The biggest money risk for a freelancer is doing all the work and then not being paid. Deposits, milestones and clear invoices reduce that risk and make payment a normal, professional part of the job rather than an awkward favour.
Deposits
A deposit is part of the price paid before you start. Many freelancers ask for a portion upfront, such as half, for new clients and larger jobs. A deposit:
- Shows the client is serious.
- Covers your early time and costs if the client disappears.
- Makes it less likely you will be left with nothing.
Agree the deposit in writing as part of your terms, and start work only once it has actually arrived in your account.
Milestones
For bigger or longer jobs, split the work into stages, called milestones, each with its own payment. For a website: a deposit to start, a payment when the design is approved, and a final payment at launch. If the client stops paying at any point, you have lost at most one stage of work.
Marketplace payment protection
Many freelance marketplaces use a form of escrow: the client pays the platform for a project or milestone before work begins, the platform holds that money, and releases it to you when the work is approved, with a dispute process if there is disagreement. This protection only works if the work is agreed and paid on the platform. Read each platform's own rules on how it holds and releases payments.
Invoices
An invoice is a document that asks a client to pay for work. Organisations such as NGOs and schools often need one for their records, and it makes you look professional to any client. A clear invoice includes: