Musicians or bands can often find themselves chasing down venues and promoters for a long time for payment. This can be very hard for musicians who tend to not earn that much annually and have their own expenses including crew wages and transportation costs.
Here are some tips to make sure you are paid on time.
Discuss your payment requirements when you take on the gig
It can be tempting to get so excited when you get a high profile gig to put off talk of payment until a later date. However it's a very good idea to ask the question on what you need to do to get payment and make sure that you follow any procedures such as invoicing a specific email address after the gig. When you sign the document make sure to also get a copy of any terms and conditions around payment including expected payment dates.
Invoice on time
While it may sound obvious, it is important to submit a full invoice in the correct format, with all your details filled in. An incorrectly filled in invoice can lead to delays in payment. Include a note of your terms including any additional fees that you charge for late payment.
Chase down any late payment when due
Be sure to call and send a letter letting the promoter know when the invoice is past due. In the letter clearly state that the payment is past due and that if required, you will use a lawyer or debt collector to ensure that the invoice is paid. If you need some help in drafting a letter, many lawyers and debt collection agencies have templates which can be used.
Use a debt collection agency
If payment is still not forthcoming, it can be useful to get a debt collection agency on the case. Many debt collection agencies operate on a no-fee, no-pay basis where they do not charge a fee if they cannot recover the owed money. While this is expensive it is more expensive to not receive any funds at all in the end, so it may be a worthwhile investment. Some companies charge a fee upfront for a smaller margin, but this fee is payable whether or not the money is received and may be hard to fund if you are waiting on a large payment.
Using a professional debt collection approach can help ensure that your gig invoices are paid promptly and help you make a living from your music.
Share20 June 2016
If you want to thrive, you need to understand how money makes the world go 'round. Hi, my name is Martha, and I love writing about money. I used to work as a financial adviser, and now, I am launching a career as a day trader. In this blog, I want to share expert tips and advice for people who are interested in learning about money. I plan to write about everything from saving money, to investing money to understanding how it works. I invite you to explore my blog, and if these tips and ideas help you, please share my posts. Thank you for reading!