Contract – Payment For Your Work

[aoeui]

hi,

QUESTION 1
how do you handle the part in contract regarding payment for your work you done on web?

I use this approach
1.] 50% of price in advance to start working (cover basic costs)
2.] 50% customer pays after you finished the web

QUESTION 2
I see people use 2 different ways to handle the “WEB IS FINISHED – HAND IT OVER” part
what do you do, use, prefer ?

1.]
hand over finished web to customer, put it online, wait for them to pay you 2nd half

or

2.]
keep the web on your side, until they pay 100%
upon full payment received you put the web online to their server?

*I so far used way no. 1, not feeling suitable anymore

[Brightonmike]

When I do extra freelance work (I’m employed full time, which I MUCH prefer) I ask for 20% up front. I think 50% is a bit much, however my 20% is un-refundable.

I also would not upload a finished website until I received full payment, that’s very dangerous. You could easily put it on your own hosting to show them, there are techniques for protecting the designs etc.

Or, even better, run a copy of WAMP/XAMP on a laptop and demonstrate the website to them in a coffee shop or whatever. Then you can actually explain everything, justify your design and show them how it works. You can also answer any questions on the spot AND take the payment. You could even then have things setup so that you upload their website to their hosting on the spot, right in front of them. It really impresses people when you do that.

So instead of you taking payment first, or having to upload the site first – both happen on the spot at the same time, face to face with the client.

I don’t understand, personally, this whole mentality of never meeting or having face to face contact with a client. I think it’s extremely unprofessional and rude, if you make the effort to go and see your client and discuss things in person then they will respect you more for it, and they’ll be less likely to mug you off. Additionally, you’ll put yourself in their memory, they’ll remember you over all the other developers they contacted. It shows that you’re conscientious, serious, and willing to make the effort. On your behalf, when a client is willing to meet you too, it shows you they’re serious too and less likely to mess you around.

AND….it helps remove all of that stress and hassle of too’ing and fro’ing emails, as you can discuss things in person, explain your work, and answer their questions instantly.

[TheDoc]

I use a 40%/30%/30% approach – the 40% is non-refundable.

As most businesses have a different payment schedule, in some cases I’ll be pushing the website live before receiving final payment. That’s fine with me for the most part. If a project has gone through to the very end, you have to have some sort of relationship with the client.

On top of that, there are very clear statements in my contract that protect me. The biggest one is that only when 100% payment is made are any of the rights of what I’ve created passed over to the client.

[chrisburton]

@TheDoc my contract is almost identical to yours however I have additional conditions as I’m sure you do. I own 100% of whatever I create and I do not hand over anything until full payment is received. My clients seem to respect this and I have not had any issues pertaining to it.

[Brightonmike]

Do none of you charge extra for Intellectual Property rights? With me, when I design and build a website, I hand the website over, for a fee, however the design is still my property. If they want to own the design (the IP rights), they have to pay more.

I generally charge double for that. It’s a bit like when you buy a car, you own that car, but you don’t own the design of it, that is still owned by the manufacturer.

[chrisburton]

@brightonmike that just sounds like a ripoff to me.

Edit: I should also point out that after payment is received, I no longer own the website, all property is then owned by the client.

[Brightonmike]

How is it a rip off? I haven’t told you how much I charge. I’ve just said that I charge more for full IP rights.

[chrisburton]

@brightonmike: Even if you charged $100, it sounds fishy like you’re trying to gain more money by not giving them full rights to the project.

[TheDoc]

Any client with half a brain wouldn’t accept that contract. If they have already (which it sounds like) then they are a silly fool.

“Here’s your amazing logo that I designed for you!”

“Thanks! Can’t wait to get it printed on my business card!”

“Ummm… you do know that you can’t do that without my permission, right?”

“What are you talking about?”

“I own the rights to the design, you can’t use it without my written permission.”

“So where can I use my new logo?”

“Anywhere, just have to pay me.”

“So what did I pay you for the first time?”

“No idea.”

[Brightonmike]

It’s not fishy. It’s standard business practise. It is up to you, the designer of the website, whether you hand over IP rights on completion of a project. You don’t, by law, have to. And if you do, they should be signed over. Whether you do or not should be clearly stated in your contract terms.

[Brightonmike]

Let me just clarify. I DISCOUNT people if they’re not fussed about the IP rights and are on a tight budget for a website. Not everybody cares about their website being totally unique, the success of Themeforest proves that. So those who want the IP rights have to pay more than those that don’t. I don’t get the problem with that?

[chrisburton]

@krysak4ever, In the terms and conditions, do you have a clause that states the code can not be edited unless agreed upon?

[chrisburton]

Try to invest in an attorney that you know is looking out for you and your business. It will certainly help you not hurt you.

[TheDoc]

Just want to clarify one part:

“It is up to you, the designer of the website, whether you hand over IP rights on completion of a project. You don’t, by law, have to.“

In some countries, copyright is handed over upon completion of a project, whether or not stated in the contract. In most cases, copyright is maintained with the designer though.

But make sure to do as @Brightonmike and put it in your contract regardless!

[Brightonmike]

Ah, well here in the UK so far as I’ve been made aware the IP rights remain with the designer unless stated otherwise. But yeah, definitely put it in whether or not you keep the rights. If you don’t specify how much extra you charge for them. That’s what I do.

[Author]

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