Every project has a moment when you've done a lot of work and haven't been paid for it. That's normal. What matters is how big that gap gets, because if a client disappears, pays late or goes out of business at that moment, the gap is what you lose.
Most freelancers never measure it. This guide shows you how, and how to shrink it with the way you schedule payments.
How the gap works
Think of two lines. One is the value of the work you've handed over, rising steadily as the project goes on. The other is the money you've received, which jumps up each time you're paid. The space between them is unpaid work: work the client has and you haven't been paid for.
With no deposit and one payment at the end, that gap grows until the very last day, when it's the whole project. With a deposit and a few payments along the way, it never gets far from zero.
Run your numbers
Put in a typical project fee, then try different deposits and payment schedules. Watch the worst moment shrink.
work handed over − money in
The calculator assumes work is handed over evenly and that the payments after the deposit are equal and spread across the project. Real projects are lumpier, but the lesson holds: more, earlier payments mean less money at risk.
Three schedules that work
- Half up front, half on delivery. Simple and good for short projects (a few weeks). The most you're ever owed is half the fee.
- Thirds. A third to start, a third at a clear midpoint, a third on delivery. A sensible default for most projects of a month or two.
- Deposit, then pay as you deliver. A deposit to start, then a payment as each deliverable is handed over. Best for longer projects with distinct pieces, and the safest of the three.
Tie payments to things that happen
"Final payment when the project is complete" sounds clear until the client keeps asking for one more change and the project is never quite complete. Tie each payment to an event both of you can see:
- on signing the agreement,
- when a specific deliverable is handed over,
- on a fixed date.
And set the payment terms: the number of days the client has to pay once the invoice is sent. If you charge a fee for paying late, put it in the agreement now, not after an invoice is overdue. Our guide to late fees clients actually pay covers the wording.
Asking for a deposit without apologising
Deposits are normal in almost every trade, from builders to wedding photographers. Say it plainly, as part of how you work:
To book the project in, I take a 50% deposit when we sign. The rest is due when I deliver the final files.
Clients who refuse any deposit at all are telling you something useful before you've done any work.