🔺 Common Milestone Payments for Independent Contractors
#Freelance

🔹 Milestone payments are a smart way of breaking down the work that you source from independent contractors, and adding clarity, trust and communication to your relationship. 

There are many different ways to structure or set up milestone payments. Here are some of the most common:

👨‍💻 Deposit or up-front payment
Especially for a high value project, an independent contractor may need to ask for a percentage of the payment up front. This may cover expenses such as laying out for equipment, or could be to pay subcontractors that they need to source to begin the task.

👨‍💻 On schedule for large-scale project
If a project is going to last for many months, or if it will be worth a large sum of money, milestones can be set up at a regular cadence.

This approach is useful if you’re paying your independent contractors an hourly rate. For a project price, it makes more sense to establish specific deliverables or milestones ahead of time, and how much each will be worth in terms of payment. These could be:

Deposit: A set percentage ahead of time for upfront costs or to show goodwill. 

Presentation: A payment on presenting initial concepts, strategy, or outline.

Delivery: The majority of the funds, on receipt of the completed project. 

Additional: Any additional payments for editing, expanded scope, or expenses

👨‍💻 Long-term contract for repeated work
In some cases, you will sign a long-term contract with an independent freelancer for repeated work for your company.

💻 Source

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