You probably heard about the show Ve Day Bon Canh Chim Troi being canceled, largely due to delayed payment timelines. There's been a lot of debate about logic versus sentiment—by logic, Ngoc Viet was clearly wrong for the late payment, but was the musician too harsh emotionally? I don't have the answer. But this is a good moment to share some lessons on payment terms when freelancing, so you can balance both logic and sentiment.
Note: This is for those new to freelancing. If you're a seasoned freelancer or doing business-to-business work, feel free to skip.
First, remember that when a client (agency or brand) needs a freelancer, in the fast-good-cheap triangle they can only pick two. Fast is almost always non-negotiable, so the usual outcomes are: fast + good but not cheap, or fast + cheap but not good (by your standards). I have my own rate card and use this to price jobs. You'll have to price yourself; I won't go deep on that here.
Now let's get into payment terms. Here are three simple principles—maybe you already know them—from over 10 years as a “professional freelancer.”
DON'T TRUST ANYONE ON THE “FIRST DATE”
With a first-time client, you can't fully trust them, and they can't fully trust you, even if you were referred or they're a reputable company. Nearly a decade ago I was referred a small job with a same-day deadline (16 hours) for a global agency. The fee wasn't large so I just did it, with only email confirmations and no contract—meaning no payment terms.
The job took 16 hours, but my stupidity cost me... 4,392 hours of begging for money.
I texted the Account (call them X). They said they had to register a vendor code (global company folks know this), then sign the contract, then payment would come 45 days after completion. I was annoyed they hadn't told me upfront, but I went along; it took over a month. Three, then four months went by with no payment. I followed up and learned X had quit. Another Account, Y, took over and had no idea about my contract. Y discovered X had lost the contract and never submitted it to accounting—so we had to restart the process. What drove me crazy was X's negligence and how little they cared about freelancers. The consolation was that Y did everything possible to get me paid quickly.
First lessons on payment terms:
- At minimum, confirm payment terms by email before a contract. The more urgent the job, the more you need clear terms.
- The bigger the company, the slower the payment. Ask for a partial upfront payment before starting.
GET PAID UPFRONT TO MANAGE CASH FLOW
I always request 50% upfront when work starts, whether it's a pitch or a confirmed job. I'll explain the 50% logic in a moment.
Two years ago an agency reached out for a pitch. I clearly stated via email that I needed 50% upfront, and they confirmed. I attended the debrief and got to work. While working, the Account sent a contract with these terms: 20% upfront, 30% paid 30 days after winning the pitch, 50% paid 30 days after the campaign ends. I called immediately and said I couldn't accept it, told them to check with their boss and get back to me (I kept working in the meantime). The next day was the client Q&A; on my way there, the Account called to say the boss wouldn't agree. I turned around and went home.
Why insist on an upfront payment? Beyond peace of mind, it's about personal cash flow. Say the job is 10 million VND and you'd normally be paid in two months. Under those terms, you'd only receive the 10 million after 12 months. That feels like working for free for a year. During that year, you'd need to make up the missing 12 million, which is exhausting.
Fifty percent isn't fixed, but for me it's the amount that keeps cash flow healthy. This month I get 50% from Job A, next month 50% from Job B, then the remaining 50% from Job A the month after—that keeps things balanced. I even give discounts if clients pay faster and upfront.
Another case: I've been invited to unpaid pitches with a commission only if we win. I never take those. I only do pitches with a fee (even if below rate card) plus commission.
Except for trusted clients who always pay on time, I will never take a job without 50% upfront.
PRICE BEFORE TAX OR AFTER TAX?
I used to think “after tax” meant the net amount I would receive after a 10% personal income tax (PIT). Wrong. “Before tax” is the actual net you receive, and the hiring company pays the 10% PIT on your behalf. Here's the math:
- If you agree to 10 million VND before tax: Net received = 10 million (Contract value = 10 million / 0.9 = 11.11 million, PIT = 11.11 million - 10 million = 1.11 million).
- If you agree to 10 million VND after tax: Net received = 9 million (Contract value = 10 million, PIT = 10% * 10 million = 1 million).
I learned this the hard way—twice. The first time I didn't know and answered “after tax.” The second time we never clarified before/after tax, I started working, and only at payment time realized it was after tax. No stupidity beats that one 😟
One small note: remember to request PIT withholding certificates from companies you freelance for so you can finalize your annual taxes.
A creative friend jokes, “freelancers are disposable.” Many freelancers aren't respected in payment processes, yet are constantly chased when deadlines are tight. Thankfully I haven't been stiffed, though I've faced late payments and months of chasing. One habit I recommend is keeping a template quote with payment terms ready—when requests come, just edit and copy-paste. And don't hesitate to ask and remind when the payment date is near; very few companies pay exactly on the promised date.
In short, payment terms matter as much as the contract value. A big contract with drip-feed payments isn't worth it. Wishing you smooth-paid jobs in 2026 🙏
