You’ve got your first client, after building your audience and sharing your commission info, so how do you actually get paid? This post is for those freelance creatives who do the majority of their work online.
Table of Contents
- What are Invoices?
- PayPal Invoices
- Making a PayPal Invoice
- Parts of an Invoice
- Things to Consider When Invoicing
- NSFW Artists’ Corner
- Additional Resources
What are Invoices?
Online payments are mostly done through invoices. An invoice is a bill, containing the cost of the service/s or items you are providing.
If your client commissioned you to draw a full body illustration, you’d list your price for that service. I charge $40 for a full body lineart, so an invoice entry would look like:
Platforms like PayPal, Xero, and QuickBooks allow you to send invoices to a client through email, who then pays through credit card or bank transfer (ACH).
PayPal Invoices
I’ve been using PayPal’s invoice service since I started freelance illustration. Most of my clients are international, so PayPal works great for me. Some pros and cons from my experience are:
Pros
- Quick invoicing (takes me less than a minute to send)
- The invoice design looks neat and professional
- Your client doesn’t need a PayPal account, they can pay via credit card
- You can set the currency
- People trust PayPal for payments
Cons
- No way to change the invoice design
- PayPal takes a cut of the money sent by your client
You can learn more about PayPal Invoices here (fees depend on your country)
Making a PayPal Invoice
- Create a PayPal Account, choose to Buy with PayPal. If you have a business registered, you can choose to Receive payments with PayPal. For artists who have just started freelancing, go with the former. You can opt to upgrade to a business account in the future.
- Enter your info. Make sure to enter full names, and can support your information with documents so you can withdraw your money.
- (Updated for July 2019) Once you’ve setup your account, click manage invoices.
- Click create.
- Welcome to your first invoice! Let’s break down the parts of an invoice.
Parts of an Invoice
- PayPal allows you to choose a template for invoice. Depending on how you price, you may want to choose a different template. I keep this as is.
- You can setup business info here. No need to be super specific.
- Put the email address of your client here, and they’ll receive the invoice.
- You might bill recurrently for some projects, but most of mine are one time payments. Rule of thumb for invoice numbers is to do them incrementally. I didn’t touch mine from the original 0001. I usually leave reference blank, and keep the due date as due on receipt. You might opt to allow loose deadlines for payment.
5. Don’t forget to choose the relevant payment type, as well as the currency your client will pay in.
6. Enter the items sold. No need to be super descriptive.
7. I usually don’t allow partial payment, and allow clients to tip.
8. Your client will see whatever you write here. Include a nice message!
9. I link to my terms and conditions here. It includes terms on licensing, payments, and cancellations. You can find it at my website.
Things to Consider when Invoicing
1. Method of Pricing
You might price your services according to hours worked (e.g. $30 per hour), or based on amount per product (e.g. $40 for lineart). You might also prefer to set the currency to your local currency, or the currency where most of your clients are from.
2. Financial Safety
Will you be asking your client to pay in full before you start working? A common freelance headache is inconsistent cash flow, or even the occasional client running just before payment. Make sure you consider your own financial safety when you charge clients.
For big amounts (~$90), I allow half payments. The first invoice I send is $45, and then I charge again once the illustration is finished. While this will give you and the client some breathing room and allow for more trust, note that transaction fees will be greater than if you were to invoice once.
3. Providers
There are a variety of invoice providers. Apps such as Xero and Quickbooks allow you to make templates as well. Make sure you consider other needs when choosing a service. For example, Xero and Quickbooks are also accounting software, so they have additional monthly fees.
4. Transaction fees and cuts
Some providers take a cut from the total payment. For example, PayPal takes 4.4% + $0.3 from an online transaction using the international rate fee. So a $30 invoice means you get $28.38, and PayPal takes $1.62.
Considering PayPal’s easy interface and ease of use, I’m willing to bear the transaction fees. If you want to calculate fees based on a certain amount to see if PayPal is right for your services, you can use salecalc.com/paypal.
NSFW Artists’ Corner
PayPal’s policy on NSFW states
“We don’t permit PayPal account holders to buy or sell: Sexually oriented digital goods or content delivered through a digital medium.”
Don’t try and twist your way around this. PayPal has been known to crack down on accounts that deal with NSFW. However, knowing the abundance of PayPal users, your client might insist on the platform.
Just make sure you don’t mention anything related to NSFW. Instead of listing Sexy girl illustration, just go with full body illustration.
You can find PayPal’s NSFW policy here. If you’re unsure about what you’re offering, google! Reddit is really helpful when it comes to ambiguous policy rules.
There’s nothing more satisfying than seeing your efforts and hard work come to fruition, and knowing people are willing to pay you for your creative work. Thanks for reading, and good luck with freelancing!