When you send out an invoice, how much time do you allow your client to pay you?
15 days? 30 days? 60 days? More?!
The majority of freelancers usually go with one of the above, personally, I’ve been doing 30 days.
But have you ever asked yourself why you do that? Why do you give the client so much time to pay their bill when they should have a good idea of what it will cost (and how much funds they’ll need to set aside) from the start?
One freelancer asked this question and ultimately determined that delayed payments wasn’t working in their favor.
See what they did instead.
“This summer, I finally had enough. I put a new process into place effective September 1 (yesterday—just in time for Labor Day!) that goes like this:
- Full payment is required before the final product is delivered. I send my clients a proposal, they accept it, I start the project, and the client pays for it via PayPal before I deliver the final product.
- For any project that’s $1,000 or more, half will be required up front. The remaining half will be required before the final product is delivered.
Monthly blogging (you can use this model for any recurring project, really):
- My bookkeeper sends out invoices at the end of the month that are payable upon receipt, NO exceptions.
Once it is paid, I can work on the next month’s blog posts.”
Read the full post at Freelancers Union.