GWA #4 - Ghostwriting 101 Part 3

Today we will be continuing our Ghostwriting 101 series with a discussion about contracts. We will talk why they are important and the basic things that every contract should include.

I cannot stress enough how important it is to have a contract with every client, no matter how small the project is. I don’t know a single ghostwriter who will work without one. Think of the contract as protection. It will shelter you from being taken advantage of. No matter how well you know your client or how trustworthy you think they are, a contract is essential.

I personally have not had to take a client to court, but I have friends in the business who have. If they had not signed a contract before beginning the project, it is likely that they would not have been paid for their services.

There are contract templates that can be purchased online, but many ghostwriters go to a lawyer to have them draft a standardized contract that can be used for each client. Some ghostwriters I know have even written their contracts on their own, but unless you really know what you’re doing I suggest getting a professional involved. The purpose of the contract is to protect you, so you need to make sure that everything is covered.

The contract I use is fairly simple. I have 6 main topics. The first is Deliverables. This is where I write in detail the services I am offering. It of course includes the completed manuscript, but also includes the details of the publishing package I offer to all authors, the number of complimentary meeting hours, and the amount I charge for additional meeting hours. In this section I also make it clear that I am not responsible for publication or the sale of the manuscript in any way.

The second section is entitled Ownership, Rights, and Authorship. This is just a simple statement that says that I as the ghostwriter do not retain any rights to the completed manuscript.

The Confidentiality agreement is in the third section. Here I say that I will not disclose my role in the project or any details of the project to the public or any third party without the written consent of the author.

The fourth section is about Payment. I explain that at the signing of the contract, the payment that is included is simply an estimate. At the end of the project, if the page number is more than the estimate the author is required to pay me for each additional page. Likewise, if the page number ends up being lower than the estimate, I deduct that cost from the final payment due. I also state that at the signing of the contract a payment schedule must be agreed upon and the first payment must be made. Also, I explain that I must be paid in full before the completed project is handed over and that if there comes a time when a payment is past due, I will stop working on the project until the payment is received.

The fifth section is about Termination. It is possible that for whatever reason, either you as the ghostwriter or your client will have to terminate the contract. In my contract, I say that if I have to cancel the agreement I give all the materials I have written and gathered to the author as well as a $200 termination fee. If the author has to cancel the contract, the author pays me the $200 termination fee and the author receives all of the materials I have written and gathered up to the time of the last payment. This is important because it is possible that you will work with an author that waits until he knows you’re almost done with the project and cancels the contract before the final payment is made so that he can get all of the materials without paying you in full. I also explain that if termination is necessary, I retain all of the payments already made.

In the final section, I give the details about the Cost of the project. I state what the cost per page will be, an estimate of the number of pages, and the total amount due. In this section the author and I also determine the payment schedule, payment timetable, and project completion date. As we talked about before, you should offer a few options to your clients concerning the payment schedule. The two standard schedules I accept are ½ in the beginning and ½ at the end or the payments can be split into thirds. However, feel free to be more flexible. I always look at each situation individually and will accept smaller payments. However, I do not recommend that you begin to work on a project without at least 1/10 of the project’s cost. So if you are working on a $20,000 project, do not begin to work until you receive at least $2,000.

A payment timetable simply describes when the author agrees to pay you. If there will only be 2 payments, it will be simple…you will get paid when you sign the contract and when the project is complete. However, if you split the payments into 3 or more, write down the dates that each payment must be made.

The project completion date is obvious. This describes the date when the completed project is due.

I will link to a sample version of the contract I use in the show notes (www.alainaburnett.com/sample_ghostcontract.doc), so feel free to check that out and even use it if you like. I will of course not be held responsible if you use my contract and it doesn’t work for you. Again, I recommend that you seek the assistance of a lawyer to put together your contract. It would be a one-time cost and will ensure that you are protected in the future.

I hope that you have found these thoughts to be useful! Feel free to contact me with your questions or comments at any time. I will answer your questions on air if I think the audience will benefit from hearing about the subject of your e-mail. You can reach me at gwapodcast@aol.com. That link will be included in the show notes at the official page for the Ghostwriters Anonymous podcast, http://www.ghostwriters-anonymous.com/. Click on the tab that says “Ghostwriters Anonymous podcast.” Along with the links, I also include a transcript of every episode, so take the time to check that out. Thank you for listening and make sure to tune in next week for the fourth episode of the Ghostwriting101 series where I will be talking about how to promote yourself and find clients.