Rates and Billing

Discuss setting rates and find billing resources and information.

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Old 06-17-2011
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Default Upfront payment?
I am just starting out. I got a couple of clients by accident...I am really enjoying the work so I am planning out the business. I want to charge up front...I will be charging per project. The reason I would like to charge up front is because the people in the business I plan on specializing in don't like to pay (not talking about the wonderful ladies I work with right now). lol They hire and once the job is done they disappear and act as if they don't owe (a man in my company is experiencing this problem and can't get payment). I don't want to do work for free but I don't want to scare potential clients away either. I really want this to work.
Any advice? What do you think about asking clients to pay first? I am willing to work with them...if they aren't happy with the work I provided, I'll give them their money back. I plan on asking them to look over the work and if anything needs to be redone, I'll do it free of charge.
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Old 06-17-2011
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Default Re: Upfront payment?
Hello Jesshuerta,

Welcome to VAF!

I want to mention first that the RATES and BILLING category in which you have posted your question is filled with information regarding your question. So I do suggest you peruse the category as billing and deposits is frequently visited.

Here are my thoughts on your questions:

You should take a deposit for your work....at the very least 50% up front of the total estimate. This way you are covered if the client doesn't pay you for the work you have completed.

Some VAs take one month or three month's deposit and hold it until the job is complete and either return the deposit or apply it toward the final month's bill.

Whatever you decide, a deposit is customary and protects your interest. It also shows that the customer is really serious about working with you.

Your contract should reflect your billing policies and procedures which would include payment terms, penalties for non-payment and the deposit requirement.

I'm not really sure about giving a full refund if someone is not happy with your work. Someone could say they are not happy and then use your work anyway while you are left without any pay for having done the work. I wouldn't hand the completed work back to the client in full, though until the final payment is made and/or the deposit is applied.

I would include your policy in your contract about a guarantee but really if there is a problem with your work then you can fix it and not have to worry about a refund.

Editing work is part of the job and IMO should be billed, however, there may be an instance where you might not have followed the instructions then I would certainly rectify that on your own time.

I have never come across a situation where 'too much editing' was a problem with the work I complete but if you do have a client who is 'over requesting edits' beyond what was asked when the project began, you may want to include something in your contract about billing for extra work.

This is why a contract is so important so that both parties have a clear understanding as to what work you will perform so there is no reason to refund any monies.

But always there are situations which will arise where each client will be decided on a case-by-case basis. Some clients are so difficult to work with that in the end it might be best to just 'call it a day' and refund the money. I've done that once in my career and glad that I did.

Best to you..

Janine
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Old 07-10-2011
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Default Re: Upfront payment?
Thank You soooo much for responding. Sorry it's taken so long to respond. You have been a huge help. I was just concerned because some of the services I will be offering will be online like postings on CL for Real Estate Agents and I would need to make sure I get paid before I post all those ads. I am a licensed Realtor so I plan on making calls for agents (who are phone shy) but that's also something that I would not be able to hold onto until I get paid. once I make the call I can't take it back. I hope that made sense.
I really like the idea of a deposit and will definitely be doing that.

Thanks again!
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Old 07-11-2011
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Default Re: Upfront payment?
I am with you, for my project based jobs I require a 30% deposit up front prior to commencement of works and for my retainer clients I require 1 month in advance. Its just good business sense. If people arent willing to do this to become my client and gain my high quality services then I don't trust that they would be willing or able to pay upon invoice and I am of the same mind as you, once I have made that call or posted that mailshot I can't take it back and I am running a business too.

Good on you and stick to your guns!!!
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Old 07-12-2011
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Default Re: Upfront payment?
I am so glad I found this thread! I plan to ask for a deposit but I didn't know what was the thing. Plus I hadn't given any thought to what to do if a client wanted their money back. I wonder if giving clients a "draft" copy with a watermark or something along those lines would be helpful. I don't mind fixing my whoops, but I did a project once for an acquaintance that not only was it lengthy but it needed lots of editing. When her instructor looked it over, it had to be completely redone! Then she didn't want to pay me for the second round!

I took her to small claims and got enough just to be able to say, "I won the case." I don't want to repeat that if I can avoid it.
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Old 07-13-2011
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Default Re: Upfront payment?
I hadn't really thought about that scenario, I'm looking forward to seeing if any advice or links to relevant thgreads are posted! Definitely one to stick in my 'hope I never need but good to know' folder!
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Old 07-14-2011
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Default Re: Upfront payment?
Thanks all. I've never asked for a deposit to date. However, this discussiion has prompted me to review my policies. Best to all!!!
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Old 07-14-2011
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Default Re: Upfront payment?
Originally Posted by jesshuerta View Post
l They hire and once the job is done they disappear and act as if they don't owe
Jess,

I'm curious as to why you would even consider working for people like this. We're all excited to begin working right away when we start out, but IMO you really shouldn't compromise yourself or your business in this way (trust me on this one!!). There are TONS of clients out there, especially in Real Estate, you just need to find the good ones and provide excellent service to them.
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