Zero Advance Payment vs 50% Advance Agencies
The industry default is 50% upfront and 50% on delivery. It protects the agency, not you. Here is an honest side-by-side of both models so you can decide which risk you are willing to carry.
Who carries the risk
With a 50% deposit, you pay before you have seen anything. If the agency misses the brief, your leverage is gone and your only route is a refund argument. With zero advance, the agency carries the delivery risk and gets paid after approval.
Cash flow impact for small businesses
A 50% deposit on a $2,000 project locks up $1,000 for weeks. For a small business that is often the same money needed for ads, stock or salaries. Paying after delivery keeps that capital working until the asset actually exists.
Scope, revisions and accountability
Deposit-based agencies have an incentive to close the project quickly. Pay-after-delivery flips it: revisions before approval are in the agency's own interest, because approval is the trigger for payment.
- Advance model: revisions negotiated after money is already paid
- Zero advance model: revisions happen before any invoice is raised
- Advance model: refunds are a dispute
- Zero advance model: there is nothing to refund
Where a 50% advance still makes sense
Honest answer: for very large, multi-month builds with dedicated teams, some advance is reasonable because the agency is committing headcount. For typical websites, apps, chatbots and marketing campaigns it is simply the default rather than a necessity.
Frequently asked questions
Why do most agencies ask for 50% upfront?
It covers their cash flow and filters out non-serious clients. It is a business-protection mechanism, not a quality signal.
What stops a zero advance client from disappearing after delivery?
Handover. You review a hosted preview; source code, domain transfer, admin credentials and full assets are released on payment.
Is zero advance work lower quality?
It cannot be — we only get paid if the work is approved, so cutting corners costs us the entire project.