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Possible funding scam

Community Guru
Ramon B Member Since: Jan 11, 2015
1 of 7

Any new freelancers reading this, make sure that the money is funded in total, and that the milestones seem fair and appropriate before starting work. A would be client recently (I believe) tried to trick me by putting the milestone rate at the funded rate - which would have meant I was working at a tenth of what was agreed.Be very careful of anyone who doesn't agree to the terms offered in the original post, very few legitimate employers will try to alter the terms of the original agreement. 

Community Guru
Preston H Member Since: Nov 24, 2014
2 of 7
Excellent advice from Ramon.
Let me add those: when working with a client for the first time on a fixed contact, having a SMALL milestone or project is even more important than having a fair one.

What if client agrees to a fair rate, for a long project, you do the work, taking two months to do so, hoping for that big paycheck, but then the client does not pay you and insists on endless changes that can never be completed. Then that "fair" rate does you no good.

Far better to set up a small project that takes a few hours, and pays a fair rate.

Then test if the client actually pays and doesn't ask for work outside the scope of the project.

If the client does not know how to pay out a fixed rate contract when it is done, then inform the client that you are happy to do work for him using hourly contracts, but that you are not available to do fixed rate contracts for him.

What if a client asks for more work in order to declare the fixed rate milestone is done and can be paid?

If you did a good job and you know that the work spelled out in the contract is complete, then really a client should not ask for anything else. Some might ask for some changes. My rule of thumb is if the work takes no more than ten minutes more, I'll let it slide. Beyond that, the client loses their fixed rate card with me. I will be clear that they are asking for new work that I will be happy to do the work with a new hourly contract.
Community Guru
Md Rahatur R Member Since: Apr 17, 2013
3 of 7

I did not understand what Ramon tried to express. Then Preston replied and it makes sense but no idea how that is related to Ramon, lol

Community Guru
Isabelle Anne A Member Since: May 19, 2014
4 of 7

 Same Md. I'm worried that I don't understand Ramon's post - Preston can you shed some light here? Isn't a milestone simply funded, and that's that?

Community Guru
Preston H Member Since: Nov 24, 2014
5 of 7

Hey, guys, I don't know EXACTLY what happened with Ramon and his fixed rate project. But he is obviously complaining about something relating to a fixed rate project and payment.


My advice is general advice that applies to any fixed rate projects.


But, no, I don't completely understand what happened to him, either. I DO know that there are lots of ways a client COULD avoid paying for a fixed rate project. That's why I don't trust the system to be bullet proof. Instead, I trust my ability to test a client first, to see if the client is a good candidate for the fixed rate contract model. Not every client can grasp and use the model. So contractors need to test them first to see if the client will treat the fixed rate contract with respect or will abuse it. Most clients can handle this just fine. Some can't.

Community Guru
Ramon B Member Since: Jan 11, 2015
6 of 7

Yes, sorry, I will break it down.


He offered $10/1000 words proofread for a 6000 word piece (Very generous)


Then sent me an offer for $10 (Not so generous - $50)


Worse though, the set the first milestone to 90 cents (Very bad -$59.60)


Then tried to persuade me that the full amount would be paid after completion. (Compete rubbish, why then send 1/6 of the money and put in the tiny milestone?)


What I'm saying is that he had still completed the odesk funding requirements. If I hadn't checked,I would have found myself working for a maximum of $10 and, more likely, 90 cents. Funding scams apear to be the new way of scam clients taking advantage of freelancers now that escrow protection has been added.

Community Guru
Isabelle Anne A Member Since: May 19, 2014
7 of 7

Thanks, that makes more sense. By the way, $10/1000 is good, but not that generous. 


But yeah, clearly that client is a scammer.


Freelancers should anyway be checking their milestones and how much gets funded, etc.