Do you ever find yourself getting nervous when it comes time to send your clients the invoice for your freelancing? You might be worried about asking for upfront payment, as new clients might be hesitant about this. Asking for upfront payment is also one of those things that’s easier said than done—but it doesn’t have to be!
Why Asking for Partial, Upfront Payment is Better
Although there are benefits to charging full, upfront payments, this might create complications. Some clients might become iffy about this or back out of the deal entirely. Especially so if they are new and you have yet to build up trust with them. So instead, offering a partial, upfront payment is a compromise that will ease both you and your client’s worries.
Contrary to receiving your paycheck stub, receiving an invoice may cause feelings of dread to well up inside you. So it’s no surprise why some clients feel hesitant about upfront payments at times. Still, upfront payments are the best financial assurance you have as a freelancer or small business owner. Sometimes, it is even necessary before you can begin working.
A partial, upfront payment provides you with the reassurance that the project will be paid for in full. It also provides your client the reassurance that you will see the project through. Upfront payments also help you have a better cash flow to cover the project’s costs as you’re working on it.
How to Request a Partial, Upfront Payment From Your Clients
Now that you understand the benefits of asking for an upfront payment from your clients, here are some helpful tips on how you can successfully request this:
1. Establish Your Fees
Having set fees for your work or services is extremely advantageous. It lets clients know how much they should be expecting to pay. It also lets you know exactly how much you’ll be receiving throughout the project. This also helps minimize the risk of a client backtracking on the deal.
Once you have set your fees, you can create multiple upfront payment options and include them in your proposal. Having various payment choices available to clients makes it easier for them to choose an option that works best with their budget.
2. Explain the Scope of the Project to Your Client
Discussing with your client the scope of the work will help convince them to pay upfront as they learn about the amount of time, effort, and materials that will go into the project. Clients won’t need to worry about unexpected charges popping up during the project, given information about the work involved. In addition, providing an itemized list with all expenses included helps ease client concerns by letting them see exactly where their money is going.
Suppose your work uses a lot of professional jargon, and you’re worried that your client may not fully understand how difficult the task is. In that case, you can opt to tell them how much time you’ve spent on previous projects that are similar to the one they’re commissioning now. Explaining why you’re using specific materials for the project and why they’re priced as such can also help them further understand the need for upfront payment. You can even use the amount of experience you have as another point, whether it’s the number of projects or clients you’ve had or years you’ve spent studying or being in the industry.
3. Provide Reviews, Testimonials, or Customer Feedback
Social proof is a great way to showcase your reputation. If you have positive reviews, testimonials, or a social media following that can vouch for your work, this is another way to help convince clients to pay upfront. If they see that other people are satisfied with your service and the quality of it, then they know there’s no reason not to trust you as well.
Include customer feedback on your website and social media platforms for prospective clients to view. Make sure they include the name of the company or client you’ve worked for, as this provides transparency and makes the feedback more trustworthy.
4. Get to Work Once You Receive Payment
Because of the financial security upfront payments provide, especially as a freelance professional or small business owner, you can also consider letting your clients know that you don’t start projects unless deposits are made first. This is where having multiple payment options comes in handy as well.
Once you have received the partial, upfront payment from your client, you can begin working. You can provide your client with updates about the project from time to time as well. When the project is complete, be sure to send the final invoice to your client right away. This can be made easier using online invoice generators.
Receiving upfront payments has its benefits as this can be seen as quite the investment for both you and your client. By following these tips, asking clients to make a partial upfront payment should be much easier now!