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Establishing payment systems

From: Freelancing Fundamentals

Video: Establishing payment systems

A big distinction between amateurs and professionals is that professionals get paid for what they do. The first thing you'll need is a bank account for your business. I recommend you get one that's separate from your personal account. That makes bookkeeping easier and keeps you from having to give personal banking information to clients. I found the simplest way to receive payments in the United States is to simply ask clients to send you a paper check, then deposit that in the normal way. However, you should also be prepared for electronic payments, particularly if you have clients outside your home country.

Establishing payment systems

A big distinction between amateurs and professionals is that professionals get paid for what they do. The first thing you'll need is a bank account for your business. I recommend you get one that's separate from your personal account. That makes bookkeeping easier and keeps you from having to give personal banking information to clients. I found the simplest way to receive payments in the United States is to simply ask clients to send you a paper check, then deposit that in the normal way. However, you should also be prepared for electronic payments, particularly if you have clients outside your home country.

Beyond traditional banks, you can also get paid through online payment systems such as PayPal. I found it to be great for smaller clients, but because it's not a real bank I do recommend that you sweep money from your PayPal account into your business bank account as soon as the money becomes available. Although PayPal gives people a way to pay you with credit cards it's not as robust or as cheap as Merchant Card Systems. Those let you accept credit cards directly without PayPal as a mediator. Again, your bank can probably offer you such services or can refer you to somebody who can.

Whatever payment option you use, I recommend that you write it into your contract. For example, I might say, "Payment by check drawn on a United States Bank must be received by such and such date, payable to Tom Geller." But it's also wise to ask the client how they prefer to pay and then make sure it's possible. After all, the more ways they can pay, the faster you'll get paid.

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Freelancing Fundamentals

42 video lessons · 24837 viewers

Tom Geller
Author

 
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  1. 10m 50s
    1. Welcome
      1m 53s
    2. What is freelancing?
      2m 53s
    3. How freelancing and employment differ
      2m 33s
    4. Preparing your mindset
      3m 31s
  2. 9m 24s
    1. Defining career goals
      2m 48s
    2. Sharpening your market focus
      3m 18s
    3. Transitioning to freelancing
      3m 18s
  3. 16m 11s
    1. Preparing your portfolio
      3m 11s
    2. Estimating costs
      3m 10s
    3. Funding your startup
      2m 42s
    4. Establishing your workspace
      3m 35s
    5. Building your professional network
      3m 33s
  4. 8m 51s
    1. Getting licenses, permits, and insurance
      2m 15s
    2. Creating contracts
      4m 23s
    3. Finding professional service vendors
      2m 13s
  5. 12m 54s
    1. Setting prices
      3m 13s
    2. Establishing payment systems
      1m 36s
    3. Invoicing and getting paid
      3m 50s
    4. Keeping the books
      2m 32s
    5. Managing taxes
      1m 43s
  6. 14m 41s
    1. Announcing your availability
      3m 16s
    2. Finding work through agencies
      2m 2s
    3. Onboarding clients
      2m 59s
    4. Avoiding scams
      3m 25s
    5. Choosing assignments
      2m 59s
  7. 11m 27s
    1. Interacting with clients
      2m 11s
    2. Delivering quality work
      2m 28s
    3. Getting referrals and recommendations
      2m 34s
    4. Losing and firing clients
      4m 14s
  8. 10m 48s
    1. Deconstructing big jobs
      3m 34s
    2. Adopting time-management tools
      2m 35s
    3. Creating schedules
      2m 30s
    4. Turning off the clock for "me time"
      2m 9s
  9. 20m 6s
    1. Staying motivated
      3m 3s
    2. Increasing your rates
      2m 52s
    3. Marketing beyond your professional network
      2m 56s
    4. Growing through hires and partnerships
      3m 30s
    5. Building passive income
      3m 48s
    6. Changing focus
      3m 57s
  10. 4m 52s
    1. Case study: Publishing a book
      2m 47s
    2. Next steps
      2m 5s
  11. 12m 42s
    1. Freelancing Q&A
      12m 42s

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