I recently started my own company and I have been asked a few times now to pay 30-50% up front and to me this seems like a horrible practice but it is also my first time hiring a designer.
So for a designer to work with a startup is high risk. Now of course if you're Steve Jobs after Apple and you're starting NeXT then yes Paul Rand will work with you. But that said I don't think Paul Rand would have even spoken to Steve Jobs when Apple was in the garage in the 70s.
PS This isn't just for tech startups, but for any sort of startup.
Not to mention that the transfer time can take longer than it takes to get the work done, especially if the payment is via echeck.
Getting partial - or full - payment up front takes a major headache off the programmer/designer, allowing them to concentrate on getting the job done.
Sincere advice said with love: charge more. Not being paid on time is a predictable and natural state for a business. The risk of that should be priced into your offering.
I tend to estimate the total price, and charge as follows:
10% of the estimate when the proposal and contract is agreed and signed. This secures the project in to my schedule.
40% of the estimate when work begins.
And the remaining fee when work is complete. Only when paid in full are copyrights and files transferred to the client.
There are people out there that, I think, love screwing over freelancers. They get joy out of it.
I've heard horror stories on both sides.
But you guys raise good points.
It would be much easier to pay for hours worked than to have to request a refund on the extra left over if we decided to part ways or anything like that.