50% vs net 10, 20, 30
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- freshmode
OK
Which do you do and who decides. When do you do it?
I have a client who is ok with paying me 50% upfront. They are a smaller client. The company is small but growing.
I have another client who wants me to bill them "net 30". They are a larger client.
I don't mind either one, but love the 50%.
My question is, who decides on this method of payment? As a company, I think it is our right to determin this. But it seems that the larger clients demand this. In fear of losing a client, I am not going to sweat it. Or should I?
fresh!
- MR_T0
you decide. you make the rules!
- bomy_dick0
hehe
it's all contratc agreementu can't decide nothing..
u say yes thank you or no than kuthe rest is only human relations
and also the way your client is used to pay for this kind of services..
- freshmode0
:: bump ::
- frankosonik0
50/50 is nice, but most of my clients are not willing to go that route.
One plan that seems to keep everyone happy is the 30/30/30. Spreading the payments out a little more seems to ease the burden on the client.
Whatever you do, be very careful about a NET 30. I've had situations where NET 30 turned into NET 120. With the job completed, there was no reason for them to pay.
Instead of a NET 30, try "payment due upon completion of services." This way you can hold on to the work until they can pay you.
Hope this helps--
Frank
- chl0
It's been my experience that large, corporate companies will do net 30 or net 60 in some cases. That's just how long it takes their accounting departments to do anything. It never bothered me, because they always had the money and paid up.
For smaller clients, I usually tried to get 50% up front.
- freshmode0
chl,
that is the same thing I have dealt with.
I like the 30/30/30 method. Not only does it allow the client less of a burden when paying. You can even , in some cases charge more because you are spliting it up.
The way I justify a deposit to clients is for any initial costs related to the project. If they are a serious client, they will work with you.
word... anyone else?
- enobrev0
i always grab a 40 / 60 - 50 / 50 on my first job with any client. It's really a matter of trusting they will pay. It also ensure's they are serious and capable of covering the full job once finished.
After the initial job for that amount, I'm willing to work with them. I try to keep it at the 50 / 50 mark all the time, but the balance changes according to how busy i am and how much work it is.
The essential part of it, besides trust, is making sure that while you're working on the job your bills are paid.
If you're about to pick up a month long project and have to wait the whole month plus testing, etc and then wait for a check to arrive, then clear, etc, etc you'll find yourself taking little jobs just to cover yourself in that 2 month lull, which takes your focus from the big job.
If you get that half up front, you can ensure the time necessary to finish the project. That second half is still a great incentive and motivation to knock it out as soon as possible as well.
30 / 30 / 30 has worked well for me in the past, but it can be strange with web work. since your stages aren't proportioned the same... plan, comp, draft, test, upload. Print work, as i understand it, works better in thirds.
- mrdobolina0
I always do 50/50 on freelance and then I spend the proceeds on something fun, keeps me motivated to finish the project and my regular work check goes toward the essentials.