Being a freelancer means sacrificing regular, salaried payment. But many would say it’s totally worth it for the independence and autonomy you gain. However, paying the bills with freelancing hinges on receiving timely, accurate payment. Here are seven ways to ensure you actually get paid as a freelancer:
Vet Clients Carefully
Someone reaches out to you requesting a quote for some work they need within your specialty—great! But before you agree to anything, conduct an online search to identify possible red flags. Make sure any individual or company you’re considering working with is legitimate. Are there ominous one-star Google reviews? Has the Better Business Bureau rated them a lowly “D”? Have they caused a ruckus in a freelancer forum by failing to pay others within your industry? If anything seems off about potential clients, avoid partnering with them.
Sign a Written Contract
A verbal agreement, or even a handshake, is not enough to seal the deal. For that, you’ll need a written contract including these components:
– Scope/Statement of Work (Describe specifically what services you’ll perform)
– Ownership of Work (Designate who owns the work product and terms of use)
– Revisions (Denote what constitutes a revision and how many are included in the fee)
– Deadlines (When is the work due? There can be multiple stages here)
– Amount Due (How and how much you’ll get paid)
– Payment Due Date (When is the payment due? Are there late charges?)
– Cancellation Fee (If a client terminates the project, they may still owe you a partial fee)
Set a Fair Market Rate
How much you charge clients depends on your level of experience, industry and job role. Graphic design projects will fetch a different sum than copywriting; payment for print pieces will differ compared to online-only content. It’s up to you to research freelance rates and set a fair one. If it’s too low, your clients may take advantage of your time and you’ll have a hard time making ends meet. If it’s too high, clients may pass, citing budgetary restrictions.
Bill in a Timely Manner
Believe it or not, clients will not automatically cough up the cash they owe you. It’s up to you to establish an online invoicing and payment system for creating professional invoices, keeping track of outstanding payments and sending out reminders for late payment. The sooner (and more accurately) you bill clients, the sooner you’ll get paid.
Accept Flexible Payment
If your acceptable payment methods are too narrow for clients, it may be a deterrent for getting paid—or even earning contracts in the first place. In our modern day and age, it’s a good practice to accept forms of electronic payment (like PayPal or Square Cash) and credit/debit cards in addition to more traditional methods (cash, check and Electronic Funds Transfer).
Ask for Partial Payment Up Front
Some freelancers choose to ask for partial payments up front, or throughout the project, as insurance against finishing a project and receiving nil. These partial payments may even be “more digestible for clients,” plus you’ll know early on in the relationship if your client has any intention of actually paying you for your work.
Provide an Appropriate Window
Rome wasn’t built in a day; and turnaround for freelance payments don’t happen overnight. Provide your clients with a window for payment. After all, your invoices have to make their way through their bookkeeping systems first. Many freelancers provide a classic 30-day window; smaller clients may accept leeway of seven or 14 days. Some larger corporations may require 60 or 90 days.
As a freelancer, you’re your own biggest advocate. Practice these seven ways to ensure you actually get paid as a freelancer and you’ll see positive results.
