Prepaid or not prepaid your freelancer ?

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  • Brian mike
    #Alberta51
    • Oct 2014
    • 8735

    #1

    Prepaid or not prepaid your freelancer ?

    I have this in my mind for sometimes and i was wondering how other webmaster
    do their business about prepaid service to a freelancer ?

    For my self usually i go with the request of the freelancer and don't argue unless it
    dosen't make sense what he ask but all in all i have really good experience on GFY so far up till today.

    How things work out usually for you ?

    Do they all required deposit or full payment to you or ?

    Just trying to find the best way so everyone get what they want at the end of the deal without hassel.

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  • 2MuchMark
    Mark of 2Much.net
    • Aug 2004
    • 50991

    #2
    NEVER a full payment.

    What you want to do is work out a payment schedule and a delivery schedule with milestones.

    For example, if a project costs $10,000 and is expected to take 4 weeks to complete, you break the project up into 4 payments of $2500 each.

    The first payment is made as the deposit for the first week.

    The second payment is made 2 weeks later, not 1 week later, and only after a milestone is reached. Something they can demonstrate to you, etc. You have now paid 50%.

    No payment is made on the 3rd week.

    The final payment of 50% is made on the 4th week, or when the job is completed to your satisfaction.

    Doing it this way protects you, and also keeps your freelancer working hard for you. If you pay them all up front, there is less motivation to complete the job for you on time.

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    • Brian mike
      #Alberta51
      • Oct 2014
      • 8735

      #3
      Thanks Mark

      milestones ? I have seen that before , is that with Escrow or something like that ?
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      • yuu.design
        Too lazy to set a custom title
        • Mar 2006
        • 25924

        #4
        every freelancer is diff, so, i think is good for some is not good for everyone
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        • Panty Snatcher
          eat a peach for Hours
          • Aug 2013
          • 540

          #5
          its a tought choice as I ahve been on both sides

          my approach is to setup the project in phase and get paid and deliver each phace

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          • Best-In-BC
            Confirmed User
            • Jun 2002
            • 9511

            #6
            Originally posted by MarkPrince
            NEVER a full payment.

            What you want to do is work out a payment schedule and a delivery schedule with milestones.

            For example, if a project costs $10,000 and is expected to take 4 weeks to complete, you break the project up into 4 payments of $2500 each.

            The first payment is made as the deposit for the first week.

            The second payment is made 2 weeks later, not 1 week later, and only after a milestone is reached. Something they can demonstrate to you, etc. You have now paid 50%.

            No payment is made on the 3rd week.

            The final payment of 50% is made on the 4th week, or when the job is completed to your satisfaction.

            Doing it this way protects you, and also keeps your freelancer working hard for you. If you pay them all up front, there is less motivation to complete the job for you on time.
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            • Paul Markham
              Too old to care
              • Jun 2001
              • 52942

              #7
              It depends on their reputation in the business. Unless the freelancer is of the standing of someone like Madalton. Payment on completion is the only way to do business. Too many scam artists and dipshits in this business.

              All sales from us were paid up front. No one ever complained.



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              • ContentBay
                Confirmed User
                • Jun 2015
                • 399

                #8
                Good question.
                Even a better one would be, how can we "freelancers" get payed securely, when a client starts to pull crap on you, and he is already in deep debt since u gave him credit based on past payments...like that Hungarian scam thing...all in all, getting fucked in this (Internet) business comes with the territory. Dipshits were, are and will be dipshits long after we are all dead.
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                • Brian mike
                  #Alberta51
                  • Oct 2014
                  • 8735

                  #9
                  Originally posted by ContentBay
                  Good question.
                  Even a better one would be, how can we "freelancers" get payed securely, when a client starts to pull crap on you, and he is already in deep debt since u gave him credit based on past payments...like that Hungarian scam thing...all in all, getting fucked in this (Internet) business comes with the territory. Dipshits were, are and will be dipshits long after we are all dead.
                  or tell me what you think about a situation like this mate ?

                  http://gfy.com/sell-and-buy-forum/12...1#post21219199

                  as a freelancer what do you think about this ?

                  Many thanks to all your input is greatly appreciated.

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                  • matuloo
                    Confirmed User
                    • Apr 2002
                    • 441

                    #10
                    For small projects I always paid on delivery. In case of a longer lasting task, like custom coding, we usually agreed on a 2 week payment or milestone payments, but the final sum was always agreed on before the freelancer started.
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                    • Brian mike
                      #Alberta51
                      • Oct 2014
                      • 8735

                      #11
                      Originally posted by Paul Markham
                      It depends on their reputation in the business. Unless the freelancer is of the standing of someone like Madalton. Payment on completion is the only way to do business. Too many scam artists and dipshits in this business.
                      I agree with this. But i also understand There is scammers out there on both side Client or seller . s

                      Sometimes some freelancer required a full upfront payment for a software because they installed it on your server etc... I get this part .

                      But what left us if we prepaid the " product " if something go wrong during the process? not much we're fucked pretty much lol.

                      OR what left to the freelancer when he get ripped off by a shady client who dont make the payment in Full afterward.

                      " We're all stuck in this Trust Issue "

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                      • NakedWomenTime
                        Confirmed User
                        • Oct 2015
                        • 564

                        #12
                        As someone said, come up with a detailed spec for the freelancer, and then have milestone payments.
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                        • Brian mike
                          #Alberta51
                          • Oct 2014
                          • 8735

                          #13
                          Originally posted by NakedWomenTime
                          As someone said, come up with a detailed spec for the freelancer, and then have milestone payments.
                          Ohhh will do in the future but for now i will stick with the reputable one i deal with already
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                          • k0nr4d
                            Confirmed User
                            • Aug 2006
                            • 9231

                            #14
                            We usually do 50% up front with balance on completion, unless it's a large project ($15-20K+) in which case we break it into milestones.
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