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Prevent potential non-paying clients

by luke4
10 replies
Hi everyone.

I'm considering offering a service that would require clients paying upon completion. Is there any way to stop the clients from doing a runner? It's an SEO service.

Escrow payments always take up too much of a commission.

Any help would be appreciated.

Luke.
#clients #nonpaying #potential #prevent
  • Profile picture of the author John Taylor
    Originally Posted by luke4 View Post


    I'm considering offering a service that would require clients paying upon completion. Is there any way to stop the clients from doing a runner?
    The short answer is no.

    However, you can do a lot to filter out the runners by
    being very careful about client selection. Don't just
    accept any new client without doing some due diligence.

    I'd also recommend asking for a deposit and negotiating
    stage payments based on milestones rather than asking
    for the full amount upon completion.

    John
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  • Profile picture of the author luke4
    Thanks John.

    I was considering 50% upfront but milestones sounds like a very good idea. Maybe 25% at the very start, another 25% half way and the remaining 50% on completion. This would then still keep the payment upon completion selling point.

    If i wanted it all on completion, since it's an SEO service, i could gently remind the buyer that as well as ranking their site, we can also damage it if they don't pay. I would struggle to put this across in a non-threatening way in a sales page though. But then again i suppose it wouldn't really bother the buyers who would pay it in full anyway...

    Luke.
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  • Profile picture of the author Cobaki
    I agree. Get payments by batches of delivery and not by project. This will put you both in a win-win situation. Your client will have the option whether to continue having the project handled by you or to just stop. Then, you will not feel the pressure of having to think about finishing one huge project, as well.
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  • Profile picture of the author luke4
    I think i'll do just that, cheers.

    If anyone else does have a suggestion feel free to pitch in!

    Luke.
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  • Profile picture of the author Cobaki
    Well, I have experienced having non-paying clients before when I still offered outsourcing. I believe, I have tried every strategy that you can possibly think of. I have done 50-50, but still ended up losing more than I should be earning. You can never really trust all the clients that you will encounter. The method I mentioned previously was the one that worked best for me.
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  • Profile picture of the author luke4
    It's a SEO ranking service, so as it progresses i suppose i can charge as i go along. I fail to see why a client would put 25% or 50% forward to just not go fully ahead with it, as it would be rather pointless without achieving some decent rankings.
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  • Profile picture of the author JohnnyG11k
    Hey,

    Escrow and 25% or 50% in advance is ideal IMO

    I'd focus on working with reliable clients (skip the newbies) like small business or larger businesses, if your service caters to their needs.

    So, the idea is to price your service and work out the agreement based on your target audience.

    Non reliable clients waste your time and are not worth the effort...
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    You won't believe it!
    This NICHE made me $300,000...
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    • Profile picture of the author luke4
      Originally Posted by JohnnyG11k View Post

      Hey,

      Escrow and 25% or 50% in advance is ideal IMO

      I'd focus on working with reliable clients (skip the newbies) like small business or larger businesses, if your service caters to their needs.

      So, the idea is to price your service and work out the agreement based on your target audience.

      Non reliable clients waste your time and are not worth the effort...
      Are you saying i should charge a little higher maybe to deter the "troublesome" clients? That sounds logical, and i'd still be the same price as most identical services here anyway, with an added milestone / pay upon completion incentive that could perhaps give me the edge.

      Luke.
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      • Profile picture of the author JohnnyG11k
        Originally Posted by luke4 View Post

        Are you saying i should charge a little higher maybe to deter the "troublesome" clients? That sounds logical, and i'd still be the same price as most identical services here anyway, with an added milestone / pay upon completion incentive that could perhaps give me the edge.

        Luke.
        Yes

        I'd say: why not?
        Signature
        You won't believe it!
        This NICHE made me $300,000...
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        • Profile picture of the author luke4
          Originally Posted by JohnnyG11k View Post

          Yes

          I'd say: why not?
          Well the obvious route, it may prevent me from getting many customers...

          I think i'll give it a try anyway though
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