Tips to Manage Your Freelance Payments

Freelancing is one of the most sought after career choices today because of the flexibility and convenience that comes with it. One can earn money from the comfort of one’s home without ever having to step out of the house. There is also reduced transportation needs because you do not have to commute to work daily and you can be free from the rat race of corporate world. It helps to create a good balance between work and personal life, yet you continue to do what interests you the most. These are some of the reasons why many people opt to be a freelancer.

Despite these advantages, there is also a downside to freelancing. The most common problem is chasing payments. Since most freelancing is done online, there is no opportunity to meet the buyer of your services and also there is little recourse if he or she defaults on payment or pays way less than what was agreed. Without a lack of formal agreement, it becomes difficult to take any legal action against the defaulting client.

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Projects and Payments

The amount of money depends on the kind of job and the number of hours it takes to complete them. As a designer, there can be a lot of difference between two projects and it is not fair to equate all projects to the same sum of money. A simple logo design will take only a few hours while a complex animation page can take many days to complete. Getting the same amount of pay for both the projects is unreasonable. Unfortunately, this difficulty is not understood by many of the buyers. The common perception is that freelancers work for a lot less money than regular employees. Though this is true to a certain extent because there is no employee tax, medical insurance, social security benefits and so on, nevertheless it is a career choice and a means of livelihood. It is this attitude of buyers that creates a whole lot of problems for freelance designers.

Tips to Avoid Money Fraud

There are some steps that can be taken by freelancers to ensure that he or she does not get cheated by unscrupulous clients. Below are some tips that can help to avoid money problems:

• Keep track of how many hours you spend and how much money you should get at the end of every week or month or on completion of the projects, as per the terms of the agreement.
• It is better to get money periodically for the amount of work you deliver, instead of waiting for a bulk payment at the end of the project. This will cut your losses even if the clients decides not to pay you.
• Look for reviews of the buyer in popular sites like odesk.com and freelancer.com. This will give you a good idea of the buyer’s track records and his or her typical mode and frequency of payments. Based on this information, you can decide if you want to work with that particular buyer or not.
• Trust your own judgment as this can help you identify the right from the wrong.
• Its a good idea to ask for a small payment upfront to help you get started.
• Sign a formal agreement if possible that can be used as a proof in any courtroom under the laws of jurisdiction of your city, state or country.
• When something is too good to be true, then it is probably a scam and it is better to stay away from such people. Nobody will pay $10,000 for a small amount of work and if someone is willing to pay you, then he or she is definitely looking to cheat you. Realistic expectations and returns are usually more reliable.

As far as possible, try to use software and websites like odesk.com that guarantee payments for the work you have done.

When you follow the above-mentioned tips, there is an increased possibility that you will not get cheated.

Freelance Websites and Software

Freelancing has boomed in the last few years and this has resulted in the presence of many websites and software that make it easy to find jobs and manage payments. A few of them are discussed below to give you an idea of where to start.

Odesk.com

Odesk.com is one of the well-known freelancing sites with multiple opportunities in every field. It makes it easy for buyers and sellers to find the exact contractor and job respectively. One can even hire and work as a global team with the tools and software offered by this site.

They have jobs that pay by the hour as well as those that are fixed and paid at the end of every project. The hourly jobs are a great boon to freelancers because they guarantee payment for the work logged in using their specialized software.

They also handle disputes that arise between the buyer and seller. All this makes it a great place for freelancers to find good jobs that offer guaranteed payments as well as for buyers looking to hire the best talent.

Freelancer.com

Freelancer.com is another freelance site that has thousands of jobs for all fields like software programming, writing, website design, translation, content development, academic writing, photoshop design, animation, graphic design and so on. This is a platform that brings buyers and sellers from all parts of the world together.

Others

There are other freelancing websites like elance.com and guru.com that help buyers to find the right talent and freelancers to find the right jobs. These websites have transformed the way business is done and it has brought the world a lot closer.

These are some of the websites that can help you find the jobs of your choice. As freelancers, discipline, dedication and balance are the vital aspects that will help you to be successful. Also, you need to stay on top of your finances if you are planning to make a career out of it.

Money Payment Options

The virtual nature of freelancing makes it imperative to choose reliable channels to send and receive money. These options help you to get money from any part of the world, without any geographical constraint. The money transfer websites have opened the world and have brought genuine buyers and sellers of any kind of service together. Some popular money payment options are:

PayPal

Paypal is the most popular way to get paid. It is simple and easy to use. All that one has to do is sign-up with a valid email account and associate your bank with the account. After Paypal verifies the bank details, you are all set to receive payments. The best part about getting money through Paypal is its high level of security. There is no need to reveal the details of your bank to the clients. All that you have to do is provide an email address to which the money has to be sent. When they send the money, it is automatically reflected in your account. Paypal will take care of everything for you including currency conversions.

Google Checkout

Google checkout works similar to Paypal, but it is established and operated by Google Inc. It makes it easy to make online purchases besides just receiving money. A valid email address, preferably gmail address, will make it easy to transfer funds. Like Paypal, they charge a small commission for this service.

Moneybookers.com

Moneybookers is an online tool that helps you to send and receive money using your debit card, credit card or your bank account. It is secure, convenient and fast without any geographical boundaries. They accept a wide range of currencies like the US Dollar, Pound Sterling, Euro, Canadian Dollar, Australian Dollar, Krone, Yen, Lira, Baht, Swiss Franc, Singapore Dollar and Ringgit. A small fee is charged as commission to transfer money.

Western Union

Western Union also helps to transfer money from one location to another. However, it works differently when compared to Paypal, Google checkout or Moneybookers. The sender has to go to a Western Union outlet and send the money along with the commission to a designated town or city in any part of the world. As a receipt, Western Union provides a ten digit number called the Money Transfer Control Number. The sender has to send this number to the receiver through email or phone and the receiver has to present this number to the Western Union outlet to get the money. With this option, it is possible to transfer money within minutes to a destination of your choice.

Cheque and Demand Draft

Cheques and demand drafts are another way to get paid. Out of these two, demand drafts are more reliable because a bank will issue a demand draft only after the money is paid. There is no such guarantee for cheques. The client may send you a cheque that can get dishonored due to non-availability of funds. In such cases, you do not have a recourse. So, opt for cheques only if you know the client well.

Wire transfer

The final option is wire transfer. It is the method of transferring money from one bank to another. This should be the last resort because of the high potential for frauds. You have to provide your personal bank details to the client to transfer money. There is always a chance that these details can be misused by the client in future. So, resort to wire transfer only if you are familiar with the client and trust him or her completely.

These are some of the ways to get paid for all the time and effort you to put in to complete a website or animation or just about any project.

Conclusion

In short, freelancing is a great career. The downside of getting cheated because of its virtual nature can be overcome by being smart and prudent about the projects and clients chosen. The above suggestions can help you to make a steady stream of income by enjoying the comforts of staying at home.