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Freelancers (web developers) - How do you handle payment from clients?

by bugzy
5 replies
How do you handle payment from direct clients? Let's say first you'll do a project for a certain client.

I wonder how you guys are handling the payment.

Will it be 100% payment 1st?
an upfront payment of 50%?
or payment after the job is done?

Seemed like there's no standard when it comes to freelancing.
#clients #developers #freelancers #handle #payment #web
  • Profile picture of the author Adie
    Depends on what site you are using. Most freelance sites have escrow feature. Freelancer.com have milestone payment. Always use escrow to ensure security..
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    • Profile picture of the author bugzy
      Originally Posted by Adie View Post

      Depends on what site you are using. Most freelance sites have escrow feature. Freelancer.com have milestone payment. Always use escrow to ensure security..

      Just to be clear I'm talking about direct clients and not clients that came from third party website like elance.

      Problem with that is, some clients doensn't have escrow account and mostly everyone are using paypal as the payment option. The problem with paypal is they always tend to protect the buyers even if us seller delivered properly their order.
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      • Profile picture of the author John Romaine
        Originally Posted by bugzy View Post

        Problem with that is, some clients doensn't have escrow account and mostly everyone are using paypal as the payment option. The problem with paypal is they always tend to protect the buyers even if us seller delivered properly their order.
        If the majority of your customers are using Paypal, and this is a viable payment solution that suits you and your business, then implement it.

        Just be sure to clearly outline your terms and conditions (especially payments, refund policies etc) before taking clients onboard.
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  • Profile picture of the author ilee
    It's up to you at the end of the day and depends how much risk you're willing to take. Are you building a site for the clients or renovating their one?
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  • Profile picture of the author John Romaine
    Originally Posted by bugzy View Post

    I wonder how you guys are handling the payment.
    I've just spent the better part of 2 weeks writing a guide on this very subject. (see my answers below)

    Originally Posted by bugzy View Post

    Will it be 100% payment 1st?
    You will typically only receive 100% upfront payment if you're selling packages, not custom designed websites that require intensive needs analysis requirements and documentation.

    Originally Posted by bugzy View Post

    an upfront payment of 50%?
    If you're going to collect a deposit, make sure it puts you at two points. Either a) immediately at break even, or b) immediately into profit. The percentage you collect will be dependant upon your own business systems and the nature of each project.

    Originally Posted by bugzy View Post

    or payment after the job is done?
    You should NEVER receive payment after completing the work. James Schramko covers this extensively. ALWAYS get paid first, then provide the service. This way, youre eliminating any potential non/late payment issues.


    As a final tip - NEVER enter into any form of service (especially web design) with contracts that clearly outline your payment terms.
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