Feb. 1, 2021

What is Escrow in Freelancing?

What is Escrow in Freelancing?

Today let’s talk about how escrow services help freelancers make sure they are getting paid for the work they are doing and assure the clients that they will get the service they are paying- if not, they get the money-back guaranteed.

Do you know that feeling of fear when you get a new client and you did not build that trust and you think ’’I hope I will not need to beg for payment in the end’’, even if you have a contract with clear terms in place? Now, let me make your life easier! Did you hear the term ’’escrow’’?

In this episode, you will…

  • Comprehend how escrow for freelancers works
  • Understand the pros of using an escrow provider
  • Have a list of transparent costs if you chose to use escrow services
  • Get a comparison between two escrow providers: Upwork and Escrow

Insights:

  • A freelancer’s heaven is to work without being worried if they will get paid for all the work they are doing, making sure they will not need to chase the client to pay for the service, and finally concentrate on making the project a success.
  • Upwork has released a feature called ’’direct contracts’’, where you create and send a contract to a non-Upwork client. Your client accepts the contract and deposits the funds in the escrow. You get the work done, send it over and you get paid when the client approves the work. You can select this for hourly or fixed price projects.

Tips:

  • Include all the payment terms in the contract (due dates, payment methods, etc.).
  • Stick to your terms and do not make changes in between. This will confuse your client and you will have the ground ready for disputes.
  • Communicate your terms of service to your client before making any early escrow payment. I do not need to say it but have it all in writing.
  • And you will think ’’oh, but my client is so nice, I don’t think he will not pay me’’. Well, not everyone is blessed with unicorns, better safe than sorry.

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Until next time,

Doina