Hi,
I'm getting ready to launch my business and I'm working on my contract document. I am considering adding a clause that states that the client must pay in full before I will release the final "product" to them (for instance a document that I typed or edited). Is this reasonable? I'm concerned that some clients may be concerned about paying prior to verifying that the job was done to their satisfaction. Any thoughts?

Thanks!

A good medium for this is to require a deposit of at least $XX or 50% BEFORE you even start the work. This is sort of a good faith effort for both you and the client. You get some assurance of payment prior to working and they get to see the final product before releasing the rest of the payment. This is a common practice among VAs.

Of course, this is only for project based work. For on-going retainer hours, I require payment in full for all hours before work starts.

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Kimberly
Facebook Marketing Magic!

I've moved to only project based work, thanks to reading The Wealthy Freelancer, and my standard practice is 50% prior to the start of any work and 50% at the complete of the project.

If it's a longer project then I may pace out the payments something like 50% to start, 25% at half way point and 25% at the end.

Renee

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Renee Shupe, Become a Techie Virtual Assistant
eMail Marketing & Aweber Training Starts May 15! - Save 50% using VAFAweber

In my contract I have a 50% down balance due at end of project for any package clients that I have. For my ongoing retainers, they must pay a month in advance so that if they end the contract I finish up what I am working on but they have all their items when they are completed.

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Lee Drozak
My Office Assistant

I have been wondering about this too. I like the idea of a 50% "good faith" deposit and the requirement of payment for hourly work a month in advance. This seems like a great arrangement for both the VA and the client. Thanks for posting this.
Best,
Elizabeth

I too was wondering about this.

I recently bid for (and won) a small piece of work through a freelancer site. It wasn't really worth asking for 50% (was only approx 1 hrs work). So I completed the word documents and sent them through with read only and password protection on them. That way, he could see what I'd done but not be able to print etc.

Once he'd provided proof of payment, I sent him back the docs unprotected.

He was happy with how this worked ... but I think for larger projects, then a deposit make a lot of sense

Cathy

I think there are many factors as others have said. Depending on if it is project based, retainer clients, or hourly clients. Also, take into consideration the actual client (how long have they been working with you and are they prompt with payments).

On Elance they put payments into Escrow so that helps to protect you on there.

Also, there is watermarking and protectig documents with passwords. That is definitely a good option, but still not 100% safe as documents can be unlocked and watermarks removed if you know what you are doing.

I recently learned how to unlock word documents. It is not difficult at all. Once it is unlocked the watermark can be removed. Still the average Joe does not know how to do this so I watermark and/lock all documents with new clients for sure.

I also set up milestones for payments on project based work requiring so much up front and so much at each milestone, and then final paymen upon client review of the competed project. At that time I will remove any watermarks or passwords for the Client to use the document.

For retainer clients they pay in advance on the 1st of each month, and hourly clients if they are new I require $30 payment in advance as a good faith payment, and invoice monthly and I give 15 net days to pay in full the balance of the invoice. If the invoice goes over 30 days I charge 2% late fee each month to the original invoice balance until payment is made.

What you put in your contract depends on the type of work and the type of invoicing you will be doing for each client.

Rhonda

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Rhonda Holscher, Owner
Rhonda's Virtual Office - Hire a Virtual Assistant

I just did a transcription job for someone and got "burned" since I did not take a deposit. I was told that I would get payment the following week but of course I was given a sad story. You live and learn. I would say get some money upfront before you start any work.

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Myrlene Hoyte
www.vpadmins.com

Being new to the V.A. world, I do not understand the difference between project based work or package and retainer. What sort of work would you be doing?

thanks,

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Penelope Myer
Penelope and Partners

From my understanding, project based work is just having a contract to complete a single task for a fixed price but I could be wrong seeing that I am also new to VA and such. Please inform me if I am wrong is my answer.

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Jacob Kruse, VA
HavocBlast Education Services,