I got a 1099 gig with an ad agency as an art director. Based on the contract it says that i am billing against a budget and If it goes over $4500 a month I need to submit an SOW to bill more. Does this essentially mean I am capped at $4500 a month ? Is this normal?

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You may be able to use this to your advantage if you can charge hourly for the remainder of the hours. I have a client who I bill $3000 for up to 20 hours per month (so “$150/hour” if they use me for 20 hrs) but $200 per hour for every hour over that. I rarely go over but I love sending that second invoice the months that I do:)

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Yeah this is fairly normal OP, and can be managed easily enough with proactive communication. Make sure you tell them when you’re at ~80% of their budgeted hours for a given billing period.

They’re only doing this so they can budget with a real, consistent number. It may end up being that you never get to bill more than 45 hours a month for this client, which stinks, but it also means you for a fact what this role will never ask for more than. You can budget the rest of your own client bandwidth accordingly.

This seems very normal

Yes, that’s the perk of freelance

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Yes; yea

How many hours is that for? It feels low.

Take $4500/month and divide by the hourly rate; that is how many hours your client expects you to work in a month

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Yes it’s fine. Just document your time. Communicate effectively

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