Kill fees ain’t just for the Sopranos…

“Kill Fee” is an industry term for partial payments on canceled projects. It’s common for designers to require a 50% deposit before beginning work, often with the deposit serving as reimbursement for work done (i.e. kill fees) if the project is canceled. This practice also gives both the designer and client a vested interest in completing the project successfully. The client has laid out cash in anticipation of a completed project, and the designer wants to get paid the second 50% of the fees. 

Kill fees are a reasonable and fair requirement. Clients understand that they are paying you for your time, and if a project gets canceled, you still deserve to be compensated for the work you’ve done. Although some clients may need to arrange a payment plan on large projects, most who can afford your services can reasonably be expected to provide a deposit. And since you’ve demonstrated your investment in the project with your time and hard work, you can expect your client to have a like investment in the project financially.

As a new (and likely struggling) web designer, you’ll need to closely monitor your cash flow. Web projects almost always take longer than you initially expect them too. Having partial payments come in at the start of projects can make the difference between going under and being able to maintain your freelance business. Getting paid for your time on projects, even when a client’s situation changes, is also going to be vital to staying in business. You want to avoid situations where you would be required to return payments for projects that die or disappear (especially since you may have already spent some of it frivolously, like on food)! Up front deposits that are designated as kill fees solve this problem.

Posted on February 1, 2009 at 9:08 pm in: Web Advice

Tagged as: freelance advice, Web Design