Definition
What is Milestone Payment?
A milestone payment structure breaks a project into defined phases, with a portion of the total budget released after each phase is completed and approved. It reduces risk for both buyers and sellers.
How it works
Instead of paying everything upfront or after delivery, milestone payments create checkpoints. A typical 3-milestone project might release 30% after requirements are finalized, 40% after the core build is delivered, and 30% after testing and deployment. This gives the buyer visibility into progress and gives the expert predictable cash flow. On LogicLot, experts define milestones when scoping a project, and funds for each milestone are held in escrow until the client approves that phase.
Last updated: March 2026