If you’re a freelancer, consultant, or creative running project-based work, you’ve probably dealt with a client who backs out mid-project — or disappears entirely. Whether it’s a brand campaign that gets canceled, a scope that suddenly shifts, or a founder who ghosts after kickoff, the result is the same: time lost, effort wasted, and no compensation.
That’s where a kill fee (or an early termination fee) comes in.
What Is a Kill Fee?
A kill fee is a pre-agreed payment that protects service providers if a project is canceled before completion. It’s typically a percentage of the total project fee, designed to compensate for the work already done, time blocked, and opportunity cost of turning away other clients.
Think of it as a financial safety net. You started the work in good faith — the kill fee ensures you’re not left empty-handed if things fall apart early.
When to Include a Kill Fee
You should consider adding a kill fee clause if:
- The project requires a multi-week or multi-month time commitment
- You’re turning down other work to hold space for the client
- There’s a high risk of project delays, indecision, or cancellation
- You’re working with a new client and want to build in protections
It’s especially useful in creative industries, where scope and priorities shift frequently — and where “creative direction changed” can derail weeks of work.
When You Might Skip It
A kill fee isn’t necessary for every project. You can consider leaving it out if:
- The work is small, one-off, or paid fully upfront
- You’ve built the cost of early cancellation into your pricing
- You have a strong relationship and trust the client to finish the project
In those cases, a deposit or milestone payment structure may give you enough protection.
What a Kill Fee Clause Looks Like
Here’s an example of a kill fee clause you might see in a Counsel Club agreement:
“If the Project is canceled by the Client before completion, the Client agrees to pay a Kill Fee equal to 25% of the remaining unpaid fees, in addition to payment for all completed work.”
This kind of language keeps it clear and enforceable. You can also customize the percentage based on your industry, workload, or client relationship. Many freelancers choose 25–50% of the remaining value, depending on how much work is done.
Why It Matters
Kill fees aren’t about being difficult — they’re about being professional. You’re running a business, and part of that means protecting your time and income. Clients who respect your work should have no problem agreeing to a fair kill fee up front. In fact, adding one to your contract signals that you take your work — and theirs — seriously.
Need Help Adding a Kill Fee Clause to Your Contract?
At Counsel Club, we’ve built a smart contract generator with our handy Amicus AI that makes adding protections like this simple. When you customize your agreement with us, we’ll guide you through:
- When to include a kill fee
- How to set the right amount
- What language to use to avoid confusion
You’ll also get access to Amicus, our built-in legal assistant, who can answer questions like:
“How much should my kill fee be for a $6,000 project?”
“Can I collect a kill fee if I haven’t started the project yet?”
“What happens if the client goes silent — does that trigger the kill fee?”
Create Your Contract (Free to Start)
Don’t wait until you’ve already lost time and money. With Counsel Club, you can create a legally sound, freelancer-friendly agreement that includes kill fee protection — in just a few clicks.
