Several years ago, while I was working for a large consulting firm,
we were approached to do some work with an internet startup.
My boss did a credit check, found they had no credit at all
and no source of funding available. We told them we
wouldn't do the work without an upfront payment.
They went elsewhere. Later they came back and paid up
front for awhile, then were placed on an invoice basis and then
stiffed the consulting firm for $35,000.
The first developer they worked with, a moonlighting school teacher,
was stiffed $15,000. He grabbed their source code and took it hostage.
That's why they came back. He laster sued, but they declared bankruptcy.
Lawyers take retainers up front for their services.
Then they bill against the retainer. When the funds
run out, so do the services. If you don't pay a retainer, you pay at
the time the service is rendered. They may make concessions if
they know you or you're a large company.
It makes sense for any developer, consultant, graphic artist, or
other professional to decide what way they will conduct business.
Setup your guidelines, adhere to them. If you don't, you'll
get burned. Most of us can't afford to eat money or lose
the business we could have had during the time we were
working for free.
It isn't just startups either, I've received late payments, bounced
checks and administrative run arounds from large companies.
I've also received very timely payments from startup firms.
It has nothing to do with the status of the company or
the quality of your work. Its just the way business is
done.
At 07:53 AM 3/6/99 -0800, you wrote:
>>> I think it is entirely acceptable to require payment up front
>>> because I am a freelance developer, not a company or
>>> multi-person business.
>>(Bob Munck replied:)
>>I don't understand this point. If you go to a doctor or dentist
>>(one of the old-fashioned non-HMO kind), would you expect to pay
>>while you're still in the waiting room? They are just as
>>"freelance" as you are.
>
>Well, a medical professional with an office, staff, and history of being in
>business for a period of time is hardly comparable to an individual who
>works out of their home.
>
>>
>>> an internet software development company that has been
>>> in business for over 3 years [does it].
>>> Payment up front in this business seems pretty standard.
>>(Bob said:)
>>If by "this business" you mean web/internet development, maybe
>>the business just isn't old enough to have developed mature
>>business practices.
>
>My wife works for an internet software development company (they do a lot
>of back-end work) which employs over 20 people. They've been in business
>for over 3 years. They ALWAYS require a significant payment up front before
>starting any project.
>
>Up front payment is clearly a common and accepted standard of practice in
>the web/internet development business. "Mature" business practices have
>nothing to do with this. Many independent professionals in a number of
>fields have required up front payment for decades, it's nothing unusual.
>
>Barry
>--
>Barry Lee Brisco <mailto:[EMAIL PROTECTED]>
>Web Design & Development - Online Marketing <http://www.ToTheWeb.com>
>Web portfolio at <http://www.ToTheWeb.com/portfolio.html>
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