Tips and Tricks

What is Milestone Payments in Freelancer?

power of milestone payments in freelancing

Have you heard about Freelancer Milestone Payment? Freelancers who have been in this niche for quite a long time might be familiar with it but if you are new to the freelancing community, no need to worry, i am here at your rescue. To BID Quickly and Win Projects On Freelancing Websites is a challenging task, when done right yeilds fruitful results. Lots and lots of people ask me about why freelancers create milestones and how milestones in freelancer via my Facebook group, FB messages, email etc. I suddenly realized it’s quite a hot topic and many of you who are new are still confused with the term milestone.

Go ahead and read out What Milestone in freelancing means and how can you use it in your Project Management and Freelancing Websites like

What is “Milestone” in Freelancer?

In layman terms, when you travel from 1 city to another, you must have seen the marks that tells you how much distance you are still left to cover. So these marks are known as Milestones. Now you must be thinking that how these milestones are related with freelancing. Milestone Payments in Freelancers means paying a certain % of the fee of a project by the client over the course of the project rather than paying 100% at the end.

Here’s how it happens ->

Suppose you are planning a journey from one city to other. In the beginning you plan some things like choice of vehicle, how much luggage you have to carry and who is going with me and other tiny things. So this is the part of planning and depends upon you. A Freelancing project goes through the same journey. It also has a starting and an ending point. Whatever the project is either it is content writing, website design or logo making, when you start a project you have to do some planning where you have to give an idea of resources as you do when you plan for a journey. Milestone Payment in freelancer ensures you that you are following a right track towards your project. In case things are messed up then you have have an alternative to choose different methods like outsourcing your project, involving your colleagues and so on to deliver the project timely. If you are unable to deliver it in specified deadline then you can take extension from client.

How to Create Milestones Payments in Freelancer?

  1. Log in to your account.
  2. Click My Projects.
  3. Click your project’s title to go to its main page.
  4. Click Create Milestone or Create New Milestone.
  5. Enter the amount of the payment and the task to be done for it.
  6. Click Create.
  7. Confirm the payment, which may come from either your available balance or verified payment source, whichever has sufficient funds.

How do I split my Freelancer Milestone Payment?

Here is the split of one my recent project. I usually prefer to use 5 milestones in all my project to maintain the smooth flow of work and divide it into some measurable points. So here’s the split of a Marketplace website which was to be delivered within 40 days.

Milestone 1: 20% Upfront Payment

In First milestone I requested client for 20% upfront to secure some payment.

Milestone 2: 20% payment + E commerce Store Setup | Marketplace Setup | Payment Gateway

In Second milestone me and my client mutually agreed to setup an E-commerce store, Marketplace setup and integrate a payment gateway

Milestone 3: 20% payment + Artists Profile Page | Front End Submissions | User Area and other personalized areas on the website

In Third milestone we(Me and client) agreed on website customization depending on the project.

Milestone 4: 20% payment + Other pending items + Website Testing

Website testing was my Fourth milestone.

Milestone 5: 20% payment + 2 weeks support after the website is migrated onto the client server.

In Fifth milestone I provided warranty support for 2 weeks after the website is migrated onto the client server.

So that’s how I used milestone payment in my freelancing project which helped me avoid any miscommunication with my client. Milestones make every unit measurable so client has a clear idea what he/she have to review.

How many Milestones should you have?

There is no fix formula to calculate how many milestones in a freelancing project is sufficient. It totally depends on your project journey short or long.

Does Milestone help? See the example below –

The answer is YES! Milestone Payments in Freelancing are really helpful because they help you determine whether your freelancing project journey is going as planned, Are you on right track and what are the areas you need to focus on. If you see things are not going as per your plan, feel free to change your strategy, add more resources/manpower to your project and organize yourself to deliver your project timely and effectively.

Here is an another freelancer milestone example of Joomla Web designing project where I agreed with client on 5 milestone and We started with some upfront payment and then divided it in 4 simple steps.

milestone in freelancing

Hope this Power Pack Milestone in Freelancing session has helped you out and make sure to plan your milestone payments before signing a deal.  If you have any questions or suggestions in regard to this, feel free to post your comment.

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  1. Pallavi Kapoor 3 years ago

    Milestone is payment which is released by client on every step we complete in project??no payment from our end will be deducting right??

  2. Pallavi kapoor 3 years ago

    Should we create milestone in every work we bid for to be secure??
    For example in resume writing or data entry how to create milestone and if wr dont require milestone to be created how to skip that??

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