This article explains the payment process for both fixed and hourly projects, focusing on how milestones and advance payments ensure security for freelancers and clients. For fixed projects, milestones allow clients to break down payments based on project stages, while hourly projects follow a straightforward payout structure. Additionally, we highlight the importance of collecting advance payments for the first milestone to verify client intent and minimize the risk of fraud. Funds are securely held until the freelancer completes the work and the client approves it, ensuring trust and transparency in every transaction.
Fixed and Hourly Projects: Payment Rules
Hourly Projects:
- Minimum hourly rate: $10 per hour.
- Minimum payout: $20.
Fixed Projects:
For fixed projects, we’ve implemented milestones to help manage payments and progress. Here’s how it works:
- For projects under $100:
- Milestones are not available. You will see this section greyed out with a note explaining that milestones are only available for projects of $100 or more.
- For projects of $100 or more:
- The milestone feature will be enabled, and you can divide your project into stages.
- Maximum number of milestones: The number of milestones you can create is based on your project budget, with a maximum of one milestone for every $50 (rounded down). For example, a project budget of $110 will allow you to create up to two milestones.
- Milestone value limits:
- Each milestone must have a value of at least $50. If you attempt to create a milestone with a lower value, an error message will appear, reminding you of this minimum requirement.
Example:
For a project worth $110, you can create two milestones, as long as each milestone is worth at least $50. Possible combinations could be:
- $50 and $60
- $51 and $59
Advance Payment Policy: Why and How It Works
To ensure a safe and secure experience for both clients and freelancers, we require an advance payment for the first milestone. This approach serves two purposes:
- Verifying client intent: It ensures the client is committed to the project.
- Reducing the risk of fraud: The advance provides the freelancer with some assurance before they start working.
Why only the first milestone?
The advance is only required for the first milestone because its purpose is to establish trust. Once the client’s intent is verified, subsequent milestones do not require advance payment.
For Fixed Projects:
If your fixed project has multiple milestones, we will collect the first milestone payment in advance.
If your project has only one milestone, the entire project amount will be paid in advance.
Important Note:
We do not transfer the funds to the freelancer immediately. The advance payment is held securely until the freelancer completes the work and it is approved by the client.
Tip for clients:
If your project budget exceeds $100, it’s advisable to use milestones. This way, you don’t need to pay the full amount upfront, and payments can be made progressively as each milestone is completed.