Asking Customers for Deposits on Work The Right Way

Have you ever found yourself in the situation where you perform a job for a client, only to realize shortly after that your work would go uncompensated? This happens more than it should, especially in the world of freelancers, so consider yourself lucky if you haven’t experienced it yet. It’s happening increasingly often due to the more international, remote nature of the workforce today. So it’s necessary to have methods and solutions in place to prevent this unpleasant scenario and requiring clients to pay you an upfront deposit is one possible fix. The deposit could be a portion upfront or multiple ones paid in milestone-style installments throughout the job – it depends on your situation and the type of job. Asking for an upfront deposit shouldn’t be a problem for any reasonable client – they’ve probably dealt with this before, if not asked for upfront deposits themselves, and the reasoning behind it is completely logical.

The most obvious advantage is the sense of security and peace of mind you’ll get knowing that you won’t be left totally high and dry in the case of a disappearing act, which may be an especially realistic possibility in the case of a new client. However, keep in mind that with this security comes a downside, which is the opposite feeling on your client’s side – now you have their money and they’re the ones at risk, so be empathetic to this uncertainty and do them a favor and don’t go MIA for lengthy periods of time!

If your main reason for requesting an upfront deposit was the sense of security it brings – as opposed to needing the funds in advance – then there are certain cases when you can start reconsidering this, such as with recurring clients. Once you’ve worked together several times and the trust has been established on both ends, it may not be necessary to continue asking for one and can even be slightly detrimental to the business relationship.