I know frustration and upsets are part of a package in this film making business.
It's part of contracting and freelance work.
How do you all cope with diasspointments? Is that anything you do that makes it forget and start everyday new?
I know this is going to sound really weird coming from me, but having an even keel is important.
There's a skill that took me a while to learn was the ability to size up an opportunity and work out how to maximize the potential (by asking questions and falling back on deal making experience) and/or learning when to say no and walk away. Learning to avoid these situations is more important than working out what to do when you get yourself into this corner.
While you seem to be getting advice about "contracts" and such, but for these low paying gigs, that's usually not going to happen. I doubt you're at that part of your career where you're ready for it. Getting something on paper is nice, but for small gigs like this, a lot of it is done over the phone.
While there are dodgy operators in which you should network so you can ask your peers if they're dodgy of legit, most operators are simply ill prepared to financially make a film.
This is an industry of crooks trying to make a dime. Have everything in legal documentation, sue the shit out of him if he doesn't pay.
It's good advice if you want to spend your life in court.
I'd suggest sending (or selling the debt if that is what happens where you are) to a debt collection business. You'll lose money but you can get on with work.
Should have put a watermark through the entire thing. Only provide an export without some kind of watermark once you've got your full payment.
I've thought about that as an option. It's not a bad option, most particularly when you're getting the work signed off in stages so the client doesn't release a half finished product. I don't like the idea as a method to induce payment but that's just a personal perspective.
Perhaps I've been lucky. I've never been stiffed on a job. In this industry, I've never had a client attempt to renegotiate after delivery, though I did have a couple incidents when I was working in sales a long time ago. I wasn't really prepared for it the first time, I just dealt with it, made the most of the bad situation, learned from it and move on. Then again, I pretty much pick the clients that pay fast to work with. It's not a money thing, I just like to wrap things up quickly.
It's all about the upfront agreement - you put things in that agreement like if you ask me for 3 versions you're going to pay for each one. Pay some in the middle - don't wait til the end for all payment, etc.
If your work can command this level, this is my preferred method. Set a payment schedule. In writing would be preferable for larger jobs. Once you build a rapport with clients, verbally will become more typical. I find it's also common for smaller jobs. X amount up front, Y and particular points of the job and Z after completion with the understanding that you own the material until all debts are paid. blah blah, whatever you feel you need. It fits working with corporations better where they need a long payment window (90+ days can be common and you're making them pay for the privilege).
The other method I do like is an agreed upon sum (hourly, daily, complete job) + alteration rates with serious discounts for prompt payments. This can also be combined with the above. It's a little more complicated.
If you were looking to work with a client with a bad reputation/bad history, getting paid up front or keeping funds in an escrew with terms in writing would be the only ways I'd suggest.
There are so many options. Myself, I prefer avoiding those who will screw you over. You need to build up a resume so getting into those "getting screwed" is what you need to build up your portfolio and that's fine, so long as your eyes are open to what you're getting yourself into. It's a long game. The money you earn (or get ripped off) now is inconsequential to what you'll earn when you're properly established and great at your craft.