Forgot your password?
Getting Paid
Document Actions
I was speaking with a colleague at breakfast yesterday when the subject of collecting money came up. She mentioned having a hard time getting some clients to write the check after the project was done.
The problem is, once you're done with the project, the client has no real downside to not paying you, other than creating a strain in the relationship. Of course, you could always stop work if a payment is not received, but will also create quite a strain.
Here's a strategy you can use to never have this problem in the first place. (Feel free to vary the concept, but try not to lose the effect in doing so.)
Figure out a way to divide the project into three distinct steps. You can do this with almost anything. For example, a one-hour speaking engagement can be divided into:
- Research, interviews, design and other steps needed to familiarize yourself with the client's situation and objectives.
- Preparation of the speech and supporting materials, and travel (if required) to the location.
- Delivering the speech and following up.
After you've divided the project into three steps, structure the contract so you get paid as follows:
-
One-third payment up front, which covers the research, interviews and design phase, and books the engagement and locks in the dates.
-
One-third payment one week prior to the engagement, which covers preparation and reproduction of supporting materials, and travel expenses.
-
One-third due on the morning of the engagement, which covers delivery of the speech and follow-up.
The goal is to always get paid in advance for each step, and to get paid enough that you're safe if the project gets canceled midstream.
Next, to avoid the feet-dragging described above, make it clear that, at each payment point, the client is to make a choice to either continue the engagement by making the payment or cancel it by not making the payment. (Note: This actually helps your clients manage unforeseen problems, in that they won't have to pay you a portion of the fee if something out of their control causes the project to be canceled.)
Finally, keeping with my speech example, if you show up on the morning of the engagement and the client doesn't have a check, simply say something like, "Oh, that's a shame. What happened that caused you to have to cancel?"
Have a great week!
Gill
Subscribe