How to invoice on a large project with a new client?

[Playdo]

I have a new client that has offered me a possible 4 month project. They have requested that I charge my day rate. The project consists of handing in finished assets daily.

 

Do you have any advice on how to best invoice for this whilst protecting myself? (Eg. How should I work a deposit / How often should I request payment to be made etc).

 

Thanks

[Corey Beaulieu]

I would choose a number weekly or bi-monthly that you are comfortable with. Their accounting department will likely be slow-ish in payment so you don't want to get too far ahead without being able to cut and run.

 

The rate is tougher to decide on. you would usually use a per image rate, but this one I would use an assumed hourly. How many hours you assume you will work on the project and convert that to your weekly rate.

 

Just ideas though. I'm curious to hear what others have to say.

[Playdo]

Thanks Corey. I already have a set day/week rate.

 

In a situation like this, is it common/acceptable to request payment by the end of each week (or every two weeks)?

 

I've only done price work before. I'd be grateful to hear how you guys deal with this.

[Scott Schroeder]

Usually on longer projects I'll either bill every 2 weeks, or bill by milestones. Which, usually, the milestones are pretty much every 2 weeks or so. Getting paid every week can be hard as they are more than likely on a 2 week pay cycle for their employees, or bi-monthly such as getting paid on the 1st and 16th of each month.

 

Since you are being asked to turn in assets everyday, I wouldn't stretch out you getting paid say once a month or in a lump sum at the end.

[Playdo]

Good to hear that other confirmation Scott as I wouldn't feel comfortable going beyond 2 weeks without pay.

 

And what would you recommend in regards to a deposit? If I'm billing every 2 weeks, does a 1 week upfront deposit sound reasonable?

[Scott Schroeder]

I usually go for 10-25% down depending on the client. If I have worked with them before and trust them and I can easily drive to their offices to raise a stink, I will start with less of a deposit.

 

Though that doesn't always work with clients. It all depends on how much you want to press if they don't want to pay up front. Sometimes they themselves haven't gotten paid yet either, so you have to wait until they get paid. It can be some back and forth on starting money down, and you just have to know when to fold, walk away, or risk losing the contract.

 

Of course working with 0 down is a whole other can o worms. If they are a larger company, they have more at risk if they don't pay you and if you have a solid contract that outlines the payment terms.

[Playdo]

So Scott, you would suggest 10-25% of that first 2 weeks and not of the whole project?

 

Btw I can't really request a % of the whole project as the 4 months isn't a definite.

[Scott Schroeder]

That's a tough question. I'd say you could ask for an advance of your first 2 weeks. Do you know the total cost or is it still up in the air? If you know the total cost, your down payment so to speak would be a % of that.

[Ernest Burden III]

I would say one downside to a per diem payment plan is that you can't really ask for a retainer. Against what? Your first check? Maybe if you will have to wait months to get paid, but otherwise, just survive that first month and you should be good for cash.

 

Scott - 10% - 25%? I usually go 50%/50% start/hand in (COD on the delivery, but with a 'book-keeping allowance' that becomes net 30). I figure once they find their checkbook they might as well write a real check. Of course long term clients often get away with murder.

[Scott Schroeder]

I would say one downside to a per diem payment plan is that you can't really ask for a retainer. Against what? Your first check? Maybe if you will have to wait months to get paid, but otherwise, just survive that first month and you should be good for cash.

 

Scott - 10% - 25%? I usually go 50%/50% start/hand in (COD on the delivery, but with a 'book-keeping allowance' that becomes net 30). I figure once they find their checkbook they might as well write a real check. Of course long term clients often get away with murder.

 

My typical set up is 10-25% down, 50% at the first milestone (usually 2 weeks), and the rest due before they get the high res deliverable. My typical jobs are often short so more than likely who I am working for hasn't gotten paid yet. So they sometimes balk at 50% down. But they are a larger firm so I can send Moose and Rocko after them to help them find their checkbooks. If I get a new small mom and pop shop wanting work, then it's 50% down non negotiable.

 

EDIT* I should mention that I part-time freelance on the side. I've got a full time job so it takes the pressure off to get a larger down payment.

Edited July 1, 2013 by VelvetElvis

[Dan Norfolk]

I'm doing some work for a client on an hourly rate. Every first image- I charge on a per image basis, subsequent changes and revisions on an hourly rate. they can make the revisions to their heart's content. I didn't ask for deposit and they would give me the go signal to invoice, i usually go 3-6 weeks without billing. So far they're giving me $15-20,000 yearly income. I took a leap of faith when i accepted the job, thank god they turn out decent clients.