Getting paid

Research the different ways that people can pay you.

Google Checkout has been around for over a year now. I used Google Checkout as my main online payment processor in 2007, because when they were working it all out, they did not charge any fees.

However, as of February 2008, they are charging fees, but the fees are less than what PayPal charges. I have received great feedback from my clients, who have told me that they found using it a breeze.

PayPal
PayPal is probably the most well-known payment processor on the Internet. Even so, some clients may dislike PayPal. Another good reason to have other ways clients may pay you. Like Google Checkout, PayPal takes a percentage of the sale.

No matter what online processor you decide to use, do not ask your customers to pay you the percentage back, this is just a cost of doing business. I put the PayPal fee under "bank fees" when I do my taxes.

Both GoogleCheckout and PayPal allow you to invoice clients.

Credit Card Processors
I have used some online Credit Card Processing Companies - they often charge as much as $35 per month, with percentage of sale fees on top of that. I don't think it's worth paying those premium prices, especially when you are just starting out. You would have to pay that high base fee even if you had absolutely no art commissions that month! That's just way too high, in my opinion.

Cash
Mmmm. Cash. I love America!
Can't beat it for local sales. No fees and ready to use right away. Nuff said.

Checks & Money Orders
I accept them, but if they make you nervous, don't take them.

Pencil portrait payment arrangements

I ask for half to start work, the final half after I have sent a preview by email and they have approved it.

Note that I do not word it as "50% up front." I feel that the words "up front" have a negative connotation connected to them, as if I do not trust the client. Of course, I do trust the client and I would not want to send a negative message. So I say half to 'start work,' which has the almost subliminal message of 'I don't work until I get some payment' without actually coming right out and saying it! Also, "50%" sounds like a discount and seems to cheapen the message.

Some artists ask for 33% at the start, with 66% at the end (basically that's one third up front.) This seems to be a very fair arrangement, but it's more difficult to do mathematically! So do what you think is best for you and for your customers.

Many artists consider 20% of the percentage they receive to start work as a non-refundable deposit. This is a way of protecting your time invested. It does make sense, when you evaluate setting aside time to work on the customer's project, and you may have already started work on a portrait when the person wants to back out. I have 20% non refundable listed on my price list, but I generally wouldn't charge it unless a person had caused me some income loss because of backing out.