Charging clients up-front?

19 replies
Hey all,

I am thinking about my strategy, and for example - if you had a website that you maintained and hosted for a client, and they want a change made that is quoteable work: do you guys charge the money up front and then do the work when you have recieved it? or do you do the work and then invoice and wait for payment?

Just keen to avoid getting burned with non-payments.

Cheers,
Steve.
#charging #clients #upfront
  • Profile picture of the author kenmichaels


    New clients:
    upfront.
    Existing Clients: "in good standing" ... invoice and wait.

    To us, "in good standing" means pay their bills on time, and we haven't had to chase a payment.
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  • Profile picture of the author Site87
    In my business, we normally ask for a % up front, then the rest after completion. It all depends on the job, but usually its 50% up-front, then 50% upon completion.
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  • Profile picture of the author johnben1444
    I advice charging up front, you can then leave the doors open by offering refunds if they are not satisfied with your work.
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    • Profile picture of the author David Miller
      If this is an ongoing client who has paid in a timely manner before, it's common practice to bill additional work on a net 10 or net 15 basis. This shows your good faith in them as a regular client.
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    • Profile picture of the author Rus Sells
      That's just silly! If you provide a service which requires man hours spent delivering it you should not be leaving a door open for refunds.

      That's a sure fire way to be out of business very fast! Especially if you leave it up to the customer to make any excuse on why they aren't satisfied.

      If you can't control Google and how they decide to rank a site, why on earth would you offer a money back guarantee?

      We can't even guarantee results because we can't sit there and make people click through to a site, pick up the phone and call, or submit an email address.

      Does this mean what we do doesn't get results? Nope it just means we aren't in control of the web users.

      Originally Posted by johnben1444 View Post

      I advice charging up front, you can then leave the doors open by offering refunds if they are not satisfied with your work.
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  • Profile picture of the author Local Jake
    Charge a set-up fee (25%?) and then invoice them monthly using an automated system like Freshbooks.com!
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  • Profile picture of the author getboris
    I charge upfront whether it is a web design, video production, seo work or content creation or coding.
    First, I talk to client over the phone and write down what client wants (people call me). Some may talk about marketing goals they have or a product idea, some tell me what they want their site(s) to look like, functionality, etc. Then I tell them to wait a day or two for my reply and I send them a proposal and we get on the phone where I in details explain what would work best for them and why and give them my quote and also request money upfront, even it is a recurring client. I explain them that I have to manage my time because of the workload and only can start on their project when money is in the bank. Only a couple of times I had people tell me "ok, I will call you later."

    Actually, its a good thing because if someone is shopping around and not sure what they want I would rather not have them as my client. Now, all of my clients are referrals, so I guess it is easier for me. It allows me to be selective, I tell my clients upfront that I am very busy, which is true. I haven't had the time to update my own site for over a year.

    Even if you just starting, you would have to be selective because bad clients is bad business. Being polite and most importantly sharing the knowledge and helping people by offering your experience should bring you clients you want because people who want to succeed online prefer working with someone who knows what they are doing even if the price is higher, this is my experience.

    Hope that helps.
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  • Profile picture of the author andrewrasel
    Up front is a statement of a work. it also proved that the client have sufficient balance to complete the work. 25% upfront is more for any work, i hope.
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  • Profile picture of the author FreeLeadsKING
    StevieJK - To date we have only done 50% deposit and balance upon completion or Net30 depending on the services. It works well for us.
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    • Profile picture of the author NoQuarter
      Ironically i was thinking of a direct opposite - charging after 100% completion.

      May sounds mad I know but it definitely remove any fear from the client. Especially from those just starting with online presence.

      Sure some will simply take advantage of it, but most of the people - especially business owners (hey they probably wouldn't be business owners otherwise) are rather honest and the sense of guilt will force them to pay.

      And beside - if they see results - they will most likely want to hire you for even more work.
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      • Profile picture of the author kenmichaels
        Originally Posted by NoQuarter View Post

        but most of the people - especially business owners (hey they probably wouldn't be business owners otherwise) are rather honest and the sense of guilt will force them to pay.
        Uhmmm, that's pure fantasy.

        Yes, a SMALL % will be scrupulously honest.

        However the rest... Well lets just say, guilt isn't going to force them
        to do anything. So your business will go down the tubes
        and your kids will go hungry while your waiting on that pipe dream.
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      • Profile picture of the author getboris
        Originally Posted by NoQuarter View Post

        Ironically i was thinking of a direct opposite - charging after 100% completion.

        May sounds mad I know but it definitely remove any fear from the client. Especially from those just starting with online presence.

        Sure some will simply take advantage of it, but most of the people - especially business owners (hey they probably wouldn't be business owners otherwise) are rather honest and the sense of guilt will force them to pay.

        And beside - if they see results - they will most likely want to hire you for even more work.
        Oh jeez... What you are not taking in the account is the competition. Many people shop around, change their mind, forget, get busy with something else. What you want is a commitment. No payment - no commitment. It's that simple. Besides having respect for your clients you have to have respect for your business. Working for free and hoping that you get paid is a sign of weak salesmanship. Sorry, don't mean to be harsh here, but this is something you really have to learn.

        As far as removing fear from the client. Now what makes you think they have fear? If you manage to instil fear in them - that's your shortcoming. If you project confidence they wouldn't have any fear. If a client asks me whether I can handle the project I show him/her my previous related work and if they are not sure, I simply tell them to shop around. In most cases they come back because when I talk to them I address THEIR issues, not just trying to "capture" them. Getting clients is about them following you, not the other way around.
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  • Profile picture of the author StevieJK
    thanks guys. looks like charging a percentage up front is the most popular. thanks everyone!


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  • Profile picture of the author Amsterdam81
    if you're offering services typically webdesigns, I do agree with some posts above

    new clients: upfront (if its a websites like service), 50-50% if its a SEO kind of services

    Ultimately recurring clients (in good standing): you could either way ask them directly to pay via payoneer.com or invoice them and wait
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  • Profile picture of the author beeswarn
    Beginners take note:

    When you offer custom work to businesses, you are offering to engage to work as a contractor. They expect you to ask for a deposit of 50% to begin the work and to tell them that you will collect the balance upon completion -- just like any other contractor does.

    When you don't do that, they will have second thoughts about hiring you because you've shown them that don't know even the basics of doing business. If they still hire you anyway, you may have difficulty collecting any balances owed you for the same reason.
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    • Profile picture of the author iAmNameLess
      Originally Posted by beeswarn View Post

      Beginners take note:

      When you offer custom work to businesses, you are offering to engage to work as a contractor. They expect you to ask for a deposit of 50% to begin the work and to tell them that you will collect the balance upon completion -- just like any other contractor does.

      When you don't do that, they will have second thoughts about hiring you because you've shown them that don't know even the basics of doing business. If they still hire you anyway, you may have difficulty collecting any balances owed you for the same reason.
      I charge 100% up front.

      Although, there are circumstances where I reduce that and go to the 50/50 thing.. but I try to get it all whenever possible.
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  • Profile picture of the author beeswarn
    I agree that full payment at time of purchase is best for standardized products or services.
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  • Profile picture of the author Saito
    Go for 100% up front and if it doesn't work, settle on half up front, half upon satisfactory completion, which is pretty standard for every contractor I've ever hired.

    Get SOMETHING up front to cover your costs or outsourcing the project, then get it done ASAP for the backend payday. You deserve money up front and I am suspicious of people who won't pay at least something.
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  • Profile picture of the author Simoshere
    I follow Andrew Cavanaugh's philosphy. "Get enough money upfront so that even if you NEVER get paid another dime you'll be sastified."
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