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 advance payments feature. 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 allow the freelancer to request for advance payments. This approach serves the following 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.
- Funds Required: If the task at hand requires some funds in advance.
Advance payment can be requested in multiple ways
The freelancer can ask for advance payment for the entire project, or only few milestones.
- Post Completion: When a milestone requires payment post work completion. Client will be asked to pay once work is done and confirmed. Freelancer is paid immediately after client has successfully made payment.
- Advance Payment: When a milestone requires payment before work completion. Client will be asked to pay in advance, the amount will be held until freelancer completes work and client approves of it. Payment is released to the freelancer upon client approval.
For Fixed Projects:
If your fixed project has multiple milestones & the freelancer requested advance for the first milestone, we will collect the first milestone payment in advance.
If your project has no milestones & the freelancer has requested advance payment: the entire project amount will be paid in advance.
If your project has multiple milestones & the freelancer has requested advance payment for one or more milestones but not the first milestone:
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.
