Working as a Freelancer and Getting Paid

Freelancing November 11, 2008 33 comments

I’ve been working as a freelance web designer full time for just about four months now, but before I left my previous programming day job, I did a bit on freelancing on the side to see if I was cut out for this type of work. I made a few WordPress themes both free and ones I sold, and I soon started to get requests for custom jobbies. So what have I learned in this time of being a freelancing newbie?

Estimate and give a proper quote before project starts

At the start I took everything I could get my hands on, and I had incredibly low prices, because at that time I was just so thrilled at getting work that I didn’t think of it as salary. I made one website for $300 and used between 30-40 hours getting that site done.

dietpixieThe design didn’t take long, it was the fact that I hadn’t estimated the project before I started. The project specification was pretty vague, and I only calculated how long it would take me to design and code it. Even then it was quoted too low, but they had a budget, and I didn’t want to lose any work. It was the aftermath of tweaks and layout changes that came after I had finished my part that blew the project out of proportion. Today I think of this project as a great learning experience.

Tip #1: Always get the specifications before the project starts!

Get paid before you start working on small jobs

I also did many modifications to existing sites, and quickly learned that I needed to give a list of every modification the client would want, and estimate a total for ONLY those changes. If they client then wanted more on top of that I told them that we could do that in round two. I always take 100% payment upfront for jobs that only take a few hours, and usually 50% upfront and 50% before the project is finished on bigger projects.

Tip #2: Get paid before you do customization work on clients server.

Don’t get ripped off

When I got requests for work, I usually gave a quick quote and and if the client thought that was reasonable, I usually got the job. But I forgot about payment schedules, which is just as important as the quote itself. I had to much faith in clients, and thought they would all pay me once the work was done. It didn’t take long before I got burned, and learned a valuable but costly lesson.

My client was making a web site for a company, and the mistake was made after I had finished and the client asked to get the theme files so they could test it on their side. They managed to get their site up and running, and I was promised payments about a dozen times. I was so patient with this client that from the first request for payment until the last, 3 months had passed. The client even wanted me to design some more web sites, one of which I started on, but said that I needed payment for the last project before I started coding.

I’ve emailed both the company and my client without response several times. It’s been over six months since I was supposed to get paid. So for me this is a lost project but another valuable lesson was learned. Update: This issue has been resolved thanks to one of my readers who finally managed to established contact with the company, and I have been paid for my work.

Tip #3: Never hand over your work before your client has paid you!

Do you have any similar stories or experiences? Am I wrong for hanging out the client who never paid?

33 Responses

  1. devolved
    Nov 11, 2008

    It’s all too common in the world of “business” to try and shaft people so I operate a system of pseudo-trust …

    I have control over the domain and the hosting so if anything should become a problem I can at least kill the site and they’ve not had something for nothing.

    Never used a contract but in saying that I can see how useful they are in limiting the amouint of messing clients will do, if they think it’s costing them they will be a hell of a lot less likely to suggest amends or a whole new colour scheme


  2. Adii
    Nov 11, 2008

    Nice post! And some valuable lessons learned I see… I might add that I did my first complete WP theme for a client for $50; so I started slightly lower than you did… :)

    That said, I find myself creating project docs before every new project at {radiiate} these days. Even though it is a mission to set these up, it’s nice having them, since it gets signed by the client and I can thus hold them to it. So none of those endless tweaks to projects that never get finished.


  3. Kirstin
    Nov 11, 2008

    It’s happened to me a couple of times already but now I’m alot more vigilant.


  4. admin
    Nov 11, 2008

    Yeah Kirstin, I think I gave you some advice when you had learned the hard way like me :)


  5. admin
    Nov 11, 2008

    @adii – $50 is probably a lot more in South Africa anyways ;)


  6. Jeff Mackey
    Nov 11, 2008

    Great post, and I can empathize, since I am in the same boat as you. Although you’re one step ahead of me and doing freelance full time while I am about 80% there.

    I experienced similar issues with what I would call problem-clients, ones that are slow to pay. Upwards of net 60+ days to make a simple payment. Totally frustrating, but the lesson learned is to stand firm, demand (politely!) payment before work can continue.

    Being nice is great customer service, but being a nice guy doesn’t get the bills paid.


  7. admin
    Nov 11, 2008

    Well said. I always play nice but firm :)


  8. Simon
    Nov 11, 2008

    I think what you have experienced is about the usual for a freelancer. I’ve done freelance work on and off for about 4 years.

    When working with clients, I always tend to show the progress of the website on a testing server and never release the files until they have paid off their final bill. Always take some money upfront!


  9. mia
    Nov 11, 2008

    First of all, congrats on the redesign, so much better!

    And I don’t know why but I’ve come across several articles on the samme issue, and all I’m thinking is; why did’nt I see this before?

    I’ve been lucky, but trusted the clients too much! But is it common to get the payment before you start on the project?

    And one more thing, since you are a fellow norwegian :) , do you know where I can find a contract to look at (for webdesigners), so I can get an idea of what’s normal to put in?


  10. admin
    Nov 11, 2008

    @Simon – Testing server definitely the way to to go :)

    @mia – Takk, and thanks for stopping by. Good to see that there actually are other people in Norway that freelance as web designers :)

    I think it is pretty common to have some sort of payment schedule set or down payment before the project starts. I haven’t had any clients say no to me because of it. Those who say no would probably not pay anyways…

    I haven’t been using contracts myself, but know people who do. A contract doesn’t have to be a fancy pants document with lots of legal stuff on it. Just putting down the project terms in your own words is just as good.


  11. mia
    Nov 11, 2008

    Yeah ok. ;)


  12. Hansson
    Nov 11, 2008

    Hi Mia and Magnus,
    Try downloading one of the sample contracts over at Frilansinfo.no, they are not exactly for webdesign but they provide some info about what should be included.

    Go to the “Last ned” page… Just ask if you have contract questions, I can be reached via the forum there or the contact page.


  13. admin
    Nov 11, 2008

    Thanks Hansson! I don’t know how I ever missed your site… lots of good resources there!


  14. mia
    Nov 12, 2008

    Hansson: I just saw this page yesterday because I was asked to be in a book about freelancers (and it’s the same guy who runs the site and are writing this book I guess). Talk about finding all the right things at once or what?

    I think the book will be great, for you norwegians, read this; http://www.pourquoi.no/products-page/


  15. mia
    Nov 12, 2008

    Oh, Hansson, I’m sorry, are you the owner of frilansinfo?


  16. admin
    Nov 12, 2008

    ActivSigns is not the thief here, since they hired someone else to do their work, and he hired me.


  17. Hansson
    Nov 12, 2008

    Mia: Yes I’m the editor of Frilansinfo.no. It made me see that there is need for a complete handbook in Norwegian about this theme.


  18. admin
    Nov 13, 2008

    Thanks to Hansson and his emailing skills, I have now heard from my client and he ensures me that payment should be made withing 10 days.


  19. mia
    Nov 13, 2008

    Hansson: There is a need, I just wish you wrote it earlier :)


  20. Anders-Meyer Eldøy
    Nov 23, 2008

    I had som dificulties when I was working freelance, but I got payed just not enough. My client and I had an agreement on me getting 80% of what they were billing their clients. After a while I figured out that they were actually billing their clients 2x more than what they told me, and since we did’nt have any “contract” I never got anything more. The good thing is that because of their unethical morale the company was closed down a short time after I “broke it off” with them. This lesson taught me to use contracts, so it was a good lesson :) But theese type of things makes me not want to go back to freelancing in the nearest future, its a real struggle getting payed sometimes..


  21. Peter Flaschner
    Dec 8, 2008

    One thing we’ve been experimenting with lately is getting clients to pay 40% up front, 40% after signing off on design (before starting code) and %20 on completion. We did this for a couple of reasons:

    1) getting clients to pay money after the design is complete but before the code starts helps the client understand that the design process is now finished. It reduces the endless tweaks that come at the end.

    2) it makes sure that you are paid for the work you do. If you get 50% up front, then 50% at the end, it means that you’ve done a lot of work without getting paid (you’ve completed 100% of the project but only received 50% of the pay). We’ve had too many clients walk away at the end, either because their business changes direction, or they get sick, or something unexpected.

    There are a whole bunch of additional reasons why I think this makes sense for freelancers, but I don’t want to hijack your post! Thanks for writing about this important topic!


  22. admin
    Dec 8, 2008

    Thanks for your input Peter,

    I usually do the design mockup for clients without getting paid, and then demand 50% when I’m done with the design. If they don’t pay then I can always use it for something else… like a WordPress Theme ;)


  23. mia
    Dec 18, 2008

    Well I’m still waiting on a payment, since April actually… :( I’ve learned my lesson!


  24. Magnus
    Dec 18, 2008

    Ask mr. Atle “torpedo” Hansson to help you out ;)


  25. mia
    Dec 18, 2008

    No contract though :( But maybe I will ;)


  26. Hansson
    Dec 18, 2008

    Hahaha! You should not give up on that one, Mia … especially not if the client is based in Norway.


  27. mia
    Dec 18, 2008

    And I won’t! But all of a sudden he says the company is bankrupt, so I’ll get the money when I get the money….

    And yes this used to be a norwegian company that I did a few projects for.


  28. Angelo
    Jan 6, 2009

    Yep, I already learn those lessons by doing the same mistakes as you did. Lessons Learned!

    Great post!


  29. Hansson
    Jan 14, 2009

    Did you see the money yet? I’m here to steal some pictures to use in the interview with you :) – I’ll program it for Sunday evening I think.


  30. admin
    Jan 14, 2009

    Hey! Yes I was finally paid thanks to your efforts :) Thanks!


  31. Hansson
    Jan 14, 2009

    Excellent news!


  32. mia
    Jan 15, 2009

    Lucky you! I hope I’ll get my money too! But that’s great news!


  33. Sean Delaney
    Apr 26, 2009

    Hi

    Thanks for this post – I’ve been looking for good posts like on this on web to help me out with putting together a price for a website I was asked to develop.

    It was a good read.

    Sean


Magnus Jepson

Hello! I’m Magnus Jepson, co-founder of WooThemes. See my business/work underneath or check my latest tweets on the right.

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If you’d like to tell me about some exciting stuff or just say hello, my e-mail is magnus@jepson.no