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Originally posted by Sly_RJ
I don't know how the content business works, but this whole ordeal somewhat scares me. The deposit from one client was used to foot other bills and shoots. So when shoots for the client come up, who pays for them? The next client? When do you break even? Who knows, I just know that I could never run my business quite like that.
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the part i don't get is why the deposit was paid at all? why not just pay the full amount all at once? because he didn't have it, i'm guessing.
surely, it must be understood that if you pay part in advance, it's because you expect the content provider to make arrangements to begin the shoot - i mean, otherwise you just gave them money as if they were a bank, why would you do that? well, apparently Aaron made those arrangements, and the arrangements had a cancellation clause in them (because the models have to block of time for shoots, too).
so the $750 being taken out seems fair to me, assuming that it was understood that the $2000 was a deposit to get the ball rolling. (i just don't see how it could be anything else.)
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Sure, when I get new roommates I usually spend their deposit, but I always have plenty more in the bank to pay them back quickly if needed. And even if I didn't have the spare cash, it would still be MY responsibility to pay up as quickly as possible, regardless of my other personal expenses that needs tending. But hey, that's just me. I'm well aware that many people don't follow the same principal and have no problems spending money that isn't necessarily theirs.
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you take the deposit from your roommates to cover damages and partially cover unpaid rent, correct? well, in this case, it sounds like the deposit was partially forfeited because the purchaser changed his mind after arrangements were made, which cost the producer money (the purchaser caused damages).