Freelance Writers: Why Globalization Dictates Upfront Payment

Thanks to the internet, more and more freelance writers are working with clients from all over the world. Email marketing is how I solicit 99% of my new clients. And, this is changing the way I do business.

To explain, I’ve been a freelance writer since 1993. I’ve worked in publishing since 1987. When I first started out, most of my clients came via referrals. Hence, the need for upfront payment wasn’t necessary. In all my years of freelancing, I’ve only been stiffed once – by an attorney (there’s a reason they’re not so well liked except for when you’re in trouble). But, I digress.

Why I Now Get Paid Before Work Begins

I recently implemented a new payment policy: 50% up front, 50% on completion. I started doing this because I had one client – an internet marketing firm in Canada – who took forever to pay (almost two months). I had freelancers who were waiting for me to pay them, and it took about a dozen emails and phone calls before the invoice was finally paid.

Now, this was a client I’d worked seamlessly with for well over six months. I did a ton of SEO writing for them. But, their failure to pay promply on this last invoice scared me becasue it was kind of large (not huge, but big).

I usually pay my freelancers up front, but for large jobs, I pay them when I get paid.

In SEO writing, you are usually paid on completion, which usually means being paid within a few days. So, two months was a long time to wait – especially when you have others to pay. I eventually paid the freelancers out of my own pocket because I didn’t want them to wait any longer. And, I wanted to protect my reputation as a firm that pays in a timely manner.

But, it did make me revamp my policy.

Usually, I’m very laid back about payments. I’m always more concerned about bringing in the work and getting it done. But I realized that I needed to get a hold of this before I really get burned.

Payment Policy Plans from Which to Choose

If you decide to implement an upfront payment policy, following are a few industry norms:

50%-50%: This is my policy. 50% upon acceptance of project terms; 50% upon completion of project.

30%-70%: 30% up front (upon acceptance of project terms); 70% upon completion of project.

30%-30%-40%: 30% up front, 30% on approval of first draft (and/or a portion of the project); and 40% on completion.

When NOT to Ask for An Upfront Fee

For clients who have maintained a prompt payment record, I still don’t charge an upfront fee. Each client is different, and you really just have to trust your gut as to what works best for you.

For all new clients, however, I will be sticking with my new policy — if only for the fact that it’s nice to be paid before actually beginning a project. It makes me anxious to finish and receive the rest of the fee.

Why Globalization Changes How Freelance Writers Do Business

Freelance writers can now easily solicit work from any client in the world. This makes it fairly easy to get taken advantage of. While most businesses are ethical, implementing a pre-payment policy will ensure that you receive some compensation from those who may not be.

Happy marketing!

Written by Yuwanda Black from Inkwell Editorial
Posted on September 10th, 2008 and filed under Writing
Do not forget to subscribe to our RSS feed for updates

6