A rolling agreement is a common contract type for freelancers. It automatically renews for a set period unless you or your client decides to end it.
What is Rolling agreement?
A rolling agreement is a contract with no fixed end date. Instead, it automatically renews at the end of each term, such as monthly or quarterly. It continues indefinitely until one party gives proper notice to terminate it. This creates an ongoing working relationship.
Why is this important?
For freelancers, rolling agreements provide predictable, recurring income. They reduce the constant need to find new clients. However, they also create a long-term commitment you must manage. Understanding the terms is crucial to avoid being locked into unfavorable conditions.
How does it work?
You sign a contract for an initial period, like one month. When that month ends, the contract renews for another month automatically. This cycle repeats. To end the agreement, you or the client must give notice as specified in the contract, often before the current term ends.
Pros and cons
The main pros are income stability and reduced admin work from renegotiating. The cons include potential complacency and being tied to outdated rates. You must also diligently track notice periods to exit gracefully. Always review termination clauses carefully before signing.
Conclusion
Rolling agreements offer valuable stability for freelancers. They are excellent for long-term client relationships but require active management. Always know your notice period and regularly assess if the terms still work for your business.
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