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The speaker addresses a common question about structuring payment terms in contracts. They emphasize that it's crucial to clearly define payment breakdowns rather than just stating the total fee. Many clients prefer not to pay everything upfront, especially for first-time collaborations. The speaker recommends the "50/25/25 rule": charge a 50% non-refundable deposit upfront to cover pre-production and most production costs. After submitting the first round of edits, a 25% payment is required, which will have a watermark. The final 25% is charged once the project is completed. This approach helps clients feel more comfortable while ensuring the service provider is compensated throughout the process.
