I run a small design studio and keep going back and forth on this. For bigger projects I invoice 50% upfront, but for smaller ones I've been doing it all at the end. A client just stiffed me on a $600 job and now I'm second-guessing everything. What's your default?
Invoicing
Do you invoice before starting work or after finishing it?
Always before. If they won't pay a deposit they were never going to pay the final invoice either.
I invoice after, but I only work with repeat clients or people referred by them. New cclients pay upfront, no exceptions. Probably saves me a headache.
50/50 split is standard for anything over a couple grand. Under that, I just take the risk and invoice at the end. Haven't been burned yet, but I know it's coming.
Wait, people actually invoice AFTER finishing? I thought that was just a myth told to freelancers to scare theem.
It's not a myth, it's a business model for people who enjoy doing free work.
I do a small non-refundable deposit to lock the dates, then the rest on delivery. That way they're invested but I'm not asking for the whole thing upfront. Works well for me.
That's actually a good middle ground. The deposit being non-refundable is key though, otherwise it's just a hold.
I switched to full upfront for anything under $1k last year. Got tired of chasing people. Lost a couple of clients but honestly they were the ones who were going to be a pain anyway.
Chasing invoices is the worst part of the job. I spend more time on that than actual work some weeks.
The real question is how many of you actually enforce late fees. I put them on every invoice and have never once charged one.
Enforce late fees? I'm still trying to enforce basic eye contact during meetings.
I had one client pay 45 days late and then act offended when I mentioned the late fee. We don't work together anymore.
Late fees are likke gym memberships. Everyone signs up, nobody uses them.
I just stopped working with anyone who needs a net-60. If they can't pay in 14 days they're not my client. Harsh but my stress levels thank me.
The client who stiffed me actually signed a contract with a late fee clause.Turns out a contract is only as good as your willingness to enforce it, and I wasn't willing to chase $600 through small claims. Lesson learned I guess.
Small claims is usually not worth it for that amount. Sucks but true