If you subcontract work out for your business or agency, you probably work with freelance talent almost every single day. They are there to supplement your in-house staff, provide objective third-party counsel, or even just get you out of a jam when things get a little crazy.
Let’s face it, they make you look GREAT.
5 reasons freelancers are amazing
- No office (or office supplies) required
- You don’t pay for their taxes and insurance
- They deliver help when you need it, and you aren’t stuck paying a full-time salary when you don’t
- They can focus 100% on your project when you’re being pulled in multiple directions
- They can bring hard-to-find, specialized skills to the table
NEWSFLASH: A freelancer is actually a CEO
Here’s the thing: Freelance consultants are actually small business owners. You knew that. . .right? The vast majority of them aren’t doing this as a hobby, or “just until the kids are old enough for school.” They are running a business.
SON OF NEWSFLASH: Freelancers are not just CEOs; they’re also employees
Most freelance consultants live and die by cash flow. Many of their clients remit on a net 30 basis, and 30 days is a LOOOOOOOONG time to wait when you’ve got household bills to pay. That’s right, because freelancers are also the employees of their own businesses, they have financial obligations just like the rest of us, including:
- Mortgages
- Car payments
- Credit card bills
- Daycare tuition
- Groceries (what?!)
So when your freelance consultant gives you a project proposal that requires a partial deposit upfront, it’s really not meant to be a negotiating point; it’s a standard part of their business policies and processes. So cough up.
And when your freelancer is told that you will have a check or electronic deposit to them on a certain date, make sure it happens. Their mortgage company doesn’t really care that the guys who signs the checks at your company is on vacation until next Thursday. Fix it. Now.
The bottom line is, pay your freelancers well, and pay them on time. They are totally worth it, they kick ass, and they have probably saved your sweet beheinie on multiple occasions.
2 Comments
That’s 30 days from the date of the invoice or end-of-month. That doesn’t include all the time it took between delivery of the first, basically complete draft, and you actually approving the final.
In a Net 30 model, payment is generally required by no later than 30 days after the invoice date. Most consultants will require a deposit or payment upfront, which allows them to “keep the lights on” while they are working on your project. And depending on the duration of the project, there may also be mid-stream invoices during the process, along with the final invoice at handoff.
For very long engagements however, it’s sometimes preferable or more cost-effective for both parties if the consultant bills out hourly or is on a retainer, and invoices at pre-determined intervals each month.