Avoid being scammed! Here's how.

There are a lot of people who seem to have gotten scammed by programmers who have either have no intention of keeping their side of the deal or don't operate ethically. On the other hand, buyers sometimes end up retracting payment or refusing to pay after the work's been done.

This here is a guide to avoid being scammed. It is not foolproof, but if you follow the steps below there's a good chance it'll pay off.

Tips For Buyers

1. Always ask for a portfolio, or previous work reference. (iTrader too!)
If your programmer does not have a portfolio, there is no need to ditch him. There are many new people in the business and he/she might be one of them - however, if he/she does have a portfolio/personal website, take a good look at it and decide if they've got the talent you need. Sometimes doing quick XSS and SQL vulnerability checks helps, you don't want insecure scripts.

While iTrader is not a foolproof measure for trustability (scammers make duplicate accounts, get friends to make fake sales to themselves), it can be a good way to set certain restrictions on those with less reputation. (Such as no down-payment for anyone with iTrader less than 20)

2. Do some background checks (Google, other forums)
While this is not necessary, you should definitely do this for anyone who has less than 500 posts on DP.

3. Have a deadline in place.
Talk to your programmer and agree on a mutually accepted deadline. If your programmer does not finish the work on time, you should penalize him/her by decreasing payment incrementally. Alternatively, you can drop the programmer and find someone else (not recommended, but viable in certain cases).

4. Don't pay anything above $100 via PayPal
If you didn't already know, PayPal is notorious for siding with scammers. Anything above $100 should be paid via MoneyBookers, and anything beyond $300 should go through an escrow service.

Preferably, and if you can afford the fees, all payments should be through escrow.

5. Keep some proof of the deal with you
If you do end up being scammed, you should have your PayPal transcripts, DP Private Messages and e-mail conversations stashed away safely. These are usually helpful in proving your case and hopefully getting crooks to pay.

Tips For Programmers

1. Look at the iTrader of the buyer, google them
You might end up uncovering bad practices or dishonored agreements in your buyers' past history. This will help you decide whether you want to work for them or not.

2. Ask for an advance payment
Ask for a small amount as fee for your trust, sometimes it is best to put restrictions on this (such as, all buyers with less than 20 iTrader have to pay you a certain percentage in advance). This will act as a small compensation if the buyer runs away with your code.

3. Wait 24 hours from payment before supplying code
This is only applicable if it's a less than 24 job and the payment was not via escrow. PayPal should always be given 24 hours, this gives you a small amount of security in that the buyer cannot retract their payment as easily (though they still can).

4. Keep proofs of the transaction
This is very important since your code is an intangible good. Don't delete any form of communication between you and your client, and try to get at least some key conversation through e-mail rather than IM.

That's basically it, though I might add more as more scams surface and as this thread receives advice in the form of comments.

 

good advices, it's harder for new programmers to work since trusting is low.

 

Hard, but not impossible. I'm a programmer but I'm not usually actively seeking work, yet I still get some projects from DP...it's all about just telling people you're interested and getting on with other stuff till they get back to you.

 

I always insist on a clear payments schedule. i don't ask for money upfront, but as I complete sections of the work and can demonstrate them working, I expect payment.

So for somebody to deduct payment from a coder for not having the work done on time - it should be stated in the payments schedule.

I work hard at my code, making sure that it works, is secure and delivered on time. On the flip side I expect to be paid on time and in the manner agreed.

You can't always prevent yourself getting ripped off. Even in 'off-line' businesses, you get caught every so often. I've never yet let anyone get away without paying me though.

I get very mad after working and people start pissing about with payments. Very mad

The best method I use for for deciding if somebody is trustworthy is to look at their itrader, but also the lenght of time they have been a member of digital point.

 

Thanks for your input(s)...waiting for some more before I make changes.

 

May i add a point in this? Most non-professional programmers will fight over prices in threads i.e. posting prices professional programmers would not post as it is not worth posting, this shows you that the programmer is only intreasted in the money he/she can gain by doing many jobs in one time and not providing quality product/code for the client.

Hope this helps.

 

This isn't true. You see, it goes like this:

1. If the transaction is older than 25 days, then paypal says no to disputes without sufficient evidence. However, your credit card company gives you 45 days.

2. Paypal will always side with the credit card company.



With that said, I have to say the coder's protection rules:



1. Take a reasonable deposit. If the guy gets hit by a bus half way through your project then you are out of all of that time for labor. So if you worked for weeks or months, you are NOT going to be paying your rent any time soon.

2. Check the iTrader, but read them too. I have seen a lot of people getting bad iTraders, even though they did what was in their agreement.

3. If they are rude or treat you like crap, chances are that once they get their work, they will either not pay or their will call in the transaction as unauthorized with their credit card company.

4. Get every detail on paper and fax it to the customer. Have them sign it and fax it back with a copy of their photo ID. Then, they cannot say it was not them that paid for it and they cannot dispute what the job actually was.

5. If doing the work on their server and you have never worked with them before, make them pay up front because once you upload that code for testing, they can change the passwords and never pay you, but keep the code.


CUSTOMERS:

1. Don't believe everything you read on Google. I know many elite coders whose ex-girlfriends began slandering them by posting lies everywhere and pretending to be customers. The competition is notorious for this. You see it all of the time. You just don't believe it because you believe the first negative you read. This happened to Code Ninja, PHPl33t, Scutatu, and so many more! Hundreds of happy customers and then people stop using them because one person lied about them.

2. You both need to trust each other and you need to show a good show of faith. This is our job. This feeds our families and pays our moorages or rents. A coder has a portfolio, references and ratings. Go by that. If you cannot trust those, then you are too paranoid to work with and will probably be emailing the coder every 12 seconds saying "ARE YOU DONE YET?" This not only slows the coder down, but stresses him or her out.

3. THINK YOUR PROJECTS OUT before hiring someone. Don't go changing the project every other day.

4. Remember that when you go to lease an apartment, you have to pay a hefty deposit to protect the landlord. Same with online services. What is a $100 deposit compared to a $5000 project? That is NOT a show of faith. That would tell me that you are flat broke. My company pulled in $45K this year from Nashville businesses. They pay 34% up front for projects over $1000 USD. Why? Because they check my company's references, portfolios, and see samples of our code. Never will a construction team start building your house without a sufficient deposit. Remember that. This is our job, not unicef.



With all of that said I will summarize:

1. Prove to eachother that you are both safe.
2. Go by evidence, not fancy talk.
3. Think of each other, from the other point of view.
4. Don't be paranoid.
5. Use PAPER WORK like contacts!

 

Also, the problems with sites like GetAcoder, is:

1. A lot of people get tricked via private message to take the deal off escrow.

2. The customer often chooses the fancy talker, not the nerd with the killer portfolio. For example, one guy has pretty screenshots of sites he CLAIMS he developed and sweet talks the buyer. The nerd has links, code samples, and tells the buyer straight up and not in fancy talk. I see it allt he time. Buyers are attracted by prices that are too good to be true and by flashy screenshots. They don't stop to think, "Are these his sites or did he steal these screenshots?" Heck, even if they are his screenshots, the screenshots do not tell you if the site actually works.

 

i have and idea
why dont digitalpoint have a team escort
buyer---->escort--->seller
seller<---escort<---buyer

 

People have been trying to convince them of that a looooong time.

 

+Rep for all inputs

 

just an addition.

To make it clear to seller, make sure you put clear rights, something like this..

Maybe it will help when some coder use your project and sell it again.

 

Also sellers, if you want to resell, ask the buyer. Offer them the price you will charge everyone else. They might agree. If not, then obey the contract.