When You Freelance, Make Decisions & Stick to Them

I almost called this one, “Trust and be Trusted, but don’t betray your business.” That’s the gist of the next two stories. It’s easy to make concessions when you’re freelancing, especially when business is slow. You need the work and you’re willing to bend your rules a little bit to move the chains, or bump the bottom line, or whatever metaphor you want to use for, “make more money.” But that might not always work out. I wrote this article in a notebook while on vacation, about 1 month before starting the book Start with Why. I’m happy to say this book reinforced the sentiments of what I’m about to share with you: When you make decisions for your business, stick to them. 

I often write the words, “always,” and “never” even though I know I shouldn’t. I won’t use those words here. But you should get as close as humanly possible.

If You Require a Down Payment, Collect It

Here it is – a concrete example of a rule I have for my business that I shouldn’t break. Can you guess what the stories are about?

For jobs over $500, I require a 50% down payment. If I’ve never worked with someone before, I require a 50% down payment. As the price of the project increases, I work with the client to create a more specific payment schedule based on something that works for both of us.

[bctt tweet=”Down payments are more than just a trust issue” username=”jcasabona”]

This isn’t just a trust issue. You should trust the people you work with. If you don’t, you will not have a good relationship. In the Vetting Clients chapter, I talk about some techniques I use to best vet potential clients and partners.

No, a down payment or a payment schedule is about more than that. Most projects take a long time – usually longer than expected for one reason or another. If you freelance full-time, it’s not financially possible to wait until the end of a project to get paid, especially if that project goes on for months. You need to be able to sustain yourself for the life of the project.

For larger projects, a payment schedule also helps you and your client stay on task and close out parts of the project as you go. Anything is susceptible to scope creep, and a payment schedule is one more safeguard against that.

Letting It Slide is a Slippery Slope

However, there are lots of reasons to let a down payment slide; maybe you’re working with a friend, or it’s a small project, or you figure the sooner you get started, the sooner you get the whole payment. But if you have made a decision to get a down payment before you start, get that down payment.

As an aside, I do sometimes let it slide; there are clients I’ve worked with for years, who always pay me, on time, without question. I start the project and then get the payment. This is one of those instances of trust, be trusted, and never say never.

Here are 2 stories where letting the down payment slide burned me.

The first happened when I was fresh out of college, freelancing full-time. A marketing company reached out to me about a job with a quick turnaround; they told me they have lots of work for web developers so this could lead to more, but it had to be done fast. So I told them while I usually require a down payment, in the interest of time I would let it slide. We set a deadline of Friday at 3pm.

[bctt tweet=”‘Could lead to more work’ is usually a red herring. Don’t let that sway your principles.” username=”jcasabona”]

I was very close to completing the project when at 2pm I had a family emergency. I explained the situation to the client and told them it would be done by End of Day. By 4pm, I sent the completed work.

She emailed me back, said she can’t allow something like this, and took all of my work without ever paying for me. I suspect this was her plan all along, but I was so eager to please that I ignored my decisions.

Working with Friends Should Mean Mutual Respect

My wedding was 10 months away; my brother and I were taking our biennial trip to Disneyland. My friends needed a quick turnaround project, and I quoted them and we were set. I saw them every day and trusted them, so I got to work without a down payment. I worked up until the trip, on the plane, and on the first day of the trip to deliver the project, but I did it. After all, this was paying for the trip!

When I got back, they told me they made any changes, so I knocked down the original quote and sent the invoice. I wanted the feedback, but I also wanted to get paid. Then a month went by. Then 2. I decided to mention it.

[bctt tweet=”Working with friends means having mutual respect for each other.” username=”jcasabona”]

We talked about the project, where it could have gone better, and the big changes they made to my code. I understood, and told them I wish they spoke to me; I would have fixed everything at no extra cost. I also found out money wasn’t coming in. I suspect this is actually why they finished the work. Either way, out of good will, I reduced the invoice again. We were friends, and I really wanted to get paid.

Then 6 months went by without payment. At 9 months, I talked to them again. I told them I was frustrated. I felt I got screwed, and that I’m just going to delete the invoice since they had no intention of paying me. We parted ways.

In this instance, I trusted our friendship and the fact that we saw each other every day. I felt that was as good as a down payment. I was wrong.

Do What You Feel is Right

There’s a lot of talk about gut feelings in business. You do what you feel is right; that’s correct to a point. Trust yourself and others will trust you. When you make a decision, you should stick to it. You made that decision for a reason and it defines who you are as a business. If you go to work with someone who doesn’t like your process, it might not be a good fit for either of you.

[bctt tweet=”Trust yourself and others will trust you.” username=”jcasabona”]

Ultimately, you should define yourself and your process early and stick to that process. If you never do e-commerce sites, then never do them. If you don’t take calls after 10pm, shut the phone off. By keeping to your principles you will be in a position to do better work, which benefits everyone.

[bctt tweet=”Put yourself in a position to do better work; everyone involved will benefit.” username=”jcasabona”]

This preceding was an excerpt from my upcoming book, Freelance 101.