0 1 00:00:00,120 --> 00:00:04,960 This might be surprising, but I actually don't do contracts with my clients. 1 2 00:00:04,980 --> 00:00:06,840 I can't be bothered with it. 2 3 00:00:06,840 --> 00:00:08,390 It makes things too serious. 3 4 00:00:08,700 --> 00:00:13,900 And even if things go wrong, I'm probably never gonna seek any legal action. 4 5 00:00:13,980 --> 00:00:18,690 So, there is really no point for me. Because of that I make sure things don't go wrong. 5 6 00:00:18,690 --> 00:00:24,630 Here are a few precautions that I take, to make sure a project goes smoothly and I end up getting paid. 6 7 00:00:24,630 --> 00:00:29,300 This mainly applies working outside of platform. On the platforms like Upwork, 7 8 00:00:29,300 --> 00:00:33,510 The contract is taken care of there. It's in their interest that you get paid. 8 9 00:00:33,510 --> 00:00:38,260 And if something goes wrong, then they're going to mediate and decide who is right or wrong. 9 10 00:00:38,310 --> 00:00:41,700 Regardless if you are working with a contract, or not working with a contract, 10 11 00:00:41,700 --> 00:00:45,030 here are some precautions to take to make sure things don't go wrong. 11 12 00:00:47,490 --> 00:00:53,080 First, you have to make sure that you're clear with your client and then no surprises come up anytime 12 13 00:00:53,130 --> 00:00:54,160 in the project. 13 14 00:00:54,180 --> 00:00:59,760 For this, I use my proposal document and make sure everything is stated there that could potentially 14 15 00:00:59,760 --> 00:01:00,990 come up in the future. 15 16 00:01:01,140 --> 00:01:06,770 And if some disagreement comes up, then we can always go back to the proposal and see what saying there. 16 17 00:01:09,180 --> 00:01:16,170 When working with clients across the continents, it's often easier to break a contract, but not as easy 17 18 00:01:16,170 --> 00:01:19,970 to break and screw up a human to human relationship. 18 19 00:01:19,980 --> 00:01:25,390 So, when I work with clients and usually I do work with clients abroad and across continents, 19 20 00:01:25,560 --> 00:01:33,090 I try to have face to face on Skype mainly. Because having a face to face interaction with people and 20 21 00:01:33,090 --> 00:01:39,810 having this face to face relationship establish, creates a different sort of bond between clients and 21 22 00:01:39,810 --> 00:01:44,550 me. And breaking this relationship is much more difficult. 22 23 00:01:44,550 --> 00:01:52,500 If they've already seen me and if we had some interaction over the call, versus if I was just some guy 23 24 00:01:52,500 --> 00:01:58,080 with a profile picture and a user name, or just an email address. Plus I can gain a lot of information 24 25 00:01:58,440 --> 00:02:03,420 on my clients, by seeing them and talking to them. I use my [REMOVED] sensors that Mother Nature gave it 25 26 00:02:03,420 --> 00:02:07,770 to me and I can sense if there is anything dodgy and fishy about them. 26 27 00:02:10,360 --> 00:02:13,960 With new clients, I always invoice them step by step throughout the project. 27 28 00:02:13,960 --> 00:02:18,640 I don't wait for the entire project to be done with and then finally send the entire value and then 28 29 00:02:18,850 --> 00:02:20,160 , you know, hope that they're going to pay. 29 30 00:02:20,230 --> 00:02:25,780 If I'm working with complete strangers, that I haven't worked with and it's outside of the platform, then 30 31 00:02:25,810 --> 00:02:29,650 I'm going to ask for 25% upfront payment. 31 32 00:02:29,650 --> 00:02:38,080 This way, I can balance the risk between me and the client. Because if I ask them 100% upfront 32 33 00:02:38,080 --> 00:02:44,190 payment, then they are taking the full risk and I don't want to put my clients in that situation. 33 34 00:02:44,200 --> 00:02:48,880 Neither they will be willing to do. Or if I am charging 34 35 00:02:48,880 --> 00:02:55,210 at the end of the project, 100% then I am taking the full risk. By asking only 25% upfront, 35 36 00:02:55,210 --> 00:03:01,960 yes they are taking small risk, actually themselves, but at least I have 75% remaining payments 36 37 00:03:01,960 --> 00:03:07,480 to motivate me to do the rest of the job. With existing clients, that I've already worked with and I trust 37 38 00:03:07,510 --> 00:03:12,130 and they have already paid me for previous projects and always paid on time. 38 39 00:03:12,220 --> 00:03:17,800 Then I can relax and I can easily invoice them at the end of the project 100%. But that's 39 40 00:03:17,800 --> 00:03:18,300 what I do, 40 41 00:03:18,300 --> 00:03:19,320 that doesn't mean that you, 41 42 00:03:19,330 --> 00:03:23,740 that's what you should do as well. Judge for yourself and see the relationship that you have with your 42 43 00:03:23,740 --> 00:03:24,670 clients. 43 44 00:03:24,670 --> 00:03:32,320 I also, I often like to be trustful of my clients. And kind of, when I see that we have a good 44 45 00:03:32,320 --> 00:03:38,710 relationship, I do like to show them that I trust them and that I'm not suspicious of them. Because that 45 46 00:03:38,710 --> 00:03:39,460 sort of stuff. 46 47 00:03:39,760 --> 00:03:42,510 If I trust them, then they know that they can trust me. 47 48 00:03:42,530 --> 00:03:45,310 Sort of it's a mutual thing, if you trust them, 48 49 00:03:45,310 --> 00:03:51,780 then they feel this obligation that they have to trust you back. And it just creates a very good relationship. 49 50 00:03:51,790 --> 00:03:57,340 But if I'm always suspicious about them, then, you know, relationship is going to be a bit more 50 51 00:03:57,520 --> 00:04:01,830 cold. When you have a bad experience, 51 52 00:04:01,830 --> 00:04:07,280 adjust your strategy. When someone violates your trust and they don't pay you on time, 52 53 00:04:07,350 --> 00:04:10,150 then make sure to change your strategy. 53 54 00:04:10,230 --> 00:04:14,150 No excuses, no second chances and ask for upfront payments. 54 55 00:04:14,150 --> 00:04:17,660 I only had a payment issue once. I was working with this startup, 55 56 00:04:17,660 --> 00:04:23,130 I did the website for them. And they were waiting for an investment to come in and they couldn't pay 56 57 00:04:23,130 --> 00:04:29,160 me on time and I had to chase them. And it was unclear when they're gonna pay me, I had to call them 57 58 00:04:29,160 --> 00:04:30,920 and email them, all that stuff. 58 59 00:04:31,320 --> 00:04:35,940 They did end up paying me eventually and the delay wasn't that big. 59 60 00:04:35,940 --> 00:04:42,090 But after that moment, once they violated my trust, that's it for me. And then after that moment, everything 60 61 00:04:42,090 --> 00:04:45,510 that I had to do about the website, I was just billing them upfront. 61 62 00:04:45,510 --> 00:04:47,700 They were saying, you know, "Oh can you edit this?" 62 63 00:04:47,700 --> 00:04:48,500 I was like, "Sure, 63 64 00:04:48,540 --> 00:04:51,360 here is the upfront payment. You pay me, I do the job, 64 65 00:04:51,360 --> 00:04:53,120 If you don't pay me, I don't touch it at all. 65 66 00:04:53,130 --> 00:04:55,880 If someone shows you that they're not trustworthy, 66 67 00:04:55,890 --> 00:05:04,290 believe them. And take according measures. If you would feel safer to sign contracts or maybe your client 67 68 00:05:04,290 --> 00:05:06,090 is asking for one directly, 68 69 00:05:06,210 --> 00:05:09,370 then you can generate contract on Bonsai. 69 70 00:05:09,390 --> 00:05:14,850 Bonsai is this freelancer solution, which has invoicing proposals and things like that. And they also 70 71 00:05:14,850 --> 00:05:20,750 have this contract that you can generate for a specific design or a web design work. 71 72 00:05:20,760 --> 00:05:22,940 It's a really nice customisable contract. 72 73 00:05:22,980 --> 00:05:28,460 All the highlighted parts are what you edit and put your information in. The rest, 73 74 00:05:28,470 --> 00:05:33,780 you can keep intact, because it's been generated by their lawyers. Editing highlighted parts are very 74 75 00:05:33,780 --> 00:05:39,150 easy. And they give you an option and ask you straightforward questions, so you can answer those questions 75 76 00:05:39,150 --> 00:05:44,490 and you will easily kind of auto fill in a language that is suitable for contracts. 76 77 00:05:44,550 --> 00:05:45,650 They've done a great job. 77 78 00:05:45,750 --> 00:05:50,940 So, if you need it, just sign up with Bonsai and generate a contract there. I've played with it, but I've 78 79 00:05:50,940 --> 00:05:55,080 never used it on a real project, but if I ever need to, I'll certainly use it.