Milestone payment question

[words_to_wow]

Hi everyone! I can't seem to find a confirmed answer to my question. Or, maybe I don't feel like researching 🤔. Lol.

Either way...

So, if I have a milestone project for a client that cost x dollars, is the buyer required to make the full payment at once? I mean, I understand that I would not receive payment until the work is completed, but can the buyer actually pay for each milestone at a time? Or they pay the entire project at once but the money is only released upon completion and approval?

I have a big order coming up, so I suggested a milestone to the buyer so they wouldn't have to make such a big payment at once.

I hope I'm asking this right 🤦🏾‍♀️. 

Thank you!

 

[smashradio]

5 minutes ago, words_to_wow said:

Hi everyone! I can't seem to find a confirmed answer to my question. Or, maybe I don't feel like researching 🤔. Lol.

Either way...

So, if I have a milestone project for a client that cost x dollars, is the buyer required to make the full payment at once? I mean, I understand that I would not receive payment until the work is completed, but can the buyer actually pay for each milestone at a time? Or they pay the entire project at once but the money is only released upon completion and approval?

I have a big order coming up, so I suggested a milestone to the buyer so they wouldn't have to make such a big payment at once.

I hope I'm asking this right 🤦🏾‍♀️. 

Thank you!

 

The buyer must pay for each milestone separately, so if you have a project with three milestones, each costing 100 USD, the buyer only has to pay 100 per milestone. They don't pay the full amount upfront. 

[vickieito]

7 minutes ago, words_to_wow said:

I have a big order coming up, so I suggested a milestone to the buyer so they wouldn't have to make such a big payment at once.

It's also nice because you would get paid after each step of the project (rather than having to wait until the end to get payment). I made the mistake of not using milestones for a project that I have been working on since March and I'll finally get payment at the end of this month (when I finally deliver the project). It isn't fun working for months without payment.

[words_to_wow]

4 minutes ago, smashradio said:

The buyer must pay for each milestone separately, so if you have a project with three milestones, each costing 100 USD, the buyer only has to pay 100 per milestone. They don't pay the full amount upfront. 

Okay, thank you! I had to make sure! 

[words_to_wow]

1 minute ago, vickieito said:

It's also nice because you would get paid after each step of the project (rather than having to wait until the end to get payment). I made the mistake of not using milestones for a project that I have been working on since March and I'll finally get payment at the end of this month (when I finally deliver the project). It isn't fun working for months without payment.

Yeah, it is good that the payment is released after each milestone. Since March? 😳. This must be one of your favorite customers because I would have to end the current order and start a new one as a milestone project. But I really want to help this particular buyer, and I know that my prices are higher than average for my work, so I suggested milestones 🙂. 

 

[smashradio]

6 minutes ago, vickieito said:

It's also nice because you would get paid after each step of the project (rather than having to wait until the end to get payment). I made the mistake of not using milestones for a project that I have been working on since March and I'll finally get payment at the end of this month (when I finally deliver the project). It isn't fun working for months without payment.

It's not that unusual on big projects, though. I write content for a bunch of health blogs (I have no idea how I managed to end up writing about skin peeling for females, but I'm here, I'm doing it and it's 2022, so don't judge!) and it can take a couple of months between each payment. As a freelancer, I plan for this by always maintaining a salary buffer of at least 3 months of living costs + a rainy year buffer with enough to stay afloat for two whole years with zero work. That way, I don't really care if the money comes now or in a few months, because it's always a steady flow or at the very least, a steady cushion available. 

[vickieito]

Just now, words_to_wow said:

Yeah, it is good that the payment is released after each milestone. Since March? 😳. This must be one of your favorite customers because I would have to end the current order and start a new one as a milestone project. But I really want to help this particular buyer, and I know that my prices are higher than average for my work, so I suggested milestones 🙂. 

 

Yes, we have a pretty good working relationship. I also wrote her ebook on financial literacy and designed her logo, among other things. Since I do have a good buffer from my orders each month, it doesn't hurt to keep this order as is. It will be nice to finally get paid, though. 😊