What payment structure should I do? - a podcast by Jason Resnick

Congrats on landing the gig — I’m assuming that you don’t have a signed contract in place yet though. Because the terms of payment should definitely be included in your contract.

If you haven’t set the expectations during the sales process of how you are to be paid, then you could potentially be on a bumpy road. Not saying that they aren’t expecting to pay you, but they may have different expectations than you do.

There’s different structures that businesses have in their minds, 50/50, 100% at the end, 30/30/30, NET 30-90, and so on.

So I would encourage you on your next sales call, to iron out those details so that when it does come time to pay, the terms are set in your contract, and that everyone is on the same page.

For this particular instance though, you’ll want to definitely get half up front. 

The reason being is that you want your client to be engaged and invested in the project as much as you are.

If they haven’t paid you, then there’s no skin in the game from their end.

If you are paid 100% up front, then there’s no skin in the game for you to deliver quickly (other than you being a stand up person, right?)

Depending on the size of the project though, 50% may be extremely high, and so you’ll want to flatten that out a bit more, maybe 30/30/30.

If the project is a lengthy, on-going type of project, maybe come up with a weekly or monthly rate.

These all lower the risk level for you and your client, but put enough of an investment into the project that you are both engaged and motivated to stick to the priority of the project.

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