hey i do some offline consulting work i recently took on a client where did initial seo and then ongoing work usual is to pay upfront fee then ongoing monthly (with 50% of upfront paid on signing agreement) they are now 30days behind and i am interested in how you guys manage non-payers do you do any of the following.... 1) set up direct debit into bank accounts 2) set up paypal auto payments (if they cancel these how do you manage then?) 3) send invoice out each month, i have done this, and other clients pay regularly 4) do you ask for payment by such and such otherwise pay more? 5) what do you put in terms of agreement? 6) any other thoughts i appreciate your comments on this as i believe that this is an issue that will affect many of us at some point when we have offline clients thanks in advance
Ok lets ask to pay otherwise remove back all work as you can. If he don't pay anymore without good reason put some bad links to trop his ranking. I don't mention what are the bad inks here.
Although I understand your position, that's very bad from a customer relation perspective. I usually contact the client after 30 days for an outstanding invoice. I explain them that after 30 days here in Florida there's a 18% annual late fee that is going to be included on their debt. All further work is stopped in its tracks until debt is covered. Regards
dwaisman, that's pretty standard. Usually, a late fee percentage will be defined in the initial contract. Unfortunately this happens all the time and it's very frustrating. yiannionline, your billing method should be whatever works the best for your clients. Good invoicing software is always professional and universally accepted. Believe it or not, not everyone uses PayPal
So you will work more hours on a project you aren't going to be compensated for? I don't believe that is the best way to handle it. Just talk with the person and they will straighten it out. Lots of people just plain stink at meeting deadlines especially when their money is involved. If they don't, explain to them you will have to warn others on review sites that they are a business who does not honor their financial obligations. Once again, that would be a LAST resort and you should tell them you feel obligated to do this if they refuse to pay. Make a pact with yourself right now that you will resolve this before it gets to anything drastic though. This industry, you need to be business-savvy. Don't give up on anyone. Find out what's up and why he isn't paying. Perhaps he needs a payment plan? Maybe he had a family emergency or crisis. Just be compassionate towards others and you may end up getting lifelong referrals for being flexible where other businesses wouldn't.
hi everyone thank you for your replies and insights brad thank you for your advice i agree with you the optimum position i am wanting is they pay and i maintain the ongoing professional relationship with them in terms of managing late payers how explicit are you all in your client agreements of the escalation procedures? eg pay by due date, no late fee, if not pay end of month, x% interest charged, etc... thanks for getting back to me on this
Just ask them polity that it difficult for you to work without getting paid. If they don't hear you out then just leave and find some other client. Don't do anything bad with them. They might come back knowing that you were good to them.
I agree with sam grace. Just ask them 2 or 3 times, later stop their project and leave off from them.
when money is due you should send out an invoice on a pre-agreed date if they do not respond after one week you should send a reminder and give them a call, if they don't respond after two weeks, send a final reminder and a notice that you will be stopping all work. if you don't get a response after all that, threaten legal action with a notice that they are due to pay the invoice + all legal costs
Yianni congrats first off on GETTING A CLIENT IN THE FIRST PLACE!! So many, we'll call them "lazy's" spend all their time goofing off on the forums expecting clients to just fall into their lap!! Anyways - I have a silver bullet for you: AUTOMATIC CREDIT CARD REBILL. I use Freshbooks and it's totally hands-off.... client gets billed each month (or whenever you specify) and you don't have to hassle them for money.