Offline warriors, how and when do you accept payment for work?

15 replies
Hi guys,

Just have a quick question. Assuming you have set up a meeting with a potential client, you have agreed on price and the client wants to move to the next step.

How do you accept payment for the intial order (eg. $500) and set up the recurring billing for hosting ect (eg. $30 per month)

I assumed that you leave the meeting, and draw up an invoice which you send to the client within a few hours of the meeting?

I dont want to start accepting payment via paypal (as it looks amateur and paypal take fees) and want to bill the client like a proper agency would...

Also what sort of payment terms did you guys use when you started out. All up front? (obviously excluding the recurring billing), 50% before the job and 50% after, or a 30 day credit period..??

Look forward to your replies, thank you ever so much in advance.
#accept #offline #payment #warriors #work
  • Profile picture of the author Jason Kanigan
    Interesting...I use paypal all the time. Do you think my clients think I look amateurish?
    Your headtrash about the issue is costing you money.

    You have two and only two payment sequence options for serious consideration.

    50% down/50% on completion

    and

    100% down.

    And all of it's in your head. This is positioning. If you can get past the "gulp" factor in asking for 100% down, you will find there are people who will give it to you. And you have to be willing to either qualify those who won't Out, or give them the 50/50 alternative at a higher total price. There must be a penalty to the client for doing it that way.

    "Bill like a proper agency would"...and you will be waiting for payments. Can you wait 30, 45, 60 days for payment? I get paid right now. Paypal can take its fees...Accounting 101: A Dollar Today Is Worth More Than a Dollar Tomorrow.
    {{ DiscussionBoard.errors[8027602].message }}
  • Profile picture of the author SashaLee
    Hi there,

    I agree with Jason.

    If you've done your job in the sales process you ask for payment when you want to get paid. It's as simple as that.

    All the best,

    Sasha.
    {{ DiscussionBoard.errors[8027672].message }}
    • Profile picture of the author Marty S
      Originally Posted by SashaLee View Post

      If you've done your job in the sales process you ask for payment when you want to get paid. It's as simple as that.
      Personally I think that is actually complicating the issue. Don't ask. I just tell clients the payments (or with larger amounts a schedule) I will be putting through on their card. (Yes I use payPal as well.)

      Now of course I do this professionally and not in a pushy way, but if you have really done your job, you already know their budget range and you have discussed the costs for your work. The rest is what YOU decide when to charge. I have not been wrong on this to the point of a client saying "whooaa I can't do that", but if it ever came up at least they know what I need from the start.

      By asking for payment, you are just opening up, and allowing them an additional bargaining point.
      {{ DiscussionBoard.errors[8027899].message }}
      • Profile picture of the author SashaLee
        Originally Posted by Marty S View Post

        Personally I think that is actually complicating the issue. Don't ask. I just tell clients the payments (or with larger amounts a schedule) I will be putting through on their card. (Yes I use payPal as well.)

        Now of course I do this professionally and not in a pushy way, but if you have really done your job, you already know their budget range and you have discussed the costs for your work. The rest is what YOU decide when to charge. I have not been wrong on this to the point of a client saying "whooaa I can't do that", but if it ever came up at least they know what I need from the start.

        By asking for payment, you are just opening up, and allowing them an additional bargaining point.
        Hi there,

        You make it seem as though I was suggesting you BEG for payment which is not what I was suggesting.

        All the best,

        Sasha.
        {{ DiscussionBoard.errors[8028073].message }}
  • Profile picture of the author Aaron Doud
    Paypal as mentioned works.
    Square is great if you meet in person.
    Checks are always good (IamNameless has posted multiple times about taking checks by phone)

    In the long run how you get paid isn't really a big deal. Most of the major companies we use take a check from us.

    My personal belief is the more expensive the service you offer the more likely someone will want to pay by check so make sure you can accept them. Beyond that have at least one way to pay by credit card in person and one for over the phone or internet (can be the same for all).

    Once you have sold someone they really don't care normally how they have to pay unless it is a hassle and even then they will pay. For example all International Customers must pay by wire transfer with us. It is a bit of a pain for some but I have never had anyone not buy over it. Though some have requested other ways to pay and been told that is the only way we will sell a camper internationally.
    {{ DiscussionBoard.errors[8027843].message }}
  • Profile picture of the author Sonny Am
    Thanks guys, the above was all incredibly helpful, it seems I was just over complicating the issue.

    The only reason I assumed id raise an invoice for the client was so its all written out for them and there is no confusion.

    Also for those that do, how are you setting up recurring billing stuff for the client?
    {{ DiscussionBoard.errors[8027937].message }}
  • Profile picture of the author Aaron Doud
    Sasha is a payment closer and Marty is an assumption closer it appears. As long as you both know the deal is closed before you get to that point I don't think either are bad. I really think you two are going back or forth over semantics here.
    {{ DiscussionBoard.errors[8028149].message }}
  • Profile picture of the author iamchrisgreen
    Most of my payments come through via BACS or Cheque.

    If it's a web development job we get 50% at the start and 50% at the end. Although I have had some where they'll pay 100% up front.

    Monthly SEO is billed monthly and the best way we have found is getting people on direct debit or standing order.
    {{ DiscussionBoard.errors[8028168].message }}
    • Profile picture of the author Sonny Am
      Thanks

      Noticed you were in the UK too.

      When you say through BACS, do you mean that you issue them an invoice with the BACS details on them, and they pay straight into your bank account?

      The way I see it, for a web design job eg.

      £450 - Payment via Bacs
      £25 recurring via direct debit

      is that right?

      Originally Posted by iamchrisgreen View Post

      Most of my payments come through via BACS or Cheque.

      If it's a web development job we get 50% at the start and 50% at the end. Although I have had some where they'll pay 100% up front.

      Monthly SEO is billed monthly and the best way we have found is getting people on direct debit or standing order.
      {{ DiscussionBoard.errors[8028292].message }}
      • Profile picture of the author RimaNaj2011
        Paypal is fine. The only time I would recommend not using them is if you're dealing with higher $$$ amounts.

        I used to do 50% upfront and 50% on completion but it's not worth the time. Each person has their magic number, mine is $5000 so anything under that amount I require 100% upfront.
        Signature

        {{ DiscussionBoard.errors[8029589].message }}
  • Profile picture of the author momtraders
    I have different clients that require different payment options.

    One type of client, There are several clients lumped in this category pay monthly through paypal for on ongoing service.

    Another type of my clients send checks before I begin work. Making sure payment is set up and paid in advance for atleast 15-20 hours of my time.

    When I meet in person with a client I give them my going rate, they can then decide how they would like to pay from there.

    When I am setting up a funnel, ie online transactions, I always include paypal, it is easy and fast. BUT I do offer additional payment options for people that dislike using paypal.

    Don't worry about looking professional, find clients that just require good long commited work and weed out the clients that are picky about how you come across.
    {{ DiscussionBoard.errors[8028212].message }}
  • Profile picture of the author Mwind076
    We accept checks first, then once we get to know you we do paypal.

    Paypal isn't looked down upon, however buyers are snaking the system. As a seller, paypal can do nothing for you once someone files a chargeback with their bank or CC. Doesn't matter what proof you have, they have to give the money to the bank/CC company because they do not protect YOU the seller. You learn that when it happens the first time and never let it happen again. When someone is dishonest and paypal DOES side with you at first, all they have to do is (illegally) sign an affidavit with their bank or CC company that says they did not authorize the transaction...and BAM, paypal charges YOU for the money, no more investigations, no more proof, no "we're on the sellers side." The only way to combat this is with legal action, which is doable, but once you prove to the bank/CC company that they lied, they're the ones in trouble. However, in the mean time, paypal bills you and you are SOL. Seems to be a common theme here on WF, as I'm sure it is with many other law breakers once they figure out how to scam the system. Problem is, paypal loses money in the end, because they can't enforce the collection of the "bill" created to the seller. So, that's why there are fees.

    Yes, I know what I'm talking about

    So, we take a check first, that way there is no question on who agreed to what. When we have an established relationship, we allow paypal payments. Also, if it is a smaller amount or a one time thing, we'll take paypal.

    It all depends on what you want to do, but you need to know the downfalls.
    Signature

    Looking for answers on how to SUCCESSFULLY market your company?
    Cold Calling, Appointment Setting, Training, Consulting - we do it all!
    PM for more information

    {{ DiscussionBoard.errors[8028254].message }}
  • Profile picture of the author SashaLee
    >>Sasha is a payment closer

    LOL...no.

    All the best,

    Sasha.
    {{ DiscussionBoard.errors[8031466].message }}
    • Profile picture of the author OnlineStoreHelp
      Everyone gives great advice so I thought I would give some of my own. I really think you have o fit your payments and invoicing to fit your customer.

      For web and ecommerce design, I take 50% up front and 50% at completion or 60 days, which ever comes first. But that is just as much flexibility for me (if I have to travel or get caught up that causes me delays). For hosting and maintenance, I either set them up through a portal or I most times I tell them my price assumes a year paid up front. For my monthly fees, I expect payment on the first of the month or I stop doing work.

      I also think you have to be flexible when it comes to accepting payments. The key thing is they are paying you. My local owner run shop either pays me with credit card or check. Some I bill through PayPal but one customer has an ongoing feud with PayPal so she pays by check. Remember, PayPal Here which is their square replacement.

      The bigger the organization gets, the more you have to go through their A/P and invoicing process. As long as you have a contract in place, it doesnt cause me issues. I have one national property/casualty broker that her company pays me. I send an invoice to her with A/P copied, she says approved and they pay me via EFT.

      When it is all said and done, its all based on what works for your client. As long as you are getting paid, the form doesn't bother me a bit.
      {{ DiscussionBoard.errors[8033606].message }}

Trending Topics