by jaudet
8 replies
Hey guys,

I had just a quick question, that look pretty simple I am sure but for a new person to offline marketing, I did not find an answer yet.

Let's say that I am contacting different businesses on the phone and by email, introducing me and my offer to work for them to create a website for them and drive traffic ... In some cases, I might close a deal directly speaking on the phone or email.

Now, if they don't pay the full payment upfront, how can you create the commitment so you are sure you will get paid your price and/or commission and how would you collect the payment ? Because even if the business owner tells you he will pay let's say via paypal after 1 month the balance, how do you make sure he will do so ?

For those who do it for many years, it sound simple but it was not clear for me.

Thanks!
#collecting #payment
  • Profile picture of the author somacorellc
    Charge twice as much as you're thinking and collect half up front.

    Just say:
    "So to get started today I just need to collect 50%, what kind of credit card will you be using?"

    Then, when they've approved your project, you say:
    "Once the final payment is received we'll go ahead and install this on your server" (or whatever the last step is)
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  • Profile picture of the author Lori Kelly
    Use a written agreement.
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  • Profile picture of the author towhidzaman
    Nice topic. I'd LOVE to take some advice from you guys,,
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  • Profile picture of the author sdingram
    Yes I have a written agreement that I email them and get them to print out, sign and fax to me. I charge 50% upfront and the balance is due before going live. I am referring to Wordpress sites and mobile sites.

    Lately I have had a number of clients who never seem to be able to finalize it and therefore I am waiting on a lot of the "second half of the payments". It's so annoying!

    I agree with the person above who said to charge double. I don't know about double, but that would solve my problem.
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  • Profile picture of the author MattSchoenherr
    Charge 50% up front. Then charge in increments as the site progresses. For instance, when you reach the 75% complete mark, you should send them another invoice. If they balk, you wait until they pay to continue the project. We lost over $9,000 on a project last year because we continued working in good faith. Then the client just decided they were done paying. Obviously, they're not a client anymore.

    Oh, and outline everything in a contract. They send you the signed contract and the opening payment first, THEN you break ground on their project.
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  • Profile picture of the author sdentrepreneur
    I suggest getting paid up front. Many of my clients start off with $1,500 first month and then $1,000 per month. If by month 3 they don't pay, I stop the work and lead gen for them. Every client also have a 30 day opt out in their contact. Either party can opt out as well.
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