Should I require a deposit before starting work — and how much is normal?
The short answer
Requiring a deposit before starting work is a widely reported practice among freelancers, and many commonly ask for 25–50% of the project fee upfront. The deposit terms — amount, what it covers, whether it is refundable if the project is cancelled — live in the contract. Some agreements also structure payment as milestones rather than a single deposit plus final payment. What is normal varies by industry, project size, and client type. Scan your agreement to see what its deposit and payment-schedule clauses actually say.
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What deposit and milestone clauses usually do
A deposit clause sets the upfront amount, when it is due, and often whether it is credited toward the total fee or held separately. It signals client commitment and provides the freelancer with some cash flow before work begins. Milestone structures divide the total fee into stages tied to deliverables — a common alternative to or extension of a simple deposit.
Deposit terms also interact with kill-fee and cancellation clauses: if the project is cancelled after work has started, what portion of the deposit (if any) is retained depends on what the agreement says.
Why people worry
Asking for a deposit can feel awkward, especially with larger clients who may push back or have standard payment terms that don't include upfront payments. Freelancers report that not requiring a deposit — particularly for new clients — is one of the most common factors in eventual non-payment situations. The deposit isn't just financial protection; it also tests client seriousness before significant work is done.
What to look for in your agreement
- Whether a deposit is required, and the amount — flat sum or percentage of the project fee.
- When the deposit is due — before work begins, before materials are purchased, or at signing.
- Whether the deposit is refundable if the project is cancelled before delivery.
- How the deposit is credited — toward the final payment or held separately.
- Whether additional milestones are specified, and what triggers each payment.
Questions to ask before signing
- Ask the client to confirm the deposit amount and due date in writing before you start any work.
- Ask the other party to clarify what happens to the deposit if the project is cancelled or the scope changes significantly.
- Confirm whether milestone payments are tied to specific deliverables or to calendar dates.
- Consider having the payment schedule reviewed if the deposit is low relative to the total project fee and work starts immediately.
Why scan instead of guess
The general rule tells you the baseline. Your agreement tells you what you’re actually being asked to sign — and the wording is what binds. Dang reads the document and flags the clauses worth reviewing, in plain English.
The deterministic engine scores and decides what’s risky. The AI only enriches the plain-English wording — AI extracts, code decides, never the other way around.
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Common questions
Is asking for a 50% deposit too aggressive?
Many freelancers report asking for 25–50% upfront as common practice, particularly for new clients or larger projects. What a given client will accept depends on the relationship, the industry, and the project size — the agreement is what governs.
What if the client refuses to pay a deposit?
A client's refusal to pay any deposit is something many experienced freelancers flag as a risk indicator. Whether to proceed on different terms is a business decision — but it's worth noting what the contract says about payment protection if the project is cancelled or the client doesn't pay.
No account required · File deleted after analysis · Not legal advice. Dang reports contract findings in plain English — general information, not legal advice about your situation. For consequential decisions, consult a licensed attorney in your state.