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The speaker addresses a common question about structuring payment in contracts. They emphasize the importance of specifying how payments are broken down rather than just focusing on the total amount. Many clients prefer not to pay everything upfront, especially for their first engagement. The speaker suggests using the 50/25/25 payment structure: 50% non-refundable as a deposit to cover pre-production and most of the production cost; 25% due upon the first round of edits, delivered with a watermark; and the final 25% payable upon project completion. This method helps manage client expectations and protects both parties financially.
