Kill fee

A pre-agreed payment owed if a client cancels a project partway through, compensating the agency for reserved time and work already done.

For example, a contract might set a 50% kill fee: if the client pulls a booked project after work begins, they owe half the fee. It covers the capacity the agency held and the work delivered, instead of leaving a hole in the month.

Why it matters to your firm: a kill fee protects an agency from the real cost of cancellations - reserved capacity that cannot be resold at short notice, and work already completed. Agreeing one up front turns an awkward, contentious moment into a clean, pre-accepted clause.