Archive for November 30th, 2011

Dear Danielle: Should I Get Payment Up Front?

Dear Danielle:

I have a billing question. Should I ask for payment up front or after the work is completed? –KH

You don’t mention whether this is for project work or retained services. Either way, I have some advice for ya. 😉

If you’re doing project work, it’s definitely a good idea to get some kind of up-front payment. Here’s how I do it in my business… if it’s under $500, I tend to require full payment upfront. If it’s anything over that, I require 50% upfront.

Remember, you aren’t a client’s bank and they need to have some skin in the game. They’ll take you and the work you are doing for them more seriously. Plus, getting at least some payment upfront will not only help mitigate your losses should you end up with a dead-beat client, but it will help avoid working with flakes in the first place.

When it comes to providing ongoing support work, clients are usually charged an upfront fee called a retainer. By it’s very nature, it is upfront because they are retaining your services in an ongoing relationship and guaranteeing your time and their place on your roster. There is no deposit or 50% when it comes to retainers. It’s in full, upfront.

Here are some older posts related to this topic that I think you’ll find useful as well:

Help! Client Not Paying!

How to Avoid Getting Stiffed on Payment

You want to also check out these categories on my blog here:

Billing
Getting Paid

Hope that helps!