How to structure payment so you don't lose money — by client trust level
30–50% prepayment
Standard for new clients: the advance filters out non-serious ones and covers your startup time. Too small (<20%) doesn't protect, too big (>60%) scares the client.
Milestone payments
Project in 3–5 stages, payment after each acceptance. Both sides' risk is capped at one stage. Works better than '50/50' on big projects.
Escrow platforms
Client money is locked on the platform until delivery — platform arbitrates disputes. 5–20% fee, but zero non-payment risk.
Prepaid retainer
Monthly prepayment for a package of hours/tasks. Most stable scheme for ongoing clients; unused time per contract terms (rollover/expiry).
Post-payment — proven clients only
100% after delivery is fine for clients with payment history. For new ones it's a free loan to a stranger; 'free test task' is a red flag.
Rule: non-payment risk = amount of unpaid work. Keep it within one stage. Never start without a written confirmed scope and price. A formal contract with a sole proprietor/company enables claim procedures — mandatory for sums from ~$2000.