Posted on 06/02/2019 12:54:23 AM PDT by Enterprise
CNN is reportedly set to impose a “net 90” payment term on freelance employees beginning in June, meaning the company’s freelancers will be paid just once every three months.
“In a blow to their financial stability, CNN sent a letter to several of the network’s freelancers this week, extending their payment terms to net 90 (payment 90 days after invoice).
The move has met with significant blowback.
“Net 90 is NOT a reasonable payment term for people who must pay rent every 30 days,” Freelancers Union Executive Director Caitlin Pierce wrote on Thursday. “CNN is effectively asking freelancers to finance the cash flow of a multi-billion dollar company by waiting one quarter of a year for payment.”
(Excerpt) Read more at dailycaller.com ...
When I was a freelancer (fancy word for temp lol) in Manhattan, if a graphics employment company told me i had to wait more than 14 days for the first check I wouldn’t have even met with them.
90 days is hysterical :)
Unless this is the nature of this business then it sounds like a company in financial straights. Or perhaps there is some other reason I do not know about.
Not familiar with the industry.
I’m going to assume that with their ratings at dreadful lows, maybe advertisers are finally becoming reluctant to put money in a business with a limited overall audience. It may simply be about cash flow.
Definitely something.
Since they are a fully owned subsidiary of Warner and through them of AT&T, its nothing as obvious as cash flow.
Possibly budget problems, or they want to make the books look better for impending sale.
BFL, will try to get a take on this from someone who moonlighted part time for a suburban weekly.
It seems so impossible but that’s what it points to.
If it is indeed about cash flow, they are in a LOT of trouble.
And it certainly is a limited audience.
Please post if you find something. Thank you.
"FORMER CNN FREELANCERS TO START WORKING FOR NEWS AGENCIES THAT PAY THEM ON TIME."
Interesting.
I have NO CLUE about all things CNN. Audience size, advertisers, finances, the size and scope and cost of freelancers.
i just know 90 days to be paid is a long time :)
But no belt tightening in the stelter household.
LOL!!!
Too funny!!!!
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Actually no. Unless they are seriously, fraudulently misrepresenting their position to the buyer.
Using accrual accounting they book the expense when the invoice is received and set up a liability in the subsidiary ledger which is combined to represent the accounts payable. The expense is already recognized but deferring payment will ease cash flow...for a couple months.
I read recently they were losing $100 million per year? This is a drop in the bucket in their total operating budget and the deferred payment will not have an effect on that.
Being in business for yourself can be difficult, especially if your business is tied to one client only, or a client that represents a major source of income. So they need to do is act like they are in business instead of pretending they are employees.
Might even turn some of them into republicans.
My advice to these people is simple, but earnest. First, get a job at Starbucks. Second, while you are at Starbucks, learn to code. Third, in whatever spare time you have left, write your articles that no one reads, for an employer that can’t pay you for 90 days. The economic angst won’t be so bad that way. Fourth, when you get proficient in coding, get a primary job coding, a secondary job at Starbucks, and continue writing articles that no one reads, and submit those articles to CNN and wait 3 months to get paid. The result is still less angst.
>>“net 90” payment term on freelance employees beginning in June, meaning the company’s freelancers will be paid just once every three months.
Net 90 doesn’t mean they only get paid every 90 days - net 90 means they wait 90 days for their first check, and then, assuming they bill every month, the rest of the checks come 30 days apart.
Or write for an organization who pays in an acceptable time frame.
I had a vendor that put me on net 60. Six months later it declared bankruptcy.
I had a net 45 agreement once, monthly for a bit under 2 years. Was nice when it ended to have another check coming.
Would anyone shed a tear, if the same thing happened to CNN?
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