How do I ask for money up front?
Its all about cash flow and getting clients to pay
- Know your worth, confident freelancers rarely have issues getting paid up-front
- Build trust-have a good website, good reputation and good reviews
- Be open to a deposit to build trust
- Make payments super easy
- Offer reassurances
- Guaranteeing that the project will be completed by agreed upon deadline in writing.
- Offering money back guarantees or refunds.
- Frequently communicating with client and providing status updates.
- Maintaining a professional relationship with the client.
- Make them an offer they can’t refuse
- Tell them you’d work for 25% more (or more) if they pay after work is complete.
Get ready for freelancing strategies, hacks and tactics to help you skyrocket your success brought to you by Freelancer masterclass calm. You’re listening to freelancing school with your instructor Mike Volkin.
Hot Topic alert. Welcome to Freelancer school. Today we’re talking about getting money up front from client. How do you ask for money up front for clients? So many freelancers. Number one, don’t ask so they won’t get in number two, they get screwed by unscrupulous clients. If your work is any less than stellar, people will start negotiating with you after the fact saying that you’re not worth the money or they want a refund or whatnot in all of that can be mitigated if you just get the money up front. So how do we do that? I’m going to walk you through some action items today. And the first tip I want to give you is to know your worth Because confident freelancers rarely have issues getting paid up front. I made it a policy many years ago to not work for a client under any circumstance, unless they wanted to pay up front at least 50%. And now almost all of my clients are at 100% up front, you can be in the same position to if you just know your worth, because competent freelancers who don’t stumble through the quote unquote negotiation process are the ones who sound more short themselves in their value in their service. And clients don’t question confidence. And if they do, they’re the wrong client for you. Another tip for you is to build trust, have a good website, good reputation, good reviews. Sometimes most of the time clients won’t argue if you’re the right fit, and you want to get paid up front. That’s fine. I rarely if ever get pushback on that. But I will tell you that if you build trust by having a good website and good reputation good reviews that only further solidifies, their ability to pay you up front, because they’re doing research on you, they see that you’re a stand up person that you have a history of doing great work for clients. And that just makes it so much easier for them to give you what you’re asking. And then, you know, at the very least, if you run into an issue where somebody doesn’t want to pay up front, make it easy for them to say, listen, how about, we knock out the first milestone or two, you just put in a quick deposit, maybe it’s 10%, or 25% of the overall project. So instead of paying 100%, up front for the entire scope of the project, you do a scope that is only 25% or 10% of the original contract, and you get that small trust that you’re building because you’re doing just a small part of the project. you’re delivering a great, you’re responding to the client great, everything’s the communications fantastic. And then basically, they’ll pay that money up front instead of the whole hundred percent. And then it’s something that you can quickly knock out in a week or less and build that trust then they want to make you know what and 90% of all Or 75% deposit on the second milestone, it will be much less of an issue. Another tip here is to make payments really easy. The harder you make payments, the more clients will doubt you. And your ability to get things done is easy it is to make a payment nowadays with all these sites like PayPal and Venmo. And all these credit card payment companies, it’s really it takes only a few clicks to set up an account. You shouldn’t have to make it difficult for them. I had a freelancer. I spoke about this on a previous podcast, but this Freelancer made it really difficult for me, I hired him. He made it difficult for me to make a payment I had a sign up for this account I’ve never heard of I then had to get my
my payment verified. I had to
take a picture of my ID and then me with the ID. I had to verify my social security number and go through all the security steps. And by the time I was done, I was like this guy’s toast. I finished the process
but I never hired him again.
I had him just do a small job and then I said I don’t want to hire you again if I have to use this company because even making a second payment was difficult. It was more than just entering your credit card number. So I didn’t want to do that I think it was Payoneer or something like that. Whatever the case, make it easy for them. And if there’s a common payment method in their country, for example, in the United States, PayPal is very common, you should just sign up for a PayPal account, if that’s the client is likes to you. So just be open and ask them what they like to use. And obviously, a lot of clients like to use credit cards because they get mileage points. And yes, there is a fee for using credit cards in your end, but build that fee into the cost of your your project. Right. So if a client says I don’t want to do a CH transfers or wire transfers, that’s expensive, and you have to go to the bank to pay $10 out of my account. And then you know, you have to enter all of the routing number and check number it’s hard when for an extra two or 3%. They can just enter their credit card number be done with it. And all you have to do is enter that sheet into your scope of work. All right, easy enough. So here’s a big tip I have for you in terms of how do you ask for money up front is you want to offer reassurances if you take nothing away from this podcast. Remember these two words offer reassurances. So there’s four things you can do. Number one guarantee that the project will be completed by the agreed upon deadline and writing. Number two, offering money back guarantees or refunds. Number three, frequently communicate with the client and provide status updates. That’s a big one. All right, the lack of communication will only kill your prospects for getting future work. Okay, even if you’re doing a great job, and on the flip side of that if you’re over communicating and doing a terrible job, it makes you seem that much better. So put it in your calendar. If you’re bad at communicating, put in your calendar at least once a day to follow up with the client to send them a daily recap of the work you did even if you didn’t do anything. Just say hey, just checking in with you wanted to recap yesterday’s work or something like that. The best consultants the best freelancers the best self employed people that I’ve worked with Will overly communicate with me even if I don’t want to communicate with them every day, they’ll send me an email. That gives me a little warm fuzzy feeling as a client. Okay. And the last tip I have for you for offering reassurances is maintaining a professional relationship with the client. It’s only natural to want to try to be friends with them. But I’m telling you, the more you become quote unquote friends with clients, the more favors you feel like you’re going to want to give them and they’re going to want to get from you. So it’s don’t mistake this for being friendly. But you know, if you had a weekend where you’re playing golf or doing an event with your your kids, I don’t know a birthday party, don’t be sending them pictures unless they asked. Don’t be proactive and trying to be too friendly with them, because that just crosses the line between friend and client. And the last tip I want to give you in terms of asking for money up front is making them an offer they can’t refuse. This one works great for me. If you were to fill up a grocery card, for example of groceries and I were to say now I’m going to give you two options you can pay $90 now, or $100 in an hour, which would you choose? Well, naturally, you would choose the cheaper option, right? Because you have the money, and you know, you need the groceries. Alright, so let’s carry that analogy over to freelancing. If you make an offer to a client and you say, listen, here’s my fee for doing this project. Let’s just say it’s $1,000. Okay? You can say, you can pay me up front, that’s my policy, thousand dollars, gets you everything you need. I’ll start working on it right away, and it’ll be done by this day. Okay, great. Or you can pay me 1200 and $50 50%. down and the other 50% when it’s complete, any reasonable person who has the money is going to pay you the cheaper amount. If you’ve given the value to the client that you can do the job. If you’ve left no doubt in their mind that you can do the job and the desired timeline. You’re relieving their pain points, you’re the solution to their problem. There’s no reason why they would waste 252 In that respect, okay, so make them an offer they can’t refuse. All right, good luck.
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Transcribed by https://otter.ai