Previously we talked about whether or not freelance commercial writers should lower their rates when working with middlemen clients. A writer had a great follow-up question about these relationships… when exactly should the freelancer be paid?
Should you be paid when your work is complete? Should freelancers only be paid after the middleman is paid by their client? Peter and I weigh in, but remember that ultimately payment terms through your business are up to you.
When Should Freelancers Receive Payments from Middlemen?
I submitted my invoice to my middleman, waited 30 days, then re-sent it with a polite question about when I might expect payment. The reply I received said, “When our customers pay, we pay our vendors. It is nearing net 30 for the customer, so we are getting close to paying you.” This is different from what I was figuring, but I’m still learning the biz. I’d appreciate your input as a more seasoned freelance professional.
Peter Bowerman on Payments from Middlemen Clients
Unfortunately, it sometimes goes that way.
It’s a big complaint amongst copywriters, who generally feel that we should be paid when we’re finished, NOT when the designer gets paid.
But many play that game, and they often are wrestling with cash flow issues, as we are. Just the nature of the beast.
So, yes, it’s not at all uncommon. And if you can get paid in 30-45 days, that’s not bad either.
Jenn Mattern on Payment Timing from Middlemen Clients
It depends…
In my own case, this isn’t an issue because I take up-front payments in-full for all but one very long-term client (who generally pays within 24 hours of receiving a draft). But that’s something that only comes when you build more demand than you have available billable hours. You can be choosey, and you get very little pushback on your payment terms.
Most freelancers aren’t in that position yet, and if you rely more on direct pitching than “query-free freelancing” where you attract warm leads instead, you might never be in a position where you’re comfortable setting payment terms that strict.
And that’s OK!
But what you should keep in mind is that you’re a business owner. You set your rates. And you set your payment terms.
The biggest issue I’m seeing in this scenario is that the freelancer was surprised by the delayed payment. Payment terms should have been clearly laid out in a contract, or at least a conversation in writing, before work began. That gives both sides a chance to negotiation rather than making assumptions.
In my situation, I wouldn’t work with a middleman client who couldn’t front payments for work they order. It speaks to the stability of their business. Their payment from their own client is irrelevant, and that’s a matter for them to negotiate and sort out with that client.
But if you’re much newer, looking to line up your first middleman client or two for recurring work, and you need that work right at that moment, it’s fine to agree to the delayed payments. Just make sure the details are in writing, including that they’re still responsible for paying you even if their client flakes out on payments.
Submit Your Question to the Well-Fed Writer Mailbag
Do you have a question related to freelance commercial writing (writing for businesses)? Submit your question using the form at the bottom of the main Mailbag page, and you could be featured in the Well-Fed Writer Mailbag series.