Ask HN: What Escrow services do you use for freelance software dev?

2 pointsmark_ellul2 comments

Hi, I was wondering what the Escrow services you have used and would recommend for software development or graphic design projects.

Regards

Mark

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I wouldn't spend the money on them. Essentially, you're asking a third party that both of you trust to hold the money for a sizable fee.

For previous clients, you've built a relationship with them. Build on that. Stay in good contact. This eliminates the need to proxy money.

For new clients, or folks you don't get a great feel from, just do the 33/33/33 path. 1/3 (33%) due on signing the contract (usually when you agree to the specs / sign the statement of work). 1/3 when you've reached an agreed upon milestone. And 1/3 upon completion. This limits your exposure, limits their exposure, and encourages good communication (which boosts trust, moving the new/untrusted clients into the trusted clients pile).

Really, why would you give someone a cut of your money just to hold it, when you can use other (pretty standard in the industry, btw) methods?

Thanks Travis, some great advice there

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