The title paraphrases what I was asked by another freelancer to touch base on my blog. How sure can a freelancer be paid when they accept jobs?
The majority of my friends who are freelancers have adopted a 50/50 policy. Fifty percent of the project amount is paid at the beginning to secure the fact that the client is serious on starting. The other half is given when the project is signed off on – for those who do not know what that means: when the project has been done and the client is satisfied enough to agree that the job is does.
However, there in lies the problem. Can a person be guaranteed that they will be paid the last half?
A few years ago this was a big problem, but because of social media, if a client or a freelancer wants to become reputable, they have to honor the contract that was agreed upon. Regardless if it was by word, or email, or an official contract, it is a binding contract.
A freelancer will come in contact with dubious clients, and eventually develop a policy in which they know if someone is serious about becoming a client and will follow through.
The 50/50 policy will at least assure that the freelancer will be paid for at least some of their work. It is up to the freelancer to be cautious and make sure to set up a good method in keeping communication open with the client.
Freelancing can be a risky venture, but it is important to learn from the bad transactions and move on. The great thing is that the freelancer can share with others on the social network streams if a client has not held up their end. Today, reputation is becoming big for companies.
Are you a freelancer? What kind of policy do you have with clients? Have you ever had a problem being ‘stiffed’? – Share your story…
Hi Nile,
I have freelanced online for 5 years now and fortunately have never been stiffed only because I freelanced through vWorker (formerly Rentacoder). vWorker requires clients to pay 100% escrow first before hired freelancers begin work. It also provides free in-house arbitration in the event there's a dispute.
I really can't imagine working online without vWorker or a similar model. It's escrow and arbitation service is simply golden and it's also why I won't ever freelance through any other site. If you haven't looked into it, I strongly recommend it.
-Nicole
People are going to have a mix of results working with freelancers and freelancers will have a mix of results with clients. Some of each are going to lose money in the process. The goal is to weed out the dead beats from the legit business partners. You will have to chalk the bad experiences up to the cost of doing business.
My recent post Becoming A Freelance Writer Is The Perfect Part Time Job
one of the way to avoid is using reputable middleman
like fiverr