Upfront payments: how do you handle it?

You have to speak in a way that helps them trust you. You also have to present everything you have for them to verify your legitimate existence such as a professional website, some logos on the website from trusted companies, positive online reviews, incorporation for the state you do business out of, etc.

Spot on!

Earlier this year, I began requiring upfront payments in full. I also raised my rates. While I will still negotiate on rates (only for customers who are requesting regular bulk work), I don't negotiate on upfront payments. It's all or nothing. As a result, I have clients that pay for regular weekly content an entire month in advance, which is very nice.

I've also noticed a rise in the caliber of my clients since adopting these policies. To say the least, the clients that I have now are a lot more respectful of my business and my time. They are also more professional, overall.

One piece of advice that I might share here is that it is easiest to request higher rates and upfront payments at a time when you don't exactly need extra work. A lot of freelancers don't make time to market themselves or search for new gigs until they've lost a client and need to find a replacement. It's at this point that a lot of freelancers are desperate to make up for a loss and will often compromise on rates and payment terms in order to do so.

I advocate the exact opposite. When business is good and you're not starving for new work is the best time to look for it. For one, your confidence levels tend to be a bit higher because it won't make or break you if a prospect doesn't want to agree to your terms. It's kinda like the advice not to go grocery shopping on an empty stomach or without a shopping list because you tend to overspend on impulse purchases. If you set a firm business model for yourself and "shop for new clients" at a time that you can afford to pass on less than desirable terms, you'll be better off in the long run.

As for the original question on how I handle it, I just state my fees and terms. If someone balks at upfront payment, I simply tell them that their offer (whatever it is) doesn't fit my business model. The wording that I've used before goes something like: "I have to decline your offer since it doesn't meet my current business standards, but good luck to you in finding someone more suitable for the work and terms proposed. If I can be of any help to you in the future, please let me know." Stating it this way let's them know that I'm very firm in my own business practices and that I take my business seriously.

It took me a long time to muster the courage to ask for upfront payments (and to raise my rates), but doing so has set my business on a far more steady course.

I agree with everyone else. If they are balking at the payment, then move on. I always get 50% upfront on any work and the other when completed.

I've had many that have me do one job, pay the 50% up front and then want something else done and ask to pay later. I just tell them that in my industry it's standard to be paid for Job 1 in full first and get the 50% for Job 2 before starting any work.

So far, no problems with this method.

Are you saying you don't ever take split payments?

50% upfront , another 50% after the job is done.

I used to... Now I don't. I'm tired of the headaches that come with it. If they don't have all the money, they likely won't in a month either. I'd rather just not deal with it.

Every single time I split payments, there is a problem with it. So I just don't do it anymore. Even 50/50, you have to chase people down, or they think the remaining 50% is enough to be able to push their way into getting a few extras in.

I DID, however, accept payments from someone, took 3 months but also let them know we won't start until everything is paid in full.

Just my preference.

You have an unfounded faith in humanity, if you think no one
is going to take advantage of a 100% refund policy.

Bad, bad idea.

As far as when you tell them , you don't need to.

You simply say ... it's X amount of dollars, go grab your credit card,
or check book.. whatever your (PeacefulCalamity)'s preferred form of payment is.