Do You Ask For Upfront Payments?

hitmeasap Level X⁵

June 25, 2016, 9:40 am

6

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Do You Ask For Upfront Payments?

Do you ever ask for upfront payments when you're approached by a new client?

(This doesn't apply to any work on SEOClerks as you'll get paid when you've delivered the work for the buyer's satisfaction.)

You can discuss things through email, inbox messages, skype or whatever, but with a totally new client, which you've never worked with before, there's always a risk of getting scammed. So, simply put. Do you ask for upfront payments?

Best Regards,
hitmeasap

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TommyCarey

I do a lot of marketing and web design for clients and I always ask for something up front.

For SEO:
I always make them pay in full up front if their package is under $1,000 a month. If they need more than $1,000 a month in SEO and Online Marketing then I give them the option to break up their payments to be bi-weekly (they pay twice a month). This is a pretty common practice since most SEO and Online Marketing companies have people they need to pay, and if the person is just trying to scam and doesn't pay up front, then the service provider is out of all that money because they had to pay their employees during the time the campaign was running.

For Web Design:
I never ask for the full amount up front because with web design you're normally paying more than you would for SEO and Online Marketing. I have clients pay me $3,000 to $5,000 for a design some times and paying that much up front will lower my conversions because people don't like parting with that much money all at once. So to avoid losing a sale I tend to do payment options for my web designs. I'll let them pay half up front and half upon completion, or we can set up a milestone payments system where they pay as soon as we get to certain points in the design. Most people go for the milestone payments, but the ones who have a good amount of cash in the bank will go for the half up front and half upon completion.

If the website is brand new, they've never been online before, I always host the site for 90 days after the last payment so that they can't file a chargeback and get a free design

Do You Ask For Upfront Payments?

People can file a dispute/claim in paypal up to 45 days after the payment, but if they had $0 in their paypal and it pulled from their bank account, they now have 90 days to file a chargeback. And since this is a digital transaction for something you can't hold in your hand, a physical product, the chances of you winning a chargeback are very slim.

10 years ago

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idealmike

It depends on the work that is going to be carried out and how much I'm charging for it. Whether there would be an initial outlay by myself first in order to provide their service. So if they was ordering a service that cost $5000, and for me to do that service I needed to outlay and initial $1000 to get the work done, be it paying one of my staff or having to outsource parts of it, then in cases like that, there is a risk that I deliver the work and the client decides for whatever reason not to pay for it. It probably wouldn't be because of the quality of the work because I would provide everything that was advertised and only deliver a high quality first class job/service. But in these cases, I would think about taking out some kind of insurance, either with an actual insurance agency that covered any of my losses in result of a theft or scammer who tried to defraud me so I could get by losses back. Or insurance with the buyer/client directly by taking half now or a percentage now upfront (probably enough to cover my initial outlay and incidentals). And then the rest again once the work has been completed. But that would only really be for the services I provide that sell for that sort of price.

If it was for something I could write off as a loss and didn't cost me anything at all to provide his/her work then I wouldn't take out insurance or ask them to pay an initial amount upfront, I would talk to them first, find out if they're genuine or not (you can usually tell from the start) by asking them certain questions, getting a feel for them. Finding out background info on them like their online social profiles, forum profiles and accounts etc but only if that was for something that was like $500+ or something. For services that I sell for around $20 or less or round about, I wouldn't worry so much about it and probably take payment on delivery. But in most cases, people should and do usually pay upfront for it and I and anyone will usually prefer to take the payment up front in all cases regardless of the price or cost.

They are usually protected by their payment processor anyway if they use PayPal or their Credit Card with their card company for example. Because then they could open a dispute and say they never got the work or that it wasn't as advertised, but you can now dispute a dispute and provided you provide all the work and proof of work etc PayPal can look into it. Card companies aren't so willing to help and people can get payments back on their card by simply ringing their card company and saying they don't recognize a payment on it and the card company will claw it back. Regardless to if they used PayPal or not. This is actually a big problem in the industry and I've fallen foul to it myself. That's why any big payments made to me through PayPal using a credit card I usually put on hold for a while at least 14 days because that's how long people have under the long distance selling regulations act or it might be 7 days now have to double check.

But always be wary when a new client makes a big order with you through PayPal using a credit card as it can be clawed back. However, PayPal are now taking a better position on this and can do more about it where as before they would just give in to the card companies like MasterCard, Visa, AmericanExpress etc etc because they are just too big companies to take on and they don't want to get involved in long, lengthy and expensive court cases to try and defend peoples disputes and get their money back so would just give in and mark it off as loss of fraud and the seller could sometimes genuinely loose out because of this.

I know because as said that's happened to me in the past selling a couple websites to some Moroccon guy or so he says but PayPal never or wasn't able to lift a finger to help me! And this has happened to so many people now that PayPal have had to do something about it which is why they recently announced they would be defending virtual purchased for intangible items like SEO services, SMM services, link building services etc etc etc which is what they do. You just have to provide them enough evidence to say and show that you've done the work exactly as advertised and this can be with the work report you provided the buyer with or would have done and screenshots of chat conversations, emails, Skype history etc and this will be enough in most cases for PayPal to do an investigation and reach a decision that your work is done as advertised and will defend you and I believe, now work more closely with the card companies when this happens to people. Good! I hope that it makes a change for the better I wish that they would have started doing this 10+ years ago it would have saved a lot of people getting conned and the Internet would be a better place for it.

That's why it's just safer and better to use a marketplace like SEOClerks as it prevents that from happening and if you have any problems like that they will look into it for you and reach a fair and amicable decision based on the evidence available to them. So really for a freelancer on SEOClerks the chances of getting and being conned are very minimal, both as a buyer and a seller. You are backed up not only by SEOClerks who have amazing support and very secure system in place that's locked down to the floor and ran like clockwork. But you're also much more protected by PayPal (if you take/send payments with them) also.

But all that in place, if you have some new client asking for a lot of work that comes to a considerable amount, then always be suspicious if they're asking for work upfront and to pay after. These kind of terms and arrangements are and should only be made with clients you already have done successful business with only and not new clients. Not unless it's for some cheap work you can write off provided they do pay when the work is done if it means getting them as a lifelong client that pays like clockwork when the work is delivered each time.

Put it like this, you don't go shopping for groceries or clothes then take them home eat them and wear them out on the night and then pay for them the next day do you. You have to pay for it first that's just the way the world and money works! And especially so when it comes to the services of a freelancer because as already pointed out, sometimes there is an initial outlay and you might only get a marginal profit.

So yeah, it depends but usually I would prefer to take payment up front for freelance services but if the client really wants to pay after the work is done and I know and they know I know they are a genuine buyer maybe from their past feedback from somewhere as a buyer or something, just to see what the quality of my work is like then in cases like that, I may be willing to oblige them and then blow them away and exceed their expectations when I deliver so they're only more than happy and willing to pay.

Also it can pay show that you're not really that bothered if they pay or not before or after, as counter productive as that sounds, but it shows them that you have so much work on, and so many orders, that you're not that bothered anyway and that makes them realize that the work is worth paying for upfront anyway. ;) It depends on the work that is going to be carried out and how much I'm charging for it. Whether there would be an initial outlay by myself first in order to provide their service. So if they was ordering a service that cost $5000, and for me to do that service I needed to outlay and initial $1000 to get the work done, be it paying one of my staff or having to outsource parts of it, then in cases like that, there is a risk that I deliver the work and the client decides for whatever reason not to pay for it. It probably wouldn't be because of the quality of the work because I would provide everything that was advertised and only deliver a high quality first class job/service. But in these cases, I would think about taking out some kind of insurance, either with an actual insurance agency that covered any of my losses in result of a theft or scammer who tried to defraud me so I could get by losses back. Or insurance with the buyer/client directly by taking half now or a percentage now upfront (probably enough to cover my initial outlay and incidentals). And then the rest again once the work has been completed. But that would only really be for the services I provide that sell for that sort of price. If it was for something I could write off as a loss and didn't cost me anything at all to provide his/her work then I wouldn't take out insurance or ask them to pay an initial amount upfront, I would talk to them first, find out if they're genuine or not (you can usually tell from the start) by asking them certain questions, getting a feel for them. Finding out background info on them like their online social profiles, forum profiles and accounts etc but only if that was for something that was like $500+ or something. For services that I sell for around $20 or less or round about, I wouldn't worry so much about it and probably take payment on delivery. But in most cases, people should and do usually pay upfront for it and I and anyone will usually prefer to take the payment up front in all cases regardless of the price or cost. They are usually protected by their payment processor anyway if they use PayPal or their Credit Card with their card company for example. Because then they could open a dispute and say they never got the work or that it wasn't as advertised, but you can now dispute a dispute and provided you provide all the work and proof of work etc PayPal can look into it. Card companies aren't so willing to help and people can get payments back on their card by simply ringing their card company and saying they don't recognize a payment on it and the card company will claw it back. Regardless to if they used PayPal or not. This is actually a big problem in the industry and I've fallen foul to it myself. That's why any big payments made to me through PayPal using a credit card I usually put on hold for a while at least 14 days because that's how long people have under the long distance selling regulations act or it might be 7 days now have to double check. But always be wary when a new client makes a big order with you through PayPal using a credit card as it can be clawed back. However, PayPal are now taking a better position on this and can do more about it where as before they would just give in to the card companies like MasterCard, Visa, AmericanExpress etc etc because they are just too big companies to take on and they don't want to get involved in long, lengthy and expensive court cases to try and defend peoples disputes and get their money back so would just give in and mark it off as loss of fraud and the seller could sometimes genuinely loose out because of this. I know because as said that's happened to me in the past selling a couple websites to some Moroccon guy or so he says but PayPal never or wasn't able to lift a finger to help me! And this has happened to so many people now that PayPal have had to do something about it which is why they recently announced they would be defending virtual purchased for intangible items like SEO services, SMM services, link building services etc etc etc which is what they do. You just have to provide them enough evidence to say and show that you've done the work exactly as advertised and this can be with the work report you provided the buyer with or would have done and screenshots of chat conversations, emails, Skype history etc and this will be enough in most cases for PayPal to do an investigation and reach a decision that your work is done as advertised and will defend you and I believe, now work more closely with the card companies when this happens to people. Good! I hope that it makes a change for the better I wish that they would have started doing this 10+ years ago it would have saved a lot of people getting conned and the Internet would be a better place for it. That's why it's just safer and better to use a marketplace like SEOClerks as it prevents that from happening and if you have any problems like that they will look into it for you and reach a fair and amicable decision based on the evidence available to them. So really for a freelancer on SEOClerks the chances of getting and being conned are very minimal, both as a buyer and a seller. You are backed up not only by SEOClerks who have amazing support and very secure system in place that's locked down to the floor and ran like clockwork. But you're also much more protected by PayPal (if you take/send payments with them) also. But all that in place, if you have some new client asking for a lot of work that comes to a considerable amount, then always be suspicious if they're asking for work upfront and to pay after. These kind of terms and arrangements are and should only be made with clients you already have done successful business with only and not new clients. Not unless it's for some cheap work you can write off provided they do pay when the work is done if it means getting them as a lifelong client that pays like clockwork when the work is delivered each time. Put it like this, you don't go shopping for groceries or clothes then take them home eat them and wear them out on the night and then pay for them the next day do you. You have to pay for it first that's just the way the world and money works! And especially so when it comes to the services of a freelancer because as already pointed out, sometimes there is an initial outlay and you might only get a marginal profit. So yeah, it depends but usually I would prefer to take payment up front for freelance services but if the client really wants to pay after the work is done and I know and they know I know they are a genuine buyer maybe from their past feedback from somewhere as a buyer or something, just to see what the quality of my work is like then in cases like that, I may be willing to oblige them and then blow them away and exceed their expectations when I deliver so they're only more than happy and willing to pay. Also it can pay show that you're not really that bothered if they pay or not before or after, as counter productive as that sounds, but it shows them that you have so much work on, and so many orders, that you're not that bothered anyway and that makes them realize that the work is worth paying for upfront anyway. ;)

10 years ago

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MasterA

This is a good question. I ask for upfront payment depending on the situation. I get lots of business from forums and there are lots of new members who purchase services from me and for them, I normally ask for half the upfront payment. For people who have lots of reputation on the forum and is very active, then I would negotiate something with them but I am happy to receive the payment at the end. Generally speaking, I prefer receiving all the payment at once but either way is fine with me. The thing is, as a seller it is safer to receive the full payment upfront because with PayPal, the buyer can open a dispute if something goes wrong but if no upfront payment is made and the work is delivered but the buyer doesn’t pay, the seller cannot do anything.

10 years ago

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Lynne

I don't do SEO work but I do offer various advertising packages on my Mommy Blog. I also had an online store where I sold products retail and wholesale. My policy is always pay all money upfront before I will even think of providing any product or service. I don't consider anything an order until I have received payment.

I also pay upfront for any services I use and I have no problem with that.

10 years ago

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EliteWriter

In the beginning when I did not work on SeoClerks I did not ask for upfront payments. There were a couple of instances where I was not paid and that really affected me negatively because not getting paid for something you worked hard for is hurtful. However I decided I could not just stop because of these instances. I started to ask for upfront payments and most clients back then agreed with it. Those who were not okay with it I just said ok no problem and stopped at that. I felt it was better to be on the safe side and that I deserved that protection considering that I am a trustworthy person. Thanks to SeoClerks all those problems have ceased for me.

10 years ago

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Everett

If I don't personally know the person whom is buying from me, then I would most likely ask for an upfront payment. It's always safe than to be sorry and get scammed because you weren't cautious enough. Usually in the business field, you pay for a product or service and then you receive that product or service. Shouldn't that be the same elsewhere too? If there is an issue with said product or service than you can contact customer service and get your issue resolved. It's basically the same online, but it's also very worrisome too.

As a buyer you don't want a seller you don't know to accept the payment, and then run off with the money you paid them. And you don't want a seller to run off with the money they you. The only system that would work would be using a third party to store those funds until both parties are equally satisfied with the work that is performed.

10 years ago

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