42%
Out of context: Reply #36
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- fyoucher10
Getting 50% up front:
- Works sometimes, not all the time (or even most of the time). If you work for ad agencies especially. A lot of times the amount of time it takes to get approval on a purchase order, is about half the time in which they need the project completed. Ad agencies always come to you last second and need shit yesterday. That's just how the advertising industry works. So it's either accept the project with a net 30 payment, or they move onto someone else who will. Personally, I choose the net 30 payment and stop bitching. As for the mom and pop business that a lot of freelancers work with, yeah, definitely get money up front.Doesn't matter when you get paid (re:Rand):
- You've got a point and that works when you're dealing with smaller budgets. What happens when you need to outsource some of the project? You'll be shelling out of your nest egg in order to pay the contractors. Which might be okay if you've got the money to spare. Either or, you really don't want to be on that side of the fence.
- What happens when you work on a project in December, but don't get paid until January the next year. Then when you file your taxes, you'd usually be in this 'XX' % bracket. Now that you've gotten that extra payment from last year rolled into this years net, you're now one step up in a higher tax bracket. Now you're paying "this" much more money in taxes. FYI, once you make over 200k, you're taxes go up SIGNIFICANTLY and there's more chances of a tax audit from the good folks at the IRS. All because your clients paid you later.
- Let's say all of your clients paid you late. Imagine if they didn't. If you're making a significant amount of money, that could be INTEREST you could be accumulating. But instead, the client is making money on money they owe you.Clients should always pay on time. It's just good business practice. Unfortunately a lot of the time it's not your direct contact at the client's office that's in charge of the finances. Typically it's their finance person / accountant. And they're always looking for ways to save money and ways to make it look like the company is earning a profit. Even if it means paying you way late or even in the next year.
- If you are paying contractors then you aren't really freelance anymore.Amicus
- Then what are you, a business? FYI, freelance is a 'sole proprietor'. Another form of business entity.fyoucher1
- Maybe its diff in AU though. In the states its considered a business, even if you don't have employees.fyoucher1