The gig economy has exploded in the past few years. Many professionals prefer to work as freelancers rather than employees for a large corporation. There are advantages and disadvantages to working as a freelancer instead of an employee.
One of the cons is that it can be difficult to receive payment once you provide your services. Without the backing of a large company, payment can sometimes be a struggle with clients who want to take advantage of you.
The following are seven practical tips to ensure that you get paid for the freelance services you provide:
1. Get Rates in Writing
One tip to ensure you get paid for your services as a freelancer is to put your rates in writing. The terms and conditions of an agreement are always more official when they are in writing.
You can use them as evidence in case a client declines to offer payment. If the issue goes to arbitration or is judged by a higher authority, the written terms will be your bedrock.
Clients will also be unable to negate on the rates they agreed upon if they are in writing.
2. Keep Track of Payments
Records are vital if you want to receive payment for your freelance services. You should keep a record of all the payments you have received from clients.
If you were an employee, you would use your pay stubs to keep track of payments. A pay stub creator may also be helpful for a freelancer. It can help you outline the income and deductions clients make to your pay.
Invoices are much more useful for a freelancer. Safely store your invoices in secure locations to use as proof to receive payment for your services.
3. Ask for a Deposit
Another way to make sure you get paid for freelance services is to get a client to make a financial commitment before you do any work. A thirty percent deposit before providing your services should suffice to have a client commit.
The commitment will ensure that you get partial payment even if the client leaves you hanging. It also helps you evaluate clients and find out the ones ready to pay for your services.
4. Set Up an Escrow Account
An escrow account means using a trustworthy intermediary to handle payments between you and a client. For example, if you complete a project, you would put it in escrow, and the client would send funds to the escrow account.
Once the escrow account holder has both, they take their commission and ensure the transaction is completed. If there is little trust between parties, a neutral third party is often the best choice to handle and ensure you receive payment.
5. Milestone Payments
Freelancers work on different projects, and some are longer than others. If you are working on a massive project, one way to ensure you get paid for your work is to set up milestone payments.
Milestones at various stages of the project where you receive payment are an excellent idea for partial payment until the project is complete. It is also a great way to be taken seriously as a freelancer.
6. Payment Clauses in Contract Agreements
When creating or negotiating contract agreements, you should include paid-in-full clauses if you want to receive payment in your work. Get clients to commit to paying you the total amount in the deal once you complete the job.
Partial payments will not work for everyone. A paid-in-full payment clause gives the client no chance to back out of the agreement.
7. Follow Up with Clients
If you want to be paid in full as a freelancer, you should be prepared to follow up on the issue with clients. Don’t let too much time pass when clients are late to pay you.
Be firm with clients but professional. It may be perceived as pestering but getting your payment is what matters.
Working as a freelancer is fantastic but receiving pay is often an issue. If you use the tips above, you should significantly increase your chance of receiving due payment. It doesn’t matter how you get there as long as you get paid.