How do your clients pay you?

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Chris Corbyn
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How do your clients pay you?

Post by Chris Corbyn »

Hi,

Just wondering how most people go about taking money from their clients. I have asked the question before about how developers calculate their price but I'm still not sure how I should be getting the money.

Do you take a deposit up-front? Then do you just get a lump sum when your work is done or is like follows:

You take on for example a 4 month contract:
---- Take deposit (how much)?
---- You get so much per week/month (to keep yourself above the ground and how much again?)
---- Then once done the remaining is paid up

Is it too much to expect regular payments as opposed to paying for a "product" on completion?

If you run over your deadline what are the consequences? You lose X amount of money per day over or something (or you just hope your client is nice and understanding)?

Cheers :?
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feyd
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Post by feyd »

it may vary..

I've done:
  • payment on milestone
  • half estimate up front, remainder when complete
  • straight hourly, where I call them if I go over 40 hours in a week (because that's bumps into overtime)
  • weekly payments, usually being a rough guess at how long it should take combined with the hourly rate you'd like to see plus at least 50% because of various time sucks they and you hit.
  • lump payment upfront or in the backend, with very strict limitation of how far they can stretch things, so I'm not destroying my chosen hourly rate for it
I've tried a few.. :lol: payment on milestone can be nice (especially if you work in a bonus for every day you are ahead of schedule) .. straight hourly can be nice too, as the more time they spend backpedalling the more they have to pay to get the end product (usually a good incentive for them to not screw around)
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Chris Corbyn
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Post by Chris Corbyn »

So reading that it pretty much sounds like you take your pick of what suits the project or your financial state at the time...

Thanks for that. This first Client I have right now just agreed to pay 20% upfront and I see the rest when it's complete (It's only a basic site so we agreed at 3 weeks maximum (part time - I still have a full-time job) [I'm new to this so I over estimated on time too but the price was for the product not the time spent]). I'll have to do a few jobs before I get used to estimating realistic timescales and stuff. Nice client too... has given me nothing but positive input/feedback so far. No hassles. :lol:
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phice
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Post by phice »

PayPal, 50% now, 50% at finish.
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Weirdan
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Post by Weirdan »

I deal with an entrepreneur, not with the clients themselves, thus 100% when it's done, in cash.
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Joe
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Post by Joe »

The UK folk can use the HSBC payment processor. It is highly secure and payments are quick. :D

When dealing with cash deposits, you can simply create some type of 'safe escrow' routine. It works great from what I know.
d3ad1ysp0rk
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Post by d3ad1ysp0rk »

Weirdan wrote:I deal with an entrepreneur, not with the clients themselves, thus 100% when it's done, in cash.
Same here, although we have various ways of paying. He prefers to send a check via the mail, and it suits me fine. He's also said he wouldn't mind paying some upfront and some on completion. Really depends what I'd like, he's good about it.
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infolock
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Post by infolock »

i would definatley do the money up front and then the rest when it's done. no offense to any person that does business, but if a person decides halfway through your project (after you've spent hours of work on it), he/she may just say "i've decided i don't really need this" and sit you sailing without ANY cash. some have concious' and won't do it, but there are some out there that would... which is why i always at least take 30% of whatever the final cost is up front, 50% when it's in the final phaze, and the remaining 20% on completion. this covers you at all times during your work, and pretty much keeps your client in the deal to the end. no one is gonna drop a project they are paying for.. but they will if they don't have any money in it ;)
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