People with full-time employment often do not have to worry so much about getting paid, but when you’re a freelancer everything is down to you. If you’re just getting started out as a freelancer, you need to be aware of possible hurdles you might run into so that you will be equipped to overcome them.
In this article, we will be looking at some of the issues you might run into when getting paid as a freelancer.
The financial problems of freelancers
There are several issues that you may encounter when getting paid.
The client wants to pay less
Before you’ve even started the project, you might find that a potential client is suggesting fees a lot lower than your normal rate. In reality, you shouldn’t be working for a lot less than you are worth, so be insistent with your pricing and if they can’t pay it then they aren’t worth it! There’s no point in doing hours of work for little money.
One of the ideals of being a freelancer is that you can work from anywhere with an internet connection. This is great because it opens up the employment world and means you can take on clients from different countries. But this raises a problem: exchange rates. Unfortunately, there isn’t really a way around this, but you can negotiate a price in your own currency to make sure you’re not getting scammed.
The client is refusing to pay
Sadly, this is a problem that many freelancers encounter. Sometimes a client will collect your work and then not pay you, leaving you sending endless invoices. Sometimes this is a case of late payment, but sometimes you’ll find that clients are trying to exploit freelancers. You can get around this by using an intermediary.
However, these intermediaries have fees of their own, so you have to shop around for one that suits your budget.
Is there a solution?
Fortunately, there is a solution to all of these problems.
TransferWise is a service that allows you to create a simulated bank accounts in countries like the US and the UK. This allows clients to pay you as though they were doing a local bank transfer. Once the money is in the account, you can change the currency and do a bank transfer to your own account – the currency conversion fees at TransferWise are less than those of PayPal, meaning you can complete the process for cheaper. In fact, it is 14 times cheaper than PayPal!
As for clients refusing to pay, you have to be smart about who you choose as your clients. Some people recommend always using an intermediary even though there is an important fee. In my experience most of intermediaries (freelancers platforms) will not put much effort to defend your position.
As long as you’re smart, you can get around all of these financial problems and flourish as a freelancer.