Payment upfront

Posted By: Paul987 ()
Posted On: 2003-Dec-16 20:48

I have always liked the idea that you invoice someone when the work is finished eg the website is built etc. But when your selling your services over the net to people you have never met and probably never will you really need payment upfront dont you ? As people could be on the other side of the world and you cant exactly vist them if they decide not to pay.


Posted By: SmartROI ()
Posted On: 2003-Dec-16 23:58

Unless you have a product that is pure profit, you need to get some type of payment up front, especially if you are offering a service that takes up your time.

Typically for web site design, it's acceptable to do 50% up front and 50% when the site is ready to be transferred to the live url. This way you get paid no matter what.

However, most of the people I deal with pay me 100% up front. You can do that if they trust that you will do what you say you will do, and if you have a track history of doing just that.


Posted By: Paul987 ()
Posted On: 2003-Dec-17 17:43

Yes i think your right that payment upfront is the only option. But on that point how do i convince people that im real and will do what i say i will ? Especially when i am just starting up and dont have many referances.


Posted By: SmartROI ()
Posted On: 2003-Dec-21 20:09

You have to get references. Build a site for your local city chamber, your local library, your local church, the businesses of your friends and family. You have to start somewhere. You might not be able to get 100% up front, but if you do a good job, then the majority of the time you'll get treated right.


Posted By: sirduncan ()
Posted On: 2003-Dec-22 13:18

I've heard the 50% rule works pretty good. Get half up front (with minimal return on contract) and then half at finish. That tends to get the newbys signed up a little faster.