The escrow payment is one of the key aspects for a freelance developers.
Hiring a freelance developer is synonymous with the quality in the results obtained from the mobile application. However, employment of these features have it’s advantages and disadvantages for both, the client and developer. One concern that always arises is the payment for complete work. So what method of payment can we use to insure the best interest of both parties?
To begin with, we need to think about how payments will be delivered to freelance workers. Of course, there is more than one method to pay a freelance developer. Actions you might carryout might be either to pay the developer in advance or arrange a transaction after the app has been completed. Nevertheless both actions include risks.
By paying the developer the full amount before the project has been completed is good for the developer as he or she already been paid, but this outcome causes a negative affect by giving no motive for the developer to preform to the best of their ability which reflects back on the clients expectation. In addition you might agree to pay the developer at the end of the process, however despite the efforts made by the freelance developer, lets say the client ends up insolvent or is not satisfied with the work and refuses to pay for the agreed amount.
For the reasons stated above, there are many freelance developers and customers who opt for alternative payment methods, in order to minimise risks for both parties. One option you might think about is to disburse a percentage of the agreed amount at first; paying the rest of the money once the application is completed. You might also think about applying the milestone payment; this consists of splitting the agreed amount into small portions and paying the developer every time he or she meets objectives, so if the client has four objectives the total cost for the application will be divided into four payments, simple!
This method also increases the motivation of the developer, as he or she understands they have to meet expectations in order to be paid. This payment scheme is also one way that gives clients more control over the development process as they are handling the capital through the duration of the development rather than paying everything up front. For this reason, Yeeply has adopted this strategy, as we believe it’s the most effect and secure payment method, which allows both parties to stay connected and develop mobile applications at the highest quality.
Payment methods for a freelance developer
The method for payment is another major doubt within freelance work, especially when the client and developer are residing in different places. Traditionally, it has used offline payment methods such as bank or postal order. However since the arrival of new technologies online payment methods are becoming more popular.
There are several companies that specialise in payment through the Internet. The best is known as PayPal, this secure online payment method allows economic transactions without any banking data. Simply associate a user account to a PayPal email account and enter the same amount when you want to make a transaction. Generally, these businesses ensure maximum security in transactions to avoid any issues or any kind of fraud.
In recent times there are payments method that comfort both developer and client, although it is still unknown; but gaining trust from customers and freelance developers in the app development market, this payment goes by the name of “escrow” secure payment method. This option is used by third party as a custodian of the amount that has been agreed between client and developer for the development of the application. So how does it work? Principally the customer gives the money to the third party, which serves as a guarantee to the developer to start wok. Once the app is complete and the customer is satisfied, the depositary payment frees the programmer. In addition, in case of any conflict or breakout, this part arbitrates between the parties concerned.
The escrow system is used for several freelance platforms. Here at Yeeply we have also decided to embrace this mechanism to insure maximum security for both clients and the freelance developer. This system confirms secure payment and protects interests, for this intention our customers and programmers have trust in Yeeply, and recognise our platform as a safe quality working space.