Hi Everyone, As some of my sites are getting popular, I am getting good amount of online consulting work. The payment is generally scheduled as 1/3rd or 1/4th before the project and rest after the project. Now I am noticing a trend here that people give the first installment readily but once the project is delivered they try to delay the balance payment. Just wanted to know from the experts here, how do you guys set your payment terms? Do you take services of an escrow provider?
That happens in offline jobs too. Once they get the product or service they just forget to pay the total amount...! Dont give the total project until they pay you the complete amount (for example after the 4th installment). You could try Escrow services (try Escrow.com) but only when the amount is high. If the amount is only $100 they will charge you $25 so its not worth it. The prices change at $26 on amounts that are over $800 etc
Many online professionals charge the whole amount upfront unless you're really talking big money. Why are you breaking the amount up? Is it a lot of money? You can always offer a guarantee money back if the person isn't satisfied, or tell them that they have the right to get a few revisions on the project before the deal closes. That might make customers more ready to pay upfront. Hope these suggestions are helpful.
I think escrows work the best. I've had IT work done by two different people through Elance.com and I have used their escrow service both times. They were not large jobs, but I probably still wouldn't have been comfortable without the escrow service.
Escrows DO sound like a smart idea especially when handled by a neutral third party. Plus, you'll have some recourse if the project that you order isn't up to par or- on the other side, if your client tries to pull a fast one on you.
Escrow is a great choice for large projects because, sadly, people love to stall when the big number comes around. Also, for smaller amounts, I would just demand payment upfront. I personally don't mind paying upfront for amounts up to about $200 when it comes to certain design projects. I just make sure the company or person I'm choosing has a good reputation and keep copies of all communication just in case
It is a problem of price and payment . If I were you, I will make my pricelist for my services and different payment terms . eg. less than $30 job must be paid before work . eg. if the buyer could pay 50% before work, he can get a 5% discount for total payment . if the buyer only pay 20% before work, he will get no discount . That is the skills concerning price and payment . Stick to your principles . That is all .
Thanks one and all for your valuable suggestions... +repped everyone who replied... By the way which is the best and cheapest escrow service?
When you are looking for an Escrow service, the price should not be the dominating factor. Reliability and reputation should be considered before price. I recommend you use Escrow.com Their rates are very reasonable and reliable.