A Freelancer's Guide to Getting Paid

Whether you are a writer, translator, web designer, or any freelance worker, sometimes the hardest part of a freelancer's job is actually getting paid. The collection process can be strenuous and time consuming for a freelancer. Don't get caught wasting more time collecting your money than you do actually working for it.

Here are some steps to take that may make your freelance job easier.

Keep good records. Always prepare your invoice at the time you start the job. This way it is ready, and you can fill in the final amounts upon job completion. Keep a record off all paid and unpaid invoices, so you can follow up.

Avoid using job sites that charge a commission fee. These job sites often collect the money for you and take about 5 or 6% off the total. This also means they are a middle man with control of your money. You now have to deal with two parties to get your payment. Often these job sites hold the funds for long periods of time (collecting interest on your money), and in cases of dispute they may even withhold all or part of the freelancer's payment indefinitely. Avoid escrow scams too. Escrow options are rarely in the employee or employer's favor; they only favor the job site collecting escrow.

Submit your invoices in a timely manner. Don't wait 2 months to send out a whole slew of invoices. As soon as a job is completed, send an invoice to your client. In some cases, I invoice them at the end of the month for all the jobs completed that month, but I never wait longer.

Stay in communication with your clients. If an invoice goes unpaid past its due date, send them a friendly reminder. Start an email or two, then a friendly phone call. Always be courteous and give them the benefit of the doubt. They may have just missed your payment by mistake. Also, be sure to update your clients immediately of any address change or banking information changes.

Collection agencies. In cases of large sums of money, if you are not getting paid, look for a suitable collection agency. There are now agencies online who specialize in certain fields. If you are a freelance graphic designer, there are collection agencies who help collect payments for freelancers, and they know how to proceed. This will free up your time to continue on other paying jobs.

You catch more bees with honey. Always be professional and friendly in your collection efforts. Only threaten legal action if all other avenues have been exhausted, and too much time has gone by. In the first month of collection, I have found that a kind approach has helped me to get paid. Tell your client you understand his situation, and you're happy to work with him toward getting paid. If necessary, negotiate for a partial payment. It's better than nothing.

Offer a discount for early payment. I sometimes offer a 5% discount for invoices paid with 14 days. If the client's usually time frame is 30 or 45 days, he might not mind paying earlier to save 5%. On a $900 invoice, he'll save $45, and you'll get your $855 a month early. Money in the bank is worth a lot to a freelance employee. You can't survive on outstanding invoices; you need cash.

The discount process has worked many times to get my bank account filled in a timely manner.

Ask new clients for a deposit. This isn't necessary for a small job, but it is for large jobs. If the job is more than $1000, and you've never worked for this client before, then ask for a deposit. I ask for 10% up front and the balance within 30 days of job completion (or 14 days with a 5% discount). Most worthy employers do understand your concern and will give you a small deposit.