Milestone payments are a type of payment arrangement used in freelancing projects to ensure that work is completed in stages and payments are made accordingly.
In a milestone payment arrangement, the project is broken down into specific tasks or milestones, with a corresponding payment amount assigned to each one. For example, a web development project might be broken down into milestones such as wireframe design, front-end development, back-end development, and testing.
As the freelancer completes each milestone, they submit their work to the client for review and approval. Once the client approves the work, they release the corresponding payment for that milestone. This continues until all milestones are completed and all payments have been released.
Milestone payments can be beneficial for both freelancers and clients, as they provide a clear framework for project completion and payment. Freelancers can ensure they are paid fairly for their work, while clients can feel confident that they are only paying for work that has been completed and approved to their satisfaction.
See also: Payment Terms