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1

Excellent

This topic is seldon written about; this article covers many useful approaches.

2

Good info, but missing one impotant point.

This is all good info and I've learned these lessons on my own with slight variations. But I've realized there's a major arbitrary viewpoint about creative work in general that creates many billing problems. Many clients don't align creative services with the services of other professionals. This creates problems from the beginning.

I always bill in increments unless I get steady work from the client (getting paid steadily, too) or have had them for years and know 5-6 people in the company up and down the food chain. But I've still explained the following clearly and to the point where I NEVER wait 30 days to get paid, old client or new. I wait maybe 2 weeks, but usually 5-7 days. Whose stupid idea was it to wait 30 days to begin with? Probably the client's. Maybe the creative trying to make it easy for client to pay or an enticement to come back next time. Whatever the reason it is almost always an arbitrary concept and only appropriate for high dollar projects - if then.

Here's the correct way (in my viewpoint) to explain why I should get paid immediately. I don't sell groceries. I don't fix transmissions. I don't dry clean clothes. These people get paid immediately upon delivery of their products or services. Not to belittle any of these basic services, but I consider what I do to align more with doctors, lawyers, dentists and other 'professionals'. Guess what? These pros ALSO get paid immediately upon delivering their services. In fact, when you don't pay for something immediately in almost all cases it's considered a loan. Sorry Mr. Client, but I'm not a bank or credit card. I'm just like the majority of other businesses in the world, large or small.

Why should I go into agreement with the client when they say, "That's just how it's always been done in the past"? My response is, "It's not right. It got off track many years ago for whatever reason and has continued. But it's wrong. You buy an ice cream, you pay immediately. You call a plumber, you pay immediately. You buy an airplane ticket, you pay immediately. You go to the doctor or dentist, you pay immediately. You get your web site built, your get your brochure designed, your get your video produced, you pay immediately. That's the way business works."

As expected it may take a few examples to get the client to see the light. Paint the picture with your own examples. Tune in to their reality. What do they buy? When do they pay? It's irrelevant whether my competition is billing 30 days. They're part of the continuing problem. It's arbitrary, unfair and unprofessional. Chances are the client doesn't sell their services and wait 30 days to get paid - why should I?

Important point: Deliver, deliver, deliver! Show them why you deserve to get paid immediately. You're fast. You do great work. You really address their needs and deliver real solutions. You give them more than what they expect. You don't nickel and dime them on small changes or additions. You look for ways to add value to their projects. You give them bright ideas they hadn't thought of, etc.

Do all this and they'll be GLAD to pay you immediately. I bust my butt, do great work and my clients love me for it. And I make sure they know when I've gone beyond the call of duty. Once you get them accustomed to dealing with a pro it's no longer an issue.

Vince Kernaghan
www.designprographics.com

3

Other payment tricks

I've know freelancers to offer discounts for 5 day, 15 day pay periods. Sometimes it's better to get paid early and take a small hit than to wait, get annoyed- pissed, and discouraged with the client. You can always increase your rate to compensate for the discount. Customers, hell, a lot of us will jump through burning hoops to get something on sale. Money people (accouints payable depatments) are always looking for a angle to pay late, and with this, you hand them the angle. Perhaps you can motivate a customer to sign a payment agreement in order for them to get this discount.

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