Once you have a price you need to put in writing exactly what is expected of you and what you expect of the business owner you’re doing the deal with and how you will be paid.

It’s inappropriate for me to give you advice on business agreements or business contracts in a blog like this. I’m not a lawyer and you shouldn’t misconstrue anything I say as legal advice. But I’ve done many, many four and five figure deals with business owners without an official contract.

The most important thing is to only do business with honest people, be honest and fair in your own dealings and to get down in writing exactly what’s expected of each party in what time frame so there can be no misunderstandings. Keep in mind that if someone is going to screw you they’ll do that whether you have a contract or not.

With a contract you have the right to file suit but are you really going to do that (again don’t take this as legal advice). When you get into charging really high fees or percentage of turnover deals you’ll probably become more sophisticated but let’s have a reality check here.

You’re offering a service for $1,000 to $3,000 when you’re starting out. The most crucial factor is that you get paid and you supply top notch service. I would strongly recommend if you’re starting out charging a nominal fee like $1,500 that you get 100% of your fee upfront.

Some businesses may feel more comfortable paying you 50% upfront and 50% on delivery of the finished product.

If this is the case then you should charge so that even if the initial fee is all you get paid you’re still happy to do the work. That way you won’t care if you get ripped off (and yes this will happen sooner or later which is another reason you should get some money upfront).

Business owners will try to get you into all kinds of deals involving a percentage of the profits or pay after you get results etc. Unless you desperately want the case study to use an example I would recommend against taking these deals.

The business owner will generally be the most motivated to pay you right after you explain the real value of your service. Trying to get money later can be very difficult and profits have a horrible way of disappearing.

I’m not saying profit deals or percentage of turnover deals are bad but they’re more practical AFTER you have some experience with clients, know who to trust and know how to set up the deal so you actually get paid. One more key reason you should get money upfront it to ensure the business owner is committed enough to give you the help and feedback you need to create a powerful site.

A business man who hasn’t put any of his own cash on the table is probably not serious yet. He’s toying with the idea. Get a substantial amount of money upfront. Get your prospects committed to making their online marketing work.

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