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Writer's picturetylerham

How to Structure Your Payments as a Toy Industry Freelancer

A lot of times, when I talk to someone just entering the freelance world, their biggest fear is not getting paid. While I can confidently say that an overwhelming majority of toy and collectibles companies are completely fair with paying their freelancers, here are some tips you can use if you aren't totally comfortable with the prospect.


Recently, in a video, I spoke about what happens as an artist when a toy you are working on—or have worked on—gets canceled.


[View that short video here]


My video was more about how (or if) you can use the piece in a portfolio, but there is a financial aspect as well. What if the toy gets canceled while you are working on it and haven't been paid yet? While there is no way to guarantee you won't be left without a paycheck, this method mitigates some of that risk.


When I was a freelancer, I broke my job payments into thirds. Say you are charging $3,000 for a job:

The first third ($1,000) is paid when the job is agreed upon. You don't start the job until that first payment is made.


The second third ($1,000) is paid upon internal approval of the piece, which means once the piece is finished (first round), you get paid. This step is before studio approval—essentially, when you and the client agree that the piece looks good and is ready to be submitted to the licensor.


Between the second and third (final) payment, there is a good chance the piece will need revisions as requested by the studio. You will do those as part of your contractual obligation (you can set how many revisions you will do for a piece—but more on that later), and once the piece has studio licensor approval, you get your final third ($1,000).


Final tip: send invoices for every step of this process. Be sure the invoices are dated. Also, at least on the final invoice, set payment terms. "Net 30" (which means the company has 30 days from receipt of the invoice to pay) is very common.


Not all companies will want to comply with this. That does not mean they are trying to take advantage of you; it just means that is not how their payroll department is structured. At that point, it is up to you how you want to move forward.


Almost all the freelancers I know who have not gotten paid for projects have agreed to payment after completion. Know your worth, and don't be afraid to set your own payment terms!



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