Does every ask for money upfront when doing a project?

by P1
24 replies
I noticed a lot of people are turned off when you ask for funds upfront they seem to not trust you especially if its a deal where you never met that client.

How does everyone deal with this? Do you just completely deny all the work and move on?
#money #project #upfront
  • Profile picture of the author Rus Sells
    I never start any work without getting a deposit as a minimum. You set the terms of the agreement, not the client. If they are uncomfortable giving you a deposit, examine yourself first.

    I dealt for many years in an industry who's standard practice was to invest thousands of dollars of work before getting paid anything.

    One day I decided I didn't like that model and started getting 50% deposits, at first I thought it was crazy because how could I make a sale if I ask for money up front and all my competition does all the work first with no money down.

    I did it anyways and overcame my worry, then I realized that clients would just do it my way if that's how I wanted it, so I changed my perception and had no problems getting deposit money.
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    • Profile picture of the author The Content King
      I usually allow clients to pay me 1/2 up front. But I also make it a point to communicate with my clients every step of the way throughout the entire project completion process so that they know that I'm toiling away.

      Be as transparent as you can from the beginning, keep the client involved every step of the way and you'll find that clients will ease up on the trust issue very quickly.
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  • Profile picture of the author SubUrbanHype
    I've been starting to ask for a deposit up front, or else I will walk away. Because when I was doing all the work first then asking to get paid when I was done, I usually never got paid, because they weren't that serious.

    A friend of mine told me: "A good way to weed out bad clients is to ask for money down, or pull out a contract/agreement."

    Been following it ever since.
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    • Profile picture of the author P1
      Originally Posted by SubUrbanHype View Post

      I've been starting to ask for a deposit up front, or else I will walk away. Because when I was doing all the work first then asking to get paid when I was done, I usually never got paid, because they weren't that serious.

      A friend of mine told me: "A good way to weed out bad clients is to ask for money down, or pull out a contract/agreement."

      Been following it ever since.
      Great quote to live by.
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  • Profile picture of the author SmileKenya
    as a standard rule you may not ask for a deposit if you are new to the job, but after one job and you are paid, you already have a reference, all other new clients should pay 50% deposit
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  • Profile picture of the author aemor
    Depending on your agreement, if it is okay for the client then you can ask, but more often than not, if you new to the business, I don't think they willgive you upfront payment.
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    • Profile picture of the author Goldenboy
      Before, I usually accepts task without an upfront and I learned my lesson from having that policy. I accepted payment after I finished the task and one client requires me to write and do re-writes of articles with words ranging from 300-500 per article. I delivered the task before the deadline that he sets and after I sent him an email that my work is finished, there was no reply and that when I calculated my total output, the amount totals $145. Until now, I haven't heard from him and probably will never be. From then on, I was asking for upfront to make sure that I would be paid accordingly with the task that I have to work with.
      It's not that I don't trust clients, but because of what happened, I decided to ask for upfront to make sure that clients are serious in their job postings. However, I have also a client that I do not impose asking for upfront because I have been working for him for a while and he does appreciate and paid me accordingly.
      Asking for an upfront is not the idea that people who render their services do not trust clients, it's just that they have to make sure that they will be paid and the clients are serious of paying them. It is difficult to chase these clients and asked them for your pay.
      In the end, the deal is up to you and your client.
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  • Profile picture of the author simranjeet singh
    If you want to be secure about your payments, then go for upfront money. Make it a rule before you start any project.
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  • Profile picture of the author Michael Clough
    It's important to learn to "how to ask for money".......I don't work for free.....never have, never will.

    Every business owner knows you are going to ask them It's your job to convince them that you are trust worthy.

    After a while, you'll build up a portfolio and have references.
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  • Profile picture of the author Richard Groom
    In my line of work it is very common to ask for some money up front, usually to pay for initial costs such as materials etc. Quite often its half upfront and half on completion of the work...its basically a trust issue on both parts!

    Some sort of compromise is normally what happens!
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  • Profile picture of the author Mutiny
    They may balk a little less if you have them sign a Service Agreement when you collect the deposit. The Agreement should outline the terms, who provides what (you and the client) as well as any payment schedule. That way, there funds are secured with a legally binding document. Any legitimate business owner should have no problem giving you a deposit with a contract in place.

    If they still don't want to give you cash up front, it's likely you would have a heck of a time collecting any once the job was done. If they still don't want to give it up, move on.
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  • Profile picture of the author driven247
    If I am doing web design or mobile webdesign I usually have some type of sample or mock up to show them. This is somehthing very generic that would take me only 20 or so minutes to put together. I feel that this puts alot of business owners at ease because you are showing them that you already put some work in before getting any money. Therefor they don't give you any problems when asking for the deposit or full upfront payment.

    But it is very good advice to get good at telling them - not asking - that they have 2 options. You take 50% upfront and the remainder when it's done or the full payment upfront.(period). Not to sound too blunt but I really never have any problems with this. I truly believe it's all in your mindset. If you are not comfortable asking for the money they will not be comfortable giving it to you.

    Justin
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    • Profile picture of the author ronr
      I always ask for money upfront.

      If they don't want to pay all of it then at least 1/2.

      If they don't want to pay anything upfront I move on.

      Ron
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      • Profile picture of the author lerxtjr
        Whatever you don't get paid up front you will spend in labor time trying to collect the remainder. Tell your clients you get paid everything up front or you can divide the project into phases....for which you will also get paid up front before each phase begins. When they ask, "Why do you do it that way?" Just say, "Because I like to just get past the money part and focus on the project." Works every time.
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  • Profile picture of the author Jay Moreno
    i learned the hard way a very long time ago that not getting at least a down payment was a very bad idea! lol

    after getting burnt once i learned pretty quick to get a least half up front - even doing that i have had times when its been an absolute pain to get the 2nd half... right now if the project is less than a certain amount its all money upfront. Elsewise i will say yes you can make split payments but there is an xx% surcharge... if they dont like that thats fine i am in a position to pick and choose my clients they can find someone else - if they want to go with that option at least its worth my while...
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  • Profile picture of the author mikeroosa
    I learned the hard way as well. You are the owner so you make the rules. I won't work with anyone that doesn't pay at least 50% up front.

    One guy called on a Friday and needed a 1 page site up by Monday morning. He said he needed a full site at the end of the month, and he'd do that through me if I did his one page. I told him I'd do it for $100. I worked on it for about 2 hours on Saturday night and got it done. Uploaded it Sunday then he changed all his ftp / server passwords and still hasn't paid me. He told me how happy he was and that he just needs to get his business banking set up.

    Had another guy pay me to post on craigslist. I outsourced it and billed him after 2 weeks. $120. He said he didn't get any calls so he wasn't paying.

    Never again do I work without payment up front. I'm still trying to collect on both of these guys.
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  • Profile picture of the author scarab
    OP, do you want to get paid? The get some money up front. I usually asked for 1/2 to 2/3rds up front.

    Why... the client has to put some skin in the game and they usually don't backout with $$$ invested as long as you are making progress.
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    • Profile picture of the author goldie22
      It's always best to get all or at least 50-60% up front. Having a contract should help put them at ease. Also when it comes to things like websites I would load the site on my server to show them, and not upload it to their server until I was paid in full. If I'm hosting it for them, that's not an issue since I would have control of it. Another good reason to always try to have them get hosting thru you.
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  • Profile picture of the author Jay Moreno
    i never put anything live on someone elses server without full payment - if the site is to go on someone else's server... lets just say in the past i have gone that extra step and added in some security features that protects me in the event a payment is reversed for whatever reason - bottom line i dont waste my time and i dont work for free!

    I once waited 9 months to get paid final payment - just cos someone makes a large down payment doesn't mean anything... and is no guarantee they will pay on completion...
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  • Profile picture of the author P1
    Great advice guys!

    Just had another person back out because they don't want to pay a percent upfront.. Maybe its because its from Craigslist and everyone is afraid of scammers, not sure if this would happen in real life if someone was interested.
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    • Profile picture of the author Jay Moreno
      Originally Posted by P1 View Post

      Great advice guys!

      Just had another person back out because they don't want to pay a percent upfront.. Maybe its because its from Craigslist and everyone is afraid of scammers, not sure if this would happen in real life if someone was interested.
      Are you working from home or work from an office - I found when I got myself an office I got a complete change of attitude from people, people where at lot less hesitant to pay I guess they see you as being more established and a place to "find you" as your perhaps less likely to do a runner! Lol
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  • Profile picture of the author James English
    Just echoing what most others have said. Just this past week I did some work for a company. Its a nationwide company, you probably have one in your local mall. I say this to show that it doesnt matter how big or small the business is.

    I finished the work for him about a week ago. Prior to doing the job he was on the phone with me EVERY day making sure I would be there at the right time because they were on a strict time-table.

    A week later, the store manager has signed off on the completion of the job, but the corporate contact I was working with has failed to return even one of my calls or emails since the job was finished. There isn't a chance from here on out that I won't require 50% up front. If someones not willing to pay that, its not worth working with them anyway.
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    • Profile picture of the author ronr
      Another thing to try is to get at least partial payment upfront and have them agree to the balance when project is completed. I have their credit card for the initial payment so I can automatically charge them when the job is completed.

      Spell this out in a simple agreement they sign upfront.

      Of course this only works if you have a merchant account. I'm fortunate that years ago a found a good one that works with people doing IM and offline marketing.

      Ron
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  • Profile picture of the author atrbiz
    I will NEVER work with a client unless they pay a deposit. Do you really want to risk not getting paid and have to chase someone down because they owe you money. Not very efficient IMO.

    Or that could be the start of a collection agency

    - Ahmad
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