But the reason that you gain respect if they pay you up front sounds pretty logical.

I was wondering why a first payment would be usefull, because, it says you’re ‘hunting’ for your money. And I don’t want to give my clients that idea…

any ideas on that one?

Money is a symbol of commitment. So I’m not hunting for money. If clients push it (and they rarely do), I say, “I need your payment up front to show me you are serious. Also, less scrupulous people have burned me in the past. Most of my clients understand, and this request is standard in the industry.”

Holding out for a deposit or retainer isn’t a sign of desperation – it’s actually a standard business practice. It says that since you’re a real business, cash flow matters; more than that, it says that you’re unwilling to waste your time on so-called clients who are simply looking for contractors desperate enough to work for free (or virtually free). It separates the serious from the non-serious real quick. It also says that you’re busy enough with clients who *do* pay up front that you don’t need the ones who don’t.

If a client is serious about a project and serious about hiring you, they won’t blink at a deposit.

At the same time, presentation counts. If you come off as desperate (”Could you pay half up front? PLEASE? I have rent to pay this week!”), your clients will treat you that way. If however you keep to professionalism, state your terms up front (preferably right on your website), don’t negotiate them, and justify them simply in terms of professional standards, the good clients won’t smell blood on you. And you can live without the bad clients.

You didn’t mention this on your post but I’m guessing you’re using a contract and the 50% deposit to seal the agreement. I use the same practice with my business and, in my experience, it’s the best thing one can do in starting a relationship with a new client.

Your points are all correct (again, from my experience).

I have been thinking about sharing the contract I use so other web designers can take a look at it and maybe use it for their businesses. (I will need to modify one of them and remove a client’s information.)Do you have one you can share as well?

Anyway, we finally had a contract signed and we launched the site. Two days later, we received payment. Even though we were paid in full, it caused way too much stress and was a pain in our butts. We have both read this post and have vowed to live and die by it in all future endeavors.

Thank you!

wow that is a lot man…

@ gilbertglee

Can you post some sort of contract? I would like to see one to help me out a bit. I’m just starting with things like this and any help is appreciated.

Thanks in advance!

Fees for this project will be $10,000. Half, or $5,000 will be paid before work commences and on signing of this agreement. 25%, or $2,500, will be paid on March 15 [or when X is delivered]. The final 25%, or $2,500 will be paid on completion of project, or March 30, whichever comes first.