Written by Molly Schoneveld, Founder, The Storied Group
I have owned my PR firm The Storied Group since 2008, and despite having contracts in place and working with attorneys over the years, it wasn’t until I met Jamie Lieberman from Hashtag Legal that I got a more comprehensive explanation of what contracts I need to have and what clauses should be in them.
Jamie really understands how PR businesses work and has a broad range of experience in different types of niches from entertainment to interior design. Having represented celebrities, publicists and brands, she understands all sides. I invited Jamie for a chat “webinar” style, so that she could share her knowledge.
While we joked that it might not be the sexiest topic, it’s one of the most important. While Jamie could not give specific legal advice, she did give a lot of insight into how to better protect yourself. These were the biggest takeaways.
Why do you need a contract? The biggest reason you need a contract is to manage your risk and help set boundaries ahead of working with a client. Everyone has a “problem client” from time-to-time, but a contract will lessen the dispute. Written contracts also legitimize your business.
What makes something legally binding? While this can vary from state-to-state) and you should talk to an attorney), generally you need these three things: An offer (PR service), acceptance (yes, I want to hire you), and consideration (value i.e., money exchanged).
But aren’t email agreements good enough: Emails are messy, and things can easily be lost in translation. Without a formal contract, if a dispute did arise, you could need to go to court.
What are the different types of contracts in the PR Marketing world? A typical contract is a client service agreement a.k.a. “Master Service Agreement.” You may have two different versions of the same contract, but it should always include the scope of work. You will also need different contracts for different offerings, as well as contracts for any freelancers you may work with.
What are things you should have in a freelance agreement?
How do terminations work with contracts? You can have it without cause where you just give notice (usually 30 days). Or there could be a termination fee for canceling a contract early. Make sure you have this covered with both freelancer and client contracts (with or without cause).
What are the most common mistakes in contracts? Not having one, for starters! People can be intimidated by working with a lawyer, thinking it’s too expensive, so it’s common for people to just ignore the legal parts of a business. Also, Scope. They don’t want to spend time tweaking contracts for scope of work, especially when a client requests something new or asks for more. You should always rescope the contract so that you are paid appropriately. Make it a policy that if a client asks for more, you charge more, which comes down to knowing your value.
How do contracts differ when you are working with celebrities? Celebrities and influencers usually have a team of people working on their behalf from managers to agents to attorneys, so it’s rare that you would be negotiating a contract directly with the celebrity or influencer. Sometimes this can mean there is more pushback, so this is a question of boundary setting and knowing where you draw the line. Sometimes we must take a hard stance. If there is a deal-breaker, even if it’s a good client, you need to know when to walk away or learn to really negotiate. Puffery on the agent/manager side of things can be very real and it’s perfectly acceptable to have your attorney step in and negotiate on your behalf. The goal is efficiency and to make sure your attorney gets a deal that everyone feels good about it and is fair for everything. In cases where there is a third party involved—for example, an agency is hiring an influencer to post about a brand—there needs to be a product liability indemnification clause or trademark infringement clause.
Let’s talk about disputes—what do you do if a client wants out of a contract early? Avoiding disputes at all costs is ideal, but you need to advocate, and weigh everything, not just dollars at stake. Disputes take up emotional energy too, and you must weigh those things. One of the most common disputes is when a client won’t pay, and you could avoid that by putting credit cards on file from the start. That’s why it’s so important to have things in place ahead of time so you know that if x happens, you do y. Usually if your client wants out of a contract, you probably do too. There are times, though when you may feel unhappy, but your client is happy and then you could get stuck. When you lay out your termination provisions, you need to decide what you’re going to do in these situations because they could arise.
How often should you revisit a long-term client contract? If the scope isn’t changing much, you may not have to, but contracts should be evaluated annually, and if something changes, you should have an amendment or addendum—same contract but added in writing.
