Taking a Deposit – A Perennial Dilemma for a Self-Employed Web Developer

Whilst 2018 has been a relatively successful year for me, it has not gone without it’s challenges. There have been some highs, some lows, and also some really interesting chats with people who have ended up as clients and friends. However, there have also been encounters with people that I did not take on any work for – either down to logistical difficulties in delivering a project within a specific timeframe, changes of heart, but also on a few occasions – due to their dismay that I charge a deposit for the jobs I carry out.

There are several reasons why I opt to take an up front payment for the work I do, and the aim of this article is to convey the benefits that it brings for not only me, but also for the client too. So, if you’re reading this after I have pointed it in your direction, I hope it successfully relates my reasoning in a way that educates – not excoriates!

The need for me to convey trustworthiness whilst also producing consistently good work – has always been paramount. Therefore, as a designer who to the naked eye was “unproven”, to ask for money felt somewhat dissonant with my beliefs.

It must be said that, at the beginning, I initially found the idea of taking deposits a little uncomfortable. The need for me to convey trustworthiness and a personable nature, whilst also producing consistently good work – is paramount. Therefore, as a designer who to the naked eye was “unproven” – with no portfolio, to ask for money felt somewhat dissonant with my beliefs – however, it soon however become vital to do, for several reasons.

Paying for Software & Services

When I set up a new website I need to take lots of time researching, discussing, finding suitable templates, examining the niche. I then need to set up the hosting, purchase the template, the SSL certificate, the stock photography, and in many cases – design the logo.  To do all this requires some capital to start off with, and also takes substantial amounts of time.

Ensures the client is serious

It is simply amazing the amount of people I chat to who want a website “today”, “urgently”, “it’s vital” – yet, as soon as the word “deposit” is mentioned – they cool off! This to me is a major no no, as I want to work with people who are driven and have the desire and determination to see their new business succeed. For me, their willingness to put down a percentage of the overall website cost – gives me the drive to match their enthusiasm and see the project through to the best of my ability.

Not getting stung

Since going alone in the world of web design over a year ago, although my output has been my pride and joy, I have equally been making sure I continue to portray myself as that friendly face that is easily contactable and always available. A couple of times, this “openness” has left me burned, with people not paying, or in one unique case, stealing the website that I spent hours creating. Of course, I am in no way suggesting that you, as a potential client of mine, would ever do this – however, a deposit provides a layer of protection for me that gives me a minimum payment if should anyone decide to move the goal-posts or shelve their plans. Believe me, it can happen.

Offsets the inevitable delay after completion

Unfortunately I have had a number of scenarios whereby once a website is completed, the urgency to pay the final invoice from a client is non-existent. Even since implementing the deposit based approach, despite an eager first bank transfer where they want things to get moving, settling the final invoice is not something that materialises. Whist this does cause cashflow problems, at least there is the initial 50% which should hopefully help to keep things afloat whilst they procrastinate with payment.

Provides a de-facto start date and therefore – completion date!

When a deposit is paid, it acts as the date in the calendar that you can look back on and say “that’s the day my website design was started”. From there, I can give a realistic estimation of when the client can expect see their work completed by.  It’s worth me also adding a caveat at this point – in that, whilst I can say that a project will be completed in certain timescale after the deposit date, things can occasionally be delayed due to me not receiving content and/or files from the client.

Gives you peace of mind that you’re getting a decent job!

There have been many occasions I have heard from people who have ordered a website – and whilst they believed the project was nicely chugging along, at some point the developer quickly realises they need to get the cash in the bank, and hastily hashes together a half-arsed website in the hope of getting full payment there and then. The deposit provides the cashflow which ensures there are no sudden financial shortfalls which could result in botched websites which are created with misplaced urgency.