How to avoid Losing Money when Freelancing for International Clients‍

The beauty of freelancing lies in its freedom and flexibility. As an African freelancer, you can leverage your skills for a global audience, working with clients from around the world. But with international transactions come some financial considerations to be aware of. Here's how you can avoid losing money and keep more of your hard-earned cash:

Be mindful of fees and exchange rates

  • Transaction fees:

​​The biggest culprits of lost income when dealing with international payments are transaction fees and exchange rates. When a client pays you, there might be fees from payment processors like PayPal or currency exchange services. These fees can add up quickly. Research different options that offer competitive exchange rates and lower costs. Geegpay is a great example.

  • Exchange rates: 

Fluctuations in exchange rates can impact your earnings. Consider getting paid in a stable currency like the US Dollar or EUR. This way, you're less susceptible to sudden dips in your local currency's value and can minimise the impact of rate changes.

Set your rates strategically

When setting your rates, remember to factor in the transaction fees you'll incur. For smaller projects, the percentage lost to fees might be higher. You can adjust your rates for such projects to compensate. Don't undervalue your skills. Research what other freelancers in your field and region charge for similar work. This will help you set competitive rates that account for your overhead costs, including international payment fees.

Protect yourself from late payments

Late payments can disrupt your cash flow and leave you scrambling. Here's how to safeguard yourself:

  • Have a Contract: Always have a clear contract in place that outlines the scope of work, payment terms, and late payment penalties. This serves as a legal document in case of disputes.
  • Set Payment Milestones: Consider structuring your payment schedule with milestones. This way, you receive a portion of the payment upon completion of specific project stages.

Bonus Tips:

  • Invoice professionally: Use a professional invoice template that clearly outlines the services provided, fees, and payment deadlines. Geegpay’s invoicing tool lets you generate monthly or weekly invoices and easily bill your clients from the app. It also keeps track of your paid & pending invoices for future evidence. 
  • Track your income and expenses: Having a clear understanding of your income and expenses will help you make informed financial decisions, adjust your rates strategically, and identify areas where you can save.