Pay first, Work first???

Discussion in 'General Business' started by abluegrape, Sep 19, 2009.

  1. #1
    A query if I may ?

    I have started to do a good amount of freelance work i.e design, seo, blog comments anything for a income .

    A few months ago I would first do the work then "invoice" but of course there is always that one "buyer" that seems to start having paypal problems, Dads just died, house caught fire and this of course leads to the buyer vanishing without a trace, and I am left without payment and of course lost my time and work.

    What are your opinions on this matter?

    Pay first or work first?

    I now refuse to do the work first as I see it that a buyer has way more protection that I do as a seller. Buyers have the paypal protection, the buyer has the power to name and shame, the buyer can use itrader to NEG.

    A seller has nothing, ok they can name and shame a buyer but that doesn't really affect them as much as name and shaming a seller does it?

    Im really in two minds about this issue but I think I have chosen the right path, but I hate to tarn people with the same brush but my work pays for my family and my mortgage and I cant take risks.
     
    abluegrape, Sep 19, 2009 IP
  2. tjohnson412

    tjohnson412 Guest

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    #2
    send me PM please. i will be glad 2 help
     
    tjohnson412, Sep 19, 2009 IP
  3. Norebbo

    Norebbo Active Member

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    #3
    As a graphic designer, I do the work first. However...when I'm finished, I send the client a watermarked version of the artwork. If he/she likes it, they have to pay me to get the un-watermarked version. Seems to work well for me.
     
    Norebbo, Sep 19, 2009 IP
  4. Veronica2009

    Veronica2009 Peon

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    #4
    I've got payment first (if its monthly) after i do my work.

    If i do website, i take 50% before and 50% after. I think everybody must be happy. I cant work and to be afraid all the time about payment, will i get it or not....

    But when people work for me, i like fist Work after Pay, cos i dont trust nobody :cool:
     
    Veronica2009, Sep 19, 2009 IP
  5. jezzz

    jezzz Notable Member

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    #5
    If you are doing a custom made project then you should take some advance to execute work! if anything which you can think is valuable for you! if anyone mishaps then you can get paid after conclusion of work!
     
    jezzz, Sep 19, 2009 IP
  6. MattSanti

    MattSanti Well-Known Member

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    #6
    Get the money upfront if you are doing the work. Give the money last if you are outsourcing.
     
    MattSanti, Sep 19, 2009 IP
  7. MattSanti

    MattSanti Well-Known Member

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    #7
    You can always do payments in the form of milestones.
     
    MattSanti, Sep 19, 2009 IP
  8. Steve Powers

    Steve Powers Peon

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    #8
    I think you can ask for a part of the money before your work.This will definitely reduce the risk.Since you don't
    want to take any risk,you'd better make pay first to guarantee your earning.
     
    Steve Powers, Sep 19, 2009 IP
  9. abluegrape

    abluegrape Peon

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    #9
    How many of you do the work first though?

    I look at it like this :

    Buyer has loads of protection as I stated in my original post, but I sometimes wonder that I am being to fussy with my work and I turn down ALOT of work due to being "conned" before.

    I could decided to start doing work upfront like I used to but if 2 out of 10 people do a vanishing act then Im down time and money
     
    abluegrape, Sep 19, 2009 IP
  10. 500ml

    500ml Peon

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    #10
    yes taking an advance is always a good idea from new clients that you haven't developed trusted relationships with.

    Most likely new clients have already seen your portfolio before commissioning you for work so they know what quality to expect from you. Now doing even a mock up\demo for them, costs you, so it's only fair they pay a % (30-50%) upfront for the work. This shows you they are committed to the project and won't waste your time by disappearing. Then when you have the final deliverable ready you can either send it before the full payment or show a demo version on your server (recommended) to show them it is ready and if they accept, request full payment before you deliver.

    There is too many "entrepreneurs" out there that think just because they make a promise, or flash $100 buck in front of you, you're going to absorb all of the upfront risk by doing demos and other work for nothing ...
     
    500ml, Sep 19, 2009 IP
  11. danogo

    danogo Peon

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    #11
    I always pay 1/2 up front first via paypal for solo freelance workers.

    Have you tried asking your clients to do that? I don't think that is unreasonable and if buyers have a problem with that then either you would need to establish trust or they are the wrong clients.

    For instance one freelance worker I use in on Linkedin and she has a great profile and recommendations on there so I trust her with 1/2 down without a thought.
     
    danogo, Sep 20, 2009 IP
  12. mentos

    mentos Prominent Member

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    #12
    I would suggest another way which is the buyer deposit the money at third party place.
    When the full product is hand over to buyer,then the third party give the money to seller.
    It much more safer.
     
    mentos, Sep 20, 2009 IP
  13. BW1

    BW1 Well-Known Member

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    #13
    Try go for a 50% deposit, im new to this and still find it hard to ask my new customers for the deposit. Luckily I provide webdesign and would just pull the site down if they didnt pay:)
     
    BW1, Sep 21, 2009 IP
  14. Thomas_Horton

    Thomas_Horton Member

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    #14
    True and if he doesn't pay you can still sell the design.
     
    Thomas_Horton, Sep 21, 2009 IP
  15. camillo4u

    camillo4u Peon

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    #15
    Personally, I'm usually willing to pay in advance for services if I know the provider has a good reputation. I have been sticking to Ebay with my SEO work since you can really see their feedback. I am always skeptical about paying upfront without a rock solid reputation from the provider.
     
    camillo4u, Sep 22, 2009 IP
  16. elonblock

    elonblock Peon

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    #16
    50% upfront to get started and the balance due when the work is complete is fair for all involved. You also can draw up paperwork or an agreement depending on the situation.

    From my experience, most people don't have an issue paying upfront.
     
    elonblock, Sep 22, 2009 IP
  17. Twelve

    Twelve Member

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    #17
    hi,
    i understand your plight.
    perhaps you can try escrow.
    i don't know if that would help.
     
    Twelve, Sep 23, 2009 IP
  18. steven123

    steven123 Peon

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    #18
    In all the work I do I look with a significant time commitment (i.e. more than a days work) I seek a payment up front, otherwise I say no. The level of payment depends on the nature of the work and any significant milestones as the project progresses.
     
    steven123, Sep 23, 2009 IP
  19. newlogo

    newlogo Peon

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    #19
    i had bad experience with lot of client, at end of month they start find excuse for payment, so get advance then work.
     
    newlogo, Sep 23, 2009 IP
  20. wildogre

    wildogre Well-Known Member

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    #20
    Half payment before start working half on completion.
     
    wildogre, Sep 23, 2009 IP