Getting paid for consultation in advance, at contract signing...

12 years ago

Show them what you have accomplished already, companies that you have helped with through your consultation services. Show them how credible your services are.

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Jason Kanigan

12 years ago

So did you ask for more detail on WHY they want to pay at the end?

You might be surprised at what he says.

Some further qualification of your prospect required here.

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Centurian

12 years ago

Originally Posted by kaniganj

So did you ask for more detail on WHY they want to pay at the end?

You might be surprised at what he says.

Some further qualification of your prospect required here.

This is always wise advise!

You'll be surprised at what asking questions will do for your business.

Ever wonder what people are thinking? Just ask.

That said, it's not wise to leave things open ended.

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sdentrepreneur

12 years ago

I get paid 100% up front. It's too risky and some business owners are too flaky to get paid after 30 days.

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GeorgeO7 12 years ago

Originally Posted by sdentrepreneur

I get paid 100% up front. It's too risky and some business owners are too flaky to get paid after 30 days.

ditto

I would not consider another arrangement.
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patadeperro

12 years ago

Originally Posted by sdentrepreneur

I get paid 100% up front. It's too risky and some business owners are too flaky to get paid after 30 days.

This is exactly what you do, if you did not get paid in advance then you did a bad job at positioning and at building your authority status.

Tell the client you wont be doing any consultancy without getting paid, he will probably say no, then leave him and take it as experience, believe me it is better to say no to a bad customer than yes to a long time money draining relationship.

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sgtsavvy

12 years ago

I understand and appreciate all the responses and suggestions.

I sent out a follow up email an email saying this:

"I'm willing to do 50% upon signing, and 50% upon delivery for a 3 month agreement.

I need a first installment paid up front. So $900.

What i will offer you is this... If at after any month, you feel like im not delivering you the value that you are paying for... I will refund you your money back.

To be frank, it may take a few weeks for YOU to understand and apply. But i am certain that if you listen to and take the information i provide you, you will increase sales many times over the investment you make for the training and consultation. And of course, once you know how to leverage the internet, you can scale that for additional profits as much and as long as you'd like."

I got an email back saying this:

"I am interested in the services you provide but the company will not pay up front for services. We need to be billed each month and we will pay right away when we receive the monthly bill."

Now, i do not have any doubt that they will not pay me as soon as i bill them, they are a radio station... They are definitely a sweet client and i believe i can easily deliver in a big way for them. I mean, they have a 70,000 email list of age 35+ adults who the majority of them make over 150k/year.... AND THEY DON'T EVEN MARKET OFFERS TO THEM. Just daily information about the upcoming shows... LOL.

Anyway, i don't think its worth doing some "pay me first or we aint gonna work out type of situation..." I want to work with them, so i think i'll let it slide this time.

What would you do?

Thanks
1 reply

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Eddie Spangler

12 years ago

You have already made your decision, it doenst matter what we think.
Just feels like your begging for everyone to agree with your decision.
Most everyone has said get money up front, they say they wont do, you want to work with them. What else is there :confused:

My money says you will get paid, just make sure you have good contract and stay on top of collecting.

Best success to you!

Originally Posted by sgtsavvy

I understand and appreciate all the responses and suggestions.

I sent out a follow up email an email saying this:

"I'm willing to do 50% upon signing, and 50% upon delivery for a 3 month agreement.

I need a first installment paid up front. So $900.

What i will offer you is this... If at after any month, you feel like im not delivering you the value that you are paying for... I will refund you your money back.

To be frank, it may take a few weeks for YOU to understand and apply. But i am certain that if you listen to and take the information i provide you, you will increase sales many times over the investment you make for the training and consultation. And of course, once you know how to leverage the internet, you can scale that for additional profits as much and as long as you'd like."

I got an email back saying this:

"I am interested in the services you provide but the company will not pay up front for services. We need to be billed each month and we will pay right away when we receive the monthly bill."

Now, i do not have any doubt that they will not pay me as soon as i bill them, they are a radio station... They are definitely a sweet client and i believe i can easily deliver in a big way for them. I mean, they have a 70,000 email list of age 35+ adults who the majority of them make over 150k/year.... AND THEY DON'T EVEN MARKET OFFERS TO THEM. Just daily information about the upcoming shows... LOL.

Anyway, i don't think its worth doing some "pay me first or we aint gonna work out type of situation..." I want to work with them, so i think i'll let it slide this time.

What would you do?

Thanks

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racso316

12 years ago

It comes down to you man. It's your business. You call the shots. You could work contingency based, IF you want. If you trust him and sign an agreement. If you want to get paid upfront then that's how you work, don't let him dictate how you run your business. Ask for the money upfront , or half upfront and half at the end. whichever you feel more comfortable with. If you showed and he knows you provide value, he'll make the deal either way you present it. Would he work and let his cient pay him at the end or would he ask for the money upfront?

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lovelysue

12 years ago

I can share with you my experience on this. I am a full time coach and many clients who want to sign up request a 30 days money back guarantee, to pay at the end of the month, to pay only if they get the results and I always reply with this:
"You paying for your coaching is directly proportional to the level of commitment you have in achieving your goals." If they look for the easy way out even before they have started - this is a red flag: they are not committed and this will turn into- "I couldn't do the homework", "This week I'm busy, can we reschedule", etc.

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tenaciouscreations

12 years ago

Originally Posted by lovelysue

I can share with you my experience on this. I am a full time coach and many clients who want to sign up request a 30 days money back guarantee, to pay at the end of the month, to pay only if they get the results and I always reply with this:
"You paying for your coaching is directly proportional to the level of commitment you have in achieving your goals." If they look for the easy way out even before they have started - this is a red flag: they are not committed and this will turn into- "I couldn't do the homework", "This week I'm busy, can we reschedule", etc.

I 100% agree with this. I provide a lot of online and offline coaching. I ALWAYS request payment up front as it truly does show the commitment level of your client.

It may just be me but I get really upset when I work hard to provide quality advice and coaching that I know gets results only to have the client not put any effort in doing what I out lined for them.

I really wish people would come to realize there really is no such thing as an "Easy Button". Everything involves effort! When I take on a client I am personally invested in their success. I hate to fail and when clients do not follow through on their end they set themselves up for failure.

I am now at the point in my business when a client decides not to follow through I simple fire them. If they are not going to put any effort in following my coaching, I don't feel they deserve my time and I don't need their business. I know this sounds harsh but it has made me that much of a stronger coach.

Ben

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Perestroika

12 years ago

I would ask for minimum of 50% upfront. You have to protect your interests at all times.

You might be ok if you are signing a contract for these phone sessions and you are in a jurisdiction where the contract can be used in court. Adjust your contract to say that in the result of non payment the client will be liable for all attorney / court fees & other expenses.

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tryinhere

12 years ago

Originally Posted by sgtsavvy

ICan anyone with experience around this area share some advice...?
Thanks in advance!
Jamie

Who runs YOUR business ? You or your client - your business ? "I charge upfront and offer a 30 day money back guarantee" - any other questions ?.

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DebbieB

12 years ago

Originally Posted by sgtsavvy

I have got a new consulting client that is interested and ready to sign the contract for 4 weekly 45 min phone sessions... But the guy i'll be coaching said that they pay at the end of the month after all services are rendered...

I don't want to get into this habit, and i think its a bad policy, i know i will deliver, and i want to bill at the beginning, and offer them a 30 day refund perhaps if they are not satisfied... how would you approach this situation?

Can anyone with experience around this area share some advice...?

Thanks in advance!

Jamie

I've been self-employed as a marketing consultant for 18 years so I guess that counts as having a bit of experience.

The first thing I would say is trust your gut. Is this a client that you will enjoy working with, and with whom you can see a long-term business relationship developing?

If you're already having doubts, the wiser move would be to stick to your policy and if your prospect hesitates, to suggest that perhaps you're not a good match.

It's a judgement call. I would go for at least 50% up front. Or you could shoot for 50% now and the rest after 2 weeks rather than at the end of the month.

Your choice - but remember this: you DO have a choice. Don't accept your prospects terms if it doesn't feel right to you.

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Seantrepreneur

12 years ago

We get all our payments upfront for new clients with no payment history. With that said, if this client is refusing to pay upfront I would try getting at least 50% down. If he still says no and you are comfortable providing these services for 30days I would bill him about 5 business days prior to the end of the month and see how he reacts to it. Also, if he is slow with paying the bill tell him that you will only continue these services after he makes payment on the first month.

You probably won't have a problem especially if they seem pretty legit, but you just have to be careful and cover your own butt. There are risks you have to take if you want to be in business for yourself and unfortunately this one a common one.

Sean

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Perestroika

12 years ago

The business might not trust you if you are a new consultant and dont have any previous customer feedback. This is the only way I could see the business expressing interest in paying for services after 30 days.

If you have existing customers and can prove that you are legit there should not be a reason for the business to insist paying you late.

There are several scenarios of what can happen:

1) You provide phone consultations and the business pays you after 30 days
2) You provide phone consultations and the business doesnt pay you
3) You provide phone consultations and the business doesnt pay you and you will be forced to chase them to receive your payment
4) You provide phone consultations and the business doesnt pay you and you take them to Small Claims court

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1 reply

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octobergal

12 years ago

I would have them pay up front, too many things can happen and then you don't get any or all of the payment. If this is how you do business, then it's not negotiable. You let them know how you run YOUR business and if they won't do that then you go on to the next one. There are plenty more businesses that will pay you up front. Don't sway for one business that wants to do it their way, you'll probably end up regretting it.

Thanks
1 reply

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Perestroika

12 years ago

Originally Posted by octobergal

I would have them pay up front, too many things can happen and then you don't get any or all of the payment. If this is how you do business, then it's not negotiable. You let them know how you run YOUR business and if they won't do that then you go on to the next one. There are plenty more businesses that will pay you up front. Don't sway for one business that wants to do it their way, you'll probably end up regretting it.

Exactly - my way or the highway.

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TopKat22

12 years ago

Been there, done that.

Get paid upfront. You cannot repossess information once given.

If they refuse, then require a non-refundable deposit worth one months consulting fees.

If they refuse, then move on.

Better to move on than get ripped off.

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believemarketing

12 years ago

get paid upfront.... at very worst, get 50% upfront... if they cant commit at least 50% upfront, i don't think you should waste your time either...

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Perestroika

12 years ago

@OP: What kind of business is this for? Does this business traditionally get paid upfront for the services they provide or do they get paid 30 days later?

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Aaron Doud

12 years ago

Jason summed it up well find out the "why" behind the need to pay after 30 days.

"I normally ask for payment in full up front. May I ask why you are requesting to pay later?"

Something that simple will start the conversation. In sales a lot of people ask for things they don't even want or need. You merely state that policy is not to do that and ask why. If they have a real and valid reason you can decide how to help them.

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Getting paid for consultation in advance, at contract signing...

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