The photo assignment has been completed and the finished pictures and invoice have been sent to the customer. But the customer’s plans have changed and they now want to reduce the usage or even cancel it altogether.
Should you, the photographer, reduce the original license fee and send a new invoice?
Perhaps the customer originally requested a five-year license but their plans changed and now they want only a one-year license. Maybe the customer initially wanted a license for sales brochures and web use but now they’ve decided to go web only.
Some photographers will say the invoice should not be reduced. It’s the customer’s fault that their plans changed.
If the customer notified you soon after the assignment, (within X number of days as mentioned in your contract), then it’s probably good business for you to reduce the licensing fee. But never reduce the photography fee or any production expenses.
Photographers should have a clause in their contract to deal with situations like this. Perhaps something simple like:
Adjustment of invoice amount or license terms must be requested within seven days of invoice receipt.
Or maybe more specific such as:
Should Customer require a reduction in the terms of license due to reduced usage of the Image(s), such request must be made within seven days of invoice receipt.
