Comments on: Tips on the Structure and Timing of Payments for Web Site Projects http://www.webdesignfromscratch.com/business/payment-timing-structure-tips/ Your complete web design guide Fri, 10 Feb 2012 14:36:17 +0000 hourly 1 http://wordpress.org/?v= By: Ben Hunt http://www.webdesignfromscratch.com/business/payment-timing-structure-tips/#comment-5148 Ben Hunt Thu, 21 Apr 2011 09:17:20 +0000 #comment-5148 Hi Jeana. 4 payments of 25% would mean there's less commitment up-front, and your revenue will come through slower. The general principle is that you should be paid (mostly) up-front for each phase of work, which limits your exposure. If a client is committed to the project, they should not object. But it also encourages you to keep working hard. To get paid too much up-front would create less incentive. So it's a balancing act. The way we have it set up, the client would get the PSD artwork if they walked away at the end of the design phase (i.e. having paid 50%), so we would be covered. Regarding refunding of payments, we never made this explicit in proposals, although it may have been in our Ts & Cs. These days, as we are only taking on one web project per month, we are now requesting explicitly non-refundable deposits from clients who wish to book us for a particular calendar month. Hi Jeana. 4 payments of 25% would mean there’s less commitment up-front, and your revenue will come through slower. The general principle is that you should be paid (mostly) up-front for each phase of work, which limits your exposure. If a client is committed to the project, they should not object. But it also encourages you to keep working hard. To get paid too much up-front would create less incentive. So it’s a balancing act.

The way we have it set up, the client would get the PSD artwork if they walked away at the end of the design phase (i.e. having paid 50%), so we would be covered.

Regarding refunding of payments, we never made this explicit in proposals, although it may have been in our Ts & Cs. These days, as we are only taking on one web project per month, we are now requesting explicitly non-refundable deposits from clients who wish to book us for a particular calendar month.

]]> By: Jeana http://www.webdesignfromscratch.com/business/payment-timing-structure-tips/#comment-5102 Jeana Mon, 18 Apr 2011 21:44:08 +0000 #comment-5102 I've been using a similar method, but with 4 payments of 25%, but I've noticed a lot of scope creeping problems at wrap-up. I'm sure that using your method would help with that! I'm curious about how you deal with the "design assets". We also use the end of the design phase as a milestone and payment point (2nd 25% payment), but I've never stopped to think about what we would do if someone pulled out of the project at that point. Would we hand over the PSD files and call it even? Also, I've never placed any conditions in my agreement about the down payment or installments being non-refundable. Is that something you would recommend? Thanks for the article! It was nice to get some outside perspective on this for a change. :) I’ve been using a similar method, but with 4 payments of 25%, but I’ve noticed a lot of scope creeping problems at wrap-up. I’m sure that using your method would help with that! I’m curious about how you deal with the “design assets”. We also use the end of the design phase as a milestone and payment point (2nd 25% payment), but I’ve never stopped to think about what we would do if someone pulled out of the project at that point. Would we hand over the PSD files and call it even? Also, I’ve never placed any conditions in my agreement about the down payment or installments being non-refundable. Is that something you would recommend? Thanks for the article! It was nice to get some outside perspective on this for a change. :)

]]> By: PAUL TRAPANI http://www.webdesignfromscratch.com/business/payment-timing-structure-tips/#comment-4160 PAUL TRAPANI Sat, 12 Feb 2011 00:21:37 +0000 #comment-4160 This is exactly the type of guideline I was looking for to write up my own payment structure for clients. Everything in this article is short and to the point, perfect. Thank you for posting it! This is exactly the type of guideline I was looking for to write up my own payment structure for clients. Everything in this article is short and to the point, perfect. Thank you for posting it!

]]> By: Lisa http://www.webdesignfromscratch.com/business/payment-timing-structure-tips/#comment-3354 Lisa Wed, 01 Sep 2010 15:26:52 +0000 #comment-3354 Another lesson I learned is make sure you define your scope and make it part of the official contract. I recently had a client that I did a double-don't...didn't have a contract and the scope wasn't clearly defined. Every day even though the client had launched their site, they came back for more modifications. Eventually I became the bad guy because I had to eventually say "no" and draw the line to say the project was delivered "beyond the original scope" and everything else was an enhancement. It was an expensive lesson on my part because of the hundreds of hours I put into the site (yes hundreds) with the scope-creeping and walked away feeling I truly wasn't compensated. Another lesson I learned is make sure you define your scope and make it part of the official contract. I recently had a client that I did a double-don’t…didn’t have a contract and the scope wasn’t clearly defined. Every day even though the client had launched their site, they came back for more modifications. Eventually I became the bad guy because I had to eventually say “no” and draw the line to say the project was delivered “beyond the original scope” and everything else was an enhancement. It was an expensive lesson on my part because of the hundreds of hours I put into the site (yes hundreds) with the scope-creeping and walked away feeling I truly wasn’t compensated.

]]> By: Lisa http://www.webdesignfromscratch.com/business/payment-timing-structure-tips/#comment-3353 Lisa Wed, 01 Sep 2010 15:17:24 +0000 #comment-3353 This is great information! I really like your approach to the payment schedule and am considering adopting it myself. I usually do 50/50 - 50% at sign-up and 50% just before launch, but as you pointed out, you get some clients that keep making more demands and modifications, and it begins to feel like a never-ending project where you never see your compensation for the time you invest. I'd be curious to read about your approach to scope changes and maintenance. This is great information! I really like your approach to the payment schedule and am considering adopting it myself. I usually do 50/50 – 50% at sign-up and 50% just before launch, but as you pointed out, you get some clients that keep making more demands and modifications, and it begins to feel like a never-ending project where you never see your compensation for the time you invest.

I’d be curious to read about your approach to scope changes and maintenance.

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