When you first start running a business from the home or for yourself, then you’re going to be faced with all sorts of little challenges. One of those that can make some freelancers surprisingly awkward is the question of how you get paid. Here, we’re going to look at how to set up a payment system that works for you and how to get over any of the doubts standing between you and the money you’re owed.
Setting your rates
First of all, you need to make sure that you can’t be negotiated at any price that fits the client. To make sure that your work is always worth doing, you must set a fixed price (or price range) that you’re willing to offer. For selling products, this is slightly easier. You might have a harder time figuring out how much to sell your services for, but there are sites that can help you find average rates, and, from there, you can decide whether your services are above average and by how much.
Detail precisely how you will get paid
To make sure that there’s pussyfooting around with the bill and that you’re not constantly waiting for money that you’re owed, you need to standardize your method of getting paid from the start. Some freelancers are satisfied to wait for a little with an invoice system. Meanwhile, you might use a virtual point of sale or prefer to start work only after a PayPal payment has come through. There are advantages to each method to consider. What’s important is that you’re very clear with clients and customers how they must pay from the start.
Don’t feel bad about chasing up what you’re owed
If you use a system such as invoicing, or you let your clients and customers pay after the service/product is delivered online, then you should anticipate that some will be late in paying. To prevent this, you can set a date in which they have to pay and start charging them late fees if they fail to. Invoice processing software can help give you reminders of when you should start going after them, too. Some people will have genuine and good reasons to be a little late and you can forgive late fees at your discretion, but don’t feel bad about reaching out to ask for late payment.
Get it in writing
How common is it that a client will decline to pay entirely, even arguing that they don’t have to? Not very often, but it can be such a stressful event that you wouldn’t want it to ever happen to you more than once. As such, if you’re delivering services that your client pays for after the fact, make sure they sign a contract that outlines what they can expect and what they have to pay. If they don’t sign it, don’t do the work.
It can feel a little awkward, at the start, to ask people directly to pay you money. However, it’s a feeling you will get used to and you need to defend your right to get paid for all work you do fervently. Formalizing and standardizing the process will help that.