An arrangement where a neutral third party holds a client's payment and releases it to the seller only when agreed conditions are met.
Escrow is when a neutral third party holds a client’s payment and only releases it once agreed conditions are met. The money is committed — the client can’t disappear without paying — but it isn’t yours until you deliver. It de-risks the deal for both sides at once.
For sellers, escrow proves the client actually has the money and intends to pay, so you can start work without fear of ghosting. For buyers, escrow means your payment isn’t gone until you’ve received what you paid for, which is reassuring with a professional you haven’t worked with before.
The friction is process: escrow adds a step and sometimes a fee, and both sides must agree on what triggers release. For that reason it’s most worthwhile on larger projects or first-time relationships where trust hasn’t been built yet. On smaller jobs, a deposit plus clear milestone payments usually gives you most of the protection with far less overhead.