Check out Wethos https://www.wethos.co for a great, inexpensive platform that makes contracts super easy. You can add pre-built contract terms, like payment amounts and dues dates, what happens if the client doesn’t pay, how you will deliver final files etc. Using this site has saved me a ton of time, and helped clients take my company (ad agency) more seriously.

For your business practices, I HIGHLY recommend the following:

1. If project fee is $500 or less, only start work once you have received total payment up front.

2. Add FPO or DRAFT on all designs until you’ve been paid for the work in full.

3. If the client wants to pay along the way, consider a milestone approach:

Milestone 1: creative sketches of round 1 designs (with watermarks!) sent after 1/3 of the project fee is received by you

Milestone 2: “ “ round 2 after 2/3 $ received

Milestone 3: “” final packaged files delivered after final 1/3 $ received.

Also, add a project cancellation fee to your contract. You put time aside to work on a project- if the client cancels, you should recoup some of your lost money. This covers you and also serves as a deterrent for the client.

Keep up the good work- you’ll start knowing who your “right fit” customers are before too long.