One of the biggest struggles that freelancers, solopreneurs, and independent contractors face isn’t what service to offer or how to do the work. Many of you have that aced. What plagues most of us more is how to properly accept payment as a freelancer.

If you’re having this problem, we don’t blame you – navigating how to get paid can be overwhelming!

Should you send a paper invoice? Or use an online invoice app?

How do you remain organized month after month, especially when you may be working with more than just one client?

And how do you follow up – politely – to make sure your client has received your invoice and plans to process it?

You may have heard horror stories from fellow freelancers about never getting paid or having to chase clients who consistently decide not to pay in full (or never adhere to due dates).

Don’t worry, these fears and questions are normal!

The good news is that invoicing your clients doesn’t have to be scary. Although we can’t guarantee you won’t face the occasional obstacle from a wiley client, we CAN offer some useful tips to help you automate your freelance payments, getting you paid quicker and with less (or no) headache.      

Know How to Invoice and Ask for Payment as a Freelancer

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The good and bad news about invoicing as a solopreneur or side-hustler is that there are a ton of different ways to collect payment.

This is great if you like having total control over how your business works financially, but it can also be intimidating to try to navigate on your own. Here are a few general tips to follow when invoicing your clients:

  • Send your invoice on the same date, every month. This lets your clients depend on when they can receive your bill, allowing them to budget properly for your services.
  • Be consistent with how you send your invoices. Decide how you will send your bills and stick to that. It will become confusing for your clients if you send some invoices via mail, others by email and still others through a third party invoicing website.
  • Don’t allow yourself to be taken advantage of! Sure, sometimes things come up in life that people (and businesses) can’t avoid. Therefore, it may be understandable if a longtime, reliable client asks to pay you late one month. However, there is a fine line between that situation vs. a client who consistently pays late or gives you only partial payment all the time.

Clients will often follow your lead, so the more organized, professional and consistent you can be with these things, the fewer problems you’ll have once the contract starts. An invoice app can help you automate the billing process while providing clients with the option of paying you via credit or debit card, ACH transfer and more.

And, as more freelancers take to the digital nomad lifestyle, they are getting even more creative with how they want to get paid, looking for options that include cryptocurrencies like Bitcoin to avoid international transaction fees and complicated transfers.

Using a platform like Spera that is built with these capabilities in mind will help you stay with the times and seamlessly adopt new payment trends, without ever needing to change up your invoice routine.

Now that you’ve explored a few basics of invoicing for your business, it’s time to talk about how to charge for your services.  

Don’t Underprice Your Services – Charge What You’re Worth!     

Here’s one thing to remember: People value what they pay for.

What’s more, the more someone pays for something, the more they value it.

This may sound more like fiction than fact, but it’s actually due to the mindset people have when they spend their money. When someone has invested a significant amount of money in a product or service, they’re perceiving it as something of value – even before you’ve delivered the final product.

On the other hand, if they pay significantly less for the same type of service, they will perceive it as being of lesser value or “worth.”

For example, if you purchase a pair of sunglasses for $9.99 and another for $399, do you treat them the same? Of course not!

The more expensive sunglasses are probably kept in a fancy case and cleaned with a special cloth every time you use them. The cheaper sunglasses more likely live on the floorboard of your car (being moved there after you accidentally sat on them the other day), because who cares, right? You only paid $9.99 for them, so they’re simply not as valuable.

A similar logic applies to freelancer payments; when you price your services for significantly less than you should, you’re asking people to value your work less, and not take your business as seriously as they should.

So don’t shortchange yourself!

Do your research on what other independent contractors charge within your industry. Then, take into account your experience level and business expenses, charging accordingly.

Next, explore why your client contracts are so key when it comes to collecting payment.

Be Crystal Clear in Your Freelancer Contract About Payment

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The best way to avoid frustration when it comes to collecting payment from your clients is to be sure your freelancer contract is super, super clear.

Don’t leave anything out that you may regret later. Here are a few key items to include in every client contract:

  1. A specific date of the month when payment is due. It doesn’t matter if it’s the 1st of the month or the 15th, as long as you’ve outlined when you expect to be paid.
  2. A statement about late fees. Like any business, you have the right to be paid on time. Be upfront with your client about the late charges by including it in the contract they sign before work begins.
  3. A monthly retainer if you’ll be executing ongoing, monthly tasks. This avoids any confusion or awkward conversations when a new month arrives and you’re unclear if you’re supposed to continue working for the client or not.
  4. Specify examples of what constitutes additional payment – with a la carte pricing. For example, if a client has required that they want you to attend a weekly conference call, you need to get paid for your time! Additionally, consider adding verbiage around any out of pocket expenses such as software costs, apps, and mileage to and from meetings that need to be paid in addition to your standard work invoice.

Whether you are well-versed in freelancer payments or new to the side-hustle game, we recommend having a lawyer either write or review your contract in order to make sure nothing is overlooked.

Now let’s take a step back and look at why the way you present your client invoices matters.  

Know that Invoices are a Reflection of your Business

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How you present your business to your clients, in all facets, is important.

Whether you’re just beginning your side hustle, or you’ve been freelancing for years, you want to portray your services in a professional, clean manner if you expect clients to take you seriously.

Invoicing a client via your PayPal or Venmo account simply isn’t going to cut it anymore.

Commit to using a professional freelancer invoicing platform this year and take your invoices (and contractor gig in general) to the next level.

Like we mentioned above – aside from the unprofessional leaning of using apps like Venmo – it’s always a good practice to have a record of your invoices and be able to offer clients various convenient ways to pay their bills and track their own expenses.

Collect Payments as a Freelancer Seamlessly, and More Professionally, Today

freelancer-payment-SperaHow we process payments as freelancers is an evolving process that will only continue to get easier as technology, online banking and cryptocurrencies evolve.

It takes just a few simple steps to organize your client billing, automate your invoicing and get paid – without ever sending a reminder email or trying to remember if you really did send that unpaid invoice in the first place.

If you’re a new freelancer, asking for adequate pay can be scary, but it’s necessary to set yourself up for success. As long as you have researched what similar contractors in your field are charging, and factored in your experience level to determine what you should charge, you have no reason to be stressed when monthly invoices go out.

And having a contract that outlines exactly how and when you want payment is key. It’ll be there to reference and fall back on if any problems do arise.

Interested in learning more about how hundreds of independent contractors and businesses are using (or would like to be using) cryptocurrencies to do business?

Download our Freedom Economy Report HERE.

Cristiano

Author Cristiano

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