Financial terms
We have a variety of financial arrangement with our clients, both project fee and retainer. Generally we aim to show a reasonable return for the time we spend on a client's business. Normally we will estimate the time requirement and then translate this into a monthly or project fee. We never undertake work without first agreeing fees in advance. And we generally find it unprofitable to undertake work for budgets of less than £50,000, although - especially for smaller charities - we are always willing to be flexible. We do not usually undertake pro bono work unless in the capacity of individual directors.
Third party costs, such as artwork, media, lists, print, research, production, filming and other activities, are normally charged at cost plus commission (unless otherwise agreed) which is disclosed at the time of starting the work.
Contractually, we usually provide our Standard Terms and Conditions (available upon request - please contact us) and a simple side letter detailing the appropriate financial arrangements. This minimises the legal costs. Day-to-day authorities are handled via contact reports.
Credit terms: we are unable to offer normal credit terms to clients for whom we cannot arrange credit insurance. In most circumstances we are happy to work with such clients on a payment in advance basis to cover third party costs which can, if required, be held in an escrow account. Charities are exempt from this requirement.
For uninsured clients, we require payment within 30 days of the date of submission of invoices. However, as is normal industry practice, TV production costs must be paid 50% upfront and 50% on completion; media costs must be paid within 14 days or within 7 days for TV airtime; and postage will be invoiced prior to release of the mailing and cleared funds must be in our account prior to release.
The ASBOF levy is added to all invoices at the appropriate rate.
If you have any questions please contact us.
