Freelancers: When and How Should You Be Paid?

As a freelancer, you might be wondering, when and how exactly should you be paid? This question often arises due to the nature of freelance work and the trust-based relationship it involves. Understanding the payment norms and expectations can help you streamline your financial transactions and maintain a positive relationship with your clients.

Standard Payment Practices for Freelancers

In most cases, freelancers get paid after submitting their final work to the client. This ensures that the client is satisfied with the quality and meets their expectations before payment. However, the payment terms can vary depending on the nature of the project, the agreement with the client, and the professional practices within the industry.

Payment Milestones and Installments

Not all clients pay in one lump sum. Some may prefer to be paid in installments or installments based on milestones. This approach can be beneficial for both the client and the freelancer, as it allows the client to check the progress and ensures the work meets expectations at each stage. For example, a 50/50 split at the start and end of the project is a common approach.

Negotiation and Professionalism

As a freelancer, you are a business person, self-employed. Therefore, negotiating your own payment terms is crucial. Whether you choose to be paid upfront, on completion of the project, or through installments, the agreement should be clearly stated in your contract. A professional-looking invoice and understanding of the client's payroll policies can help prevent misunderstandings and ensure timely payments.

Remember, you are an independent worker, not an employee. Therefore, you are responsible for determining your own payment schedule and ensuring that you are compensated fairly for your work. If you haven't made a clear agreement, it’s time to grow up and get professional. Late payments should never be accepted as they can harm both your financial stability and your professional reputation.

Examples and Recommendations

For a new project, a 50/50 payment split can be a practical approach. For example:

50% payment upon start of the project. The remaining 50% upon project completion.

If the client is a recurrent or a major job, you might consider a 33/67 split:

33% payment before the major work begins. 67% payment after the major work is completed.

If you have any concerns about the client being sketchy or attempting to cheap out, consider receiving the final 50% before the client has access to the final product. This ensures that you retain control and the client remains accountable for the agreed-upon payment terms.

Professional Development

As a freelancer with nine years of experience in digital marketing, I understand the importance of professional development. I have run several blogging sites, affiliate programs, and am currently creating a free digital marketing course. These experiences have honed my skills and provided valuable insights into the freelance industry.

Watching the following video may help you understand more about freelance payments and how to handle them professionally:

By following these guidelines and always maintaining professionalism, you can ensure that you are fairly compensated for your work and build a successful career as a freelancer.