One important piece of advice we have for mural artists (or any artists, really) is this: don't work for free! This means not giving away free designs to clients before they decide to work with you. You might be thinking, “But how will I get clients if I don’t show them designs first?” Imagine asking five different architects to design your house but telling them you won’t pay until you decide which one you like best. Architects wouldn’t spend hours on your dream home without an agreement for their work, and neither should you. Your portfolio, filled with examples of your work, is your best tool to show clients your abilities. If a client is still unsure, you can always offer to connect them with past clients for references.
If a client is hesitant to sign a full artist agreement right away, there's a great intermediary solution: a Letter of Understanding (LOU). This document outlines the design work you'll do, and if the client decides not to move forward with the project, they only pay for the design time spent. It's understandable that not every client wants to dive into a full artist agreement and put down a deposit immediately, so this is a gentle way to start the relationship.
Here are key elements to incorporate in your Letter of Understanding:
1. Design fee: Clearly state a non-refundable design fee that covers the initial concept development and sketches. Some clients may request a cap on hours and this can be included in the letter.
2. Payment schedule: Outline a payment schedule that includes the design phase as a separate billable item. If the design phase only takes a few hours, you may choose to invoice the client at the completion.
3. Cancellation clause: Include a provision that specifies the client must pay for all work completed up to the point of cancellation, including design hours.
4. Hourly rate: Define your hourly rate for design work and specify the estimated number of design hours included in the project scope.
5. Approval process: Describe the design approval process, including the number of revisions included in the initial fee and the cost for additional revisions.
6. Intellectual property rights: Clarify that all designs and concepts remain the artist's property until full payment is received, even if the project doesn't move forward.
7. Termination terms: Outline the conditions under which either party can terminate the agreement and the financial obligations in such cases.
8. Moving Forward: If the client wants to move forward with the project, you may choose to wrap the design hours into the overall mural project. We typically quote our mural projects with designs included but we do cap the number of revisions. Anything after the cap is billed at an additional hourly rate.
Now that you know what to include in a LOU and when to use it, you may be wondering what the difference is between using a LOU and an Artist Agreement. The key differences between a LOU and an Artist Agreement (aka Contract) are primarily centered around their legal enforceability, content, and purpose.
Here are the main distinctions:
Content and Specificity
Contract: Contracts typically include detailed terms and conditions, specifying each party's obligations, the consideration (something of value exchanged), and the consequences of not fulfilling these obligations. Essential elements include offer, acceptance, intention to create legal relations, and consideration.
LOU: A LOU outlines the broad terms and intentions of the parties involved. It is often used to memorialize key terms and expectations at the start of a relationship and can serve as a preliminary document before drafting a formal contract. A LOU does not usually include the detailed implementation processes found in contracts.
Purpose and Use
Contract: Contracts are used when the parties intend to create a legally enforceable agreement. They are common in situations where specific performance and legal accountability are required.
LOU: LOUs are used to document mutual intentions and understandings, often serving as a foundation for future negotiations and formal agreements. They are frequently employed in scenarios where parties seek to outline their relationship without the formality or legal commitment of a contract.
Examples of Use
Contract: Employment agreements, sales contracts, service agreements, and leases are typical examples where contracts are used due to their binding nature and detailed terms.
LOU: LOUs are often used in international relations, collaborations between non-profit organizations, preliminary business negotiations, and internal agreements within large entities where a formal contract may not be necessary or appropriate.
Now that you understand these key differences, you can choose the appropriate document for your clients needs, ensuring that the intentions and expectations are clearly communicated. By including all the key elements in the letter of understanding, a mural artist can protect their time and effort invested in the design phase, ensuring compensation for their work even if the client decides not to proceed with the full mural project. This approach sets clear expectations from the beginning and helps maintain a professional relationship between the artist and client.
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