How To Get Paid On Time As A Freelancer Or Small Business
RE: UNPAID INVOICE! So many freelancers, bloggers, and small businesses experience unpaid or late invoices. Not only is it annoying (and rude), it can lead to more problems down the line and a lot of unnecessary stress. When you put your heart and soul into your work, it can leave you feeling used and angry, not good.
Here are two pricing models that we swear by, they work for us and so many others who are freelancing/running a small business!
Freelancer Pricing Models
The 50:50 - For Shorter Projects
50% to book services (nonrefundable)
50% before handing over the deliverables
The 50:25:25 - For Longer Projects
50% to book services (nonrefundable)
25% halfway through
25% before handing over the deliverables
The deposit
A 50% non-refundable deposit secures a spot in your calendar - you're running a business and you want to work with dedicated clients. If clients are willing to pay their deposit, they are taking you and their investment seriously - it’s a good sign and will often demonstrate a good working relationship. It also means you have security if they drop out, they have secured a spot in your calendar so you are potentially turning away clients who would have booked that time up, it creates a dedication for both parties.
the half way through
25% halfway through means you can have a consistent income and not experience big gaps in your payment schedule. Sometimes, projects can take weeks if not months to complete, adding a 25% payment half way through means you have regular money flow and you won’t be left hanging for that last payment to come through!
The Final
This is probably the most important payment, it gives you the control as a freelancer - unpaid invoice? undelivered services. Do not feel pressured to hand over the final files/deliverables until you have been paid, it protects you should the client not want to pay on time!
This method allows you to remain in control whilst ensuring that those booking with you are serious about it. Everyone hates talking about money, but setting out expectations and deadlines before you begin means you can work without stress and frustration when it comes to payment. It also lets the client know what is expected of them, it helps create an organised and professional relationship, win-win!
