Deposits and Up-front pay

[AZ Mommy]

Hi ladies,

When dealing with private clients do you usually ask for a deposit or for payment up-front? Have you had any clients decline to pay anything up-front?

I am in talks with a potential new client to rewrite 40 pages of web content with a quoted project price around $700. In my last e-mail I requested a 50% deposit up-front before I begin working.

I hope this is not a deal breaker; I really want to do this project/ need the money, but I am not comfortable doing such a large project without a deposit. I haven't been burned yet in regards to payment, but there is a first time for everything.

[luvcamerasnic]

I typically do not, but all of my clients who would order large things like that I have been working with for a long time, or they are established companies. It is fairly common to request this, though.

[anng]

The only times I've asked for 50 percent, I lost the clients. I know many have success doing that, but I don't. I even lost a huge contract for a nationally-known TV infomercial guy because I asked for half up front. Every time, they point out that they don't pay their mechanic or plumber until they've seen the finished product and aren't willing to take that risk.

Now, I work deals like this so that I'll do a few articles first to make sure things are what they're looking for. Then they have to pay me. If they don't, I won't continue working and the work I've done is mine. That system works well for me.

[beanandpumpkin]

For a large project, I would. Typically, I start off with something small with my private clients, and I invoice right away or weekly at first. I'm doing $300-400 of work per week for my largest client right now, and I've been working with him for a few months, so I'm perfectly comfortable invoicing him weekly. A new client called this week with a large volume of work to do, so I did one part (to make sure I was on the right page), and when he approves that, I'll invoice him before doing more of the work.

[ktjones]

If I am dealing with new clients, then typically yes I do require at least half upfront. I don't know them, I don't know how they like to work. This helps protect me in case I do all the work and they run away afterwards.

[Kiernansmom]

Honestly, I would get half upfront. Take it from me; I trusted a client a few months ago and he disappeared. He owes me hundreds of dollars. I have no recourse because I have no phone number or address for him. I'm really not even sure he used his real name. The only thing I can do is find the articles and send emails to the host to get them taken down, which I have been doing, but it's slow going. At this point, I would definitely require some reassurance that the client would pay, whether through a deposit or having him make smaller payments as I complete small portions, such as every week.

Now if the client works with a company, you know the address and phone number, and the company has a good web presence, you might be okay without a deposit. That's my rule of thumb. I need to be able to track them down afterward, or at least send a collection letter or take them to small claims court. I've never done this, but it's a possibility you have when you know all the details of the company.

I know how it feels to wonder if you're going to lose the client over a policy, but trust me, it feels much worse having done the work with absolutely no payment.

[maryalene]

If it's a new client or a big job, I would definitely ask for an upfront deposit and set up milestones. So for example, I might ask for 25 percent upfront, 25 percent at the delivery of the first draft and the remainder upon delivery of any revisions. If it is a larger project, I might bump up my initial deposit.

Maryalene

[cwilson26]

I would get half upfront also. This is what I am doing now since I have been burned three times in the past. No more burning me because if you can't pay so much upfront, you don't get any work from me. That is the way I work now to protect myself.

[AZ Mommy]

Thank you for all the responses. I have really enjoyed reading the different perspectives on the issue. I sent my e-mail with the request for a deposit about two hours ago; I am hoping the client will get back to me today. The waiting is killing me, especially since I don't have any high paying projects lined up for the weekend.

[megank]

I ask for a $50 deposit on any work, and then invoice weekly for the rest. $50 isn't much, but it is enough to feel like a commitment and shows me they are willing to pay. With weekly invoices, I don't get too much work completed before payment, so I don't risk a lot at once.