Hi! I’ve started to consult a new agency, an 8 month contract ending Dec,2020.
The client is to ‘pay’ me in art plus a retainer reduced by over 60% of my standard rate (because of the painting.
Art=1 piece at the end of the contract, but only if I complete the entire contract. IF I don’t stay on/company doesn’t get off the ground or relationship doesn’t work out, he can sever the contract. He is difficult & volatile and has yet to give me a contract 1 month in. Have I agreed to a bad deal? help

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i recent dealt with the precise scenario, except it was for a pair of heirloom Russian dancing horses and a hazy night of first class bacchanalia aboard a Seychelles bound Grecian catamaran in international waters.

likeuplifting

You do not want to see those horses.

If he kills the contract in November, what’s your recourse?

Did you seek this out because you wanted the art piece specifically as a collector or mega fan of the artist? Otherwise I don’t see why this would be appealing.

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If he kills the contract in November, I can recoup for my full fee from sept-nov, but still I have no painting.
The painting is of the client we are working with, so it’s in my best interest to support the work, appealing because of price.

I don’t understand this thread. 😳

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Ah, got it. Thanks for the explanation! This is good info to have.

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Years ago I worked at Grey Direct. Our President (yes, president) cut a deal with one of our clients that at the end of every month the client would give us a grade. And the agency's pay would be based on that grade. Plus, since it was a cruise line client, if the agency received an A for the month we would get a free cruise for 2 that can be given to someone on the team. One guess as to what happened. We never received an A. There was never any reason for the client to give us an A. Because for every A, he would lose money. For every lower grade we received, the client paid less. We got B's, B+'s, C's, etc. You see where this is going? Nearing the end of your contract, your client will have a reason to sever the relationship because it simply doesn't behoove him to give you the art work. By the way, that deal was cut, as I said above, by the president of a major agency. Think about that.

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If you know the approximate market value of the artwork and the rate you would normally charge for the amount of work you expect to put into this project, draw up an agreement that ties monthly deliverables to a fair payment amount from now until the end of the contract. Each month, or even more frequently, send the guy an invoice that includes details about what you delivered and have the client sign or email acceptance of the work for each invoice. I assume you are getting the painting instead of payment because the guy doesn’t have the cash to pay you directly. If you really want the painting and you have all the documentation to prove that you have an agreement, you did the work, it was valued based on deliverables and accepted by the client, he should happily deliver the painting at the end of the job rather than pay you the money. If he breaks the contract at any point by not accepting the deliverables, he should then at least owe you the equivalent money up to the point where he signed off instead. You should still be prepared not to be paid or be ready to take him to court over it anyway. The deal sounds completely shady but he should happily hand over the painting if he is satisfied with your work over 8 months. If he doesn’t agree to the terms of your contract, he never intended to pay you anyway. If he does agree and signs the contract, do yourself a favor and document everything.

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Is there a way to pay a neutral third party to hold the painting in escrow?

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How familiar are you with the art world? It’s a community based entirely on handshake and back room deals, and almost entirely self-regulated. Artists and gallerists get screwed all the time (and sometimes so do collectors). It might be one of the most corrupt, self-dealing industries in the world, with very little rationality in terms of process or pricing. So I think you may have a hard time getting a) a contract or b) the art work. The primary currency of the art world is reputation, so my advice is make sure you don’t sign an NDA. In the end, your ability to humiliate the client may be the only leverage you have to get paid. Also, realize the market value of any work of art is 10-20% higher than a collector will actually pay. New collectors usually get AT LEAST a 10% discount and known collectors and institutions get 20%. I’m a relatively new collector but buy through a consultant and I’ve never paid near market price for a piece.

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Also- no I didn’t seek this out for the painting. they sought me out, and the painting will be worth a considerable amount. However, not having it guaranteed is messing with my head. My client has never started a company like this, and is one of the rudest, most arrogant men I’ve met.
So alarm bells are ringing in every direction.

Never deal with rude assholes, they don’t deserve your work.

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Sounds like you've already done a months worth of free work

I’m being paid a month in advance for my monthly retainer already- it’s just this ‘dangling carrot’ of art work that is not sitting well.

If they’re never worked with strategists before and are already behaving badly I’d be nervous. I suppose this is the equivalent of getting equity in a startup that can be worth a ton or nothing at all. I’d find ways to clearly outline your deliverables and progress since strategy is so hard to measure. Also probably good if this isn’t a full time gig. I’d say it’s risky but then again, so many of us don’t even have a jobs or gigs. 🤚🏻

You need to find ways to set boundaries and create structure. Happy to chat further.

Send THEM the contract you would want. Force the discussion. Pull a sample contract off the web and rewrite it

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