Budgets keep video productions in line and on time. But how do you estimate costs when you’re just starting out—or planning a shoot in a new location? Rich Harrington has almost 30 years of experience in video, many of them consulting for clients who needed detailed proposals and budgets to move forward. In this course, he explains the nuts and bolts of budgeting for video production. Learn how to develop professional budgets, quotes, and proposals, and then transform those estimates into invoices. Plus, learn how to split projects with contractors, set payment terms, and make sure the bill is delivered and you get paid. Learning objectives: Evaluating outsourcing and partnering options Setting your rates Incorporating material and overhead costs Scoping the project Estimating the production time Collecting data with time tracking Creating a quote or proposal Setting payment terms Creating an invoice Dealing with billing and collections

2. Session Agenda
● Evaluating outsourcing and partnering options
● Setting your rates
● Incorporating material and overhead costs
● Scoping the project
● Estimating the production time
● Collecting data with time tracking
● Creating a quote or proposal
● Setting payment terms

3. Budgeting Video Projects
Don’t use a BONSOP approach
facebook.com/
RichHarringtonStuff
linkedin.com/in/
richardharrington
twitter.com/
rhedpixel

4. Description
Budgets keep video productions in line and on time. But how do
you estimate costs when you’re just starting out—or planning a
shoot in a new location? Rich Harrington has almost 30 years of
experience in video, many of them consulting for clients who
needed detailed proposals and budgets to move forward. In this
course, he explains the nuts and bolts of budgeting for video
production. Learn how to develop professional budgets, quotes,
and proposals, and then transform those estimates into invoices.
Plus, learn how to split projects with contractors, set payment
terms, and make sure the bill is delivered and you get paid.

10. Richard
Harrington
I'm a visual storyteller exploring
the fusion of photography and video.
I'm also a husband & father

11. Vital Statistics
• Author 40+ Books
• Author 200+ Video Courses
• Publisher of Photofocus & ThinkTAP Learn
• Conference Speaker
• Business Owner
• Photographer

13. Past Projects
• America Online
• American Diabetes
Association
• American Israel Public
Affairs Committee
• American Red Cross
• Apple
• Children's National
Medical Center
• Department of Veterans
Administration
• Drobo
• Federal
Communications
Commission
• Google
• lynda.com
• Microsoft
• Skylum
• Smithsonian Institute
• Under Armour
• US Air Force

14. Advisory and Consultant Projects
• Television Networks
• ABC News
• CNN
• Discovery Channel
• Major League Baseball Network
• NASCAR
• Turner Networks
• Technology
• Adobe Creative Cloud
Advisory Board
• Apple
• Athentech
• Pearson Education
• Skylum Software

15. linkedin.com/in/richardharrington

16. How to Avoid
Budgeting on the Back
of a Napkin
Richard Harrington — RHED Pixel & ThinkTAP

17. What is RHED Pixel?
• Company founded in 1999
• 80% Full Service Clients
• 20% Support to Other Professionals
• Winner of a Ciné Award
• Offers variety of video, interactive, and multimedia
services
• Recognized authority for video and multimedia
industries

22. ๏ Two Soundstages
๏ Photography
Studio
๏ Live Streaming
๏ 4K Production
๏ Networked
Storage
๏ Editing Stations

26. What You Should Know First
• "Can I please get that template?"
• Having a spreadsheet template is not the answer.
• It's about having the knowledge to fill that template in.
• The simple mechanics of just plugging in data to a
spreadsheet is not hard.

27. What You Should Know First
• Start to think about in broader terms what budgeting
really is.
• Map what you're giving the customer and how much
time it's going to take to pull that off.
• Once you're able to accurately estimate time and break
down a work package, it becomes pretty clear.

28. What You Should Know First
• Rates in my city are going to be different than your rates.
• Lots of factors affect your prices.
• Pay attention to the theory and the philosophy behind
budgeting and not so much the absolute numbers.

29. Services Offered

30. Capabilities
• Internal
• External
• Make vs. Buy
• Scaling Over Time

31. Competitive Advantages
• Unique
• Perception
• Positioning

32. Outsourcing
• Local
• National
• International
• Researching

33. Partnering
• Formal
• Written agreement
• Payment terms
• Informal
• Core team
• Freelance talent

34. Setting Rates

35. Standard Rate Sheet
Phone:
703.560.0220
Fax:
703.560.0550
Website:
www.rhedpixel.com
Prices Effective 4/23/04. Prices Subject to change without notice.
EDITING SERVICES
STAFF
Avid or Final Cut Pro
Nonlinear Editing……….…….. $120/hr
Drive Rental after completion... $75/wk
Stock Elements/Footage
From Library…………………… $25/clip
Producer……………………….$75/hr
Associate Producer…..……....$45/hr
Production Assistant…………$35/hr
Project Manager…………….. $75/hr
Photographer…..……………. $75/hr
MOTION GRAPHICS
GEAR RENTAL
Design/ per hour………………... $90/hr
Render/ per hour……………….. $45/hr
Stock Elements/Footage
From Library…………………… $25/clip
Camera Package (DVCAM).. $300/day
Camera Package (Beta SP).. $575/day
Photography Package…... $300/day
Lighting………………….……. quote
Audio Package………………. quote
DVD & CD AUTHORING
MUSIC
Menu Design…………………….. quote
Authoring Services……………... $80/hr
Capture & Encoding Services Separate
Needle drop…...………………....$95
Up to 10 Minutes………...…… $285
10-30 Minutes…………………. $425
Over 30 Minutes…………...….. $525
Original Score …………..……. quote
QUICKTIME VR
WEB DESIGN
Interactive VR Tours…………… quote
Website Design………………. quote
FIELD PRODUCTION
BLANK MEDIA
Producer…………………...… $600/day
Director……………………..... $650/day
DP…………………………..… $650/day
Gaffer………………………… $350/day
Audio…………………………. $350/day
Production Assistant……….. $250/day
Crew numbers for estimating purposes only.
There are several variables including day,
location, and special equipment that can
greatly affect crew costs. All field jobs will be
priced on a per job basis.
CD-Recordable…………………. $10
CD-Rewriteable…………………. $12
DVD-Recordable……………...… $15
Zip Disk…………………..……… $20
60GB FireWire Drive…..……… $200
On Disc Printing……...……. $2/extra
Glossy Label ………...……. $2/extra
Rates for Services
• Internal
• External
• Make vs. Buy
• Scaling over time

36. Capabilities
• Competitive analysis
• Websites
• Similar industries
• Financial need
• 40-60% billable time
• Overhead
• Savings

37. Rates for Services
• Three components
• People
• Gear
• Facility
• Charge for the assumptions
• Creative Design
• Shipping
• Storage & Archiving

38. Exploring Material Costs
• Constantly change
• Look for savings
• Compare vendors at least annually
• Think bulk/group leverage
• Build costs in
• Track usage at employee level

39. Applying Overhead
• Rent/Mortgage
• Leases / Maintenance
• Utilities (Especially Communications)
• Amenities
• Marketing
• Employee Benefits
• Recruitment / Training
• Insurance

47. Scoping the Project

48. Triple Constraint
• Scope:
• What is the work that must be completed?
• Schedule:
• What are the time constraints for the project?
• Budget:
• What are the financial constraints of the project?

49. Triple Constraint
• Learning to balance these is essential to your success.
• There is a fourth force at work that holds all three
together, QUALITY.
• Simply put, Good, Fast, Cheap… Pick Two!

50. Start
End
No
No
Yes
Yes
Set
objectives
Gather
project
information
Compare
progress
vs. targets
Satisfactory?
Take
remedial
action
Project
completed?

51. Scoping the Project
• Will take 2—16 hours to complete
• Document 2—10 pages
• Will become the charter
• Get all key players to attend
• Quiet room/no distractions
• Get sign off

52. Scoping Document
• Project Name
• Executive Summary
• Background
• Project Scope (High Level)
• Key Roles
• Signature Lines - Sign Off “Charter”

53. Executive Summary
• What the project is all about
• What makes it unique
• Easy for a decision-maker to understand
• Why the project should be funded or not canceled

54. Refining Scope
• Be specific
• Avoid adjectives
• More details, not less
• Build the box and fill it up

55. Creating a Budget

57. DESCRIPTIONDESCRIPTION QTY PER TOTAL
Pre-ProductionPre-Production
Producer 1 hr
Production Coordinator 1 hr
Production Assistant 1 hr
Sub-Total : Pre-ProductionSub-Total : Pre-Production $ 190.00
ProductionProduction
Director 1 half
Videographer 1 half
Audio/Grip 1 half
Camera Package HPX 300 1 half
Lighting Package - 3 Light Interview Kit 1 day
Audio Package - Interview 1 day
P2 Media Fee 0.5 fee
Expendables 0.5 fee
Transportation – Local 0.5 fee
Sub-Total : ProductionSub-Total : Production $ 1,800.00
Post-ProductionPost-Production
Producer 1 hr
On-Line Edit Suite w/ Editor 2 hr
Graphic Artist 2D 1 hr
Internet Review (Per Project) 0.5 fee
Compression Set Up Fee 1 fee
Compression Any Format 1 min
Compression Additional Formats 1 min
Archiving - (Per Project) 0.5 fee
Sub-Total : Post-ProductionSub-Total : Post-Production $ 745.00
ShippingShipping $ 0.00
Tax $ 0.00
TOTALTOTAL $ 2,735.00
Possible ExtrasPossible Extras
Prompter 1 day $ 325.00
Prompter Operator 1 half $ 300.00
Makeup Artist 1 half $ 350.00
Sub-Total : Possible ExtrasSub-Total : Possible Extras $ 975.00
DESCRIPTIONDESCRIPTION QTY RATE PER DISCOUNT TOTAL
Pre-ProductionPre-Production
Producer 1 $ 95.00 hr 0% $ 95.00
Production Coordinator 1 $ 55.00 hr 0% $ 55.00
Production Assistant 2 $ 40.00 hr 0% $ 80.00
Sub-Total : Pre-ProductionSub-Total : Pre-Production $ 230.00
ProductionProduction
Director 1 $ 425.00 half 0% $ 425.00
Videographer 1 $ 450.00 half 0% $ 450.00
Audio/Grip 1 $ 300.00 half 0% $ 300.00
Camera Package HPX 300 1 $ 350.00 half 0% $ 350.00
Lighting Package - 3 Light Interview Kit 1 $ 200.00 day 0% $ 200.00
Audio Package - Interview 1 $ 150.00 day 0% $ 150.00
P2 Media Fee 0.5 $ 75.00 fee 0% $ 37.50
Expendables 0.5 $ 75.00 fee 0% $ 37.50
Transportation – Local 0.5 $ 150.00 fee 0% $ 75.00
Sub-Total : ProductionSub-Total : Production $ 2,025.00
Post-ProductionPost-Production
Producer 1 $ 95.00 hr 0% $ 95.00
On-Line Edit Suite w/ Editor 2 $ 165.00 hr 0% $ 330.00
Graphic Artist 2D 2 $ 120.00 hr 0% $ 240.00
Internet Review (Per Project) 0.5 $ 120.00 fee 0% $ 60.00
Compression Set Up Fee 1 $ 25.00 fee 0% $ 25.00
Compression Any Format 1 $ 10.00 min 0% $ 10.00
Compression Additional Formats 1 $ 5.00 min 0% $ 5.00
Archiving - (Per Project) 0.5 $ 200.00 fee 0% $ 100.00
Sub-Total : Post-ProductionSub-Total : Post-Production $ 865.00
ShippingShipping $ 0.00
Tax $ 0.00
TOTALTOTAL $ 3,120.00
Possible ExtrasPossible Extras
Prompter 1 $ 325.00 day 0% $ 325.00
Prompter Operator 1 $ 300.00 half 0% $ 300.00
Makeup Artist 1 $ 350.00 half 0% $ 350.00
Stock Music - (Non Broadcast) 1 $ 300.00 cut 0% $ 300.00
Sub-Total : Possible ExtrasSub-Total : Possible Extras $ 1,275.00

58. DESCRIPTIONDESCRIPTION QTY PER TOTAL
Pre-ProductionPre-Production
Producer 1 hr
Production Coordinator 1 hr
Production Assistant 1 hr
Sub-Total : Pre-ProductionSub-Total : Pre-Production $ 190.00
ProductionProduction
Director 1 half
Videographer 1 half
Audio/Grip 1 half
Camera Package HPX 300 1 half
Lighting Package - 3 Light Interview Kit 1 day
Audio Package - Interview 1 day
P2 Media Fee 0.5 fee
Expendables 0.5 fee
Transportation – Local 0.5 fee
Sub-Total : ProductionSub-Total : Production $ 1,800.00
Post-ProductionPost-Production
Producer 1 hr
On-Line Edit Suite w/ Editor 2 hr
Graphic Artist 2D 1 hr
Internet Review (Per Project) 0.5 fee
Compression Set Up Fee 1 fee
Compression Any Format 1 min
Compression Additional Formats 1 min
Archiving - (Per Project) 0.5 fee
Sub-Total : Post-ProductionSub-Total : Post-Production $ 745.00
ShippingShipping $ 0.00
Tax $ 0.00
TOTALTOTAL $ 2,735.00
Possible ExtrasPossible Extras
Prompter 1 day $ 325.00
Prompter Operator 1 half $ 300.00
Makeup Artist 1 half $ 350.00
Sub-Total : Possible ExtrasSub-Total : Possible Extras $ 975.00
DESCRIPTIONDESCRIPTION QTY RATE PER DISCOUNT TOTAL
Pre-ProductionPre-Production
Producer 1 $ 95.00 hr 0% $ 95.00
Production Coordinator 1 $ 55.00 hr 0% $ 55.00
Production Assistant 2 $ 40.00 hr 0% $ 80.00
Sub-Total : Pre-ProductionSub-Total : Pre-Production $ 230.00
ProductionProduction
Director 1 $ 425.00 half 0% $ 425.00
Videographer 1 $ 450.00 half 0% $ 450.00
Audio/Grip 1 $ 300.00 half 0% $ 300.00
Camera Package HPX 300 1 $ 350.00 half 0% $ 350.00
Lighting Package - 3 Light Interview Kit 1 $ 200.00 day 0% $ 200.00
Audio Package - Interview 1 $ 150.00 day 0% $ 150.00
P2 Media Fee 0.5 $ 75.00 fee 0% $ 37.50
Expendables 0.5 $ 75.00 fee 0% $ 37.50
Transportation – Local 0.5 $ 150.00 fee 0% $ 75.00
Sub-Total : ProductionSub-Total : Production $ 2,025.00
Post-ProductionPost-Production
Producer 1 $ 95.00 hr 0% $ 95.00
On-Line Edit Suite w/ Editor 2 $ 165.00 hr 0% $ 330.00
Graphic Artist 2D 2 $ 120.00 hr 0% $ 240.00
Internet Review (Per Project) 0.5 $ 120.00 fee 0% $ 60.00
Compression Set Up Fee 1 $ 25.00 fee 0% $ 25.00
Compression Any Format 1 $ 10.00 min 0% $ 10.00

59. DESCRIPTIONDESCRIPTION QTY RATE PER DISCOUNT TOTAL
Pre-ProductionPre-Production
Producer 1 $ 95.00 hr 0% $ 95.00
Production Coordinator 1 $ 55.00 hr 0% $ 55.00
Production Assistant 2 $ 40.00 hr 0% $ 80.00
Sub-Total : Pre-ProductionSub-Total : Pre-Production $ 230.00
ProductionProduction
Director 1 $ 425.00 half 0% $ 425.00
Videographer 1 $ 450.00 half 0% $ 450.00
Audio/Grip 1 $ 300.00 half 0% $ 300.00
Camera Package HPX 300 1 $ 350.00 half 0% $ 350.00
Lighting Package - 3 Light Interview Kit 1 $ 200.00 day 0% $ 200.00
Audio Package - Interview 1 $ 150.00 day 0% $ 150.00
P2 Media Fee 0.5 $ 75.00 fee 0% $ 37.50
Expendables 0.5 $ 75.00 fee 0% $ 37.50
Transportation – Local 0.5 $ 150.00 fee 0% $ 75.00
Sub-Total : ProductionSub-Total : Production $ 2,025.00
Post-ProductionPost-Production
Producer 1 $ 95.00 hr 0% $ 95.00
On-Line Edit Suite w/ Editor 2 $ 165.00 hr 0% $ 330.00
Graphic Artist 2D 2 $ 120.00 hr 0% $ 240.00
Internet Review (Per Project) 0.5 $ 120.00 fee 0% $ 60.00
Compression Set Up Fee 1 $ 25.00 fee 0% $ 25.00
Compression Any Format 1 $ 10.00 min 0% $ 10.00
Compression Additional Formats 1 $ 5.00 min 0% $ 5.00
Archiving - (Per Project) 0.5 $ 200.00 fee 0% $ 100.00
Sub-Total : Post-ProductionSub-Total : Post-Production $ 865.00
ShippingShipping $ 0.00
Tax $ 0.00
TOTALTOTAL $ 3,120.00
Possible ExtrasPossible Extras
Prompter 1 $ 325.00 day 0% $ 325.00
Prompter Operator 1 $ 300.00 half 0% $ 300.00
Makeup Artist 1 $ 350.00 half 0% $ 350.00
Stock Music - (Non Broadcast) 1 $ 300.00 cut 0% $ 300.00
Sub-Total : Possible ExtrasSub-Total : Possible Extras $ 1,275.00
DESCRIPTIONDESCRIPTION QTY PER TOTAL
Pre-ProductionPre-Production
Producer 1 hr
Production Coordinator 1 hr
Production Assistant 1 hr
Sub-Total : Pre-ProductionSub-Total : Pre-Production $ 190.00
ProductionProduction
Director 1 half
Videographer 1 half
Audio/Grip 1 half
Camera Package HPX 300 1 half
Lighting Package - 3 Light Interview Kit 1 day
Audio Package - Interview 1 day
P2 Media Fee 0.5 fee
Expendables 0.5 fee
Transportation – Local 0.5 fee
Sub-Total : ProductionSub-Total : Production $ 1,800.00
Post-ProductionPost-Production
Producer 1 hr
On-Line Edit Suite w/ Editor 2 hr
Graphic Artist 2D 1 hr
Internet Review (Per Project) 0.5 fee
Compression Set Up Fee 1 fee
Compression Any Format 1 min
Compression Additional Formats 1 min
Archiving - (Per Project) 0.5 fee
Sub-Total : Post-ProductionSub-Total : Post-Production $ 745.00
ShippingShipping $ 0.00
Tax $ 0.00
TOTALTOTAL $ 2,735.00
Possible ExtrasPossible Extras
Prompter 1 day $ 325.00
Prompter Operator 1 half $ 300.00
Makeup Artist 1 half $ 350.00
Sub-Total : Possible ExtrasSub-Total : Possible Extras $ 975.00

60. DESCRIPTIONDESCRIPTION QTY RATE PER DISCOUNT TOTAL
Pre-ProductionPre-Production
Producer 1 $ 95.00 hr 0% $ 95.00
Production Coordinator 1 $ 55.00 hr 0% $ 55.00
Production Assistant 2 $ 40.00 hr 0% $ 80.00
Sub-Total : Pre-ProductionSub-Total : Pre-Production $ 230.00
ProductionProduction
Director 1 $ 425.00 half 0% $ 425.00
Videographer 1 $ 450.00 half 0% $ 450.00
Audio/Grip 1 $ 300.00 half 0% $ 300.00
Camera Package HPX 300 1 $ 350.00 half 0% $ 350.00
Lighting Package - 3 Light Interview Kit 1 $ 200.00 day 0% $ 200.00
Audio Package - Interview 1 $ 150.00 day 0% $ 150.00
P2 Media Fee 0.5 $ 75.00 fee 0% $ 37.50
Expendables 0.5 $ 75.00 fee 0% $ 37.50
Transportation – Local 0.5 $ 150.00 fee 0% $ 75.00
Sub-Total : ProductionSub-Total : Production $ 2,025.00
Post-ProductionPost-Production
Producer 1 $ 95.00 hr 0% $ 95.00
On-Line Edit Suite w/ Editor 2 $ 165.00 hr 0% $ 330.00
Graphic Artist 2D 2 $ 120.00 hr 0% $ 240.00
Internet Review (Per Project) 0.5 $ 120.00 fee 0% $ 60.00
Compression Set Up Fee 1 $ 25.00 fee 0% $ 25.00
Compression Any Format 1 $ 10.00 min 0% $ 10.00
Compression Additional Formats 1 $ 5.00 min 0% $ 5.00
Archiving - (Per Project) 0.5 $ 200.00 fee 0% $ 100.00
Sub-Total : Post-ProductionSub-Total : Post-Production $ 865.00
ShippingShipping $ 0.00
Tax $ 0.00
TOTALTOTAL $ 3,120.00
Possible ExtrasPossible Extras
Prompter 1 $ 325.00 day 0% $ 325.00
Prompter Operator 1 $ 300.00 half 0% $ 300.00
Makeup Artist 1 $ 350.00 half 0% $ 350.00
Stock Music - (Non Broadcast) 1 $ 300.00 cut 0% $ 300.00
Sub-Total : Possible ExtrasSub-Total : Possible Extras $ 1,275.00
DESCRIPTIONDESCRIPTION QTY PER TOTAL
Pre-ProductionPre-Production
Producer 1 hr
Production Coordinator 1 hr
Production Assistant 1 hr
Sub-Total : Pre-ProductionSub-Total : Pre-Production $ 190.00
ProductionProduction
Director 1 half
Videographer 1 half
Audio/Grip 1 half
Camera Package HPX 300 1 half
Lighting Package - 3 Light Interview Kit 1 day
Audio Package - Interview 1 day
P2 Media Fee 0.5 fee
Expendables 0.5 fee
Transportation – Local 0.5 fee
Sub-Total : ProductionSub-Total : Production $ 1,800.00

61. Using Historical Data
• Time logs similar projects
• Past budgets
• Knowledge of employees
• Knowledge of subject matter experts

62. (1 Optimistic)
+ 4 Most Likely)
+ 1 Pessimistic)________________
6

63. Work Breakdown Structure
• Key to budgeting
• Identify major tasks to be completed
• Keep breaking the job down into smaller pieces until you
can accurately budget it and create time estimates
• Get input from client and team

64. XYZ Tradeshow
DVD Demo Loop
Video Assets DVD with Menus
Manufacturing &
Packaging
Project
Management
Audio Sweetening
Color Correction
Encoding
Storyboard Designs Box Art Asset Acquisition
Photoshop Menus
DVD Authoring
Disc Duplication
Assembly
Shipping
Client
Communication
Quality Control

65. Peer Review
• Number checking
• Forgotten charges
• Plausibility
• “Second opinion”

66. External Review
• Peers in different market
• Strategic partners
• Subject matter experts

67. Time Tracking
• Critical for time & materials work
• Evaluate your fixed price jobs
• Use of software systems
• Frequency of reports

68. Building a Sample Budget

69. Creating a Quote

70. Proposals
• Quick Response
• What is needed
• Level of detail
• Library of Resources
• Photos
• Bios
• Samples
• Past Proposals

71. Fixed Price Contracts
• Growing in popularity
• Protect both parties if written properly
• Frequently favor the client, not vendor
• Important to CLEARLY define the product and service to
be delivered
• Need to provide protection to you if the scope of the
project changes

72. Fixed Price Contracts
• Keep accurate time records
• Bottom Line:
• Say what you are going to do
• Do what you say
• Update along the way
• Track changes/get approval for each as they arise

73. Payment Terms

74. Payment Terms
• Period based
• At time of service
• Progress payments
• End of month

75. Period Based
• Employee/employer relationship
• Freelancer on long-term assignment
• Push for weekly
• Accept bi-monthly
• Avoid monthly or longer
• Make sure submit all financial requirements on day one
of first hire
• Keep W-9 and tax ID with you
© Jakub Jirsak

77. At Time of Service
• Payment is due upon receipt of services
• Difficult to achieve as it’s uncommon in video industry
• Accept credit cards
• Will take small loss in processing fees
• Usually offset by avoiding other credit charges and
cash-flow issues
• Good for simple jobs and gear rental
(≤ 1 day)

79. End of Month
• Typically used with time and materials agreements
• Time-tracking involved
• Ensure you have accurate system for tracking change-
orders and client requests
• Generally risky and should be avoided

80. Progress Payments
• Most effective when tied to milestones
• Try to avoid payments of identical dollar amounts
as it can lead to confusion with accounts payable
• 55/45 (Deposit|Production)
• 40/35/25 (Deposit|Production|Post)
• 35/30/20/15 (Long-term project)
• Be prepared to withhold or watermark deliverables
if client falls behind on payments (warn first)

81. Performance-based
• The “points” model
• Payments based on how project performs in
future
• Be very wary unless highly established partner
• Push for a hybrid model of discounted rate +
performance based
• Is your livelihood worth risking on the creativity
and marketing savviness of others?

82. Royalty-based
• Licensing of footage
• Several stock footage markets have emerged
• Royalty-free collections
• Restricted use
• Pay close attention to terms
• Typically cannot take unused footage from client
projects and resell
• Examine work-for-hire clauses in agreement

83. Creating an Invoice

84. Billing
• Bid
• Original Estimate
• Budget
• Scope of Work Statement
• What was initially agreed upon by the client
• Change Orders
• Written Communication

85. Billing
• Final Bill
• Incorporates client constraints
• Initial budget
• Change orders
• May be lower or higher…
be honest

86. 06/30/05
Date
655
Invoice No.
Metropolitan Washington Council of Govts.
777 North Capitol St. N.E.
Suite 300
Washington, DC 20002
Attn: Brian L.
Bill To
Net 30 Days
Terms
07/30/05
Due Date
Working Lands
Job
Invoice
Balance to be invoiced upon project completion
Total
Date Work Performed Qty Rate Amount
RHED Pixel
2108-C Gallows Road
Vienna, VA 22182 703-734-7433
Production Services - Prep, Shoot, and
Digitze video footage of Meeting
1 1,790.00 1,790.00
$1,790.00

87. Creating an Invoice
• Invoice Header
• Invoice Body
• Invoice Footer

88. Invoice Header
• Business name
• Full address
• Contact information
• The word “Invoice” or “Bill” clearly written at top
• Unique Invoice number
• Invoice date
• Payment terms
• Customer or client name and address

89. Invoice Body
• A description of the goods or services
• Pricing information with per unit pricing
• Statement of scope or progress

90. Invoice Footer
• Total amount of items on invoice
• If needed, taxes and total after tax
• Payment instructions
• Terms or finance charges

91. Billing Strategies

92. Delivering the Bill
• Include Client Name
• Include Project or PO #
• Include Due Date
• Include Payment Terms

93. Delivering the Bill
• Formats
• PDF
• Hard Copy
• Fax
• With Deliverables

94. Delivering the Bill
• Close the Loop
• Face to Face
• Phone
• Email

95. Collections
• Run Accounts Receivable Reports
• Call Accounts Payable
• Be Polite
• Call in Advance
• Place into Contracts
• Incremental Billing/Deposits

96. Accepting the Bill
• Review Changes
• Use Discounts
• Use Deadlines

98. Getting In Touch
twitter.com/rhedpixel
facebook.com/
RichHarringtonStuff
linkedin.com/in/
richardharrington
Photofocus.com
vimeo.com/rhedpixel

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