A Deal Memo is a standard document used by production companies to hire freelancers and independent contractors. It outlines the duties of both parties in a project, including details such as:
- Start date of the project
- End date of the project
- Duration of the project
- Responsibilities of the freelancer or independent contractor
- The title they will receive for that work
- The freelancer or independent contractor will receive the hourly, daily, or weekly rate.
The Benefits of Having a Deal Memo
Having a deal memo is a vital and standard practice in video production, so a freelancer shouldn’t take a job unless a deal memo is in place.
For the producer, it eliminates the risk of potential confusion and protects their interests. It ensures that all points have been discussed and agreed upon. Additionally, it serves as a referee in case of any discrepancies over the project.
For the freelancer, it provides reassurance that the agreement will be honored. It also proves understanding between the two parties if a dispute arises.
Breaking Down the Components of a Deal Memo
- Project Overview: The overview section should clearly define the project, its scope, and its goals. This sets the stage for the remainder of the deal memo’s contents.
- Payment Terms: This section covers the payment arrangement details, including the payment amount, payment method, invoice terms, and any other stipulations.
- Deadlines and Delivery: This part of the deal memo should outline critical dates and milestones for the project, such as when drafts and final videos should be delivered.
- Signatures: The deal memo should be signed by both parties involved to make it official. Signatures should be accompanied by the date and the parties’ names and contact information in case further contact needs to be made.
What Are the Consequences of Not Having a Deal Memo?
Without a deal memo, both parties are vulnerable to misreading, uncertainty, and potential disagreements over the project. This can result in potentially costly delays and even contract disputes. The nature of the relationship between the parties can be unclear, and there is no proof that a deal was struck.
MEsuite Can Help!
Are you a video producer seeking a more efficient rights and clearance process? Look no further than DeliverME. This solution is designed to streamline the process, saving you time and money. With DeliverME, you can rest assured that your videos will comply with all necessary laws and regulations.
In addition, MEsuite provides ReleaseME, a free release management system that expedites the signing process in video production. ReleaseME boasts various innovative features, such as the ability to access digital release forms via QR codes and real-time tracking of the signing process.
Ready to enhance your rights and clearance workflow? Contact MEsuite today and discover the market’s leading tools.