Getting paid: The two methods of billing for web design
Once you and your client have agreed on a price (for your web design work,) it’s time to get some cash!
Why do you need to get money before you start the work:
Two major reasons:
- You need some sort of commitment from the client – nothing guarantees a commitment like cash!
- Respect: you need to establish respect for your services. By getting a payment upfront, you are establishing a professional relationship.
How much should you ask for?
I work with one of two payment structures:
- Two equal payments – 50% up front and 50% when the job is done.
- Three equal payments – 33% up front, 33% on delivery of the first draft and 33% when the job is done.
The 2nd option is much better because it’s easy to get the first draft out – this way you’ll have 66% of your money relatively quickly.
On the other hand, it can take a long time before the client signs off on the final. Option #2 is especially handy when you have clients who take forever to respond to your questions causing the project to drag on.
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OK, I wasn’t going to mention it, but there is a 3rd method of getting paid … and that’s not getting paid because you didn’t get a payment up front!
Always get a payment up front!
Stefan Mischook
September 15th, 2005 at 3:38 am
Hello,
We so enjoy what you have to say! WHY! You ask…Well, we have just started a small biz. And our first website was to be in payments, yes we have gotten the 1st two payments! But it was like pulling teeth, and yes we are still waiting for the final payment…This payment plan has taken a year, and of course the client is always to busy to return your calls..EXCEPT when they would like a change or to add something new..
We also like what you have to say about making websites for family members or so on, so we could add them to our portfolio..love that one…but true..
Keep the info coming
Thanks
Gio & Mz.J
Dream Vizual Dezinez
September 20th, 2005 at 8:16 am
Hi,
Ah … the 1 year to get paid scenario! Been there!
One of the keys to being successful in the web design business (in any business really,) is customer management -this is just one classic example.
Thanks for the kind words.
Stefan
January 17th, 2007 at 10:31 pm
I got burnt on first job… it was a small flash thing… but anyway… after one year I got burnt again but this time for a big job I worked almost 2 months… these days I got only few trustworthy clients… and I get paid only after job is done… one of my clients still owes me money… I would be interested in the “customer management” thing… can you suggest a resource?
May 1st, 2008 at 3:35 pm
If you control the clients web application, it should be in the contract that if payment is not promptly received (ie – 30 days late or more) that their web services will be disabled. Also, it may help to establish a credit relationship with the client so that if payments are deferred or in default, then that will harm their credit. Harsh tactics, but business is business!
May 7th, 2008 at 9:00 am
One thing I would like to know is what are all the options if your not paid? Take the site down or what?
May 7th, 2008 at 9:08 am
Hi,
Depending on the contract, give them a few warnings and then I would.
But I don’t know what arrangements, if any, you had with the client.
Stefna