If contracts make your hands sweat, you're not alone. There's something intimidating about a contract but really, it is there to protect everyone involved, including you!
There are contracts for just about everything but boiled down to its essence, contracts are a written agreement between two parties (individuals, companies, groups of people, friends, etc) that dictate what's expected. And these contracts come in handy when things get hairy.
I've gone from a person who avoids contracts to someone who embraces and requires them. And just like a prenup agreement (another contract!) is best made when the couple is still in love and compassionate towards each other, contracts are best handled at the beginning of a business relationship.
You can always hire a lawyer to make your contracts. You can also hire a lawyer willing to make you contract templates that you can customize yourself to save some money. But if you're just starting up and just need something simple for now, here's some things to keep in mind.
1. "Agree to pay me x amount in x time."
Have something in your contract that says exactly how much you'll be paid, by whom, and by when. Deadlines save you from chasing down money months (even years!) later and gives you more power later. It also allows you to tack on late fees if you think that's appropriate for you.
Side Note: Don't feel dirty for doing things like adding reasonable late fees to egregiously late payments. Your bank and phone companies don't feel bad about it. If you've tried to reach out a few times to get paid and they are either ignoring you or keep pushing you off with no communication, late fees can be a great way to battle that feeling of disrespect.
2. Put any discounts at the bottom of your regular rate.
Let's say you're working on a passion project with your friends and you don't want to charge them. Do you need a contract? Yes. Yes, you do. Just trust me on this one.
You can say "Here's my contract. 100% discount on services at this time." Never lower your price, only apply discounts. It is proof of how much tangible work you've done toward this project. It shows how much you usually charge which can have your work and time be respected a bit more. And if the project takes off, you have a leg to stand on later when they want you to keep working on it. At that time, you can say "Sure! Let's revisit that contract."
Working with friends can get dodgy when projects surprisingly take off. If you have a contract, it feels less ugly when you ask for your fair share.
3. Have a loyalties clause (feel free to waive it).
In gaming especially, it is difficult to know what games will take off and what will be DOA. There are so many factors and the industry is so new. Being indie adds another layer of uncertainty. So even if you're working on something you think will never see the light of day, treat it like it's the next huge AAA game. Add everything you think you might need in the future and waive it all. Create yourself a catch all template. It is so much easier to later edit an agreement than it is to make a contract longer, especially when working with people who might be new to success. Money makes people not be their Best Selves sometimes. Protect yourself by adding everything you can think of to the contract, waiving it all, discounting it down, and then, if the project takes off, nothing is new.
Bonus point: If you go by a name online that is different from your legal name, include both. You can put one in parenthesis.
Money is a tool that allows you to live the way you want. It is not evil. And in our current society, it is necessary. Get paid for your contributions. Protect yourself. Use contracts.