Protect Yourself and Educate Your Collectors
Artist contracts can be intimidating but as a creative business owner they are necessary. In today’s episode we talk about the 4 most common contracts for artists. We discuss the differences between them, why they are necessary, and how you can shift your mindset to not only embrace contracts in your business but also use them as an education tool.
Artist Contracts
Contracts as a creative business owner are necessary in many situations. Although they may be intimidating or it may feel unnecessary if you are working with a family, friend, or “super nice awesome” person, you will never regret having a contract…but you MAY regret not having one if a situation goes differently then you expect down the road with a project or verbal agreement.
The point of having a contract is to protect both you and your client. Contracts establish the terms and conditions of your business. They establish how you want to conduct business, the details of what both parties are agreeing to, and it serves as a safety net IF something goes differently than planned.
Quick disclaimer: In this episode we are speaking from our own business experiences, however, we encourage you to seek a legal professional to advise you on the laws and regulations applicable to your business.
So, from a legal standpoint contracts can protect you if the collector wants to back out from the agreement and it serves as fall back if clarity is needed along your project timeline. Your contract should feel empowering because it gives you a framework for potentially tough conversations in the future.
Additionally, contracts can also be a tool to bring up points of conversation at the beginning of the process and manage expectations to get everyone on the same page! Especially if you have a new collector, a contract can familiarize them with the process and therefore make both of your lives easier!
REMEMBER – Anyone who would honor a contract, won’t mind having one!
As a collector or project partner, people may even respect you more as a serious business owner if you have contracts in your process. However, there will be a rare occasion when someone pushes back on you and resists a contract so remember – if they are unwilling to sign a contract, they might be more likely to break it.
As with any contract, communication and managing expectations up front is the key to a healthy and smooth process.
But, what would you need a contract for??
Contracts can be used and needed for a wide range of situations including…
Large projects
Long term projects
Exhibiting your work in a space (private, public, or corporate spaces)
Renting your artwork
Custom commission pieces, etc.
Essentially, anytime there is an exchange of money happening between two parties for products or services that have yet to be fully rendered. Anytime your are creating something at the bequest of another person and/or placing your artwork in the care of someone else, there should be a contract. Also, as your business grows and evolves, your contracts will need to be revised accordingly. However, each different project will need a different type of contract so which kind do you need?
There are 4 main types we’ve identified for artists…
Project Proposals
Exhibition Honorariums
Commission contracts
Payment Plan Agreements
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4 TYPES OF CONTRACTS FOR ARTISTS
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Project Proposals:
A project proposal is used when an artist pitches a project idea to get the ball rolling. This proposal can include design sketches, scope of work, and other details that communicate a project idea to the client. The length of this document can vary based on the size of the project.
Exhibition Honorariums:
An exhibition honorarium is used when working with corporate spaces, universities, museums, restaurants, or other spaces where they are paying a stipend or “rent” to the artist in order to display your work in their space.
As an artist it is good to familiarize yourself with this document in case the place you’re looking to display at doesn’t have an agreement in place already! This is a great opportunity for you as a creative business owner to educate them on the process of “renting” artwork and compensating you for having your work for their guests to enjoy.
Commission Contracts:
Commission contracts are one of the most commonly known artist contracts. It includes details about a commissioned project or piece of work that outlines all of the details needed to complete the project from beginning to end. An artist contract lays out the scope of work, agreed upon communication, a timeline of events, and other policies that you and the other party have agreed to before you begin work on the project.
Commission contracts are a great way to educate new art collectors on your process of creating commissioned work and is the best time to over communicate. A detailed commission contract can make future (potentially difficult and awkward) conversations a lot smoother because you already have a signed action plan in place.
Payment Plan Agreements:
A payment plan allows a collector to pay for a piece of artist in multiple installments. This contract specifies the deposit amount required, when and how much each payment will be, as well as the policies in place if the new collector is unable to complete their payment. Situational details and policies are a big part of payment plan agreements and are needed to cover you as a business owner down the road.
Payment plans do not need to be offered with all of your work but they are a great way for you to open up your collector base to more people!
When in doubt, always remember: Contracts are a useful and necessary tool for your business. They keep everyone on the same page and establish expectations up front. Contracts protect both you and your client and can avoid future misunderstandings. Plus, anyone who would honor a contract, won’t mind having one!
Podcast Music By Corey Claxton:
Website: https://www.coreyclaxton.com/
Instagram: @thecoreyclaxton
Spotify: https://spoti.fi/3gMzkkK
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