At the beginning of a project, even before a freelancer is hired, the client determines how he wants to pay a freelancer - with an hourly rate on a project-based rate.

The Hourly Model

In this model, there is no predetermined maximum budget for the completion of the project. Instead, the freelancer will bill the client as he goes, sending invoices for the time he's worked, along with whatever work he’s produced in those hours. The client agrees to a specific hourly rate when he hires the freelancer.

The Project-Based Model

These projects are for clients who know how much they would like to pay the freelancer for the completion of the project.

In these projects, clients can commit to the entire budget at once, or in stages. Freelancers and clients agree on how much each stage of the project is worth. When a freelancer finishes a piece of the project, (called a "milestone"), the client releases another piece of the budget until the whole budget is paid.