Had a client last year who kept adding little extras and then disputed the final invoice. I spent weeks chasing payment and ended up eating about 35% of the project cost. So now I ask for 50% upfront on anything over a certain size. Feels awkward sometimes but I'm not going back.
Client Management
I started asking for deposits after one project went badly
50% is steep unless it's a big job. I do 30% and then milestone payments. Haven't been burnedd yet.
The awkwardness fades. Clients who balk at a deposit are usually the Ones you want to avoid anyway.
That's what I keep telling myself. It's just the look on some people's faces when you bring it up.
Do you put the deposit terms in writing before the kickoff call? Makes a huge difference. I send a one-page agreement and nobody argues after that.
^ this. Verbal deposits are a nightmare to enforce.
I tried deposits once and a regular client got offended. Lost them. Now I just do net 15 and chase hard. Not sure which is worse honestly.
If a long-term client gets offended by a deposit, that's a red flag. They should understand cash flow.
Eh, some big companies literally cannot pay deposits because of their AP process. Not always a red flag. Just depends who you're dealing with.
Hadn't thought about about the AP angle. Most of my clients are small enough that it's not an issue, but good to keep in mind.
i ask for 100% upfront now. If they say no, fine, plenty of other work. Life's too short.
100% upfront is wild. How do you get any repeat business
Repeat clients get net 30. New ones pay first. Works for me.
Deposits are just insurance. You don't expect to use it, but you sleep better.
Also helps to frame it as a scheduling fee. 'This reserves your spot on my calendar.' People accept that more easily than 'I don't trusg you.'