What’s in a Kill Fee? (And What’s Generally Considered Standard)
What NYC Writers and Artists Need to Know if Commissions Are Cancelled
If you work as a writer, illustrator, or artist in Brooklyn or elsewhere in NYC, you’ve probably had a similar experience. You get the project or commission, you start the work, and then the client cancels before it’s finished (or even after you’ve completed your end of it). Sometimes the cancellation is explained, and sometimes it’s for no discernible reason.
A kill fee is the contract term that determines whether you are compensated when that happens, and if so, how much.
What Is a Kill Fee?
A kill fee (or “cancellation fee”) is a pre-agreed payment owed to a creative professional when a client cancels an assigned project after work has started, but before it is completed or accepted.
These fees are designed to compensate the creative for time and effort already invested. Without a kill fee clause, a client who cancels a project midway may owe you nothing at all.
Why This Matters for NYC Creatives Specifically
Works on commission or assignment are common for NYC creatives, like freelance writers, illustrators, or editorial or commercial artists. In these types of situations, clients’ plans can change for reasons that have nothing to do with the quality of your work: a publication goes in another editorial direction, a brand pauses a campaign, or the client had to pull back on its budget.
A kill fee protects the artist’s time no matter the reason for the cancellation.
What’s Generally Considered a Standard Rate?
While standard rates can sometimes vary based on the scope of the project, a “kill fee” or cancellation fee typically represents a percentage of the total contract if it was completed as intended.
It is common that a contract includes a tiered approach, like:
Projects cancelled shortly after the assignment begins or in the development stage may receive 20-30% of the total fee;
Projects cancelled midway through or during production may receive 50% of the total fee; and
After a work has been actually completed and/or delivered, a cancellation is no longer considered a “kill fee,” and the artist should receive the full amount of the contract.
If you do complete a work on commission which is cancelled after submission, and you do not receive payment, this becomes a separate issue related to breach of the contract, with distinct and separate legal approaches and remedies.
Because there is no fixed standard, the right rate for your work depends on your own leverage, the norms of your specific field, and how much of your time a project demands upfront. It is worth treating the exact percentage as a negotiation point, not an assumption.
What Should Be in Your Kill Fee Clause
A well-drafted kill fee clause should specify:
The percentage (or flat amount) owed at each relevant stage of the project, if you are using a tiered structure;
What triggers the kill fee — typically written cancellation or termination by the client without cause;
Whether the kill fee is the client’s only remedy for cancellation, or whether other amounts (like expenses already incurred) are owed separately; and
What happens to the rights in the unfinished work once a kill fee is paid (including a provision that all rights revert to the creator once a kill fee is paid, which allows the creator to sell or dispose of the work as they may wish).
Frequently Asked Questions
Is a Kill Fee the Same as a Deposit?
No. A deposit is typically paid upfront, before work begins, and is often credited against the full project fee once the work is completed. A kill fee is owed only if the project is cancelled partway through, and is usually a percentage of what you would have earned had the project gone forward.
What if My Contract Doesn’t Have a Kill Fee Clause?
If your contract is silent on cancellation, you may still be able to seek payment for work already performed under general contract principles, but you will likely be in a weaker negotiating position than if the amount owed had been agreed upon in advance.
Can a Client Refuse to Pay a Kill Fee?
A validly agreed-upon kill fee clause is a contract term like any other, and a client’s refusal to pay it would generally be a breach of contract, subject to whatever remedies and dispute resolution process your agreement provides.
If you are an NYC-based writer or visual artist and your contracts don’t currently address what happens if a project is cancelled midway, that is worth fixing before your next assignment. It is also worth confirming your contracts are clear about who owns the drafts and sketches you create along the way, since a cancelled project often leaves unfinished materials behind that are just as important to account for.
Expand Law maintains an active blog which provides general legal information. Under no circumstances shall reviewing this blog constitute legal advice. If you are looking for legal advice specific to your issue, please contact lindsey@expandlawpllc.com for a free consultation.
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