In my industry I have struggled with the idea of giving people time to pay an invoice when work is already complete. I’m not sure about everyone else but when someone hires me to do web design or internet marketing they want it done yesterday. And unfortunately when it comes to paying many clients take their time as they already have what they want and are in no rush to pay the bill. Usually it takes multiple phone calls and even visits to companies to get paid. How has this become almost standard?
So what doe’s a business do in this situation? A couple solutions come to me. First, a woman in a network group I belong to said there is a company that will pay you on the invoice and collect payments for a 25% fee. I don’t know about you but that’s a large chunk of change. Actually that’s more then a sales person gets for pulling in the job. I can see that service working on outstanding bills but not just to get paid on time.
The second is my new approach. Which to me is how it should be. When a Client signs on to do work with us I set it up payment arrangements in milestones where there is a percentage due at each completion point. Then once the project is at 90% final payment is requested before the project is delivered. For monthly plans I have automated recurring payments or pay forward scenarios. These steps keep both parties motivated and current. It’s like a lay away plan. If you want it you will pay for it. I have struggled and I have seen so many colleagues that provide my services really suffer from this as well. Why is so hard to get the money that is owed for something the client wanted yesterday. Could you imagine going to a local bike store and ordering a bike and telling the owner to send you a bill and you ride off with the bike. No way! Not unless they offer a credit card solution or some other gimmick. But were not loan specialists so why should it be so different with providing services like website design or marketing. My business has been strained to long from this way of business and I look forward to the growth ahead. It’s not unfair to ask for something do be done today and it is also just as fair to get paid today for the work that’s done.
Anyone else struggle with this and have new ideas or comments for this long time problem in the marketing and design world?
