Comments on: Biting the hand that feeds you – client late fees? http://bradmccall.com/blog/2007/05/06/biting-the-hand-that-feeds-you-client-late-fees/ What inspires me. Mon, 21 Jun 2010 12:48:29 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Maryanne Moll http://bradmccall.com/blog/2007/05/06/biting-the-hand-that-feeds-you-client-late-fees/comment-page-1/#comment-14156 Maryanne Moll Thu, 21 Jun 2007 17:16:59 +0000 http://bradmccall.com/blog/2007/05/06/biting-the-hand-that-feeds-you-client-late-fees/#comment-14156 I've had my own share of bad clients. In my experience as a freelance writer, though, the smaller the total contract fee, the more problematic the client. My current client is paying me my new significantly higher rate and there has never been any problems. Some of my freelance friends hire a "collector." This is usually a very firm person with a lawyerly demeanor (though not necessarily a lawyer), and they dispatch this person to clients who are negligent in paying their bills and seem to be trying to get out of paying. Most of the time, they say it has worked. But for the clients that have no problems paying up, there's no need for the collector. By the way, I would like to thank you for featuring the pixel wallpaper in your blog. I was Googling for possible new backgrounds, and found K10k.net through your blog feature, and now I am perfectly happy with my new elegant pixel wallpaper. I’ve had my own share of bad clients. In my experience as a freelance writer, though, the smaller the total contract fee, the more problematic the client. My current client is paying me my new significantly higher rate and there has never been any problems.

Some of my freelance friends hire a “collector.” This is usually a very firm person with a lawyerly demeanor (though not necessarily a lawyer), and they dispatch this person to clients who are negligent in paying their bills and seem to be trying to get out of paying. Most of the time, they say it has worked. But for the clients that have no problems paying up, there’s no need for the collector.

By the way, I would like to thank you for featuring the pixel wallpaper in your blog. I was Googling for possible new backgrounds, and found K10k.net through your blog feature, and now I am perfectly happy with my new elegant pixel wallpaper.

]]> By: Mandy http://bradmccall.com/blog/2007/05/06/biting-the-hand-that-feeds-you-client-late-fees/comment-page-1/#comment-9261 Mandy Thu, 10 May 2007 16:44:01 +0000 http://bradmccall.com/blog/2007/05/06/biting-the-hand-that-feeds-you-client-late-fees/#comment-9261 Brad, and Janet -- For what it's worth, I've been on my own as an agency of one for approaching four years. I also don't like the accounting side of my business. If I were really -good- at math things, I wouldn't have gone to design school... But anyway, getting paid is necessary. Here are my basic rules: All projects, large or small, are estimated in writing. Sometimes this is e-mail. All project estimates, big or small, must be accepted IN WRITING before work begins. Again, sometimes by e-mail. Just make sure it's clear... "Mandy, please proceed with project #4033 for the amount of..." All new clients must pay a deposit, often 20 to 30% of the estimated project total, before work commences. Invoices are due and payable upon receipt (though in reality, it often takes 30 days). If you want to grow your business, you'll have to accept that clients, especially larger clients, will need 20 to 30 days to get your invoice processed, checks cut, and then mail you payment. You must structure your cash flow and your project load to allow for this... I invoice projects immediately upon completion. Mostly by .PDFs sent via e-mail (no postage for me and simple tracking mechanism). At 30 days, I send a reminder invoice and a note about the possibility of it being lost in the system, etc. I send another every 5 days until I get the check. In four years, I've been fortunate that no one has ever just not paid. I've had a few that went 90 days, but the vast majority of my clients pay in 20 to 30 days. I don't charge late fees, because our business is a relationship-oriented business and late fees don't work with that message. I would consider them for accounts that go 90 days, though... and for clients you essentially want to fire. Just remember, they have friends, contacts, networks of people they know, too, and some of them might be great potential clients for you. Brad, and Janet —
For what it’s worth, I’ve been on my own as an agency of one for approaching four years. I also don’t like the accounting side of my business. If I were really -good- at math things, I wouldn’t have gone to design school…
But anyway, getting paid is necessary. Here are my basic rules:
All projects, large or small, are estimated in writing. Sometimes this is e-mail.
All project estimates, big or small, must be accepted IN WRITING before work begins. Again, sometimes by e-mail. Just make sure it’s clear… “Mandy, please proceed with project #4033 for the amount of…”
All new clients must pay a deposit, often 20 to 30% of the estimated project total, before work commences.
Invoices are due and payable upon receipt (though in reality, it often takes 30 days).
If you want to grow your business, you’ll have to accept that clients, especially larger clients, will need 20 to 30 days to get your invoice processed, checks cut, and then mail you payment. You must structure your cash flow and your project load to allow for this…
I invoice projects immediately upon completion. Mostly by .PDFs sent via e-mail (no postage for me and simple tracking mechanism). At 30 days, I send a reminder invoice and a note about the possibility of it being lost in the system, etc. I send another every 5 days until I get the check.
In four years, I’ve been fortunate that no one has ever just not paid. I’ve had a few that went 90 days, but the vast majority of my clients pay in 20 to 30 days. I don’t charge late fees, because our business is a relationship-oriented business and late fees don’t work with that message. I would consider them for accounts that go 90 days, though… and for clients you essentially want to fire. Just remember, they have friends, contacts, networks of people they know, too, and some of them might be great potential clients for you.

]]> By: Janet http://bradmccall.com/blog/2007/05/06/biting-the-hand-that-feeds-you-client-late-fees/comment-page-1/#comment-8809 Janet Tue, 08 May 2007 04:29:58 +0000 http://bradmccall.com/blog/2007/05/06/biting-the-hand-that-feeds-you-client-late-fees/#comment-8809 Brad, Nice to see you blogging more often. We really should get together for lunch sometime. I'm working in the Riverwoods as an internet marketing coach. Ok, this hit a sore spot. I now have two clients that haven't paid me and won't respond to my requests. Both are new. I don't care if I ever work for either again. I will also warn my friends not to do business with one of them in particular. So my question is, one was a few hundred, one was $15 (not much). What should I do? I'm pretty sure I should forget the $15. This is one thing I hate about contract work and why I have a regular job while I'm building my own businesses. I hate to chase the checks. Janet Brad,
Nice to see you blogging more often. We really should get together for lunch sometime. I’m working in the Riverwoods as an internet marketing coach.
Ok, this hit a sore spot. I now have two clients that haven’t paid me and won’t respond to my requests. Both are new. I don’t care if I ever work for either again. I will also warn my friends not to do business with one of them in particular.
So my question is, one was a few hundred, one was $15 (not much). What should I do? I’m pretty sure I should forget the $15.
This is one thing I hate about contract work and why I have a regular job while I’m building my own businesses. I hate to chase the checks.
Janet

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