Why Do Our Clients Pay Up-front?
All relationships start building trust on good faith, but good fences make good neighbors. According to the Squads terms, teams and clients can meet halfway on good faith:
- The client puts real money in their account, but they can claim it back until they accept the delivery;
- The team puts real work in, but the IP will only be transferred when the client accepts.
- The client can only accept after they pay;
- You’re only getting paid for accepted work;
- Clients are more likely to ask for their money back if they never actually paid it in the first place.
Good reasons to trust a client are that:
- You’ve been working with them for decent time and made good money already;
- The client always accepts and doesn’t stretch the acceptance, OR
- The client seems so awesome you’d not mind if you worked for free for them.
Bad reasons to trust a client are that:
- They work like this with all their suppliers;
- They can’t start the project if they have to pay up-front;
- They keep asking for it, even after you explain why you can’t trust them just yet.