Asking for money before you start can feel awkward, especially with a new client. It should not. Agencies, lawyers and builders ask for deposits all the time. It is a normal business practice, and clients who are serious about paying rarely mind.
What to ask for
- A deposit. Commonly 30% to 50% before you start, and the rest on delivery.
- Milestones. The project is split into parts, and each part is paid before or as it is delivered.
- Escrow. The client pays the full amount into escrow, and it is released as you deliver. This protects both of you. You can read how escrow works.
When to ask
Ask early, in your proposal or quote, before any work starts. Payment terms are much easier to agree on at the start than after you have already delivered something. Put them in writing, even if it is just an email the client replies to.
Templates you can copy
Change the details to fit your work. Keep the tone friendly and matter of fact.
1. Deposit, for a new client
Hi [Name], thanks for the details. I'm happy to take this on.
The total is [amount] and I can deliver by [date]. I work with a [50%] deposit to book the time, and the rest when the work is done. Once the deposit is in, I'll start on [day].
Let me know if that works for you.
2. Milestones, for a bigger project
Hi [Name], here's how I suggest we split the project:
1. [Design] by [date]: [amount]
2. [Build] by [date]: [amount]
3. [Launch] by [date]: [amount]
Each part is paid before I start it, so you only pay for work as it happens, and you can review each stage before we move on.
3. Escrow, when you want both sides protected
Hi [Name], for this project I use escrow, which protects both of us. You pay into escrow first, and the money is only released to me when you approve each milestone. If I don't deliver on time, you can take it back. Here's the link: [link]
4. Short version, for chat
Sounds good. I'll send the invoice for the deposit, and I'll start as soon as it's paid.
When the client pushes back
"Can you start first and I'll pay at the end?"
I understand. I keep the same terms with every client so I can plan my time fairly. If it helps, we can split it into smaller milestones so you never pay much ahead of the work.
"Other freelancers don't ask for a deposit."
That's fair, people work in different ways. A deposit lets me reserve time for your project and start right away. With escrow, your money stays protected until you approve the work.
"We only pay after delivery."
Some large companies have strict rules. You can still ask for milestones, so you are never owed for too long, or agree to escrow so the money is committed even if it is released later. If a client refuses every option and you have no history with them, that tells you something about the risk.
A few rules that help
- Use the same terms for every client. It is easier to say, and it sounds fair.
- Be specific: amount, date and what happens next.
- Do not apologise for asking. It is a normal part of business.
- Send the invoice or link straight away, while the client is still ready to go.
Let the tool do the asking
With SeedlessPay, you can send one link that already explains the terms. Your client pays into escrow, sees exactly how it is released, and you can see the money is locked before you start. SeedlessPay is in beta on the Avalanche test network.