Lately, the question of prepayment for SEO services has arisen less and less, and the reason for this is quite simple - most companies on the market operate precisely according to this scheme. And this does not depend on the size of the company or whether it operates formally or accepts cash. However, it cannot be said that the market has become much cleaner, and all contractors comply with the terms of the contracts. So why prepayment? The reason is quite banal - cost optimization. Without prepayment, the cost of SEO services would be much higher.
Practice shows that many clients often delay payment. And we are talking here not only about scammers, but also about the cash gaps that many businesses face. In particular, small studios have margins of approximately 20-30%, which means that a sagging project can be closed with profits from several other projects. And the performers need to be paid, despite delays in payment. For example, one company is working on 36 projects at the same time, and 8 indebted clients can bring the studio out of the red, while the entire team may find itself in a disadvantageous situation.
How to avoid such risks? There are two options here - either prepayment or increasing the cost of services. For example, you can increase the margin to 50%, and already two projects will cover the debt of one client. And if the margin is 100%, then it is enough for at least every second client to pay. Of course, you can hire a lawyer and constantly fight for your money in court. But this is expensive, time-consuming and not always effective. Some lawsuits can be lost, and to win a prepayment lawsuit, the contractor must justify his claim for money if the contract is not signed and the conditions are not met.
Stories from practice. Usually, sales managers in web studios have 2-4 projects on hand that “will start next week,” but in fact have been delayed for several months. Even if contracts are signed, money still does not arrive, and without advance payment, these projects could accumulate debt. In another situation, we can give an example from another industry, when a large plant owed not only local, but also several neighboring regions for services, which also created risks for sellers. A similar situation would have happened with a web studio, which would have had several unsuccessful lawsuits hanging over it. This will lead to the collapse of the reputation and possibly bankruptcy. In this case, it is important to consider the risks and consequences.
The conclusion is quite simple - prepayment has become the norm in the field of digital marketing. If control over the fulfillment of conditions is important to you, it is important to closely monitor the quality of the contract, demand examples of reports and not delay checking the work of contractors. It is also a good practice to check the contractor's reputation, including through information about legal proceedings. If a company has been operating on the market for several years and has a stable legal entity. address, this may be a sign that she prefers to resolve issues peacefully and will be ready to return the money if necessary.
Some companies provide the opportunity to return the full amount after the first month of work without questions, while the services and website can be rolled back to the initial stage of work.
If you have questions, you can contact the SEO studio "SEO COMPUTER" at info@seo.computer.
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