Requesting for Down Payment is the Latest Trend in the Logo Design Industry!

Many logo designers have faced clients who disappeared after receiving a project, without paying any money. This is a common problem, because it is impossible to understand beforehand who will disappear without paying and who will stay to pay.

We believe that the best way to avoid such a situation is by demanding a down payment (an initial deposit, in other words) before commencement of project. Of course, this is a relatively new concept in the logo design industry. However, such a trend is common in other industries, such as real estate and law.

Reasons for Charging a Down Payment

Traditionally, designers charge payment after completing the project. This allows some clients to disappear, without paying. A down payment system can be beneficial for both the client and designer. We highlight these advantages in details.

• Motivates Clients and Designers- If designers receive a down payment prior to the project, it will encourage them to work harder and complete it within the agreed deadline. Clients will also communicate with designers regularly, because they have invested money.

Ideally, designers can prepare a contract, where they should clearly mention the respective deadlines for each part of the project.

• It Encourages Both Parties to be Honest- Offering a down payment is a client’s way of declaring that he/she trusts the designer. This in turn, motivates designers to pay complete attention to the project. It also offers designers peace of mind and allows them to devote themselves to the project whole-heatedly.
• It Creates a Bond of Trust- Down payment can be a good way to build a warm relationship with your clients. Since clients will pay you a certain amount of your fees beforehand, they will expect timely delivery and quality work. If you can manage to fulfill their expectations and respect their trust, chances are high that they will assign you future projects.
• Helps Designers to Handle Project-Related Costs- Project cost is one issue that bothers designers regularly. They may have to spend money for printing mock-ups or availing hosting service for the client’s website. With down payment, they can handle these expenses effectively and thus, concentrate on the project.

Of course, for remaining on the safe side, you should avoid spending the entire down payment. Remember that in case of any breach of contract or other unfortunate situation, you may need to return the amount.

Do We Really Deserve Down Payment?

Many people (mostly clients) believe that offering a logo design company a down payment is an extreme approach. Designers, of course, agree that down payment simplifies their problems. It offers them financial and emotional security. If a designer works hard on a project and does not receive any payment, it can have a disastrous impact on their profession, at least financially. Down payment safeguards them against such a situation.

Solution lies in Creating a Robust Contract

The above discussing highlighted the fact that clients and designers have contradictory opinions about down payment. So, what is the solution?
We believe that the best way to deal with this problem is by drawing up a good and detailed contract. Mention clearly the down payment that you expect. Additionally, include cancelation and refund rules. Make it easier for the clients to trust you. Furthermore, explaining the reasons for your demand of down payment can be a good idea. What is your opinion about offering down payment to designers? Do they deserve it? If you hire a designer, would you pay him/her an initial deposit? If you are a designer, would you accept projects, only if you receive a deposit? Share with us your ideas and suggestions.