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pablocarranza69
Community Member

Milestones

Sorry if this is a silly question. I'm very new to the platform. When I'm submitting a proposal for a job, Upwork asks if I want to be paid for Milestones or a Fixed price. I have no preferences about that. Does my response to it influence on any level in the choice of work by the client?

ACCEPTED SOLUTION

A Fixed Price project can have a single payment or multiple payments (aka milestones).

 

If a project is low value and you are willing to be paid in a single payment (usually when you submit the finished product to the client), then a single payment is all you'll need.

 

If you want to be paid as the project reaches different stages of completion, you'll need to set up milestones the define specific payments due from the client on specific dates.

 

Single payment arrangements are for small projects. Milestone arrangements are for larget value projects where you don't want to complete the project without having any payments from the client.

 

The dates of the milestones you agree to with the client are your commitment to have the work completed to a certain stage on each date. Give yourself a little slack - if you think it will take you five days to complete a stage, set up a milestone so you have seven days. Clients won't mind if you submit work early; they often don't like it if you are late in delivering promised work.

 

Make your last milestone a small one, so if the client stops communicating after the project is complete, you will only have to wait the default 14 on a small portion of the overall value of the project.

 

DO NOT / NEVER start work on any milestone that Upwork shows has not been fully funded by the client. (No money, no workey.) You might also tell the client you will start work on each milestone after they have approved the milestone before it. That gives them incentive not to wait the allowed maximum 14 days before releasing escrow on each completed milestone.

 

Good luck.

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14 REPLIES 14
jaml1
Community Member

Hello! It does not usually influence, they are only the forms of payment that you accept for direct payment projects. Milestones are used for when a project has several tasks and as you complete them you can receive the payment. However, an agreement can be reached with the client before starting work (milestones or fixed price)

Hi Jacinto, thanks very much for replying!

I am writing at my proposal that I can do by milestones or Fixed price, as they wish...so I gess I am doing the right thing then, right?

 

Thanks!

A Fixed Price project can have a single payment or multiple payments (aka milestones).

 

If a project is low value and you are willing to be paid in a single payment (usually when you submit the finished product to the client), then a single payment is all you'll need.

 

If you want to be paid as the project reaches different stages of completion, you'll need to set up milestones the define specific payments due from the client on specific dates.

 

Single payment arrangements are for small projects. Milestone arrangements are for larget value projects where you don't want to complete the project without having any payments from the client.

 

The dates of the milestones you agree to with the client are your commitment to have the work completed to a certain stage on each date. Give yourself a little slack - if you think it will take you five days to complete a stage, set up a milestone so you have seven days. Clients won't mind if you submit work early; they often don't like it if you are late in delivering promised work.

 

Make your last milestone a small one, so if the client stops communicating after the project is complete, you will only have to wait the default 14 on a small portion of the overall value of the project.

 

DO NOT / NEVER start work on any milestone that Upwork shows has not been fully funded by the client. (No money, no workey.) You might also tell the client you will start work on each milestone after they have approved the milestone before it. That gives them incentive not to wait the allowed maximum 14 days before releasing escrow on each completed milestone.

 

Good luck.

Thank you so much!

Solved 100%

Hi Will,

I am new to Upwork and just posted my first project.  It is a small project for $175.  I am guessing it should take only a matter of hours, not weeks.  One Freelancer responded and had 2 milestones.  One for Kickoff for $75 and one for Final Submitted for $100. Does this mean they want to be paid $75 before doing any work?  Is this common?  

 

Thanks!

petra_r
Community Member


Tacy G wrote:

I am new to Upwork and just posted my first project.  It is a small project for $175.  I am guessing it should take only a matter of hours, not weeks.  One Freelancer responded and had 2 milestones.  One for Kickoff for $75 and one for Final Submitted for $100. Does this mean they want to be paid $75 before doing any work?  Is this common?  


It is not common, and not how the milestone system was designed to work. It is allowed, but risky. Essentially, if the freelancer runs off with your initial $ 75 there is little that can be done once the money has been withdrawn, so I would suggest that you don't do this.

 

If it is your first job post, some freelancers may be weary because you have no history that reassures them that you would pay. Is your payment method verified yet? You get a better response if it is.

 

I can see why a freelancer would do it, but personally (as a client) would not go for that. Your first Upwork project wants to be a good experience and successful, it's not the time to take chances.

 

re: "I am new to Upwork and just posted my first project... One Freelancer responded and had 2 milestones. One for Kickoff for $75 and one for Final Submitted for $100. Does this mean they want to be paid $75 before doing any work? Is this common?"

 

I generally recommend that clients NEVER pay up-front fees for any reason.

 

As a freelancer, I always REFUSE offers of up-front payments. It is NOT how Upwork intends the fixed-price contract model (with its escrow program) to work.

 

IF you are an EXPERIENCED Upwork user who had a deep understanding of how the site works, then it would be okay for you to pay a "kickoff" fee or up-front fee in special circumstances.

 

But for a first-time client? No, definitely not.

 

Please feel free to discuss this with us as much as you would like here in the Forum. (We like to talk.) You could even invite the freelancer to take part in this thread if he has questions or concerns.

Hi, Tacy.

 

I rarely do fixed price contracts (probably 5% - 10% of the time), but when a client insists on a fixed price and tells me the work must be completed on a very short timeframe (particularly when they contact me on a Friday with the work due by Sunday) I will tell them there will be an upfront milestone (about half the total fee) payable before I get started. I want to be compensated for the extra effort I have to put in for them on very short notice and immediate partial payment is part of that.

 

I have only done this a couple of times, but the clients didn't complain. So I guess it was worth it to them to get me to work for them on very short notice.

Will:

That is great advice.

 

And reminds me of the principle that tech clients should always keep in mind, and ignore at their peril:

 

You can have it fast, cheap, and good.

Pick two.

 

This isn't an Upwork policy. It is not my policy. It is simply true.

 

Screen Shot 2019-08-02 at 12.31.36 PM.png

Hi Will, 

Great post. Can you explain to me how to check if the milestone is funded or not? 

Where will it show that it's funded? 

Right now it's showing inactive when I want to submit for the second milestone. 

Next time, I want to make sure that I check if milestone is funded or not. 

Your help is appreciated. 

Thanks

Kiana

 

 


Kiana K wrote:

Hi Will, 

Great post. Can you explain to me how to check if the milestone is funded or not? 

Where will it show that it's funded? 

Right now it's showing inactive when I want to submit for the second milestone. 

Next time, I want to make sure that I check if milestone is funded or not. 

Your help is appreciated. 

Thanks

Kiana

 

 


You need to check that the milestone is activated. If it's activated it must be funded, though you need to check that it's funded for the amount you expected. 

 

If the milestone is not yet activated then you work on it at your own risk. The client only has to fund the milestone when they activate it and you can't submit a payment request until it's been activated. 

That is a very good response 🙂 my question is, will it be better money wise to work on fixed projects? For each milestone we pay a fee+VAT. In the long run, don't we pay more taxes like that rather than being paid once? Or are the fees actually the same at the end?

It is always 20%. So doesn´t matter if you are paid per milestone or paid
all at once


Pablo C wrote:

Hi Jacinto, thanks very much for replying!

I am writing at my proposal that I can do by milestones or Fixed price, as they wish...so I gess I am doing the right thing then, right?

 

Thanks!


No, fixed price = milestones, even if there is only one. The choice you and the client have is between fixed price and hourly jobs. 

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