Pay day procedures for freelance journalists

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In the freelance journalist's ideal world, editors would pay well and pay on time every time.

But there is no freelancing utopia and occasionally we minions are forgotten - accidentally or on purpose - on pay day.

There's no need to biff your notebook at the wall and resort to the job ads though, because there are things you can do to rectify the problem and prevent it happening in the future.

So, let's start with the basics.

$$ When to bring up the question of money $$

You wouldn’t roll up to a new job not knowing what rate of pay you had signed up for, yet it’s surprising how many new freelancers are prepared to work on a story without knowing what – or if - they will be paid when it is published.

I blame this on the gene that most freelancers seem to have inherited that results in palpitations and panic attacks at the mere mention of the words, 'Let's talk money.'

My solution? Drink a cup of harden up, take a deep breath and ask the editor up-front what the word rate, story rate or day rate is.

The appropriate time to bring up money is when the editor agrees to commission your work from your story pitch or is prepared to see your completed article on a speculative basis (meaning they will decide whether to commission you after reading the story).

It's simple really. Just say the magic words: ‘By the way, what is your word rate?’

If you consider the rate to be too low, you can try to negotiate or politely tell them to shove their coins back into the matchbox from which they came. I phrase it like this: ‘I respect that is your rate, however, it is just not viable for the time and effort I will need to put into it so I will have to withdraw my offer of the article for your publication.’

Other questions to ask the editor at this stage include:

* Do you pay on publication (meaning when the story is in print) or on acceptance (when the editor is happy with the final, edited version of the article but it hasn't yet gone to print)?

* Do you send out a recipient-generated invoice or do I send my own invoice?

* Is there a kill fee if the story doesn’t run?

* Is the final rate calculated on the words published or the words commissioned?

A word of warning here; a proactive student of mine kindly sent out a story on a speculative basis to an online editor before discussing money and only found out later that said editor had published the piece without her knowledge and without further discussion or payment.

So ensure that when you do send a story 'on spec', you make it clear to the editor you are allowing them to view your article on a speculative basis and that it is not a press release or a yarn that you are offering free of charge.

$$ What rate can you expect? $$

The reality, these days, is that more and more start-up publishers are hoping to get copy for free.

While traditional publishing houses such as metropolitan and regional newspapers, consumer magazines and trade publications pay a reasonable fee for content (45c to $1per word), some blogs, online magazines and local newspapers simply don’t have freelance budgets at all.

So it is important to talk money early on so you can decide if the publication is the right one for you.

Of course, you may be prepared to write a few articles for free to establish a portfolio or make contacts, or to take a mixture of low and high-paying gigs depending on job or personal satisfaction. It's entirely up to you to decide what is reasonable remuneration and what isn't.

One thing to note is that the rates of pay can vary dramatically depending on the company and the work you are employed to do (i.e. feature articles, corporate writing, copywriting, proof-reading, sub-editing, etc).

The Media Entertainment and Arts Alliance (MEAA) currently recommends a 'freelance rate' of 89 cents per word, but in my experience most publications don't pay this much and the ones that do generally ask for more in return such as extensive research or worldwide copyright.

$$ Time to invoice $$

When the story is ready to be put on the page - i.e. the editor is happy with it and is sending it to the sub-editors for final proofing - it's time to invoice.

Don’t invoice before the editor is finished negotiating the state of the final copy with you, but also don’t leave it for months afterwards to get your invoice out.

I typically invoice the same day the editor says they are happy with the final version.

Now I’ve said it before in this blog but I will say it again, be organised. Create a simple spreadsheet that enables you to keep track of the stories commissioned, completed, paid and outstanding.

You will already know if the editor pays on acceptance or publication so write down the date you expect to be paid (eg, four weeks from date of publication or acceptance) and set yourself a reminder to chase up the payment if it doesn't arrive by then.

$$ Managing slow payments and bad debts $$

Occasionally payments are late. When they are, it's up to you to be proactive in chasing them.

If a payment doesn’t arrive when you expect it to, call the editor and ask them who it is in human resources you need to speak to.

Most editors will happily chase late payments for you, but some will refer you on to the relevant bean counter.

The important thing is to be persistent (call every week if you have to) and to have your records (date of commission, word count, date of publication, date of invoice) up-to-date and at the ready.

If the money just doesn't arrive there are a few strategies I recommend.

Firstly, if you are a member of the union (MEAA), ask them to advocate on your behalf.

Experienced Sydney freelance journalist Fran Molloy once joined forces with another contributor to chase an editor who had more excuses than money.

“We joined forces, kept in touch with each other and let the editor know we were both concerned,” Fran says.

“Eventually we contacted the union and after a long process they helped put pressure on the publisher and we both recovered our money.”

If you feel it is worth increasing the pressure further, you can send a 'letter of demand'.

The Arts Law Centre of Australia has some great tips on how to go about this, helpful contacts and a 'letter of demand' template.

Alternatively, employ a debt collection agency to do the footwork for you.

$$ Prevention $$

As soon as I catch a whiff that an editor has a lax payment policy I implement procedures to reduce my risk of doing unpaid work.

If I trust them to a certain extent, I will continue to work for them but will not agree to further commissions until any outstanding invoices are paid. It’s amazing how many editors will suddenly remember to pay you when they want something else done.

If I don't trust them at all, I pressure them for the outstanding payments and then graciously refuse to accept any further work from them.

Also, I tend to only take on commissions from reputable or well-established publishers.

I don’t work for start-ups or unknown entities, but if I were to do so I would seriously consider changing my policy and asking for 50% payment up-front.

On a positive note, it will be reassuring to you to know that in ten years I have never once had an editor refuse to pay or had to write-off a bad debt.

Related articles

The business of freelance writing
Money management for freelance writers
Going for the kill on fees

For more information about Pamela Wilson or WriteSmart, log on to http://www.writesmart.com.au/