My Payment Workflow

Having a clear, streamlined payment flow is the best way to protect yourself, your work, and the client. Aspects revolving around payments may be the biggest pain points in the freelance process, so creating a clear structure and communication method is the best way to make your job easier and prevent you from getting entangled in problems with a client.

The 50/50 Payment Structure

I've found the most reliable payment approach is requesting 50% upfront (before you do any work) and 50% upon delivery of the final work. You can treat the 50% upfront payment as a deposit for booking time in your schedule for the job. You can also state that this 50% deposit is non-refundable, which protects you from last-minute cancellations. Make sure the client is aware that the deposit is non-refundable and include it in your work contract.

Anti-scope creep

The 50/50 payment structure ensures you have money upfront for your time and protects against unanticipated work that could come up mid-process, also known as "scope creep." If a client initially agrees to two revisions but then requests more changes or wants a redo, you can add fees to the final invoice mid-process. Make sure to communicate these additional fees to the client and get them approved in writing before doing extra work.

The 50/50 split has been the easiest and most reliable payment structure I've used over the years, giving both me and my clients security and clear expectations. It’s also a very standard practice in the industry, so most clients are already familiar with this method.

The Work Contract

Once you have agreed on the scope, terms, and rate for your work, make sure you and/or your client create and sign a work contract. This contract should clearly state all of the specifications and agreements for this job.

Contract Best Practices

A good contract will protect you and the client if anything goes wrong. If you are working with a big company, they will typically have a templated contract that they will send to you. Make sure to read through and confirm all of the details before signing. If you see anything in the contract that is incorrect or you need clarification on, you always have the right to ask for clarification or revisions.

Make Your Own Contract

If you want to make sure you are protected, you can also send the client a contract you’ve written. Even a simple document with basic agreements stated can be helpful, especially if legal complications arise. If you feel like you want an iron-clad contract to fully protect your work, get in touch with a lawyer to help you write a formal contract document.

I have included a standard contract template that I use for my freelance jobs in the Freelance Artist Starter Kit that HIDEOUT members have exclusive access to!

Disclaimer: This contract template is what I use based on my previous experience working as a freelancer. It has not been legally reviewed by a lawyer, so it is not 100% iron-clad. I am not responsible for any legal issues that arise from your use of the contract, so please do your own research and consult a lawyer if you are concerned.

What Should Be in a Good Contract?

If you are writing your own contract, here are some basic things you should include in your document to make sure you are protected.

1. Parties & Scope of Work

• Define who is hiring you and what you're delivering.

• Include deliverable details like number of final files, revisions, file format (PSD, JPG, etc.), and deadline.

2. Payment Terms

• State your rate, payment structure (hourly, per piece, flat fee), and payment deadlines.

• If you have late fees, include them here too.

3. Copyright & Licensing

• Always state that you own the copyright to your artwork.

• You can grant the client a license to use it for specific purposes (e.g., commercial, promotional, non-exclusive/exclusive).

• Include all details about the license (geographical scope, duration, medium/format, quantity limitations, etc.).

• State whether they may modify the work.

4. AI & Technology Usage

• With the prevalence of AI, state clearly whether the client can use AI to modify your art. It's also good to note if AI tools were or weren't used in creating your work.

5. Revisions

• Define how many revisions are included.

• Clarify that additional revisions cost extra and how much each revision will cost.

6. Credit / Portfolio Use

• Define the terms of displaying your work in your portfolio or social media.

7. Termination

• State clearly what happens if either party backs out.

• Usually, the deposit (50% upfront payment) is non-refundable once work has started.

8. Signatures

• Both parties must sign and date.

Invoicing

Once you and the client have agreed to all of the job parameters and signed the contract, you can send them your first invoice. Invoices are important documents that not only inform both parties of the payment amount and due date but also keep a written record of the work, which can protect both you and the client. An invoice should have your and the client's contact information and payment details, as well as specifics about what you are billing the client for.

Don’t start working until you’re paid

Once you have sent the invoice, the client should pay you the 50% deposit BEFORE you start any work. Hold off on starting any work until you can confirm the payment is being sent. I like to send them a due date for the deposit payment so they know to pay it ASAP so the project can stay on schedule. If the client is delayed on payment, politely inform them that the project will be delayed until the payment is processed.

I have included a simple invoice template in the Freelance Artist Starter Kit you can use or reference as well!

Final Payment

Once you have completed the work and are ready to send over the final deliverables, you can package everything up to send to the client, including a final invoice. This invoice should include the final 50% of the agreed-upon initial payment and any additional fees that were incurred during the project. Make sure you note what each additional fee was for in the invoice so the client is aware of what you are charging for.

If you want to take an extra step to protect yourself, you can send a low-res version to the client first for final approval and request the remaining total payment before delivering the final high-res files.

Adapt this Process to Each Job

That wraps up a quick overview of a general payment workflow for freelance jobs. Remember that every job is slightly different, and you may encounter unusual practices from different clients. I hope you can use this general structure as a baseline and adapt it to each of your jobs. Having a good base structure and workflow is the best way to keep everything organized and keep yourself protected.

Freelance Artist Starter Kit

As I mentioned throughout the article, you can find templates for all of these documents in the Freelance Artist Starter Kit that members have exclusive access to!

If you have any questions or want to see anything added to the Starter Kit, feel free to let me know and I will continue to update it with resources as time goes on.

In the next article, I'll talk about best practices for communicating with your clients as well as share a collection of email templates for those awkward emails you may encounter while working.

Stay tuned for more!