What is a kill fee? Typical amounts and contract wording

Clients cancel for reasons that have nothing to do with you: a budget cut, a new boss, a pivot. A kill fee makes sure the weeks you blocked and the work you did still get paid. Part of the winning clients hub; the clause below fits into the freelance contract template.

How much is a typical kill fee?

There's no legal standard; it's whatever the contract says. The Graphic Artists Guild's sample letter of agreement sets 50% of the fee if the job is canceled before the final stage and 100% if the art is complete, with rights returning to the artist (Graphic Artists Guild). The Guild's contract glossary says it has seen kill fees from 20% to 100%, mostly depending on how far the work got, and separates a cancellation fee (the client cancels) from a rejection fee (the work doesn't meet the agreed requirements) (Guild glossary). In journalism, kill fees tend to be lower: a sample publication contract from Columbia Law School's Kernochan Center uses 25% of the basic fee for assigned articles that aren't published (Kernochan Center).

Kill fee vs deposit vs rejection fee

Use both a deposit and a kill fee: the deposit makes sure part of the money is already in hand, and the kill fee covers the rest of the work done. For deposit sizes and terms, see the guide to getting clients to pay on time.

Worked example

How to invoice a kill fee

1. Confirm the cancellation in writing, with the date the client gave notice. The stage on that date sets the percentage.
2. Send the kill fee invoice within a few days: the clause number, the stage reached, the percentage, the deposit already paid and the balance due.
3. Attach or link the work delivered so far, so the client can see what the fee pays for.
4. State what happens to the rights in the work, as the clause says.
5. Follow up on the due date like any other invoice. A cancellation isn't a reason to waive what the contract says.

Kill fee clause to copy

CANCELLATION
The Client may cancel this project at any time by written notice. If the Client cancels, the Client will pay a cancellation fee (kill fee) based on the stage reached on the date of notice:
- Before work begins: [15]% of the total fee
- After [initial concepts / the first draft] are delivered: [50]% of the total fee
- After [final drafts / development] begin: [75]% of the total fee
- After final delivery: 100% of the total fee
Any deposit already paid is credited against the cancellation fee and is not refunded. Approved expenses incurred before the notice are also payable.
The cancellation fee is due within [14] days of the Freelancer's invoice. On payment, the Client receives [rights to the work delivered so far / no rights to unused work, which remain with the Freelancer].

Decide the rights question before you sign. Many creative contracts return the rights in unfinished work to the freelancer on cancellation, as the Guild's sample does; others hand over what's been paid for. Either can work, but the contract has to say which.

General information, not legal advice. Whether a cancellation fee is enforceable can depend on state law and on whether it's a fair estimate of your loss; have a lawyer review contracts for large projects.

In SoloWOS

Put the clause in the terms block of your proposal and set a deposit % on it; when the client accepts, create the deposit invoice from the proposal. To send PDFs for e-signature, turn on automatic signature and the client signs the accepted proposal, terms included. If a client cancels, create an invoice for the kill fee and reference the clause in its notes. Solo includes 15 signature requests and 50 invoices a month for $15/month. Copywriters and designers can find more on freelance work for copywriters and for graphic designers.