Mellow offers two products for working with contractors: Contractor Management (CM) and Contractor of Record (CoR). Both let you pay contractors around the world and automate your document workflow, but the two are built on fundamentally different structures.
The right choice depends on the country your company is registered in, where your contractors are located, and the level of legal protection you need.
If you’re not sure which product fits your company, three questions will help you decide:
Which country is your company registered in?
Which countries are your contractors located in?
Do you need full protection against misclassification of the relationship, or IP rights transfer?
Contractor Management is the better fit for companies registered in Europe, the US, Canada, Brazil, and Mexico.
Contractor of Record works for companies in almost any country in the world (with a few exceptions, including Russia and Belarus).
Contractor Management is a good match when your contractors are in countries without payment restrictions.
Contractor of Record is the right choice when your contractors have limited access to payments.
Contractor Management gives you the tools to manage a team of contractors without an extra legal layer. Contractor of Record suits businesses that need protection against misclassification of the relationship and compliance with local labor laws.
CoR is also the right choice for teams that need IP rights transfer, NDAs, and the Talent Mask feature, and for companies that connect through the API.
In Contractor Management, your company signs a direct agreement with the contractor (rather than with Mellow, as is the case in Contractor of Record). That’s why the closing documents show your company paying a specific contractor.
The pricing is a flat fee of $35 per active contractor per month. The amount doesn’t change with the number of payments – you’re billed once a month. In Contractor of Record, the service fee starts at 3.5% on each payment.
You’ll find more on how Contractor Management and Contractor of Record differ below.
How the Products Work
The diagram below shows how payment flows and document workflow are organized in each model.
Contractor Management (CM)
Contractor of Record
Still have questions?
Write to us at [email protected] – we’re happy to help.