[This guest post has been brought to you by BitGold, and discusses an innovative way to receive/send payments]
Good morning folks, my name is Victor and I am a freelance writer. I have a specialty in business and finance writing – I write business plans, proposals, feasibility studies, and I write general and specific articles on business and finance topics. Enough about me, let’s get down to what interests you. Today, I want to share my first-hand experience with different payment systems and I hope you’ll be able to learn a lesson or two.
Interestingly, you’ll find the lessons that I have learnt about the easiest ways to get paid valuable. Everybody needs to know how to be paid without stress and it doesn’t matter if you are being paid for services that you have rendered or whether you are collecting money from family and friends.
One of the most important things that must be worked out as a freelancer is finding an efficient system through which you will be paid by your services. In the more than 6 years of working fulltime as a freelancer, I have learnt that cash must flow and the easiest way to ensure cash flow is to make sure that you are being paid (in full) for your services when due. I have tried collecting cash, I have asked clients to send me checks, and I have tried PayPal – it has almost always ended in frustration.
Being paid by cash
When I first started out, I was doing freelance business writing for small businesses in my immediate environment. I usually prefer getting paid in cash – because cash is king. One of the lessons that I learnt is that it is not always easy for a new business to empty its cash register at the end of the day to pay for a service. Many of them ended up owning me for a couple of months and even when they eventually paid up, they didn’t pay up in full.
The worst part was that inflation tends to erode the value of my money and $100 owed for more than six months buys a lesser amount of goods. Another lesson that I learned the hard way is that the IRS is paying attention even when it seems that cash doesn’t leave a paper trail. The businesses that paid me deducted the payments as business expenses and the IRS was quick to figure out the rest.
PayPal is nice but 4.5% transaction cost is a drag
After my freelancing business had extended beyond my immediate environment, I started collecting payments through PayPal. PayPal sounded like an easier and faster means to get paid. For one, all it required was an email and neither my clients nor I needed to disclose our financial information to send and receive payments.
PayPal sounded cool until I got hit with a 4.5% transaction charge every time a client paid me; of course, the transaction cost for U.S is about 2.9% plus $0.30 of the received amount. 4.5% transaction charge sounds small but it translates to $4.50 on $100 and $45 on $1000 – I knew I could find better use for that $45. The worst part was that PayPal was always asking to come and explain why I was sending money to some other freelancers that were working with me.
I also have issues with the fact that PayPal tends to support the clients without any protection for freelancers. I once had a client who sent me payment via PayPal – I sent him the completed project as soon as I got the payment notification but he went back to seek a refund from PayPal and PayPal didn’t think twice about taking money out of my account to refund him.
My Experience with BitGold
I recently tried getting paid with gold and I have been pleasantly surprised at how much easier and cheaper it is to send and receive payments through gold. I observed that being paid with BitGold is the smartest solution for online money transfers right now.
A client introduced me to the idea of receiving payments in gold and I went ahead to open a BitGold account. She told me that people interested in sending gold as payments will need to open an account with BitGold and deposit funds by buying gold at just 1% over the spot price of gold.
After I opened the BitGold account, she sent me my payment as gold and the funds were deposited in my account with remarkable speed. The best part was that I could redeem the gold into a local bank account, load it into a GoldMoney MasterCard Prepaid Card, or redeem my money as physical gold.
The greatest benefit that I enjoyed from being paid with gold is the price increments in the value of gold in my account. You’ll agree with me that the value of gold tends to rise during periods of market uncertainties – we live in uncertain economic times and the yellow metal has been soaring. This year gold has rewarded investors with more than 16% YTD gains and some of those gains accrued to the gold in my account.
Gold is currently the best performing commodity in the market and it doesn’t appear that the yellow metal will lose its shine anytime soon. I have observed that getting paid with gold provides me with an opportunity to benefit in two ways. Firstly, I benefit from the speed at which funds are transferred to my account with practically negligible transaction costs. Secondly, I benefit from the price gains that I see in my account balance as the value of gold increases in the general market.
© 2016, Khaleef “Fat Guy” Crumbley. All rights reserved.