A chapter on the subject of dealing with clients wouldn't be complete without a section on scams. The client who scams you is the worst type of client you can get; these individuals are far worse than both cheapos and perfectionists, because they will steal both your time and energy without compensating you. I've been scammed before, and though it was for relatively small amounts, I will give you some bullet proof tips to help you avoid becoming a victim.
- For large projects, always charge a deposit – Never work on a large project without the client paying you a portion of the money in advance. In this case, the amount necessary to be considered “large” is based on your own considerations, but for me personally, any projects that are valued at more than $100 should require a percentage of the money to be paid up front.
With many scams, once the client has received the project from you, instead of paying for it, they will simply take off into the sunset. Since you're working over the Internet, it is likely that you have no idea how they look or where they live, and once they disappear with the project, there will be little you can do about it.
- Consider having a contract signed for lucrative projects – Many large projects, particularly those which are high value, may take weeks or months to complete. In these situations, you may want to consider having the client sign an agreement. In the U.S., contracts may be enforced in court, so this can give you some protection when dealing with American clients. However, when dealing with foreign clients, contracts will generally not be very useful, since many foreign courts won't waste time enforcing contracts which are drafted by foreigners.
- For larger projects, request payments in parts, as opposed to one lump sum – By splitting up a project into parts, it is much more likely that you will be paid when compared to requesting one large sum after the work has been completed in its entirety. After a client has the entire completed project, they have little reason to pay you (unless you have an agreement that can be enforced in court). Additionally, if you break the project into parts, where you are paid for each part completed, the client will be compelled to pay simply because without having the entire project, they have nothing which is useful to them.
If you follow these three general guidelines, you can avoid being scammed in virtually all situations where you deal with clients. When you're first starting out as a freelancer, it will be difficult for you to get advance deposits from clients. After all, you could disappear with their money as well, and these potential clients have no way of knowing whether or not you're legit. This is why, as a freelancer, you must constantly be working to improve your reputation.