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  Avoiding Common Pitfalls: What to Do if a Client Doesn’t Pay Your Invoice?

  Posted by Muhsin Sanusi Gamji on 20/10/2024 at 12:04 PM

  Let’s talk about how to handle one of the biggest issues on Upwork—when a client doesn’t pay your invoice.

  Did you know that around 20-30% of freelancers face payment issues after completing a project? One common reason is that many prefer fixed-price contracts, which offer no real safety if the client refuses to pay.

  Here’s the solution: Freelancing platforms like Upwork and Fiverr Pro offer hourly contracts with built-in payment protection. By using hourly contracts, the time you log is secured through the platform, ensuring you’re much more likely to get paid as long as you track your hours properly.

  Take a look at this rough breakdown:

  • Fixed-price contract: 10-30% of freelancers face non-payment.

  • Hourly contracts: Only 1-2% encounter issues with payment, thanks to the protection offered.

  What Are My Options as a Freelancer if I Do Not Receive Payment After Sending Out an Invoice?
  

  • Avoid fixed-price contracts except otherwise: Taking on fixed-price contracts can be extremely risky because payment isn’t guaranteed, and disputes can be difficult to resolve. However, this doesn’t mean you should avoid fixed-price contracts altogether, as many clients prefer to hire based on their budget. To avoid becoming the next victim, always make sure to check the client’s recent reviews to see whether the client is reliable and trusted by other freelancers.

  • Embrace hourly contracts: You don’t have to chase payments. With hourly contracts, your work is automatically tracked, and you get paid for every hour logged—so payment is practically guaranteed.

  To succeed and stay protected on platforms like Upwork, you should:

  • Opt for hourly contracts when possible.
  • Use the time tracker to log your work carefully.
  • Communicate clearly with clients and document agreements.

  In case of a payment dispute on a fixed contract, Upwork has a dispute process, but hourly contracts offer the most reliable protection.

  Stay informed and protect your hard-earned money!

  Muhsin Sanusi Gamji replied 3 months ago 1 Member · 0 Replies

  • freelancing
  • HOURLY CONTRACT
  • PAYMENT
  • Security
  • upwork
• 0 Replies

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