Lesson 4: PayPal Basics

Another lesson for commissions! It's been awhile since I posted my last lesson - needed a few weeks to recharge my tutorial batteries. But here's everything you need to know about PayPal! 

 See all the lessons here! 

PayPal is the industry standard when dealing with online currency transfers, although Stripe is also worth looking into. I only have experience with PayPal so this lesson is everything you need to know to do business through them.

You need to be over 18 and willing to give them your address and legal name, at least if you live in the EU (not sure about the rest of the world). Once you reach  £1,900 (or €2,500) you'll need to supply them with photos of your identity card and address, due to EU anti-money laundering regulations.

If you plan on selling only commissions (not set up an online shop) you don't need to upgrade to a business account. You can upgrade, but a personal account is just fine. 

PS: When sending invoices from a personal account, the email will say: “Invoice received from *your name*”. With a business account you can change the name to whatever you like. 

You'll need to keep track of your income and your expenses. Thats why I recommend having one account for personal transactions and one for commissions/business transactions. 

PayPal has transaction fees, from 3.9% and up. It varies depending on the client's country and the currency the invoice is in. If you send invoices in a currency other than your banks currency, there will be an extra conversion fee to transfer the money all the way home. 

To see the exact fees, check your country's PayPal website. 

Getting Paid - Invoices

First Tip: Do not request gifts! 

When doing commissions for people that arent friends and family, always, always send an invoice. If you receive the money as a “gift” you have no chance of disputing a potential chargeback (assholes are everywhere) and the money is gone along with your time and effort. When sending invoices, you need only supply evidence that you delivered what was agreed upon if you ever get into a chargeback dispute. 

The invoice system on PayPal is easy and straightforward. You should be able to find the “Create Invoice” button easily either through “Request Money” or “Tools” (depending on what type of account you have). 

Image of PayPals invoice and numbers to explain.  

1: A logo or tiny image with your name on it lightens up an invoice and makes the invoice feel more legitimate. 

2: Your business information will be the contact info displayed under your logo on the invoice. Name, website, potential address, etc.  

3: This is where you put the client’s emails address. Once you’ve written their email, you’ll see the option to edit their information, such as add a first name, last name and address and billing address. Hook off the option “No address needed” when it’s only digital goods. 

4: Invoice Number, Invoice Date, Reference and Due Date. PayPal automatically assigns an invoice number. Invoice date will be the date today. Reference is never needed for digital goods. 

I like to add the due date 1-2 days before I plan to start on the commission to make sure there won’t be any delays in my work schedule. 

The client can still pay the invoice even if it's past due date - nothing really changes, unless you make a change personally. 

5: Here you can add details to your invoice and change the currency the invoice will be in. This is all personal preference, but the tax and the detailed descriptions are almost essential.

6: Describe your item. An example of what to write:

Bust Commission
Sylvanas/name of character

Then add the individual price for that commission. Add another line item if the commission has any addons, like a companion.  

7: Here you can customize partial payments and tips. I don’t enable the partial payments unless the client requests it. Always enable tips! 

8: Terms and Conditions. I already talked you through how to make a great Terms of Service - now all you need to do is link to it. “By paying this you confirm you have read and agree to my terms of service: [ToS URL]”

9: Take a thorough look through your invoice, make sure all the information you’ve added is accurate. Then send it off into the world! 

PS: PayPal deducts the fee 3.9% (+)  from your invoice total, not as an extra fee to the client. Keep this in mind when setting your prices. 

Money Received!

Great! Transfer the received funds to your bank account asap. This is only a precaution as PayPal has the right to lock your account - and you don’t want them to lock it with money inside. 

Now you know how to create an invoice - but you’re not quite ready to open yet. I'll cover how to keep a budget, how to promote your commissions and a good structure for talking to clients, in my next lessons. 

See all the lessons here!