Types of cash payments to freelancers

First small preamble:

For most people who are already engaged or engaged in freelancing - this post will not tell anything new.

For those who work with foreign customers, too. The essence of this note is an introductory one, in order to help those who are just going to “get on the freelancing path.”
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A kind of convenient crib on the methods of calculation with customers. It will also be useful for customers who work with freelancers and did not know (do not know) how to pay with freelancers.


So:

How do we (freelancers) get money from customers?

This question - “How to get paid for your work?” - I’m sure of every freelance beginner who just got into this area. And I was so and also understood little, and how.

Therefore, the essence of my post today is to talk about possible settlements with customers for a freelancer.

Let's start:

1. WebMoney

It was one of the very first systems with which I met. Quite convenient, although there are some nuances with cashing (not all small cities have cashing points, or a large percentage is taken). Pretty simple registration.

Personally, I prefer Webmoney Keeper Light - as it’s safer for me + it allows (in my case) two people to have access to the wallet if they have a root certificate (issued during registration and installed in the browser’s certificate repository - from where I immediately advise you to backup - otherwise Windows will fly off or something else will happen - the process of restoring the certificate is very long and all your money will “hang” in space for a while).

At the same time, most customers and other freelancers use Webmoney Keeper Classic . What exactly to use - the choice is yours, but I would advise for personal safety - the Light version.

Advantages of the system:

1. Quick payment
2. Quick receipt of money (subject to availability of points in your city)
3. Refill cards are sold at almost every corner, along with the replenishment of a mobile account (at least in Ukraine)
4. Anonymity of payments (for those to whom it is important)
5. The possibility of personification. The possibility of acquiring a personal certificate (and others) - this requires the presentation of a passport

Cons of the system:

1. If the certificate is lost - rather long process of its recovery
2. Not everywhere, there are Webmoney cashing points. Of course, you can withdraw through banks - but it is not always convenient + percent suits.
3. Online, you can see a lot of complaints about the support. Personally, I had no problems with them, when there were problems - they helped me correctly and left no bad impressions. But if many people write, it means that sometimes something is wrong.
4. Frequent hacking accounts. Read all about protecting your account (there is a separate section on this).

System percentage: 0.8% for any transfer within the system.

Official site: webmoney.ru

2. Yandex.Money

A very popular settlement system in Russia, in my humble opinion, is due to the greater trust Yandex has as a company than other companies that do virtual money.

To use you need to have only a browser, the desire to read the instructions for use. This is the easiest option. There is also the option of working through the program installed on the user's computer.

Advantages of the system:

1. Anonymity of payments (for those who are relevant)
2. Very common in Russia, which makes it very convenient to work with Russian customers.
3. Do not need certificates and other "troubles." Only 2 passwords - one for logging in to your account - the second for confirming transactions (payment, money transfer)

Cons of the system:

1. Lack of personification
2. Very frequent cases of hacking accounts. Large amounts are best not to keep on the account.
3. Poorly developed in the territory of the CIS

System percentage: 0.5% for any transfer within the system.

Official website: money.yandex.ru

3. Instant Translation Systems

Here I will take such systems as Western Union and all other systems related to transfers through the bank ( Anelik , Migom , MoneyGram , etc.).

The principle of use is simple: the customer comes to the bank and presenting a passport, fills out the form of the specified sample on your data (country, city, name, street name, house, etc.) and performs the translation. Then he tells you the secret code or just the transfer number, you go to the nearest bank that works with these transfers (you can look in advance on the websites of such systems banks from your country and their addresses), present your passport, fill out a standard form, indicate from whom the transfer is , how much, the reason for the transfer and get cash.

Advantages of the system:

1. Safe and fast. Money has nowhere to go, even if you come for them in 2-3 weeks

Minuses:

1. In large cities - in the banks are very frequent queues. And not all banks work with the proposed system of calculation by the customer.
2. Percentage higher than online billing systems
3. Passport details are required for each transfer
4. Sometimes you need to indicate in the form that the money received is not the result of commercial activity.

System percentage: system dependent. From 2-3% to 20% and more.

Official website: depends on the system used.

4. Cash (jargon "cash")

Suitable only in cases where the customer and you live in the same city. In other cases it does not make sense.

Pros:

1. Immediately cash money, no commissions systems, etc.

Minuses:

1. A reasonable customer will ask you for a receipt if it gives some of the money "forward"
2. A personal meeting is required. If you look “not very good” or say you lied that you are 25 years old, then of course you can’t get the money and the deal will be broken and you will not get the order

5. Cashless

If you are registered as a business entity, then this method is very convenient for settling with customers that are represented by various organizations and firms.

Advantages of the system:

1. Quickly and officially. No tax problems if you officially pay taxes in full
2. A much larger circle of potential customers. Many customers do not have at all or have it in limited quantities, which "binds" the budget of the order

Minuses:

1. You need to pay taxes. Not all freelancers love to do it.
2. It is necessary to draw up and enter into contracts. Organizations cannot transfer cash transfers just like that, only under a contract, estimate, etc.
3. If the customer is not from your country - you need to have permission to carry out foreign economic activity (FEA). Usually in the tax at registration it is enough to indicate that you need such an opportunity. If you haven’t done it, you have to go to tax

6. Foreign payment systems

Suitable if you need to work with customers not from the CIS. Not everyone is satisfied with payment via Western Union due to a rather high percentage.

Here I will bring such systems as: E-gold , PayPal , MoneyBookers and others.

Advantages of the system:

1. Convenient to work with foreigners from non-CIS countries
2. Due to the fact that they are foreigners, they pay more than domestic customers (not always and not all, but true), so you can get more money at the output

Minuses:

1. Difficulties cashes. Most of the systems do not support the CIS countries, so when withdrawing money you have to make an envelope to other systems that work with the CIS
2. Naturally no personification and guarantees. Money may not give you at all, and close the account. Therefore, you need to carefully choose a system that has an excellent reputation and support
3. When receiving money - about 25% of the initial amount in the system goes to the commission, conversion, etc.

System percentage: depends on the selected system.

Official website: depends on the system used.

7. Barter

And it happens offering. Beneficial if the company or organization produces something worthwhile and necessary to you. In other cases it is better not to use at all.

Pros:

1. If you have long dreamed of buying a new equipment at home, you can find a customer who, with pleasure in exchange for some equipment, will make you order

Minuses:

1. Not all customers can offer in exchange what you need or will be profitable.
2. Payback may be delayed by the customer

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Conclusion from the foregoing

All systems have their pros and cons. Some more, some less.

When working with customers try to provide the widest possible choice of payment methods - register in the described systems, try to keep less money online.

Use all the means to protect your funds that the system offers. Spend a day of your life on this question.

In the end - it's your money.

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From personal observations:

Most of the customers with whom I had to work - preferred Webmoney or Yandex. Money, less often Western Union or money transfer systems through banks, even less often - cash or non-cash.

If I missed something, add me in the comments, I will be appreciated.

You can also leave comments in the topic on my blog - malkin.com.ua/2008/05/03/vidy-denezhnyx-raschetov-s-frilanserami