Getting Paid for What You Do!

24 replies
I wanted to hear your opinions on getting paid by your clients... How do you collect payment?


Currently I am flexible with the client, but always require a certain amount as a down payment. I was recently cost a gig because I wouldn't do the services without a down payment, and it got me thinking.


I developed my current method (either 50% upfront, or ALL upfront) because EVERY consultant I've ever met has been burned by at least one person if they bill the client.

For example a designer I outsource too has been burned a few times in the past by companies refusing to pay (after the work has been completed).


What are your thoughts?
#how to bill a customer #paid #paid for consultation
  • Profile picture of the author Lori Kelly
    I require complete payment before I deliver my content. As a writer, if I were to send content to the client and then ask for payment, I have no recourse.

    I'm not sure how it works in other IM businesses. If I were doing graphics, logos, etc., I would request 50% down. You can have a simple contract drawn up to make sure both parties are protected, payment terms, expectations disclosed, etc.
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  • Profile picture of the author RySpencer
    I have been burned in the past, but luckily I am able to control the content and host the users mobile apps. When they decide to stop paying, I shut them down with one click. It's great.

    I do generally charge up front, and it has cost me a sale or two. I do this because I have put work into the app in the past without payment, and the client decided afterwards that they didn't want it. To me time is money, and a lost sale is not worth my time when I can just make another one.
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  • Profile picture of the author Seantrepreneur
    As mentioned in somacorellc thread link, I would strongly recommend Freshbooks. That what I use and its works great and makes you look real professional.

    Mostly all the work I provide is on a monthly basis so I always require the first month payment before I start work. That's really the best way to do business so you don't have to worry about getting burned at all. Plus, it really helps having a solid contract, which I just so happen to have.

    Hope that helps!

    Sean
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  • Profile picture of the author JayNine
    Thanks for all the valuable feedback.

    I agree with RySpencer. I've also noticed too that the higher paying customers are much easier to make understand the value, and don't have problem writing the check when it comes time.
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    • Profile picture of the author SamyE
      IF they refuse to put money down u front, then "alarm bells" start ringing....
      This is a sign of difficult clients who likely will give me lots of trouble down the road..... and make me wait forever for them to take my calls, return information or what ever is needed to move them forward...

      It is also a sign of some one who has no intention of paying for his service, ask you to do the work, takes the work, then never pays, and never had the intention of paying.....

      Most of All it means they have no commitment to the project, no commitment to give the project the resources needed, and no commitment you as the provider of the services.....

      Ask them when was the last time the car dealer gave them the keys and plates to their new car with no money down, and no finance and insurance documents all signed, sealed, and delivered???

      Samy
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      • Profile picture of the author cherry_b
        Originally Posted by SamyE View Post

        IF they refuse to put money down u front, then "alarm bells" start ringing....
        This is a sign of difficult clients who likely will give me lots of trouble down the road..... and make me wait forever for them to take my calls, return information or what ever is needed to move them forward...
        I'll maintain some flexibility with my down payment terms, but will not start working generally without something down. I would rather lose a sale here and there than to have a problem client....they will end up costing you money in terms of frustration, lost time/opportunities, being very difficult to work with and possible non or very slow payment.
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  • Profile picture of the author iAmNameLess
    If they aren't willing to make the investment in their business, then I'm not willing to do the work. I prefer 100% down, but I also have worked with people and done 50% depending on the total amount of the project. Always take something down, but shoot for 100% down since a lot of people will try to milk a little extra work from you before you get the remaining 50%.
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  • Profile picture of the author laurencewins
    Money upfront for new clients. Once they become regulars, I may change the arrangement if it doesn't suit them but I don't do work and then hope they pay because My time is valuable.
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  • Profile picture of the author abubakar89
    Well, I am flexible with those who have been working with me on regular basis ...... But for others I always ask for upfront ...... still I got burned once
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  • Profile picture of the author tryinhere
    Originally Posted by JayNine View Post

    What are your thoughts?
    While I understand why some people want payment down because of a missed or non payment, just some times, looking at what you can give rather than worrying about what you can take and sweating the little things like an odd missed or late payment may not be the real life threating thing it seems if you look at and keep in mind the big picture, as it may bring bigger rewards.
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  • Profile picture of the author kayetaylor
    I do the same thing with Lori Kelly, I would request 50 percent down payment.
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  • Profile picture of the author IMSince2003
    I usually get 100% upfront. Remember, the prospect grows cold the moment the contact ceases. Then, that other 50% is a reminder of their obligation and brings new angst and resentment and even sometimes buyer's remorse. Only if they really balk, cave to 50% if you need the business. That's been my experience in so many cases and I'm always glad I push for the 100%. TIP: to get it all upfront, tell them it's $1,000 right now OR 2 payments of $550 if they split it. Most businesses are happy to save some $$$.
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  • Profile picture of the author tomzuck
    Standard procedure is 50/50 but, if the client is one that I've worked with in the past, I may make an exception here or there.
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  • Profile picture of the author wilder1047
    I don't know if any of you guys got a chance to watch James Schramckos webinar that he did a couple weeks ago.

    It had some awesome content.

    Anyways, he highly recommended in anything you do that you collect the entire payment upfront.

    One thing he had noted with his web design service is people would pay for the entire site upfront.. and then end up never filling out the form to have it completed, through no lack of trying on Schramckos team.

    This translates into the consulting side because it can be a waste of your time trying to chase business owners around for your payment.

    I made a video for a kitchen company and delivered the finished product - it took him months before he paid me. I was sending him e-mails and calling him, never asking directly for the payment but it was suggested in a strong enough fashion for him to know that's why I was contacting him. Everytime I called I was told he would call me back.

    Anyways, I finally went up there one day - just popped in, we ended up looking in his e-mail and I saw my e-mails ALL unopened!!

    Sure we need these people for our business to survive, but they need us aswell. If they go with my competition I could really care less, but if I go with THEIR competition they shall prepare to be obliterated!!
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  • Profile picture of the author dame016
    Got burned once, too. Haven't received any payment for works that I have done. But that was one of my firsts, so I learned to forgive myself.

    Now, I just work with oDesk (hourly pay) so that I'll be sure I get paid.
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  • Profile picture of the author dame016
    Got burned once, too. Haven't received any payment for works that I have done. But that was one of my firsts, so I learned to forgive myself.

    Now, I just work with oDesk (hourly pay) so that I'll be sure I get paid.
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  • Profile picture of the author SiteSmarty
    For web design I get 50% to start. Place the site on a dev site I own. Finalize the project, then get the balance before I move the site to the clients server. Never had an issue (yet).
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  • Profile picture of the author johnny125
    With new customer I am getting upfront payment.
    After a few good responses from him, we change the conditions to payment after job is done
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  • Profile picture of the author WSO Scholar
    I use square to close my payments
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