Don't want to use a "contract"

Please refer to this: http://www.warriorforum.com/offline-...ml#post4758928

One option is to use an MOU (Memorandum of Understanding). Not a contract per se, but a written record of what each party's responsibilities and rewards will be. I think there's a done-for-you MOU template program out there. Google it and I'm sure you'll find it.

Even if you scribble your notes on a napkin and both and client sign it, it's still a contract. Why do you not want to sign a "contract"?

People don't like contracts. I work directly for a large familty business and I have seen companies lose their business over contracts. The one brother simply doesn't like signing them. He's more willing to do things month to month but once a contract is in play you gotta offer a lot of value or he won't even try it.

And then he will cancel if he stops seeing the value.

And I know a lot of other business owners who are like him. Contracts put a bad taste in their mouth while they have no problem paying for services rendered normally.

Seems like a everyone is more into contracts. Any samples of what you have used that has worked? Thanks in advance.

If you aren't worried about getting paid, having liability or finding your verbal agreement is a misunderstanding, then don't use a contract or memorandum.

To protect yourself without a well-crafted written document, you can do these things:

-Getting Paid. Collect a sufficient amount of non-refundable money up front to cover your costs. Of course, your buyer can still sue you for return of funds and without a written agreement, the buyer may win because his/her memory is different than yours and he/she presents a better case or has a better attorney.

-Having Liability. Some of your activities for your client may create liability for you. Too long a list of possibilities that attorneys can dream up to list here. But, not having a written agreement and crossing an invisible line that you don't think even exists could at least get you sued. Fortunately, this doesn't usually happen. But, it could happen to you and your defense is weaker without a written document. I have seen "clients" who run into financial trouble decide that launching law suits against weak vendors and then settling can sometimes be a fast pay check. Even if your work is 1st class, it is easier to get sued without the right documents making you less of a target. So document, document, document everything you do - emails, recordings, videos, etc..

-Misunderstanding. To avoid this: document, document, document. Emails, recordings, videos, etc..

My advise - Have a written agreement covering the scope of work, terms and any obvious contingencies. The docs can be simple. Why do you think people who have something to lose get pre-nups before getting married? They may think the relationship is for life, but they know things can and do happen that changes things. Most of the time the docs aren't needed. But, you don't want to be without them if it happens to you.

One more thing. A written agreement, even a simple one, is also a way to communicate to the prospect up front that you are really in business and you take care of the details being in business and working for a client brings. The client doesn't want you to "wing it". As the expert, you should know what the agreement should contain. A good upfront document can also be an excellent negotiation tool. When presented correctly, many prospects will agree to something presented in writing that they would argue about if presented verbally.

I like using an agreement, nothing too harsh or scary to the casual clients. I put a small bit on the date, who is signing, etc. Then I list a number of services that I provide with a section next to each to check them then at the bottom you add up the one time fees and the monthly recurring fees. That way sometimes there are things they might want that I didn't think they'd go for before, or even talking more to them they are looking for something a bit more simple. That way I can check off what makes the most sense with them while I go over it and I don't have to draw up another contract with new prices and new terms if they need something different. I bit more casual and I just started using it but it has worked well enough so far.

There are lots of words like "contract" that scare prospects. Words like "price", "cost", and "penalty."

The solution is not to use them. Discuss what you're going to do for what price for your prospect, write it all down and call the resulting document a "Scope of Supply" or "MOU" or "Agreement."