Deposit
An upfront payment a client makes before work begins, securing the booking and funding the early stages of a project.
For example, an agency requires a 50% deposit to start a $10,000 project, with the balance on delivery. The deposit funds the first phase, confirms the client is committed, and means the agency is never working entirely on credit.
Why it matters to your firm: a deposit is one of the simplest protections an agency has - it funds early work, signals commitment, and sharply reduces the risk of a cancellation or non-payment leaving you out of pocket. Agencies that skip deposits often end up financing their clients' projects from their own cash flow.
Deposits of ~25-50% of the project fee up front are common - enough to cover early costs and signal the client is committed.
a deposit covers early costs and signals commitment before work starts
- Starting work before the deposit clears.
- Taking a deposit too small to cover early costs.
- No clear terms on what the deposit covers if the project stops.