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58

Is this a script from a soap opera? There's far too much discussion taking place. Business is business and not friendship. Ignore anything not directly related to the business. All the back and forth trying to get the other to "understand" your position is, frankly silly. All you should be stating.. "We have a contract. Pay me." When he/she replies.. ...


17

Your chain of emails is unprofessional, you fail yourself by dropping to your client's argumentative level. As well as this, instead of getting to the point you make jabs and petty points informally, that seem very emotionally attached trying to play the guilt card and shame him. This is no way to follow up proceedings of a broken contract. Instead of ...


15

Even if you sell commodities, you are allowed to give bargains to chosen groups of customers. It's fully up to your decision whom you give a discount. You can target your promotions to the arbitrarily chosen group of person. It's your marketing strategy. I don't know any legal system, that would allow free entrepreneurship and in the same time restrict ...


14

Simple, explain that it is costing you more in { time | resources | parts | tools } to continue operating the way you have been. Inflation happens, period. What I did for my pricing model is that my F&F rate (Friends and Family) is always $20/hr less than what I charge regular clients. Option two if you do not feel like raising your prices is offer to ...


12

It depends on the tax system that applies to you, but there can be consequences, and they can be very severe. Generally economic activity is defined as oriented on profit, so giving anything for free could qualify as self-promotion or donation. In Poland, for example, only some costs of the company spend on promotion can be considered as tax costs. So in ...


10

You've got it backwards. The market hasn't evolved. These people are coming to you because you are cheap -- maybe you're actually undercutting what you could be actually making because you're too afraid to speak up. If you need to raise prices, RAISE PRICES. But you must change your mindset. Some of your acquaintances will have a problem with it. DON'T ...


9

First you need to understand some basics of discrimination law in your area. I can only speak to the United States generally (and will note some exceptions below). In general, in the United States, antidiscrimination law came about because of the experience of segregation, and it attempts to balance the legitimate needs of businesses with the general ...


4

I'll weigh in on this one, as I've done it before, where I also suggested the percentage. Depending on the type of website, and how your client think it will generate revenue depends on what I would suggest! If he has a proper business plan that looks like it will produce money, then I would say go ahead. It's not any more work for you to keep it updated (I ...


4

Most people I deal with in this situation understand that they get the "friends and family" rate. Whatever that rate may be. And they also understand that the rate will and does change based upon their request and my current rates. What I generally do is: JobPrice = (cost + (rate- 20%)) + understanding that priority is low (to be done after other clients'...


4

I've experienced this exact scenario. Involving legal assistance will likely eat into any possible gains, and the amount recovered would probably be less than the cost of legal action, not accounting for the time and effort expended - that can vary from country to country, I'm based in Ireland where that's a slow and expensive process. You are being ...


4

A friend doesn't put you in a compromise where you can't pay your bills on time or put food on your table. This is no friend of yours. Like lewis here has stated, you need to get off the "friendly" approach. You need to push toward small claims. NO WHINING about how you don't have time, okay? Now, here's the deal. Small claims court can get you a ...


3

You are falling into his trap. You are picking up his leads. They don't lead anywhere. If there would be any interest in friendship rather than extortion, the solution would be to take him to court, have him default on his payment, enter private insolvency and pay what he actually can in the light of him bungling his business, with you as a prime-line ...


3

I upvoted Łukasz L.'s answer, which addresses the body of your question well (taxes/invoicing concerns). I'd like to answer the other part of your question, "Why should I not provide free services to friends when freelancing?". I am a freelance UX designer. I have done two free projects for friends, as I described in my answer to Should I work for free ...


2

The tax issues are very real, and very true. What if your friend itemizes the service you provided for themselves to get a tax break, etc? Then you are now "on the radar" I do not suggest working "under the radar" but i will say that for friends and family, working "officially" is usually more headache than it's worth. Several years ago, I provided ...


2

Another thing that you might consider is putting into words exactly what "revenue" is. Is this what the company makes after subtracting basic costs like rent, utilities and salaries? Or after subtracting basic costs and taxes? Or after subtracting basic costs, taxes, money spent on a company meeting in Hawaii, new equipment purchases, yearly cost of ...


2

Explain it like it is: Your doing favors has unexpectedly turned into an actual business, meaning the pricing must change. When I was hit by a similar problem, I gave current clients the choice of either being 'converted' to an actual, real client (no friends and family pricing or prioritization) or I negotiated and performed an exit, which they could live ...


2

It's pretty obvious that this client/friend is trying to extract free work from you. Your approach is generally sound; no more work should be performed until payment has been completed. Having said that, only you know whether you have any sort of remaining leverage. Is there more stuff he needs done, like bugs and extra features? If you have no leverage ...


2

In my contracts I have a field that tells: "company representative", that is the person who is officially authorized to communicate with me about the project and with whom I talk when I need info and stuff. If I were you: I would meet your friend and tell him that you need a company representative, or contact person, who is "computer aware". You will only ...


1

You could let him know that, as a "friend," you're happy to meet him from time to time (as much as friends are), but if he wants any work, its friend-to-friend until he pays what is needed to restore a working business relationship. Then, as a friend, it might we worth pointing out that you have to run your business, and as a friend he needs to understand ...


1

With all due respect, doing this for free is not a wise idea. Western culture doesn't value stuff when it's free. Were this family to actually purchase a restaurant point-of-sale system: They'd be required to decide on features that they need or don't They'd be on the hook to make a purchasing decision, and commit to their decision (i.e. not decide, the ...


1

You can keep a minimum of 30% of the amount you charge for yourself, ideally on the net profit. That's a safe number that should cover some extra expenses or revisions you haven't planned, and your time for managing the projects. The other thing to consider... Start a bit lower than $50/hr if you are paid $75/hr and raise the freelancer based on performance ...


1

I would argue for your easy solution - charge them the same. Your primary concern is that that might "look bad from a social perspective." However, I believe that providing discounts to friends, relatives, etc. often actually causes social issues. First of all, where's the cutoff? As soon as you provide a discount to one friend or relative, they may refer a ...


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