After 30 years of working with almost no contracts, I've had more cancellations in the early part of this year than in the last 10 years.

As a consequence I've decided to follow some of the advice here and go with a Contract or Email confirmation and 50% non-refundable deposit in case of cancellation by the client.

I've only asked for this once (awkwardly) and am waiting for the check in the next few days.

To those who do something like this, I'm wondering how to approach the subject with the client. What % seems reasonable? Do you allow cancellation with no penalty 'till a specific number if days prior to the booking? Do you deposit the check or just hold it?

I'm especially interested in how you state the details in your contract/agreement. Do you offer any way to proceed if you should cancel?

Thank you.

- Mary Mowder

Sounds like you just need to take 50 percent (on occasion) either by check or CC. (A CC is an instant deal while waiting for a check can be a killer) You'll feel more comfortable after doing it a while. Just remember that most agents take deposits (which equal their cut).

The typical clause is 'This is a Play or Pay contract. If the performer is ready, willing and able, then full payment is due at the completion". There is usually no express penalty if you cancel except that you must return the payment.

I always get a 50% deposit unless it is from a college or a last minute gig. I simply tell them that to confirm the date they need to sign the contract and send 50%. This is also stated in the contract with the exact amount and it says they have to pay the remainder before the show. I remind them of this a few days before because my contract also says that if they do not pay before the show then it is considered a cancelation on their part which means I don't have to perform (never had problems with this but it is in there).

My contract says they can cancel the engagement 21 days beforehand but if they do then they don't get the 50% back. If they cancel anytime within those 21 days then I'm entitle to my full fee because I pulled the date for them which means I have to refuse other gigs.

99% of the time I ask for the full fee up front. When they want me to send the contract I tell them about 50% and then ask if they would just rather pay the full fee so they don't have to worry later. And most of the time they say yes.

YES you should always have a contract and 20% of the total fee is the standard asking amount.
asking for a deposit will have your clients take you more seriously and a contract will help with meeting any of you needs such as perfomance area being cleared prior to arrival or any other such needs you have.

if you would like to know more let me know

sam

One subtle, yet possibly deal-breaking distinction... (At least as I have been counseled.) But FIRST, I am NOT a lawyer and I am NOT dispensing legal advice, check your own legal counsel for any legal support and information.

As I have been instructed; we do NOT accept "DEPOSITS"!

We DO however accept retainers, booking fees, date-holding fees... etc. As I understand it, “deposits” are refundable no matter what language applied, (Like saying “Non-Refundable Deposit… is not accurate as I have been instructed.) and like I said, I could be wrong about the ‘specifics’ so please DO take the time (and money) to find-out for yourself what IS (and how) a legal retainer, levy or fee… etc.

Having said that we also get a full 50% “in warranted cases” with the full balance due two-weeks prior to Showtime. – As I have noted before, I have never gotten any pushback on this policy.

Food for thought... chech it out for yourself.

Thanks for saying that Dean...I'm changing that part in my contract today

Thank you all. I got something useful from every reply and I'm probably not the only one.

Dean, I will check it out or at least avoid using the word deposit. Thanks for the heads up as I did already ask for a non-refundable deposit. Live and learn (we hope).

- Mary Mowder

Yeah... great info and input gang! - Thanks!

You are likely not going to have a problem... it would ONLY be an issue if anyone wanted to contest the agreement, BUT like we all agree, "Better SAFE Than Sorry"!

I am happy to help any little way I can! Best of Luck to you and your success!

“Success isn't a result of spontaneous combustion. You must set yourself on fire."

Find Your Passion… DO Your Purpose… Make It Profitable!

Live “L.O.V.E.” Everyday!
Life Of Vibrant Expression!

I am at your service and in HIS Service,
Deano (Helping You Succeed) in Reno
<><

PS – MORE KILLER FREE STUFF!
Grab Your 100% FREE, No Foolin’ Success Event Playback AND Downloadable GIFTS Now?
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I had a client meeting not too long ago where the client actually thanked me for requiring a deposit.

They had a performer the year before who didn't ask for a deposit and they were scared that he wasn't going to show up. The client said to me "He (the other performer) actually thought he was doing us a favour by not asking for a deposit but we were worried because there was no reason why he couldn't just book with someone else for more money".

Deposits (no other wordings) actually shows commitment from both sides and is a good thing for all.

I charge 50% but am considering 100% for certain times of the year.

Posted: Jun 29, 2010 7:54am
I mean "(OR other wordings)"

I TOTALLY AGREE with you brother Scott! (and so does my experience…)

Unless there long-time, solid relationships we always get a 'Commitment Fee' and balance due before the show... many times (se MOST) when given the choice, they rather pay all at once and up-front so they didn’t have to even think about the "business" at their event... it’s all taken care of! (of course I GIVE THEM THAT as an option… and plant that seed appropriately as a service to them… and us. Win! Win! Win!)

“Success isn't a result of spontaneous combustion. You must set yourself on fire."

Find Your Passion… DO Your Purpose… Make It Profitable!

Live “L.O.V.E.” Everyday!
Life Of Vibrant Expression!

I am at your service and in HIS Service,
Deano (Helping You Succeed) in Reno
<><

PS – MORE KILLER FREE STUFF!
Grab Your 100% FREE, No Foolin’ Success Event Playback AND Downloadable GIFTS Now?
http://www.EntertainersSuperConference.com

Mary: I've not had a lawyer review this, and like Deano, I'm not offering legal advice here, but following is the language I use in my kid-show "confirmation letter" regarding "deposits, etc;" It has served me well and since I've been performing professionally (over the past 5 years) I've not had any problems in this area. I agree that asking for a deposit helps show the client that you are serious about performing at the event...you've got an investment in the show and you're most likely to show up if you're expecting the balance of your fee.


Payment Terms: 50% deposit ($XXX.XX) payable immediately and balance ($XXX.XX) due at the conclusion of the event in either cash or personal check made payable to MY NAME. Gratuities for an exceptional party experience are at your discretion, and are appreciated, but not required.

Satisfaction Guarantee: If you aren’t completely satisfied with the show, there will be no charge for the performance.

Cancellation Policy: If you need to cancel this event for any reason, 50% of the fee will be due as a cancellation charge. If cancellation occurs with less than 72 hours notice, the full fee will be payable (emergency circumstances notwithstanding). If performer cancels due to illness, Act of God, etc., all efforts will be made to find a suitable replacement. If performer is unable to find suitable replacement, client is entitled to a full refund of all monies paid in relation to this event. MY COMPANY NAME limits its’ liability to a refund of any monies paid as full and complete remedy for any disagreements and/or dis-satisfactions with the performance.


Again, probably not the most professional, or maybe not even "legal" language, but it's served me well for 5+ years. Hope this helps, Mary.

Thank you all.

I got my first retainer fee yesterday and sent out a confirmation agreement via email (with extensive help from my partner Tom).

Subsequent information will inform later attempts.

I'm also changing my thinking as Scott suggested.

I've had a satisfaction guarantee for many years.

- Mary Mowder

This is one of those sweeping statements that drives me nuts.

Sam, I don't mean to pick on you, but you should possibly have said

"I always have a contract and 20% of the total fee is MY standard asking amount."

What is standard for you and suits your business may not be suitable for other people. Clearly a lot of others have a different "standard" amount.

I went for years without using a contract/deposit. You need to balance the time, effort and paperwork involved with the return. I mentioned this before here, but one of Australia's top speakers, who was getting fees of 20K 10 years or so ago, never used a contract/ deposit for any of her assignments. I know many others who still don't.

I've only been asking for deposits in the last few years to smooth out my cash flow as I'm doing a lot less shows but at a much higher fee.

Mary, one idea that I use now when I get a deposit, is to place it in a special bank account or Term Deposit. I time this to mature around the time of the assignment. This means you know the moneys there, earning interest. Some of my assignments are booked 12 months in advance. I like this.

Another idea that quite a few people use is to offer a small discount if they pay the full amount up front as a deposit / retainer 5 - 10% ?

Scott, that's a great point you bring up, it's a win for both sides
Deano, I like the "retainer" wording

Timothy

Reviving an older thread, I had a quick question for this great thread.

I have never asked for a deposit either, so my question is simple but I've never heard it discussed. Basically, how does one go about organizing the money once they get it? Do you cash it right away and set it aside in case something happens? Do you have the check and only cash it after the show?

Always cash it for several reasons as soon as you receive it. First you want to make sure it's good and clears with plenty of time in the event of any problems. Secondly, most entertainers ask for a "non-refundable deposit" so once you receive it it is part of your income, cash it and use it as needed, it's your income. Thirdly, many performers use this deposit to cover any costs, expenses or purchases they'll need in order to do the event. Fourthly, it commits the client as they have a vested (or invested) interest in the event and your services.

I could go on with other reasons for accepting and casing the deposit, but these are my primary reasons.

Wow thanks a lot!

Years ago Jim Kleefeld published a nice booklet on contracts for magicians. The book is called "The Contract Book", he give explainations for the several example contracts in the book.

Can purchase from Abbott's or direct from Jim Kleefeld here: http://www.jimkleefeld.com/JWKbooks.html scroll to bottom of page.

A very good source if you do not know where to begin writing a contract.

I actually just finished reading the contract book, but from what I remember he didn't reference what actually happens to the check when you get it. I just wasn't sure what the proper series of events were.

As a youngster I had a personal manager who looked after my career. One thing I learned from him is to try to avoid bookings where retainers even need to be considered. You actually need a better qualified talent buyer. Good agents will handle that for you.

Bob Sanders
Magic By Sander

Thanks to everyone for their comments, as this has been educational.

For me,"Contract" sounds a bit too heavy when selling shows to soccer moms. In stead, I use the term "Performance Agreement". Here are the clauses I use:

Performance Fee: $_______ with a 25% booking fee (changed this from deposit -- Thanks Dean) due along with this signed Performance Agreement within five days of booking the event with the balance due upon completion of the performance. Please make checks payable to: __________

Cancellation: If you need to cancel, just call at least _____ weeks before your scheduled event. This allows others interested in that same date to enjoy the magic that _________ shares. The booking fee is non-refundable if cancellation occurs less than two weeks prior to the event.

When I'm dealing with schools or retirement centers, I generally don't use a Performance Agreement. My confirmation emails/phone calls generally suffice for assuring them that I'll be there.