3rd March 2024

7min read

There’s obviously more to this than meets the eye. Of course I, and everyone else, likes getting paid – that’s why we do what we do! But in the freelance world this frequently comes up as an area they find tricky to navigate. So we are diving into all things payment here after the topic was requested on my Instagram.

First up – rates. These are going to vary a lot depending on your field, but what’s common across the board are freelancers being very guarded about sharing their rates with other freelancers. I think this is a huge disservice to the freelance community who often struggle with setting fair rates for their work. We should be presenting a united front to the people who hire us, and we can’t do that if we don’t know what everyone else is charging. That’s why my rates are publicly available on my website. If people want to undercut me, that’s their prerogative, in the long-run they’re only hurting themselves. And it also doesn’t always work. So, set your rates and wear them with pride!

However, this can lead us into the weeds when it comes to the different tiers of clients. Consider this: when you walk into a car dealership the sales person will work to sell you a car that’s within your budget range*. If you tell them you can’t afford that flashy sports car, they know they’re not going to sell you that flashy sports car. But they still want to make a sale that day, so instead of showing you the door, they’ll show you other more realistic options. This is true for so many industries, so why should we expect every type of client to meet us at our rate.

This doesn’t always mean charging less for smaller budgets, it can just be reigning in the scope of the work and being smart about using the budget they have to make the most impact, as was the case with Neadra. 

The creative industry is rife with low/no budget clients too, the ads of which are often unduly subject to ridicule in the Facebook comments section as a knee-jerk reaction to the low pay (however there’s a big difference between a low budget student project and an established company paying below minimum wage). But there may still be space for such low/no budget projects in your freelance business. Projects like these could provide valuable training material to hone your skills, it might also be a subject you’re incredibly passionate about, and it might give you more variety in your portfolio to help you land bigger clients in future. After all, they’re probably making the project for similar reasons, everyone has to start somewhere! So instead of focusing on them being low/no budget, consider them a growth project. Evaluate what they’re asking for, does it align with your business goals, and can you perhaps deliver it around your other higher-paying projects. If yes, then it’s worth a discussion.

Note that clients will not always tell you their budget, so you need to get good at assessing prospective clients, figuring out what their budget level is, and whether or not they’re just trying to low-ball you. 

Ok, let’s move onto the scenario where you have your client, you’ve done the work, they’re happy and now you’re ready to get paid. What do you do? This is actually a trick question, because for me the process of getting paid starts as I’m onboarding a new client. It’s important to talk money early on, clearly laying out your expectations and making sure both you and the client are aligned. Laying out these particulars in a service agreement is a great way to set a professional tone with your client, giving both parties peace of mind. Alongside this, I also ask clients for a 50% deposit of the project fee before we start. This serves two purposes; one, it gives you cash flow which minimises the feast/famine rollercoaster of being a freelancer, and two, it puts your relationship with the client on equal footing. You are both now equally invested in the project. It’s also unlikely for a client who has already paid 50% to then not pay you the rest, and of course it eliminates the risk of you not getting anything from them at all. Historically I’ve had very little pushback on deposits and as a result, now in my fifth year of freelancing, I’ve never not been paid. One or two have been late, but never not at all.

Be aware there is nuance to charging deposits. You will not be able to get deposits from every type of client, but the ones you can’t you can assess based on their reputation amongst other freelancers (word gets around!). For large projects you might also consider regular payment installments. I also take into consideration the length of a project, my relationship with the client and a client’s history of paying on time when deciding whether or not to request a deposit.

Going back to the future now, at the end of your project, you’re ready to be paid, you’ve sent the invoice with the payment terms you agreed at the start (e.g. Net 30, 60, 90, or any other arrangement). It’s perfectly acceptable to send polite email reminders throughout this period until the invoice is paid. It is not rude to do so. Just remember they are well within their rights to wait until the last day to pay you, so if you are going to send reminders the tone must be friendly. Include the invoice number and the due date, keeping the email short and to the point. The regularity of these reminders is up to you, but I would recommend no more than once a week. For clients who I know will pay at the end of the term, I might send a reminder a week before it’s due. Others I might not remind at all because they have a good track record of paying early. New clients are reminded weekly, with a final reminder on the due date if necessary. You can start to see how everything here is not so cut and dry, you are always considering each individual client with every aspect of your approach along the way.

Now for the big one, the nightmare scenario that haunts every freelancer… the dreaded non-payment. You reach the end of the payment term, sent the final reminder on the due date, and the day after there’s a noticeable hole in your bank account where that payment should be. First of all, keep an open mind at this stage. Email the client and explain the invoice is now overdue, and ask them the reason for the delay. It might be that it’s on the payment run for that week, or the payment has been issued on time but is still being processed from their/into your account. Whatever the reason, ask them to provide a timeframe for when you can expect the payment. Be polite but firm. Yes they have technically broken the payment terms you agreed upon, but when the payment appears to be on the way it’s not worth souring the relationship at this point. 

That said, you are well within your rights to reissue an overdue invoice (no matter how late it is) with added late payment fees if these were included in your service agreement, and a revised due date of your choosing. This will often prompt a client to pay the original amount minus the late fees, and it is up to you whether or not you let these late fees go, pursue it immediately, or make a note and include it in the deposit if you work with them again.

Dealing with overdue invoices in this professional, procedural way honestly resolves most issues of non-payment with no further action necessary. Most clients are not greedy gremlins refusing to pay you, they are busy human beings who sometimes make mistakes. I have only had one case where I’ve needed to start pursuing court action for payment after an invoice became a month overdue, despite repeated assurances that payment was coming. It later turned out this particular production company had left a whole roster of unpaid freelancers in their wake, and to top it off its boss was facing serious allegations of bullying and subjecting workers to excessive working hours. This made industry news, and you can read more about it here on Deadline. This was just one bad egg in a basket full of good ones.

Fortunately, I did get paid in the end without it needing to reach court. 

To wrap this up, although the topic of payments might be incredibly anxiety-inducing to you as a freelancer, bear in mind that many clients will also be anxious to see you deliver what you’ve promised – your expert services and a product they’re happy with. Particularly if you are working remotely. This is why it’s so important for both sides that you, as the service provider, lay the foundations for a professional relationship right at the start, so you can both go in with confidence. 

*Never ever tell a car salesperson your budget. You’re welcome.