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Do I need a contract

by 9999
9 replies
I am a new member here so please bare with my question.

I will be contacting potential clients, that dont know me, via email. I will be offering them a service say that costs $500.00(it can be lower or higher).

I will be outsourcing this service, say the outsourcer cost is $250.00 and they want to be paid right away.

I am not sure how to handle this situation because I cold called/emailed this potential client but really they dont know me and if I ask for a deposit for the work they may think it is a scam.

I am worried if I dont get a contract or deposit, then pay this outsourcer out of my pocket, this potential client can just walk away from the deal and I am out the $250.

How would you handle this situation?

One a seperate note, I do have a paypal account but if someone wants to pay me how do I accept payment?

Thanks.
#contract
  • Profile picture of the author Paul Fernandez
    Unfortunately that's part of business. I do a lot of business with customers overseas and I always lay things out so they understand the total costs of the work being performed. However, I only charge them a small amount upfront, usually less than $100 or so just to know they're committed. And then after that, I provide the work in "pieces".

    This creates less risk on their part and requires that I prove my work with performance.

    If you want your customer to take a risk with you, you have to be willing to take a bigger risk with them.

    That's the only way to grow your business and let customers know you can provide the service you say you can!
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    • Profile picture of the author E. Brian Rose
      Originally Posted by Paul Fernandez View Post

      Unfortunately that's part of business. I do a lot of business with customers overseas and I always lay things out so they understand the total costs of the work being performed. However, I only charge them a small amount upfront, usually less than $100 or so just to know they're committed. And then after that, I provide the work in "pieces".

      This creates less risk on their part and requires that I prove my work with performance.

      If you want your customer to take a risk with you, you have to be willing to take a bigger risk with them.

      That's the only way to grow your business and let customers know you can provide the service you say you can!
      Paul is right on the money here, but to answer your actual question... yes, you should have a service agreement in place with all of your clients. Any exchange of money for services should have a contract, otherwise you are setting yourself up for shenanigans.
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      Founder of JVZoo. All around good guy :)

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  • Profile picture of the author Mike Hill
    Listen to Paul and Brian they are pros at this. The contract protects you and the buyer and makes both of you a little more relaxed per say. It's also a good way to keep track of the kinds of services you agreed to provide and it's good for the customer because they will know the kinds of services you are providing as well.

    A contract is always a good safety net to protect your integrity on a job if the customer were to dispute something at a later time.
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  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by 9999 View Post

    I am not sure how to handle this situation because I cold called/emailed this potential client but really they dont know me and if I ask for a deposit for the work they may think it is a scam.
    Clearly almost nobody will be agreeing to pay you $500 for anything without having a good look at your professional website, which will doubtless state your terms of service? (You wouldn't pay anyone $500 without doing that, would you?). That is, more or less, a "contract" as long as your email agreement with clients states that the terms are as set out on your website.

    Originally Posted by 9999 View Post

    One a seperate note, I do have a paypal account but if someone wants to pay me how do I accept payment?
    How about "by PayPal"?
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  • Profile picture of the author ebusinesstutor
    Yes you do need a contract.

    I often act as a "general contractor" for setting up web sites and Internet marketing programs. I come up with a total amount for the project and I require a deposit from my customer with balance due on completion for small projects or incremental payments based on milestones for larger projects.

    This deposit I charge is more than enough to pay the deposits of the various freelancers and my own as well.
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    Garland Coulson, "The E-Business Tutor"
    Internet Mentorship
    Internet Marketing Speaker
    Internet Marketing Help Blog

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  • Profile picture of the author 9999
    Is a regular paypal account good enough or do I need a paypal payment pro account?

    I have never accepted payment from anyone before, what paypal info would I need to give to my client in order to get payment?

    Thanks.
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    • Profile picture of the author sbucciarel
      Banned
      Originally Posted by 9999 View Post

      Is a regular paypal account good enough or do I need a paypal payment pro account?

      I have never accepted payment from anyone before, what paypal info would I need to give to my client in order to get payment?

      Thanks.
      You definitely need a TOS agreement with your clients and a deposit. If you are using just a personal Paypal account, it most likely will become limited very fast if you use it for business. You need at least a Premium Paypal acct ... business acct would be even better.

      You can send invoices from Paypal. You need to do some more research before you start doing business.
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  • Profile picture of the author MEMORIES89
    Online purchasing is all about sales, and there is not business without risk. You need to risk something to get a start. BUT that does not means that you've to risk most of your pocket.

    BUT look if you're not sure about your sale then its better to get any other solution, and if you're sure that you can convince your client then you might give it a go, now its on your product that how much its been liked by your client.
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    • Profile picture of the author RubenJames
      To paraphrase a line from a Gary Cooper movie I saw a little while ago...

      "Trust in the Lord...but tie up your horse!"

      In THIS case it should be: :rolleyes:

      "Trust in your client...but have him sign the dadgum contract!"

      Ruben
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