How To Collect Money As A Freelancer

How To Collect Money As A Freelancer

There is more than one way to collect money online

Online freelancing gigs are becoming more popular as working virtually becomes more accessible. Small to large businesses turn to freelancers to quickly fill a skills gap or to provide assistance on short and long term projects.

According to a survey by Freelancers Union and Upwork, more than 57 million Americans earn freelance income, America’s 57.3 million freelancers contribute $1.4 trillion to the economy, an increase of almost 30% from the previous year, while according to an online post, there are 4.5 million freelancers in UK. The internet penetration in Africa also makes it home to numerous freelancers, working through several freelancing platforms most notable is Fiverr.

Due to distance, the biggest concern for all freelancers is the issue of payment. In particular, that payment will be received in full and in a timely manner. The way in which you collect money will affect this.

There are a few main ways to collect money as a freelancer;

  1. By using a freelance site
  2. By arranging a direct payment method with a client

Each of these methods has pros and cons.

Using A Third Party Freelance Site

Using a freelance site is the safest way to receive a payment. Although each freelance site differs on how payments are to be arranged they all provide an extra layer of accountability towards to clients, pro. The con is that you pay for this added security, sometimes as much as 20%; on sites like Upwork. That is a good chunk of the money that you make, which brings us to option 2.

Arranging A Direct Payment Method

If you want to keep more of what you earn,then dealing directly with the client instead of using a third party system will let you do that. Using a payment platform like Google Pay, PayPal or Payoneer makes invoicing and collecting payments easy. You can also use the old method of making an invoice in excel and getting an e-transfer or echeck. The con; you need a very good contract and you need to set yourself up properly so that you are not left donating a bunch of work to a client that becomes unreachable after a few months.

If you choose to use this method, there are a few things to keep in mind;

  • Ensure the means of payments is easy, this can be done by offering different means of payments options for the client to select the most suitable.
  • Deal with late payments immediately. Stop work, find out what is going on and charge interest for any payments that fall behind weekly.
  • Have a contract and make sure your get their billing address.
  • Build trust slowly. You can develop a more relaxed relationship with payments as you get to know a client but in the first few months don’t take any chances.

Whatever method you choose, in today’s world, conducting business online couldn’t be easier and building a freelance business is a perfect way to create a career that you love frommthe comfort of your home.

For more tips on freelancing check out the following posts and visit us on Facebook.

How To Take A Professional Headshot Yourself

Tips On Working With A Remote Team

15 Inspiring Home Office Spaces

How To Collect Money As A Freelancer

Posted in Freelancing For Beginners, Freelancing Tips, Business Tips on Mar 21, 2018

Follow Sagegroupy

    Recent Posts

  • Social Media For Freelancing

    Posted in Resources, Freelancing Tips on Jun 14, 2019

    Social Media isn’t just a time-sucking way to stave off boredom, the various types of social media platforms can be useful tools for freelancers. Solopreneurs can use social media as free marketing to get their name out into the world and to connect with potential clients. However, in order to use it effectively, freelancers need to follow some basic rules and play an active role for social media to be useful.

  • What You Need to become a Full Time Freelancer

    Posted in Freelancing For Beginners, Freelancing Tips on Jun 07, 2019

    Building a successful business takes time and it is hard to be patient when you're passionate about your work and eager to spend more time on it. Here are a few things that you should have in place before you become a full time freelancer.

  • How to become a Freelance Financial Advisor

    Posted in Freelancing For Beginners on May 27, 2019

    As a freelance financial advisor, you can work with individuals or small businesses who do not have the resources available to hire full-time financial advisors. Freelance financial advisors offer in-demand skills and have the potential to be successful solopreneurs, here are some steps you can take if you think you would like to be one.

  • How to Interview a Freelancer

    Posted in Business Tips on May 20, 2019

    If your business has never worked with freelancers before, it might be difficult to know what to look for and how to interview them. Do not worry, Sagegroupy is here to help with advice on how to interview a freelancer, what to look for and what questions to ask, so that you can find the best fit for your project.

  • Keep an Eye on these Business and Tech Trends

    Posted in News on May 13, 2019

    Freelancers and business owners alike can benefit from being on top of the latest trends in business, tech and beyond. With all your projects and your business-growth goals, it is hard to keep on top of the latest trends in business and technology. Luckily, Sagegoupy is the freelancer’s friend and we are always here to lend a hand. Just in case you missed it here are some important business and tech trends, and a few things to keep an eye on.

  • Starting a Freelance Business? Avoid These 10 Mistakes.

    Posted in Freelancing For Beginners, Freelancing Tips on May 06, 2019

    You may already be an expert in your field, but when you move from the traditional workforce to the world of freelance it is easy to make a few newbie mistakes. We’ve rounded-up 10 common mistakes that new freelancers make so that you can avoid making them yourself.

  • How to become a Freelance Content Writer

    Posted in Freelancing For Beginners on Apr 26, 2019

    A good content writer should be creative enough to generate new and exciting content on a regular basis, with an eye for detail so that their work error-free and easy to read. If you think that you have what it takes, here are some steps you can take to becoming a freelance content writer.

  • When and How to Hire a Freelancer

    Posted in Business Tips on Apr 19, 2019

    Hiring freelancers can be a great way to ensure that your business has the expertise needed to complete quality projects on time, without any extra costs. Here at Sagegroupy, the freelancer’s friend, we love to share great reasons to hire from our amazing talent pool, this post will explain when you should, and how you can go about, hiring a freelancer.

  • How to Avoid Work-from-Home Scams

    Posted in Freelancing For Beginners, Freelancing Tips on Apr 12, 2019

    As with anything in life, a good general rule to follow is “if it sounds too good to be true, it probably is”. However when you are desperate for money and need to work from home, it can be hard not to fall for a scam. Here at Sagegroupy, the freelancer’s friend, we are always ready to help freelancers succeed and today we are going to make sure that you avoid work from home scams.

  • Before Working with a New Client

    Posted in Freelancing For Beginners, Freelancing Tips on Apr 05, 2019

    All freelancers need to protect themselves when forming relationships with new clients. Here are a few guidelines that can help freelancers assess potential clients.



Please sign in to comment!