Thoughts on clients paying after they receive the service?

by NBSEO
25 replies
I've been wondering what the typical practice for this is.

When you provide a service, do you require payment before or after you deliver the service?

It doesn't happen often, but I've had a few clients now request to pay after they receive a writing service.

They seem like upstanding companies in North America. What do you guys think? If you require payment upfront, how do you typically word that?
#clients #paying #receive #service #thoughts
  • Profile picture of the author travlinguy
    Payment up front. Always. That is until you build a solid reputation with them. Then it's payment up front, still.
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  • Profile picture of the author TheRockstarWriter
    I'm a middle of the road kind of dude and have thresholds before certain things are done for the client.

    10% before setting up a meeting and hashing out all of the requirements and details for the project. Even if things aren't settled and the client decides to go in a different direction you are still compensated for your time and the insight that you gave to the piece. (Penny per word writers: this isn't practical for you since what you'd be paid won't be worth the time you put in.)

    20% before beginning the information gathering process. Things like personal research, interviewing the client, finalizing an outline and gathering supplementary things I think I will use (photos, videos, etc.).

    20% before beginning to write the first draft. You'll notice that I've now collected 50% of the quoted price before beginning to write the actual article. Once the first draft is completed the client and I will go back and forth as needed to identify any changes that need to be made.

    25% before making those corrections. Also, that supplementary info isn't added in yet. That gets put in after this threshold as well. [A bracketed statement like this acts as a placeholder as well as a general idea of what that media will accomplish when inserted.]

    25% due when the article is turned over.

    I've had limited interactions with online freelance writing; but the system has worked fairly well so far. From what I have researched about other writers though this doesn't seem to be the normal way to do things. To each their own.
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  • Profile picture of the author Victor Edson
    It sounds like the kind of client not worth dealing with. Pay for it don't, no need to break arms.
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  • Profile picture of the author Raydal
    When a project runs in the thousands then a partial payment upfront
    is the standard for any service type business along with an agreement
    or contract. For a service below $100 then upfront payment is pretty
    much the standard. If a potential client squirms at paying upfront for
    articles then I would not deal with them. What are you going to do with
    articles you have written at the request of one client? Of course you may
    be able to sell them but these mean you have to find a customer (advertise)
    which still cuts into your profit.

    So for articles it's always upfront payment except they are paying for a package
    deal that run over $1000.

    -Ray Edwards
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  • Profile picture of the author John J M
    As a writer, you should be ready to provide at least a sample or first assignment before the first payment. After that, you can require it upfront. Both sides are relying on trust, so that has to be built by time.
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    • Profile picture of the author ErinWalsh
      Originally Posted by John J Rivers View Post

      As a writer, you should be ready to provide at least a sample or first assignment before the first payment. After that, you can require it upfront. Both sides are relying on trust, so that has to be built by time.
      Agree with this 100%. Meet in the middle and have them pay something upfront as a show of trust. Start with smaller projects and build up the trust before going out on a limb.

      Good Luck!!
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      • Profile picture of the author fmolina2010
        As a freelance writer/programmer myself I'd say you need to protect your work.

        Graphic designers put water marks, software developers put auto-locks, but that's hard to do with written content. So the best option really is to get into a compromise.
        1. show them samples of your work
        2. ask for a 50% upfront payment
        3. the remaining 50% payment on delivery

        This way you are at least guaranteed to get paid something for your efforts. Payment-on-delivery is a WIN-LOSS situation for freelancers.
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  • Profile picture of the author jwmann2
    Any outsourced work I've had done in a variety of online businesses, companies have always said half up front, half after, upon satisfaction. If you've got a store front business, clients should be able to pay after. But not anything online related. Best of luck.
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    • Profile picture of the author Des Lau
      I think it depends on what type of service you are offering.

      I'm 100% upfront always. No question (being in the graphic design field)

      But when we do website development, 50% upfront and 50% upon completion is fair for both parties since it's a longer project.

      For copywriting, I still think you should receive upfront. There is too much risk in your content being lifted and them doing a runner leaving you with hours wasted.
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  • Profile picture of the author Ricardo Furtado
    Go by the simple rule – trust nobody – especially so in the online world. Even if you think you have built a relationship with a client online and you can start taking payments after you have delivered the work – think again. One fine day, you will find that after deliver a truck load of articles – the client has not paid you. Then what???
    All the best. Regards
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    Ricardo Furtado

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  • Profile picture of the author Randall Magwood
    Payment first. Get the money then provide the services.
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  • Profile picture of the author laurencewins
    I am a writer too and I get money upfront for all work. If they have an issue with it, then I don't do the work. It's that simple. I do admit I have bent my own rules occasionally for regular customers but never for first timers.
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  • Profile picture of the author guitarizma
    Banned
    Originally Posted by NBSEO View Post

    I've been wondering what the typical practice for this is.

    When you provide a service, do you require payment before or after you deliver the service?

    It doesn't happen often, but I've had a few clients now request to pay after they receive a writing service.

    They seem like upstanding companies in North America. What do you guys think? If you require payment upfront, how do you typically word that?
    Yes, you require payment upfront - no matter if the client's a corporate or a "fundless" wannabe John Chow!

    How do you word it?

    If its the client who approached you for work, the 2nd email from you should clearly define your working terms - the first one being the "what do you need and thanks for considering me" email.

    It gets a bit more difficult if it's YOU who approaches the client in reply to an advert or just a forced application.

    Almost always the client requirement gets discussed first! Wait for him to pop the question. If he doesn't, just tell him "I hate to discuss money, but would have to now so I can always maintain the quality I'm known for and my deliverables don't get affected".

    If it's a $100 deal, tell him "I'd accept 100% upfront via paypal and in case of any discrepancy either party can seek help from the Paypal resolution desk. Your money and my work - both would be safe".

    If its a $5000 deal, its best to chose a pay as you go plan and a written contract works best. He'll pay upfront for a week's work, you'll deliver and then proceed to week two.

    Caution: Never Ever fall for the "my secretary is absent today so I'll pay you tomorrow morning" trap!

    Hope that helps!
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  • Profile picture of the author NBSEO
    Thanks for all the feedback guys! I always provide samples in PDF format. I understand how both parties are a little nervous at first, but I would hate to spend hours on a project and not get paid.

    I'll try and come up with a tactful way to deny clients who suggest payment afterwards.
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    • Profile picture of the author GeorgR.
      Originally Posted by NBSEO View Post

      Thanks for all the feedback guys! I always provide samples in PDF format. I understand how both parties are a little nervous at first, but I would hate to spend hours on a project and not get paid.

      I'll try and come up with a tactful way to deny clients who suggest payment afterwards.
      If you still dabble with $4 "article writing" on outsourcing sites, this is EXACTLY the type of clients you will get. Those clients for whom $10 for an "article" is already too much. Those clients who not only pay $4 for an article, but ALSO want you to write in advance etc.

      There is no reason whatsoever to work for them "for free" based on an assumption that they MIGHT perhaps pay after delivery. In the same way as I cannot go in a store and by food/drink today and tell the clerk I will pay the next days.

      Irony: The few times where I worked for someone based on "trust" I badly, badly fell onto my own nose.

      A customer who has problems paying for your service or doesn't want to pay in advance is already a potentially problematic customer, in the same way as a customer who is only willing to pay, say, $5 per article is already a potentially problematic customer.
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  • Profile picture of the author JRJWrites
    100% now. Always.

    Unless, the project is a HUGE sum - in which case you would probably be better off with a 50% in the beginning, 50% upon delivery.

    With such orders, when you deliver, make note that the person canNOT use it unless full payment is made - otherwise, he/she will be in copyright infringement, since you retain rights until full payment is made.

    Here's a "tactful" way to say it:

    "I appreciate your concerns, but I require 100% upfront pay on orders less than ____. All my clients have decided to deal thus with me, believing in my integrity. If you don't like this proposition, then hit the back button on the website and find another writer."

    How's that for tactful?
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  • Profile picture of the author TimothyTorrents
    I charge a minimum of 50% upfront.

    If the client can't agree to that then I simply find a new client.

    Most people will be happy to pay a percentage upfront.
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  • Profile picture of the author Rose Anderson
    I also do 50% upfront and 50% when project is sent. I've only had two issues of not receiving final payment. But that was enough to make me reconsider. I may change to 100% upfront payments.

    Rose
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  • Profile picture of the author GeorgR.
    Originally Posted by NBSEO View Post

    I've been wondering what the typical practice for this is.

    When you provide a service, do you require payment before or after you deliver the service?

    It doesn't happen often, but I've had a few clients now request to pay after they receive a writing service.

    They seem like upstanding companies in North America. What do you guys think? If you require payment upfront, how do you typically word that?
    ALWAYS upfront, except in cases where I know a client for a long time and we set up a subscription or similar.

    Also..for "large" projects, say ebook writing...also a certain percentage like 1/3 or so upfront.
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  • Profile picture of the author NicoleBeckett
    Always get the money upfront. I've dealt with a few "upstanding companies in North America" who I billed at the end of each month -- and, inevitably, they wound up falling behind on their payments and eventually stopped paying altogether. Now, everyone who places an order with my company pays 100% upfront. The vast majority of people have absolutely no problem with it. As for the very few who do, I have to wonder if they were planning to rip me off all along!

    As far as having a tactful response, just be honest -- the bad apples out there have ruined it for everyone. Most people who work on the web will get it!
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  • Profile picture of the author Shane N
    Let me start off by saying that I agree that getting paid UPFRONT is by far the most ideal way to go about it.

    Although I am [pleasantly] surprised to see how many people collect 100% upfront, even for design work.

    I think anywhere between 25% - 100% upfront is completely fair.

    Both parties are protected to a certain extent in this case, not just the buyer.

    If a freelancer takes money and then doesn't deliver, there is usually recourse for the buyer (chargebacks, disputes, etc. since transactions like this are very rarely paid in cash) and on top of that, the reputation of the freelancer would be tarnished.

    You can only stiff someone once. Creating long term relationships with clients is a much better business model.

    That's what I tell prospects when they are reluctant to pay upfront or a partial upfront payment. If they don't want to compromise in order to allow both parties to feel secure, then like others have said here: They're not worth doing business with.

    Best,
    Shane
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  • Profile picture of the author sbucciarel
    Banned
    Payment up front. Period. If they don't accept that, they can go elsewhere. There's been plenty of stories on this forum, especially from writers who wrote the articles and delivered them and never got paid.
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  • When working with freelancers on sites like eLance or oDesk, we normally setup terms to be split in thirds. One third up front, one third in the middle at a major milestone, and the final third at the final delivery. For contractors that we work with on an ongoing basis, they almost always bill us at the end after the hours have been submitted.

    For creative work where you are delivering files, or even application code, I'd request payment up front.
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  • Profile picture of the author meepo
    Percentage up front, remainder on the backend. Has worked well for me in the past.

    Like 50% up front, 50% on completion.

    Or 30/70

    Or even 25/75

    (I was doing websites, mobile web apps, and PHP programming)
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