How are you getting paid?
If you are completing jobs for clients you want to get paid, right? Even though there are many options for receiving payment, some freelancers have a difficult time deciding which one is right for them. In fact, I get more questions about this than just about any other topic.
So, how are you getting paid? There are three methods that I have used time and time again over the years. All of them are perfectly acceptable, although you may be more interested in one or another:
1. PayPal. In my opinion, this is the best way for freelance writers to get paid – especially when working with web based clients. The great thing about PayPal is the speed and efficiency with which you can receive payment. The only downside is that some of your profits will fly out the window by way of PayPal fees. That being said, I have found the fees to be quite fair for the service provided.
2. Check. Many of my clients pay via check. With this option you have to wait a big longer for payment, and once received you will need to head for the bank. That being said, there are no fees involved which means you get to keep every dime that you earn.
3. Bank wire. This is nowhere near as common as the two options detailed above. That being said, I have two clients that use this on a regular basis. All they needed was some basic information from me, such as my bank account and routing number, in order to get started. While this makes payment quick, keep one thing in mind: your bank may charge you a fee for sending and receiving wires. You may want to check on this before agreeing to this form of payment.
I know that this is a very basic topic. Most freelance writers know how to get paid, as well as which method they prefer. Try to be fair to both you and the client when working out payment details. The majority of the time you will be able to settle on something that is mutually beneficially.
February 22nd, 2010 at 10:08 am
Most of my clients pay through Paypal — all of my regulars do. Even if they don’t have a Paypal account, they can pay you via e-check or credit card, so just about anyone on the client side can use it. I also like that it keeps my invoices all in one place and searchable. That makes life a whole lot easier on the admin side.
I haven’t used paper checks in years, so it feels completely antiquated, and it’s my least favorite way of getting paid. Since I require most payments up front, that keeps clients on the digital front — they don’t want to wait for their check to clear before I start on their projects.
I had one client previously who would always use money transfers (I believe that client was in Spain). I don’t mind that method, but I do tack on the fee now since it’s significantly higher than Paypal’s fees (which I don’t pass on). The only exception to passing on the fees would be if the client lived in an area where it was literally the only option for them to make a quick payment.
As a buyer, I ran into a freelance coder who insisted on payments being made through Western Union. It was a pain in the neck, and there’s no protection whatsoever. That contractor completed two projects fine and then took my money and ran on the 3rd project. Never again. Now I only work with contractors who can take Paypal or credit card payments.
February 22nd, 2010 at 12:41 pm
I agree that PayPal is the best way, but those pesky fees get in the way. If you’re lucky, you’ll have a client who pays the fees to ensure you get paid exactly what you quoted.
March 8th, 2010 at 5:29 pm
Don’t forget that you can write off your Paypal fees! Be sure to track them throughout the year. Mention it to your accountant at the end of the year and she’ll itemize them for you. (Just one more thing I learned from working long hard hours over the Outright.com blog!)
March 8th, 2010 at 5:35 pm
Jennifer – You are so right. I deduct my PayPal fees every year, and they really add up!