When it comes to finding work-from-home opportunities, UpWork is one of the first places many people look. And for good reason: as the largest freelancer platform, it offers a ton of job postings in a variety of industries, from writing and marketing to web development and design.
But if you’re new to UpWork, the platform can seem a bit daunting. How do you know which jobs to apply for?
How do you make sure you get paid? And what’s this milestone thing everyone keeps talking about?
Never fear, we’re here to help! In this article, we’ll walk you through everything you need to know about milestone payments on UpWork.
What Is Milestone Payment?
A milestone payment is a set amount of money that is paid out for the completion of a specific task or deliverable. For example, if you’re hired to write a 10,000-word ebook, your client may opt to pay you in milestones: 2,500 words for the first quarter of the project, 2,500 words for the second quarter, and so on.
This type of payment arrangement is beneficial for both freelancers and clients. For freelancers, it offers a sense of security: you know exactly how much money you’ll be paid for each phase of the project, so there’s no risk of not getting paid if the client decides they’re not happy with your work. And for clients, milestones provide a way to break up large projects into manageable chunks.
How Does Milestone Payment Work on UpWork?
If a client wants to pay by milestone on UpWork, they’ll need to create what’s called a Fixed-Price contract. This type of contract is ideal for projects that have a clear scope and deliverables.
Once the contract is created, the client will add milestones to the project (for example, “Project start,” “First draft complete,” “Final edits complete,” etc. ).
As the freelancer working on the project, you’ll be able to see all of the milestones that have been created. Once you’ve completed a milestone and submitted it for review, the client will have 14 days to approve or reject the work. If they approve it, the milestone payment will be released to you; if they reject it, they can either ask for revisions or cancel the milestone.
Benefits of using milestones on UpWork include:
- Milestones provide a sense of security for freelancers, as they know exactly how much money they’ll be paid for each phase of the project.
- They also provide a way for clients to break up large projects into manageable chunks, making it easier for them to track progress and manage their budget.
- Milestones also provide freelancers with a clear structure on what is expected to be delivered and by when, which can make it easier for freelancers to plan and prioritize their time.
Disadvantages of using milestones on UpWork include:
- Milestones can be risky for freelancers, as they are only paid for completed work, which means they may not get paid if the client is not happy with their work.
- Clients may also change their mind about the scope of the project, which can cause delays and additional work for the freelancer without additional compensation.
- Freelancers may also struggle to estimate the amount of work required to complete each milestone, which can result in them underbidding or overbidding on the project.
