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How should I structure milestone payments with an agency?

Payment due only on final delivery? Split fees into milestones with written acceptance criteria and payment dates. Sample schedule clause.

The risky clause

The full fee is payable only after final delivery and acceptance of the complete project by the end client.

Why it is dangerous

A single payment at the end ties your cashflow to the slowest part of the chain. Break the fee into milestones with clear acceptance criteria, due dates and no dependency on the end client's approval. This is general information, not legal advice.

Safer clause to propose

Fees are payable in milestones: [30]% on kickoff, [40]% on first delivery, [30]% on final delivery. Each milestone is accepted when it meets Schedule A criteria, and invoices are due in 14 days.

Message to send

Hi [Agency],

Could we split the fee into three milestones with written acceptance criteria and 14-day invoices? It helps us both track progress. Thanks, [Your Name]

Frequently asked questions

Why use milestones?

They spread risk and keep cash flowing as work progresses.

What are acceptance criteria?

A written list showing when a deliverable counts as complete.

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