I learned (the hard way of course) not only the importance of having such an agreement/contract in place, but also having it setup to protect ME. My first client had worked with many VAs (should have been a red flag for me). So he already had an agreement he used. Unsuspecting me read it and signed it. It didn't seem unreasonable. What I didn't realize was that it totally protected him and offered me nothing.

Once I no longer wished to be his VA and he decided not to pay my final check I took him into collections. The collections service I worked with was great and offered me this advice.

"Have something in your agreement/contract that specifies that if the client does not pay, not only will the client be repsonsible for the amount due but also any collection or legal fees incurred to collect those payments."

I ended up giving 20% to the agency to collect my money and because I did not have anything in my contract specifying the above, it was a loss for me. Another lesson learned.

I like the idea of having the client work with you in forming the agreement. What I did with my current client was had a draft of my agreement ready and allowed him to add to it. He did not modify anything on my draft but added some things that they require because of the nature of their business. Worked out great for both of us. I feel much better about it too.

Originally Posted by Tess

My letter of agreement is very similar to what Mary does - I have my standard info along with particular info about the client's expectations and a note that their reply to the email constitutes agreement. I don't know if it's necessarily legally binding, but it gives me a record to go back to *just in case*

Hi Tess, because email can be traced to an IP address if it goes that far, it can be admissible in court. Some states also accept verbal agreement contracts in small claims court, so and email - which is essentially a digital signature - would be that much better to have.

A few of my clients are in sports and entertainment, so really quick deal memos are what we use. I think that it's imperative to have some sort of agreement with one-off clients; you already know that they are one-off with a potential to grow into recurring - so what's their incentive to pay on time if you don't have a written agreement? You can even have some specific terms and conditions added to the bottom of a written quote and have the client sign off on the quote and agreement at the same time and return to you prior to starting the job.

It also lends credibility to your business when you have an agreement, whether it's a deal memo, letter of engagement, or full blown contract.

Originally Posted by SupportMyOffice

I learned (the hard way of course) not only the importance of having such an agreement/contract in place, but also having it setup to protect ME. My first client had worked with many VAs (should have been a red flag for me). So he already had an agreement he used. Unsuspecting me read it and signed it. It didn't seem unreasonable. What I didn't realize was that it totally protected him and offered me nothing. Once I no longer wished to be his VA and he decided not to pay my final check I took him into collections. The collections service I worked with was great and offered me this advice. "Have something in your agreement/contract that specifies that if the client does not pay, not only will the client be repsonsible for the amount due but also any collection or legal fees incurred to collect those payments." I ended up giving 20% to the agency to collect my money and because I did not have anything in my contract specifying the above, it was a loss for me. Another lesson learned. I like the idea of having the client work with you in forming the agreement. What I did with my current client was had a draft of my agreement ready and allowed him to add to it. He did not modify anything on my draft but added some things that they require because of the nature of their business. Worked out great for both of us. I feel much better about it too.

I will remember to use that in my contract. Great advice, thank you.

Thanks for all of the information. I had worried about "contracts" and legalise and potentially scaring away my clients. These suggestions will definitely help.

Thanks

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Patricia
www.extrapairofhands.ca

There must be an agreement that you can show in case of any confusion later. You must stress to the client that it is for their own protection as well.