Understanding Payment Terms & Avoiding Scams

Introduction

One of the biggest challenges for freelancers is getting paid on time and avoiding scams. Clients may delay payments, refuse to pay, or even disappear. Here’s how to protect yourself.

1. Common Payment Terms in Freelancing

• Upfront Payment: Clients pay a deposit before work begins (typically 30-50%).
• Milestone Payments: Payments are made in stages as work progresses.
• Net-30 / Net-15 Terms: Full payment is due within 15 or 30 days after invoicing.
• Retainer Model: A client pays a fixed amount monthly for ongoing work.

2. How to Avoid Scams & Non-Paying Clients

• Use a Contract – Always have a signed agreement outlining payment terms.
• Request an Upfront Deposit – If a client refuses, it’s a red flag.
• Verify Clients Before Working – Research their website, LinkedIn, and reviews.
• Use Secure Payment Methods – Avoid checks or unverified platforms; use PayPal, Stripe, or escrow services.

3. What to Do if a Client Doesn’t Pay

• Send a Payment Reminder – Follow up via email after the due date.
• Charge Late Fees – Include a penalty for overdue payments in your contract.
• Escalate if Necessary – If they refuse to pay, consider small claims court or collection services.

Conclusion

Understanding payment terms and recognizing red flags can help freelancers avoid scams and get paid on time. Always protect yourself with contracts, deposits, and secure payment methods.