First client - will pay me once they receive funding

[adele_h]

I had a wonderful interview with what would be my first client on Upwork and he needs assistance with administrative work to pitch his company to investors. No problem. I will track my hours BUT he's saying I will get paid once they get the money from the investors. (estimated mid-January but he's not sure exactly when) This is a red flag for me. 

He has other contractors that are working this way and I requested to speak to one of them to confirm. This person is the PM and handles all the contracts - which they will be giving me if I decide to work with them. In the contract, I want to make sure I'm paid for my services even if they don't get the funding though I'm not positive that will be a guarantee. 

Is this something that is normal on Upwork or is this something that would be setting myself up if they don't get the funding?

[colettelewis]

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@Adele H wrote:

I had a wonderful interview with what would be my first client on Upwork and he needs assistance with administrative work to pitch his company to investors. No problem. I will track my hours BUT he's saying I will get paid once they get the money from the investors. (estimated mid-January but he's not sure exactly when) This is a red flag for me. 

He has other contractors that are working this way and I requested to speak to one of them to confirm. This person is the PM and handles all the contracts - which they will be giving me if I decide to work with them. In the contract, I want to make sure I'm paid for my services even if they don't get the funding though I'm not positive that will be a guarantee. 

Is this something that is normal on Upwork or is this something that would be setting myself up if they don't get the funding?

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Run. Wonderful interviews are not wonderful, unless your contract is formally in place with the amount agreed in escrow or the job is hourly with tracked time installed. Otherwise, no. Your client either has the money or does not. In this case, your client does not have the money. So you say thank you, but no thank you ... 

[prestonhunter]

If you don't have funding yet, that's fine.

You can pay me once you get funding. You DO NOT need to pay me now.

After you get funding, you can hire me and I'll start working on your project.

[davebarcos]

Adele,

Too few companies get funding from their pitches. Have them pay as soon as you deliver.  I have been down that road before. It has nothing to do with the client holding up to his end of the deal. It has everything with them getting the funding they anticipate. Most do not, thus they cannot pay you despite their best intentions.

Best!

Dave

[2591126f]

Freelancers do not have same stake in the business as the owners. They own the business and have control for how it is managed, You do not.
Their motivation is great profit in future, Your's is just your fee.
Why would you like to have your fee hostage to an event over which you have no control ?
You are hired for your expertise and you should get paid for it. If the business is unable to pay a freelancer, it should not hire them.
This is not normal. You mention that you talked to the project manager and all contractors are working on similar arrangements of future payments. This is not the norm.
Even if whatever the Project manager was saying was true, there is no reason for you do same mistake that others are doing.

[zenpros]