Monday, June 15, 2020

Paying Freelancers In Installments For Bigger Projects: What You Need To Know

Paying Freelancers In Installments For Bigger Projects: What You Need To Know

Freelancers in Dubai prefer payment in installments, especially for bigger projects. Payment of freelancing tasks can be an issue for both freelancers and also their clients. Unfortunately, most people in the freelancing industry keep loosing money not knowing the way out.

Finding ways to pay freelancers in installments becomes a win situation for both parties.  Read on to find ways in which you can achieve this.

What  You Need to Know About Paying  Freelancers in Installments?

The first installment payment determines whether freelancers will continue working with a client or drop them. A client who doesn’t want to pay an upfront fee for bigger projects is an indication of a red flag. Hence you don’t want to fall on the wrong side of freelancers unless you wish to complete the project yourself. 

When it comes to payment, clients and freelancers should negotiate at the beginning of each project. As a client, you shouldn’t pay the total fees upfront, since the freelancer might run, leaving the project halfway. You need to pay in bits to ensure both parties win at the end.

To make sure you are on the same page with the freelancers, before the onset of a project, you have to agree on the payment terms. Ask yourself how it’s going to benefit both of you. Are they willing to accept smaller payments per installment, or are they for a more significant amount? 

You should ask them about their preferred mode of payment. Do they prefer to be paid through bank, or electronic payment methods? Everything needs to be clear before they commence work. 

How To Organize Payments Into Milestones?

Paying in installments is excellent for clearly defined projects. You want to pay when you are sure of what you need and also the duration the project will take. There are several ways you can settle this, depending on the project type or technicality. You can decide to associate the payments with phases or tasks. 

When you decide to settle for phase, you will be paying after a specific duration of time. You can choose to pay freelancers twice in a month or, quarterly depending on what you agree on. 

When it comes to tasks, you need to release payment when a project’s specific task is completed—for instance, paying 30% as an upfront fee, 30% when the project is halfway, and 40 % after the completion of the project. Don’t forget to draw the contract before the beginning of the project.

3 Essential Reasons You Should Pay Freelancers in Instalments

Waiting for a project to get completed before you pay for a project is nerve-wracking for most freelancers. Most especially freelancers who are starting out. That’s why freelancers in Dubai prefer you to pay them in milestones. The following are three reasons freelancers prefer this.

  • Ensures Freelancers Have Some Money Even If You Drop The Project

You might decide to end the project halfway because of finances. This will ensure they still get the money for the projects they complete.

  • Learn to Trust  the Client

It isn’t easy to trust people, especially when you’ve been conned before. Freelancers working on long term contracts prefer you to pay them in installments to build the trust and ensure that you don’t disappear with the cash.

  • Steady Cash Flow

Freelancers have to deal with unstable finances at some point in their careers. Thus, even when the project is long, they still would be guaranteed payments at specific points of the project. This is because freelancers put lots of effort into handling the task. Paying in milestones would ensure freelancers can maintain their lifestyle and pay their bills.

Sum Up

Freelancers in Dubai prefer payment in installments for large projects. Hence, this shouldn’t be an uphill task for you as the client. You need to know the freelancers’ preference, and the rest will fall into place.

 

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from Bawabba Blog https://blog.bawabba.com/freelancers/how-to-pay-freelancers-in-installments-for-bigger-projects/

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