Core Insights Blog

5 Tips to Ensure You Get Paid as a Freelancer

June 4th, 2010 by Alex Coté

As a freelancer or independent consultant the last thing you think about is getting paid. It’s usually all about selling your skill set and experience to a potential client. The assumption is that your new, often much larger, client is capable of paying your invoices in a timely manner. While this might be true, there are plenty of examples out there to the contrary. Here are some quick tips to protect you against getting stiffed by a client.

Lawsuits are a matter of public record. Before agreeing to provide services, you can check your local courts to see if your potential client has been sued by a fellow freelancer or other vendor. Many jurisdictions make their court dockets available online.
Conduct a background check on your potential client. Entry level business credit reports can be purchased online with a credit card from bureaus like Cortera and others. These reports outline the business’ payment history and help predict future payment behavior.
Check the various websites that rate local businesses like Yelp, Google Local and Yahoo Local. Look for negative reviews and ratings as a potential warning sign. A simple Google search can also reveal quite a bit about a business.
Ask your peers on social networking websites like Facebook, LinkedIn and Cortera (shameless plug for Cortera Circles – but hey it’s a free and all about sharing payment experience on businesses so worth a look!)
Don’t perform any services without first getting a written contract in place with your client. Among other things, the contract should spell out, with particularity, the services you have been retained to perform, the amount you will be paid, when you will be paid. For artists, designers, or other technical and creative freelancers, you should ensure that the contract protects your intellectual property rights. A small investment in legal services could save you down the road.There are even free contract templates that can be downloaded from the Resource Center of elance.com.

If you follow all of these precautions and still don’t get paid, you can sue your client. Most small claims courts allow you to represent yourself in court. Small claims court is also very informal making it accessible to anyone. And don’t be shy about using the above websites to share your experience with others – your rating could save another fellow freelancer.

I’m not a lawyer so here is the standard warning: The recommendations set forth herein are not a substitute for legal advice. You should speak to an attorney licensed in your jurisdiction if you wish to obtain legal advice about these matters.

Have another tip? Drop me a comment.