The rules of the game
Pacto rests on a simple exchange. A freelancer delivers a mission at an increased rate, with an indicative target of 3 times their usual rate. In return, they accept to be paid progressively, at the pace of the company's revenue.
The company thus accesses the skills it needs without having to pay the full value of the work immediately. The freelancer accepts a potentially long payment horizon, rewarded by a higher rate.
Pacto provides the protocol, the standard contracts, the management tool, the Register and the network. It is neither the freelancer's employer, nor the mission's client, nor the payer.
An exchange accepted knowingly
For the company
Access the necessary skills now, with a payment that follows the revenue defined by the program.
For the freelancer
Apply an increased rate in exchange for a staged payment whose horizon may be long.
For Pacto
Provide the framework, keep the Register and enforce the same rules for everyone, without becoming a party to the mission contract.
How does a Pacto program work?
01The mission is chosen freely
The company publishes a mission with an objective, a maximum volume and an indicative rate, or proposes a fixed fee based on an expected result.
The freelancer remains free to apply, accept or decline. The company remains free to select the profile that suits it.
02The terms are set before starting
The company and the freelancer sign their contract directly. It specifies the increased rate, the program parameters, the mission and any special conditions.
The increased rate is negotiated between the parties. It is not a promise made by Pacto.
03The work feeds a Balance
Validated services are recorded in the Register and increase the freelancer's Balance.
This Balance is the amount the program still has to settle progressively. It is not fully payable on a fixed date.
04A fraction of revenue is distributed
Each period, the company allocates to the settlement of the Balances a fraction of its revenue, computed on the base defined in its program parameters.
05The same formula applies to everyone
The available envelope is distributed among the freelancers pro rata of their Open Balances.
No freelancer can be arbitrarily favoured.
06The company pays the freelancer directly
Funds go from the company's account to the freelancer's account. They never pass through Pacto.
After the payment, the freelancer submits the invoice matching the amount received. The unsettled part of their Balance stays recorded for the next period.
The eight rules that never change
Everything is accepted before the work
The mission, the rate, the authorised volume and the program parameters are communicated before signature.
Everyone stays independent
The freelancer freely organises their time, place and methods. They keep their other clients and are subject to no hierarchy.
No payment date is guaranteed
The pace depends on the company's real revenue and can be long. A period without distributable revenue can be a period without payment.
The Register keeps the memory
Services, Balances, distributions and payments are recorded and time-stamped.
The freelancer keeps read access to their history as long as a Balance remains Open.
Distribution follows a common formula
The available envelope is distributed pro rata of the Open Balances. Undistributed amounts stay recorded for the following periods.
Pacto stays out of the money flow
Pacto never receives, holds or forwards mission payments.
It takes no commission on what the freelancer receives.
A program does not close on a debt
The company can stop publishing new missions. The program however remains in settlement as long as Balances are open.
Neutrality works both ways
An alleged fraud follows an adversarial procedure and cannot be decided by the company alone.
A deliberate under-declaration or an abusive accusation is also a serious breach.
The risk exists. It must be understood.
Pacto does not turn a claim into a guaranteed payment.
If the company generates little or no revenue for a long period, the settlement of the Balances slows down or stops.
Pacto is neither the company's guarantor nor a guarantee fund. In case of insolvency, everyone's rights are exercised within the limits of the applicable law.
The protocol advises freelancers to devote only part of their activity to Pacto programs. As a guide, two to three days a week, while keeping missions that bring immediate income.
What Pacto never promises
- A rate automatically equal to 3 times the usual rate
- A minimum number of missions
- A guaranteed date for settling the Balance
- A financial return
- A payment guaranteed by Pacto
- A mandatory conversion of the Balance
- A risk-free system
The guarantees provided for members
Permanent access to the Balance
Each member can consult their Balance and history as long as an amount remains open, including after leaving or after the suspension of the company's account.
An assignment whose price is in the Balance
The economic rights on the deliverables are assigned to the company as they are created, to the extent needed for the agreed use. The price of that assignment is included in the Balance.
The freelancer's moral right remains inalienable, and the company grants them a free licence to present their work, excluding confidential information.
No end of program without clearing the Balances
A company can only end its program after clearing its debts towards each freelancer: paying the Balance in cash, keeping the Balance open until it is fully settled, or converting it into rights with the freelancer's express consent.
The route chosen is agreed with each member concerned. Pacto is not a party to that contract: it never holds the sums exchanged and does not act in place of the members.
The documents handed over before signing
The rules specific to a program are set out in the documents handed over before signing: the contract, its annexes, its parameters and the options enabled, such as converting the Balance into rights.
No commitment is added to what they contain: what a program provides for is read in those documents, before any commitment.
These mechanisms reduce the risk without cancelling it. They never amount to a payment guarantee given by Pacto.
Roles that do not get confused
The company
It organises its program, chooses its freelancers, signs the contracts, declares the required data and makes the payments.
It remains solely responsible for its activity, its contracts and its obligations.
The freelancer
They operate through their own company, choose their missions and organise their work freely.
They remain responsible for their social, tax, accounting and insurance obligations.
Pacto
Pacto publishes the protocol, provides the tool and the templates, keeps the Register and ensures the neutral application of the rules.
It guarantees neither missions, nor income, nor payment, nor commercial results.
The ambassador
The ambassador recommends the system and makes occasional introductions.
They do not negotiate contracts, never sign on behalf of Pacto, receive no funds and promise neither missions nor returns.
Their possible remuneration is paid by Pacto on the basis of recorded referrals and actual collections. It never comes from recruiting other ambassadors.
Leave freely, honour what remains due
A freelancer can leave a program under the notice period set in their contract.
Their departure does not erase their Balance. It continues to be settled and their access to the Register is maintained.
A company can stop the active phase of its program with no exit fee. It can however only close it once all Balances are brought to zero.
Bringing a Balance to zero can result from a payment, from continued settlement or from a conversion freely agreed with the freelancer concerned.
Any conversion requires a separate agreement. It remains optional and carries no guaranteed return.
You know what you gain. You know what you accept.
Before any signature, each party receives the documents applicable to their situation: program regulations, parameters, framework contract and any annexes.
Take the time to read them and, if necessary, have them reviewed by your own advisers.
This page presents the general workings of Pacto. It is neither a contract nor legal, tax, accounting or financial advice. In case of discrepancy, the signed contracts, their parameters and their annexes prevail.