. Here again, saving and organizing every email is important, because it can get very confusing very quickly if changes are being made constantly. Contradictions can become a serious problem unless you have an email that you can refer to. Those emails are a clear record of what was said, by whom, and when.

Obtaining Materials for the Project

Many times a client will email me a signed contract. As the project moves forward, they might send me all kinds of materials for use in the video - scripts, photos, links, titles and other graphics, etc. I will always download these to my hard drive and store them in my project file. However, I will always archive the emails containing these attachments, in case something happens to the files on the hard drive. You always want your client to have faith and confidence in your abilities and your work ethic. Having to ask your client to re-send materials over and over doesn’t exactly send the message that you are organized and efficient.

Conclusion

I use Gmail as my email client. I find that when it comes to organizing, archiving, and searching for messages, Gmail works best for me. And it offers plenty of storage space. I usually hold on to conversations for about one year before deleting them, just in case a client needs to refer back to a specific job. Remaining diligent in your record-keeping will be of great benefit to your client relations.

A few weeks ago I was contacted by a client in need of some footage that was shot back in 2005. I went through my archives and found the footage in question. It seems that my client, during a recent office restructuring, had misplaced their original copy. They indicated that they would be happy to pay for the replacement copy.

I made the transfer, packaged it, and shipped it along with an invoice that reflected my standard charges for time and materials. I received a call shortly thereafter from the client who was surprised at the cost of the transfer. I could tell she was unhappy. I did my best to explain my rates and why she was seeing this particular amount on her invoice. She paused, then said, “Well, seems like there’s not much I can do. I guess you’ll be getting a check.”

I could tell that the conversation didn’t end well. She just wasn’t satisifed. I hung up, the tone of the discussion still looming over my head. “I need to make this right,” I thought. This particular client had given me an opportunity to do some work for them back in 2005 and were pleased with the results. Now they have expressed interest in hiring me again for upcoming video projects. I didn’t want to do anything to jeopardize this working relationship, so I sent my client an email, along with a revised invoice. In my email I apologized that the price caught her off guard and that I wanted to maintain good relations with her company by reducing the amount of the transfer.

It’s important to get paid for the work you do. And it’s important to know what you’re worth. But what’s most important of all is customer service and the rapport you build with your clients. Exceptional customer service will go a long way and it will prompt your clients to hire you again and again for future work. You can afford to make short-term sacrifices for long-term gains.

Many of my larger projects are built into phases. This is done mainly for two reasons: it helps my client’s budgeting needs and it provides them with peace of mind, knowing that I am making constant progress on the video. If you are working on a project that is built into phases, it’s important to thoroughly describe each phase in the contract and when that phase will be completed. Be up front with your client in regards to payment. I usually request a deposit when the contract is signed and then partial payments upon delivery of each phase. Asking for progress payments will help your cash flow and will help defray production costs and the cost of your time.

When that first phase is delivered, however, it’s important that you and your client are both on the same page before the project moves forward. It would be disastrous to move toward completion of a project when your client hasn’t even approved phase one. That’s why, in addition to the original contract, I always provide my clients with written approval agreements that they must sign before I continue with the project. These don’t have to be complicated. All it needs to say is that the client acknowledges that phase one was delivered on schedule, that they have thoroughly examined all elements, and that those elements meet with their approval. This will give you the green light to continue your work, knowing with certainty that the client is completely satisfied with the project thus far.

Remember, never assume. Even if you talk with the client over the phone and they say, “Hey, this looks great! You’re on the right track. Keep going,” you need to get their approval in writing. I have learned this the hard way, dealing with clients who give verbal approval, only to recant it later. That resulted in more work for me, for less pay (because I still had to stay within the specified budget). Maintaining good client relations is all about giving due diligence to proper communications.