D is for Deposit

In this Instagram reel, I talk about what a deposit is.

This is one I get a TON of questions about, so listen up:
A deposit is money that’s put down toward a future service, meaning it hasn’t been “earned” yet. A retainer is money that’s put down to compensate the service provider for committing to provide a service — in other words, it has been “earned” because you are turning away other work with this commitment.

By default, using the term “deposit” implies that the money is refundable. So, while that is not always the case — the language and context surrounding the word in your contract can influence its meaning and clarify that it’s not refundable, for example — it’s best to use deposit or retainer appropriately (based on their legal meanings) from the get-go.

Have more Qs about the letter D? Let’s hear ‘em in the comments!