Deposit Terms: How Much to Charge Upfront (and How to Enforce It)

Client just ghosted after you delivered the work. You spent 40 hours on their AI integration, and now you’re staring at an empty bank account.

This isn’t a hypothetical. It’s the reality for 37% of freelancers who get stiffed each year, according to Freelancers Union. The average loss? $6,000 per incident.

But here’s the secret: Deposits aren’t just about getting paid—they’re your first line of defense against bad clients. A properly structured deposit filters out tire-kickers, establishes seriousness, and creates legal leverage when things go south.

Why 50/50 is Dead (And What Actually Works)

The old “50% upfront, 50% on delivery” model is broken for AI work.