The Guide to Understanding Rates and Deal Memos
Posted on: Dec 30, 2025
Negotiating rates and working in freelance media can be confusing — especially for those just getting started. Everything seems to be negotiable, and pay rates seem to be all over the board for the same type of work. While many professionals in independent production still accept work with a verbal agreement, deal memos and rate sheets make sure that all parties are on the same page. They become your contract and provide a safety net when confusion tries to set in, and they help to make sure your payment is promptly delivered.
It’s not always intentional when someone pays you less than what you agreed upon. It can be disorganized chaos and chain of communication where misunderstandings happen, or data was entered incorrectly to payroll software. It can be faulty memory from wearing too many hats. Having a solid deal memo signed with a producer or the production company is an important tool to have in your records so you can refer to it when needed.
Key Insights
-
Deal memos act as a practical contract in freelance media, preventing misunderstandings around rates, responsibilities, and payment schedules before they happen.
-
Many payment issues stem from miscommunication or disorganization rather than bad intent, making written agreements essential protection for freelancers.
-
A well-written deal memo clearly defines every aspect of the working relationship, from dates and overtime to expenses, gear fees, and payment method.
A deal memo should outline the agreement between the person hiring and the person hired. If you’re not being hired by a company, but rather are working for a client, you might be the one to write up a deal memo you both sign. The format may be a spreadsheet or a simple text document.
It should clearly include these elements:
The person hiring: The name and contact information of the production company or producer hiring you should be clearly stated with the name of the company, their phone number and address.
The project: The working title should be listed alongside if it’s a TV project, feature film, commercial or other.
The person being hired: Your name, contact information and the role/title you are being hired for should be easy to see and understand. It isn’t common, but you can ask for your expected duties to be listed.
Dates working and rates: The dates of work should be listed and identified alongside their rate and type. Different types of work days should be identified, such as travel, prep, filming or wrap. If there are different rates for each type of work day, the rates should be listed with each section of work days. The number of hours agreed to for each day should also be listed with the rate.
This might look like:
01/10/2025, 1/30/2025 Travel (Total 2 days – $300/day)
1/12/2025 – 1/19/2025 Prep (Total 8 days – $600/12 hrs)
1/20/2025-1/27/2025 Filming (Total 8 days – $600/12 hrs)
1/28/2025-1/29/2025 Wrap (Total 2 days – $600/12 hrs)
Total days worked: $11,400
Overtime: This is important. It’s not uncommon for small independent films to go over on time and run up to 17 hours. If you have an agreement in place before that happens, you’re better off. Ask them what the rate of pay is for hours over the agreed-to 8, 10 or 12, and for it to be included on the deal memo.
Meals, expenses and per diems: While meals are often assumed on film sets, it’s not always clear how many meals are provided, or if they are provided during travel or prep. Your memo should state what meals are provided, when, and if there are any per diems you are promised. Per diems are mostly for when you have travelled to work and will need to buy your meals. It should also mention if expenses are reimbursed. One of the most common expenses reimbursed is mileage. The rate, such as 59 cents per mile, should be listed.
Kit fee or gear rental: If you’re bringing your own art department materials, such as tool kits, film gear, etc, it’s common to ask for a kit fee. This is important, especially if you’re bringing and using consumables you’ll have to replace, like tape or paint. The production company may decline to pay one, and it’s up to you if you want to accept the job regardless. Whatever the agreement is, even if it’s zero, it should be listed on the deal memo so there is no confusion.
Pay schedule and method: The deal memo should explain how the company will pay you (such as a mailed check, direct deposit, through payroll software you need to sign up for, Venmo or cash, etc.). It should also clarify if you are a 1099 contractor or a W2 employee with taxes withheld. Along with this information, it should list the payment schedule agreement, such as Net 30 (within 30 days of completion), weekly or bi-weekly. You should know which day of the week you will be getting paid.
Signatures and dates: There should be an area for both parties to sign and date it. Some companies may just send you a deal memo without expecting signatures, relying on the email from them with the deal memo as enough proof, and your emailed reply in agreement. If it does require signatures or if it’s given to you in person, it’s best to have both parties sign because there is no text, email or other chain proving where the deal memo came from.
Some other less common elements a deal memo may list include:
- Screen credit: How the crew member will be credited in the final production.
- Confidentiality: A clause that keeps project information private.
- Insurance: Any insurance requirements they may require from you.
- Work for hire: A statement clarifying that the company owns the rights to the work produced.
- Publicity rights: Rules regarding using the crew member’s likeness or name for promotional purposes.
- Arbitration: Procedures for resolving disputes.
While some may be intimidated asking for this document when a producer doesn’t outright mention it, it’s worth the effort. Reputable producers and clients should be happy to make sure everyone is on the same page; the comfort and trust it creates is invaluable.
Key Takeaways
-
Freelancers should never rely solely on verbal agreements, as a signed deal memo provides clarity, accountability, and leverage if disputes arise.
-
Including detailed breakdowns of work days, rates, overtime, meals, expenses, and pay schedules helps ensure accurate and timely payment.
-
Asking for a deal memo is a professional best practice, and reputable producers should welcome it as a way to build trust and transparency.
Jessica Mathis (AKA Divinity Rose) is an award winning screenwriter/performer/producer from Louisville, Kentucky. She is the CEO of She Dreams Content Development and Production, which focuses on female-forward projects in comedy, docustyle and genre entertainment.
Browse thousands of jobs and find your next gig! Sign up or login to Staff Me Up and get on-set today!
You may also like: