Freelance Contracting with International Clients
It used to be that freelancers were limited to the cities we live in for clients. On occasion, some freelancers could land clients and handle projects through mail, but most companies preferred to work with someone based nearby. Technology has improved since then, letting most freelancers take on clients no matter whether they’re around the corner or on the other side of the globe. It’s a good thing: we get access to more work and, quite often, higher pay rates than we could get locally.
But there are a few considerations to look at before freelance contracting for international clients. These considerations don’t mean that you shouldn’t take on clients outside of your own country, of course — it’s a matter of making sure that working with those overseas clients (and getting paid) is as easy as when you can just walk down the block and knock on the client’s door.
Keep Communications In Order
When working with overseas clients, communications can be the hardest part. Few of us want to spend the price necessary to make international phone calls even now, preferring to rely on Skype and email. That’s fine, but considering how easily ambiguity can creep into written communication, it’s important to take whatever steps are necessary to make sure that everyone’s on the same page. Language difficulties can also come up: even if both you and your client are native speakers of the same language, differences in idiom or slang can create communication problems.
Even if it means repeating yourself, a freelancer working with international clients absolutely must communicate as clearly as possible. If you don’t think that you can make yourself clear to a client, it may be better to pass on a project than disappoint the client. Even a small communication problem can result in you investing time in something that you will wind up not getting paid for.
Keep Worst Case Scenarios in Mind
The worst case scenario, when it comes to working with international clients, is usually a situation where you complete a whole project and don’t get paid. You can reduce the risk of the situation, just as you would with a local client, by asking for half of your payment up front. However, with international clients, you have far fewer options to deal with a client who hasn’t paid you.
With a local client, you can start legal proceedings fairly easily. But when you’re dealing with someone who lives in another country, legal proceedings are extremely difficult. Even if you have a contract that says legal matters should be decided in your local courts, there’s no reason that a client would feel the need to participate in those proceedings — decisions made where you live won’t be enforceable where they live.
It shouldn’t be a problem with most of your clients, no matter where they’re based, but it’s especially important to make sure that you have some protection in place. The specifics can vary based on the type of freelancing you typically do, but they could include steps such as not turning over final files until you’ve been paid in full. It’s not that you shouldn’t trust your clients, but when you have limited recourse, it’s important to protect yourself, especially if this is the first time you’ve worked with someone.
Seeking Out International Clients
For certain freelancers, it makes sense to specifically seek out international clients, even to the extent of ignoring prospective clients in your own area. The simple difference in pay rates between certain parts of the world makes such decisions practical. But it’s important to do a little research beyond looking at typical pay rates. Expectations — ranging from what clauses should be included in your contract or style considerations for setting text in different languages — can be very different. If you want to succeed with international clients, you need to know what those clients will be expecting.
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A timely article… I’ve been approached by a client in the US about a site and I’m weighing up the pros and cons of a complicated job like this. There’s the issue of payment from one currency to another, time differences, expectations and so on… Not as easy as dealing with someone in my own city or country!
Thanks for the excellent write up, this is one aspect of freelancing that I would like to venture forth with.
My local market is pretty competitive as it is. Do you feel that things get easier or worse when you start competing for business on a global level?
We have been blessed to work with a few international clients. With all of the technology that we have as freelancers now-a-days, it’s easy to collect payments via PayPal, have face-to-face meetings using Skype or iChat, and be able to still get the job done no matter how far away the client is.
We have it so good as freelancers in a global market….I wonder what freelancers did back in the 90s before Skype and PayPal?
Thanks for the post…great tips to help you make sure you stay on top of every aspect of the project. I guess the only drawback to working with international clients can be the time difference…which may mean waking up a little earlier or staying up a little later. But we already do that right?
I find working with international clients easier than working with local clients.
I really love what I do and I’d rather be designing than doing client service.
One of the reasons I enjoy working with international clients is a common understanding that you can’t wine and dine them to impress them to get more business. You get to concentrate on what they’ve outsourced to you – their design/advertising/branding/marketing. You also save time by not having to travel to f2f meetings.
Communication and availability (due to time zone differences) are key factors in a good working relationship.
unfortunately I haven’t had the opportunity to work with any overseas clients, it is something I have always wanted to be able to add to my resume but the right opportunity hasn’t landed yet! great post!
It has certainly become easier for freelancers to work with overseas clients, just as it has become easier for companies to work with overseas clients. The difference is freelancers have fewer resources to do so. If you are a freelancer and you’re looking for work, or if you’re a business looking for freelancers, it’s worth taking a look at Office Cavalry – they’re a new site/company which is changing the way businesses find and work with freelancers.
A few points:
Work days can be difficult to align. From the perspective of a client overseas, you may take a full work day to respond to a question or to come back with a revision, and the same applies to questions that you have for the client about work you are doing for them. Say if you are dealing with client in Europe or the Middle East, their time zone is five to seven hours in advance of Eastern Time in the US. An email that you send late in the work day may not be answered until the next day, because they are already at home/not working for the night.
The issue of legal venue with respect to being able to sue is insignificant. I was really surprised to see it mentioned in this article. You are not REALLY going to press a lawsuit against a freelance client. Not once in 17 years of independent contractor work have I ever even remotely considered suing a client.
The biggest single challenge I have encountered is a non-English native speaker’s comprehension of the deal and the deliverable work that we have agreed to. I have missed key details that the client was not able to express clearly. Extra attention to detail is necessary during negotiation.
Also, in some cultures there may be basic assumptions about the deal that are different than ours, such as what is included or terms of payment. A client that has relatively poor understanding of nuances of English may find it quite difficult to convey what they really mean.
I have done several projects for non-English speaking clients who wanted a better presentation to English speaking customers. There is some opportunity here, particularly for writers.
Does anyone know how to report this kind of income for tax purposes? I’m in the US, my client is in Canada – is a 1099 an option, or is there something else I should be preparing?
From what I know, international clients cannot get you in trouble with taxes. I know a translator freelancer, she works only with international clients and doesn’t worry about taxes.
Very timely given a recent post I wrote up on the subject on my PayPal X.com blog http://bit.ly/bqBMBV
In a nutshell: PayPal for payment is a good thing if you can get your client to use it. Wire transfers, potentially *very* bad.
Sorry, wrong URL copied out of my bit.ly window in my previous comment, my PayPal blog post is at: http://bit.ly/du63Vz
It’s official, we live in a global marketplace. Our services are traded irrespective of location, culture or time zone 24/7.
I myself have had the pleasure of working with international clients. As you mention Thursday, it’s critically important you keep clear communication.
I’ve found in my personal experience that you both achieve a lot more when you work together rather then on different parts of the same task.
The internet has opened up that ability to collaborate in real-time through an IM conversation, Google Docs editing or Skype conference call.
I love it! It’s really just as rewarding as working with local clients.
Actually, 99% of my clients are from other countries. That works really fine to me.
Normally, I get the first job from a client from Guru.com. I use ESCROWS to prevent the risk of don’t get paid. After the first successful project, we go directly for the next ones without any worries.
The only thing I have to analyze is to make sure that the client is serious to get the project done, or just want to find something else (some of them just need the source code for studying or solve their current issues)
My 2 cents:
I prefer working with international clients, because i got the feeling from previous projects that they are easier to communicate with, as far as roles and goal of the project goes or perhaps i was just lucky;)
I have been working on a project with a client from California and since i am from Europe the time difference is +/- 9hrs, so yes i had to get up earlier or stay up late, but only at the beginning when we first started, because it was our first project together. i took the initiative and called him, even though we sent each other emails, just so i could introduce myself and get the feeling about the person i am working with, other than that nothing unusual, just like any other project.
Payments were made via moneybookers and paypal, so that was sorted out.
And as Tony said, with he use of Skype and other equipment its not a problem at all.
All i can say is, give me more international clients.;)
As for the worst case scenario, I’ve only ever worked internationally with people whom I feel can trust – or I’ve met in person beforehand. I’ve found that using sites like elance provide at least a little insurance when it comes to final payment. I tend to avoid one man band outfits, and those emails I receive from overseas which don’t have full contact details (such as a business address).