Pricing ends where contracting begins. Each of your design projects should include a contract with terms of agreement. Without a contract or letter of agreement, you risk not being paid, losing clients, and being taken advantage of.

The following key elements should be included in your contract. You can also find sample contracts online for your use or you can work directly with an attorney to create a contract. But don't make this process too complicated or you'll turn away potential business.

Be sure to always protect your copyrights. As a graphic designer, you always retain the rights to your creations unless otherwise specified in a contract. This gives you the flexibility and right to get paid for additional use of your own personal designs. You are also protected from unwanted changes to your designs.

For example, if you create a brand image or logo for a specific product and the company decides to expand the use of the logo to other products, you should be paid for the additional use. The reason is the design has increased in value once it is expanded and it is your original creation. Remember this when talking with clients who express ideas about future expansion of the design.

You should always have some type of contract or written agreement with your client. This makes good business sense and is protection for both you and your customer. It clearly states the deliverable/what is expected, the price, and the delivery timeframe. More detail about elements of effective contracts is included below.

Elements of a contract:

1. The first section of your contract should be the deliverable or the project description. It should include a description of the services to be provided and the individual specifications for that project. Details can be included here or in a separate attachment.

Things such as scope of the work, logos to be included, images, or other requirements should be listed. The more detail you can provide, the less likely there are to be misunderstandings at the completion of the project.

2. The next section should outline the due dates for the deliverables. This is the estimated completion date. If there are proofs or other steps along the way that require approval by the client, include them in this section. Be clear about the client's responsibilities and approvals needed.

Include any situations that may alter the deliverable date, such as client's inability to return approval for proofs as required, or other issues impacting delivery. These are typically things out of your control, including issues with any contracted professional printers.

3. The final section should include the price for the services described in the agreement. This is typically a fixed cost and will only be impacted when events outside the control of the designer are involved. For example, if the client requests expansion of the scope of services, the price may be increased.

4. Payment terms should also be included in this final section. Most payments are due upon completion of the work, or within 30 days at a maximum. You should also include any deposit, pre-payment requirements, or down payment expected to begin the project. Also, include information regarding late fees if applicable.

5. You can include a “cancellation fee” if you think it is necessary. This ensures that you are paid for work done to date if a project is cancelled by the client. This protects you against hours of work without payment. This is typically deducted from the deposit required at the outset of the project.

6. One final consideration for your contract is the clarification of who owns the design and artwork. Most designers retain the work for designs delivered to clients. If you decide to provide the digital files and other files to the client, you may want to consider an additional fee to cover the costs of providing the files, especially if you have to provide them on CD and mailing costs are included.

7. Any time you have legal or financial questions related to managing your contracts or your business, be sure to consult the appropriate legal and financial professionals.

These are not considered to be the only components of your contract, but they are recommended as basic elements included in the contract. Your contract can be as formal or informal as you like. It can simply be an email with the above components included that requires a reply email from your client acknowledging agreement. The risk is yours to take so proceed cautiously.

But don't allow contracts to become so cumbersome and daunting that they turn away clients and cause anxiety due to their complexity. The simpler you can keep it - while still protecting your intellectual property and financial return - is your goal.

(C) GraphicDesignFreelanceJobs.com