Start Out Right: Avoid These 3 New Freelancer Blunders




Photo by Kyle May.

Starting out as a freelancer can be an exhilarating ride, but those first few miles can be littered with frustrating potholes if you don’t know what to watch out for. If you’re just about to make the plunge into freelancing – or you’re trying to make your existing freelance life run more smoothly – take a moment to read these “rules of the road.” They may save you from the late nights and nail-biting stress that await you just around the curve.

Protect Yourself Against Work Creep

It’s all too common for a new freelancer to take on a new project without getting clear about the details and boundaries of the work to come. When that happens, prepare yourself for a (seemingly) endless cycle of back-and-forth revisions and requests for “one more thing” because the client assumed it would all be part of the deal. Before you know it, you’re working more hours than you expected for the same pay.

How to protect yourself: When a client says “we’ll just figure it out when we get started,” that’s a red flag telling you it’s time to take the reins. Define things like how many revisions they are allowed to make (and a firm timeframe for each revision cycle). If at all possible, lock down as many details as you can about what will – and will not – be part of this project.

For a new freelancer, it can be a little intimidating to lay down ground rules for a client – emotionally, it may feel like you’re being pushy or demanding. But in reality, you’re managing the client’s expectations, letting them know that you’re professional enough to make sure they know exactly what they’re getting and that you’ll be able to deliver what you promised right on time.

Protect Yourself Against The “Success Penalty”

Beginning freelancers often worry about finding enough clients to pay the bills, but if you’re good at what you do you may suddenly find yourself facing the “success penalty” – a flood of work requests that you simply don’t have the time for. When all this work comes in you accept it gladly, giddy with the excitement of so many billable projects. But then reality sets in and you realize that you’re incredibly overloaded. Trying to juggle all that work can either lead to burn out or poor work quality that hurts your reputation.

How to protect yourself: As you complete each freelance project, carefully track how much time it really took (as opposed to your initial estimate). This will help you improve your ability to estimate the true workload of future projects so you won’t get overbooked. Additionally, spend a little time each week building relationships with other reliable freelancers you can outsource to when you just have too much to handle.

Most people worry about failure – but success can be just as stressful if you don’t plan ahead. Do what you can to prepare for a spike in work requests and you can avoid the success penalty altogether (or at least take some of the sting out of it).

Protect Yourself Against Non-Paying Clients

When you’re hungry for work, you may just find yourself taking it without negotiating any up-front payment. More often than not, this is a recipe for heartache down the road. Ask any freelancer how many times they had to deal with deadbeat clients and you’ll hear stories that will sell you on the value of getting some form of payment at the start of the project. Don’t fall for the “once our money comes in, you’ll be paid” line … because it rarely works in the freelancer’s favor.

How to protect yourself: After the client decides to work with you, establish a payment schedule that is fair to you both. Some freelancers go the 50/50 route – half up front, half on delivery, but this may not work for every kind of project, especially large ones. In that case you may have to bill in “progress payments,” invoicing upon weeks worked, delivery of drafts or other project milestones. The important thing is to insulate yourself against working for free, regardless of how you do it.

It’s easy to feel intimidated about laying down payment rules for the client, but that’s precisely what successful freelancers do. Chances are you do it as well without blinking when you hire someone to do work for you. If the client hits you with a “Don’t you trust me?” argument you can simply counter by saying that you do trust them, but you require the deposit to reserve that chunk of the work week for their project. Most clients will respect that, but if they balk, it’s a sign you’ve got a bad client, and you should go elsewhere.

What Are Your “Rules of The Road”?

If you’ve been freelancing for a while, you’ve probably been nodding at your experience with each of these situations – but you’ve probably got some valuable lessons of your own to offer. Take a moment right now leave a comment and share a tip you’ve learned from the “school of hard knocks” – and take a look at the other comments to see if there are any tips that can help make your freelancing future a smooth and comfortable ride.

PG

There’s a famous guitarist named Dave Navarro. I’m not him. I’m a different kind of rockstar, the kind who sweats behind the scenes rather than on stage, kicking successful people’s asses so that they become even more successful. I’m a personal productivity coach who gets deep into the minds of people who have everything going for them but are hitting some speedbumps and roadblocks - and I pull no punches until they break past the limiting beliefs that are holding them back. I help entrepreneurs get “unstuck.” I push people past what they think they are capable of. I find solutions to their problems that they had never even considered, and I get them to think bigger, work smarter and believe in themselves more. I take their psychological baggage and help make sure it gets lost at the airport. I kick their asses, and then I teach them to start kicking their own so I can move on to the next rockstar-to-be.



  1. PG Melissa Donovan

    One of the first things I did before launching my freelance writing business was put together a simple, straightforward set of terms. It outlines my payment policies, revision allowance, deadlines, and several other points that help clarify the process, both for me and my clients. I’ve embedded those terms into every single work agreement and they’re helpful in answering questions that come up and serve as a solid, documented reminder for those rare occasions when clients try to take their projects off road.

  2. PG Corey Freeman

    Very information article! I definitely think that just starting out, it’s really hard to be “affirmative.” And when you are, you have to make sure you’re not being rude about it. Another problem is realizing that you’re freelancing because, generally, you want to spend {less} time working, but some get wrapped up into taking on more and more projects, and it overloads.

  3. PG Carina

    This by far the best advice for freelance newbies! Thank you very much!

  4. PG Steven Williams

    As a freelancer just starting out again as soon as I return from Iraq, this is definitely good advice. I know that before I got called back up, I was beginning to fall into the trap of getting more work than I really needed. Keep it up!

  5. PG Patrick Hankinson

    As a new comer to the freelancing world, the information above provides a clear map! In terms of the “success penalty”, I recently may have taken on too many clients. Instead of turning them away I am thinking about hiring a friend or another freelancer to help out. Is this a good option to explore, or will I just be spending as much time handling the other friend/freelancer?

  6. PG Selene M. Bowlby

    Excellent advice, Dave! My two main rules are to ALWAYS get a signed contract and 50% deposit before starting ANY work. No exceptions!

    I’ve got a set number of design concepts and revisions listed for any type of web design work, and my contract also states that if they end up making significant changes to a pre-approved design, that will be billed hourly for the extra changes. For example if they approve a design, I develop the site, and THEN they decide to change the color scheme or some other big design element.

    On the payment portion, in addition to the 50% deposit, it’s important to be sure you get the final balance BEFORE giving final files to the client (whether it’s uploading to their server, or providing files on a CD, etc.) I do as much work as I can on my own server until it’s time to move over to theirs. Basically going with a 50% deposit with final balance due before transfer of files to client.

    In the case where much of the work does need to be completed on the client’s server, I’ll do 50% deposit, 25% after approval of the design and final balance due upon completion. By switching around the % here, at least you’re covered with 75% if the client decides not to pay the final balance.

    I’ve seen too many times when designers don’t get a signed contract, and either don’t ask for a deposit, or give the final product sometimes without any payment. You definitely don’t want to be on the loosing side of that one!

  7. PG Stefan

    Great post, if only I had this a month ago!

    I recently got robbed after working with a client for a few weeks, design phase all done and ready to go into HTML when the client decides to pull out. I didn’t have a contract with them because I trusted them (big no no, don’t trust anyone in business) and paid the price because of it.

    Write a clear contract agreement and stick to 50/50 payment terms.

  8. PG Alex Fraiser

    Very informative.

    Unfortunately I have worked with a client who I decided I would go 50/50 with, but he never paid the other half, so I never gave him the work. He got very upset, threatened me, blah blah blah. I like that idea for progress payments though. When I get back to freelancing I think I’ll try that out.

  9. This is just the article I needed to read today. I just completed walk around the neighbourhood with my kids. We were brainstorming names for what I described as “Papa being his own boss”. Names such as the WigglyTuff Guild were tossed around. I do have on potential client ( this is what prompted the walk ) but I have not freelanced since 2003. Taking a full time postion with my last client ( my current employer ) is something I now regret.

  10. PG Mark

    I did a little bit of everything of the above (the wrong way). I started out without contracts, and had clients that want to change half the design just before I finished the whole project.
    My tip: put in your contract that after a certain point (milestone), let’s say acceptance of the design, the client has to pay an hourly fee for any changes to that design.

    I was happy to take on work when I just got started, but there was 1 time that I had too much on my plate, which caused late nights. I’m not going there again..

    My contract also says: 25% deposit, 25% upon approval of the design, and the balance when it’s done..

  11. PG Melek

    i’m 100% with Selene…in fact, she covered everything i was going to mention:

    ALWAYS have a contract
    ALWAYS get 25% to 50% up front (i get 50%)
    NEVER give the client your files until you get the final check
    FOLLOW your gut.

    Also, if the client wants to change the way YOU do thing (like asking to rewrite parts of your contract or trying to get you to not get that deposit or saying they don’t really need to sign off on the designs before you begin coding the website), take that as a big warning sign that something will come back to bite you down the road. Pay attention to the signs the client is laying out in front of you as to whether or not he’s going to be a good client to work with.

  12. PG me

    Market Yourself Everyday, if possible.

    There’s always an initial lag time, but once the first lag clears the marketing efforts will start to pay off.

  13. PG Laith

    Source Control, this will help you sleep well at night.

    I recommend the free VisualSVN and TortoiseSVN. Don’t just use it for code either; create repositories for everything you have including documents, finance, and graphic design. Your repositories will be in one place, making it much easier to backup anything anytime.

    Also, this is not free but will save you a lot of time and money, get Quicken Home & Business. It will keep your finances organized and it will save you from wasting your life with spreadsheets.

    I also highly recommend fruits n’ veggies. Coffee may keep you awake, but fruits n’ veggies will keep you sharp.

  14. PG Jessica

    I like that “FOLLOW your gut”. Every time I feel that a potential client is a waste of time…. he/she is a waste of time!

  15. PG Adam

    Good article and tips, I have encountered many of those situations as well and even now sometimes its still hard negotiating payment situations with clients. I get inquires for projects many times from clients who are out of state and usually deadlines are pretty tight. If someone needs something done in less than a week obviously it would be quite difficult to have them send a payment upfront, wait for the check then start on the project, this would obviously go over the deadline they need it by and also when you do finish the final work, waiting to receive a check then sending over the final files also delays the time frame as most times these files need to be passed on to the developers to build it out or whoever is next to work on them. However, I always do make sure to sign a contract before starting any project and if you are able to obtain a payment upfront definitely go for it, otherwise make sure the contract you are signing covers everything in detail and hopefully the trust factor pulls through.

  16. PG Paul Anthony Webb

    Wow, I’m glad I had work today so else I wouldn’t have read the above comments. By the way Selena, you have another reader. ;D

    This was an informative article and the comments even more so. I knew straight from the beginning that 50% upfront was a good idea.

  17. PG Jasmine

    I’m experiencing Work Creep at the moment…it’s been 7 months and for a nonprofit organisation. It’s crazy! I’m still a student so I think they’re using that to their advantage. I didn’t even realise it was happening until 4 months in. ugh. Hopefully it’s almost over!

  18. PG Mark

    Maybe my gut instinct isn’t as good as some of yours, but I have had cases where I’ve though “man, this client is a waste of time” only to find that they end up being fantastic clients in the long run. Oh, and vice versa on that one.

    I mean, it’s not every time that I get it wrong, but it happens often enough to tell me that I should always follow the other “rules” as set out here, but to not always trust my gut instinct. As long as I have my “i”s dotted and my “t”s crossed, even if my gut tells me otherwise, I’m protected legally and financially. Clients can be surprising beasts . . . I just go with the flow and it seems to work out alright :)

    Great article, BTW – thanks!

  19. PG Brian

    Another article I’ve read on here atleast 1500 times already. You guys really need to start writing some new and fresh stuff.

  20. PG Furious

    One way to help counter potential Work Creep is to bill hourly. That way you won’t have to worry about being fairly compensated if the client begins to take advantage of their revisions because you can just simply bill them for that time, as opposed to pricing per project.

  21. PG Sandie Sørensen

    Good article…
    I gues I can’t hear this too often..

    About a month ago I fell into a trap.
    Named a price for a design, and as the design just got altered again and again by the customer after 5 layouts- I said, that now, you have used up your qoute, and from here on every design will cost XX…! I was tired of them using my time and not knowing what they want- and all the time saying: “I wont pay untill I get what I want…!” So they refused apying me anything untill I found the holy gral for them…

    At that time I was kinda glad I hadn’t got mony upfront, because i now had the freedom to stop doing business with them. I quit!

    An that was about a month ago. Just yesterday I was cantacted by the costumer again. They asked if I would send them a pdf of my design so the new designer could use that as a starting point and just make a few alterations to finish tha design. (I was chocked that they had the nerve to ask!) But I kept my cool and said: “off cause I will send you the design as soon as I see the money I requested”. I Haven’t head a word since…

    This was a valurable lesson in “That Gut Feeling” for me…

  22. PG Anne Wayman

    Love the term ” work creep.” Probably happens more in design than in writing, but I’ve had it happen in writing projects as well.

    My all-time magic word is “no,” usually, but not always said politely.

    Anne Wayman, now blogging at http://www.aboutfreelancewriting.com

  23. PG Pete

    Great points. I definitely know all about the ‘back & forth’ with clients. I am in the process of firming up that part of the business process, because it is a very grey area on what is in the scope of a project and what is not. The more definition a client understands, the easier the project will be.

  24. PG Tim

    I just started out last December and I am currently getting somewhat overloaded. I just took every project that came along, thinking it was the last in this little wave of projects.

    Thankfully, none of my clients have a real deadline at the moment. They are all projects that they’ve been wanting to do for a while, but just hadn’t gotten around to.

    I know this is probably elementary, but, from now on, I think I’m gonna start planning which days I am going to work on what projects. Currently, I just do whatever I feel like is highest priority at the time.

  25. PG Tim

    Another comment I had…

    Thanks to reading comments and articles on this website, I learned before I took my first project. I require all my clients to give me 25% up front before work begins, or pre-pay in full to receive a small percentage off.

    For the clients that pay 25% up front, I have the project divided into stages, and at the end of stage 1, I equire payment for stage 1 before moving to stage 2, etc. This way, they always pay for a stage after it’s complete, but because of the deposit, I have essentially been pre-paid for each stage before it begins. Then of course, the deposit is applied to the cost of the final stage or stages.

    Also, I have each client sign an agreement that explains the whole payment schedule in detail, so there are no suprises.

  26. PG Mia

    I’ve been looking for a this for so long, the perfect article that answers my problems. I will be more strict in the future!

    I was just wondering, is anyone comfortable loaning me a standard contract, or does anyone know of one on the internet. I’ve been looking for a contract but I can’t find one.

  27. PG Elijah

    I don’t wanna be accountable… i don’t wanna avoid anything… I don’t wanna improve and I don’t wanna manage anything… That’s why I went freelance, dammit.

    Thank you.

    :)

  28. I like how you structured this article: state the scenario and offer a solution. Simple, to the point, useful. Thanks.

  29. PG Kate

    I think that number two is the worst one. I found that if you can make a deal with a 3rd year law student they can often help you to get your money, provided of course, you are willing to do some free edits on their papers. :-)

  30. PG J

    Wow, I’m even tougher! I’ve been freelancing since 2000. I have a strict 100% payout up front for projects under $500. And for projects higher than that it is 75% deposit, and 25% on mock-up approval. Any changes made after it’s been converted to code are charged extra. The only exception to this rule is if I am freelancing for another graphic design agency or advertising agency and they have proven themselves reliable. Too many times have I gotten the project clear to the end to have the client just completely disappear or worse yet, they download the code and images from the working layout and get off with a 25% or 50% discount because they never finalize the project with final payment. Having the site on your server doesn’t protect them from stealing what you have made, it just makes it a little harder. I have a 99% completion rate on my projects since I’ve started taking payments in this matter. I feel more in control of the situation, and the client is more apt to respond with good clear responses for revisions. Luckily, I’ve found a good niche where I’m considered in high demand, so I can ask for payment terms like this.

  31. PG Robert John

    Very true… i have this client now that I told I could only provide 3 revisions for the web design and 3 revisions for the web development.

    They just wouldn’t give you a limit on backjobs if you wouldn’t tell them your conditions.

  32. PG Marcelo Ruiz

    There is a big difference between a new freelancer and an experienced one. I’ve been freelancing for more than 5 years and I still make the kind of mistakes this article talks about. I’m learning slowly, but I remember that I never asked for any advanced payment nor sign a contract in earlier projects. I still don’t do that if my client’s face inspires me trust. But this year I lose a lot of money because of that.

  33. PG Karyl

    @J: What a perfect world it would be for us freelancers if everyone could ask for terms like those… Lucky you!

  34. PG Lee Munroe

    Great advice Dave, these 3 are always happening so best to hit them head first from the start.

    Accounting is something that new freelancers often overlook. Keep track of your accounts, keep all receipts for anything you spend on relating to your freelance business and also don’t be afraid to add expenses onto a client bill (e.g. stock photography) but best to point this out to them from the start too.

  35. PG Calvin Froedge

    Great article for beginner freelancers! I’d say the hardest thing I had to learn was to be assertive and learn how to say NO to 100 revisions on that 2 hour logo. Also, learning how to time the amount of hours it takes you to do certain types of things say a brochure website versus an e-commerce site versus a blog. Not every type of website, logo, or brochure is created equal.

  36. PG ainiyaah

    Great article..
    And its so much true about ‘Never’ do jobs for free…
    If a client say “Dont you trust me?” To me you should have the courage to say
    “Thank you, and nice meeting you. Bye-bye…” (Maybe in better words)

  37. PG Lisa Rothstein

    Boy, did this hit home with me. I am about to take a client to small claims for not paying me. It was a handshake deal, our first meeting was a love-fest and I didn’t press at the time because:

    1.) it was a rush job and didn’t want to take up time with bookkeeping stuff
    2.) I also thought there would be more work from these folks right after this project and I didn’t want to rock the boat
    3.) Their businesss was charty-related so I thought I could trust them!

    Lessons learned: NEVER work w/o a contract , no matter how nice they seem. And get at least some payment up front.

    BTW, my cousin (who happens to be a high-powered attorney) says he thinks I’ll win in small claims even w/o a written contract…but I still would have preferred to avoid this scenario.

  38. PG Constantin Boiangiu

    I started freelancing full time some 3 months ago. I was not a newbie on this, but I had my share of trouble. For example, on one project, the payments were supposed to be made 30% upfront, 30% when the design concept gets approved and the rest after the project completion. I billed the first 30% and expected to get paid. I started work and a week later when the design was finished, I checked my account and the advance money were not there. So I e-mailed the client and told him that I’m ready to present him the design, but since he hadn’t paid me the first 30%, I can’t show him anything. He paid the very same day and we resumed work. Oh, and after this, my relation with this particular client actually improved.
    Anyway, I learned my lesson, no work before the advance money gets paid.

  39. PG Jane Collins

    Another way to monitor clients is to have a client work sheet. Write in everything – and I do mean everything – you do with the real time it took and you’ll soon see how efficiently you’re working and how you’re either managing your clients or they’re managing you. Then when you go to invoice, you can detail exactly what you did and if any extra payment is due, you can properly charge for it. If the client wants a cut price job, you can use this to justify why they need to do the work they said they were going to do and either hold them to it or get them to pay extra.

  40. PG Shivanand Sharma

    Excellent post, made me come out of my feed reader and comment.

  41. PG Kamal

    Work creep or feature creep, as some may call it, is indeed the most draining of experiences for a creative freelancer. It burns you out. So better learn how one gets into that mess and try avoiding it at all costs. Very excellent reminder there. Thanks for the great post – its concise and to the point.
    The bottom line should be ‘make your rules and learn to stand by them’ :)

  42. PG Jarryd

    I once worked for a small business that my father had worked at but moved on. I made up a contract with 25% upfront, and then charging on an hourly rate. They didn’t supply content until 6 months later after I had finished the design and didn’t give me my 25% deposit.

    They invoiced me the hourly charge but refused to pay the 25% and sub contracting fees for all their copyrighting work, and that’s when I decided to drop them. Now I’m out-of-pocket for the copyrighting. Morale of the story: Follow your contract to the word and don’t get lenient with a client just because you think they are a family friend :-( .

  43. PG Sean Turtle

    Currently having to chase down payment from a client who I’d worked with for a long time and had forgone the 50/50 method (used it originally).

    Quite a way overdue, just goes to show that you should always stick to tried and trusted methods…

  44. PG Melissa Digby

    Excellent article. The other danger I’ve found is the ‘working for friends’ scenario. It’s difficult when friends ask for your ‘help’ on content (websites, newsletters, whatever – I’m a writer so this is what I’m dealing with) without being clear as to how much – or whether – they expect you to charge! You want to look out for your friends but it’s also important not to devalue what you’re doing. If there’s any doubt, clear it up before you start. Solves a lot of problems (and maybe saves a friendship) down the track.

  45. PG Nina

    Definitely agree with the contract and the milestones. In my contracts I also put when the next milestone is able to begin (eg. after client supplies certain copy, when x is finished, etc). That way they can’t blame the designer if the project is stalled.

    I find it very useful to have an initial questionare form I give to clients to fill out at the beginning of a project like for a logo or web design, so that it forces the client to think about what they want, which minimises the chance of constant changes later on because they’re not sure what they’re looking for.

    And of course, never do Spec work.

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