More on Long Distance Contracting

July 10, 2009

A colleague from a state far away offered me an opportunity to edit his book for him.

The catch was that he didn’t have the funds to pay for the work, and instead promised to share the royalties when the book was sold.  Now let me say at the outset, the brother has a great book, or will have, when it is edited properly.  It is not an incoherent heap of mess that needs to be pulled apart sentence-by-sentence, nay, word-by-word like some of the mess that I’ve seen over the years.  No.  This is a serious (though skewed) attempt at a serious book about a serious subject that has the potential of being taken seriously by critics.  It might even make some serious duckies if it hit the right people at the right time and God willed it to be successful.

Problem is, I don’t have time to edit a book for free, and frankly, the good brother is not looking to make money from his book (so he says) and has promised royalties to other “editors,” but is concerned about getting it published nonetheless.

So I have incentive to edit the book for what reason?  What royalty?  Ten percent of nothing is nothing.  Where is the good faith that is so necessary for a good contract and business relationship?

Anyway.  If you hadn’t gathered from the previous post, service contracts over the internet can be tricky.  And unless your client is in the same state, it will be a problem if the client decides not to pay you.  Getting him in your own jurisdiction for a trial or small claims court, or getting yourself to your client’s state for the same will not be easy, and a lawsuit will more than likely be cost prohibitive for a simple service contract.  So write it off and kiss the payment and client good-bye.

A future payment arrangement (like a royalty) makes a business relationship and contract even more unpromising.  Why?

1)                  There is no guarantee that the work will sell or make money.

2)                  If the contract is not drafted properly, there will be issues as to what the royalty actually applies to.

3)                  The editor would be at the mercy of the author when making a deal with a publisher.

4)                  The editor would have a hard time making sure he’s getting paid for everything that is due to him.

5)                  If the author does not pay, the editor has no recourse with the publisher because the editor is not part of the contract between the author and publisher.  There is no legal relationship between the publisher and the editor.

Editing takes much time and effort to do a good job that goes beyond simple proofreading, and by golly, doing it for free just makes no sense.

What to do in a situation like this then?  Ask for shared copyrights and authorship.  Then the editor has as much incentive as the author to get it published, to promote it properly, to make sure nothing “bad” happens to it.  The editor would be in on the contracts with the publisher/agent/producer and could get his royalty or sale as promised, if in fact there is one.

No, there is no guarantee that a book will make money.  But it would be nice if there was actually a chance that it could sell.  That’s what the editor would be contracting for.  A chance.

A final comment: Years in business, bounced checks, and the occasional non-payment has led me to the conclusion that all other things being equal, losing a customer because of money stinks.  It is a far more expensive problem than the face of the check and related bank charges.

For example, you might be tempted to say “Good riddance!” to a check-bouncer, but think about it.  Chances are, if the check never had bounced and you had a “no checks” policy in the first place, the customer would probably still be doing business with you.

This, IMHO, is as important a reason to have a “pay as you go” or “progress payment” policy for your online business as any other.


Long Distance Love Affair

July 10, 2009

Performing online services on a fairly regular basis, I appreciate being able to hammer out a job from the comfort of my bed.  I love the fact that I can meet people from all over the globe.  It is possible to get paid for work without ever donning a suit.  Or shoes.

For all my love of the internet though, I am quite aware that it is easy to get burned.  Those of us in the service industry without at least a little savvy are especially vulnerable.  Our product is ourselves, our expertise, our experience.  If we put  ourselves out without ensuring we’ll get paid (and instead make too-complete assurances that the customer will receive satisfactory services before being required to pay) we’re looking for heartaches as well as headaches.

Heartaches?  Sure.  When service people work intimately with a client and then the client stiffs us, it’s not only a professional slap in the face, but a denouncement of our abilities and to our personal worth.  Not only that, the service provider has at least a lessened faith in human nature.

All that from a simple refusal to pay?  Sure.  Ask a competent waiter how it really feels to get stiffed after taking complete care of, then cleaning up after, small children and their parents… especially if the family takes up more than one table in the waiter’s section.

“Who cares if the babies are adorable?  They filled up my station for two hours and didn’t leave me a dime!  I have bills to pay!  Didn’t they think about that before they left their house?”

“What about me?”

“I hate people like that.”

You want an online services business.  OK.  Keep in mind that you do need to get paid up front, at least for part of your services.  You do, however, need to provide your clients reassurance that they are not throwing money at the wind.

For example, my editing business (started up during law school) requires customers to make a down payment (amount determined by me).  In turn, I reassure them with a partial edit of the work within a reasonable time.  Large jobs require progress payments.

Besides providing reassurance of good faith on both sides, partial payment and service provide opportunity for feedback.  (“No, that sounds harsher than I meant it to.  Can you tone down those three paragraphs at the end of Chapter One ?”)

Distinguish that from the waitress who never goes back to the table to check on the diners, or, more irritating from a restaurant owner’s perspective,  the waitress is very attentive, yet the diners complain about the food when it’s too late to do anything about it and the plates are empty and it’s time to pay.

More on Long Distance next time.


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