In any industry you are not always sure you will get paid or paid on time.
There are 4 types of payers and this is how you can deal with them:
1. Good Intentions Guy
These clients have good reasons for not paying on time. Find a down payment method that suits both of you. Confirm this in writing. This is important so the client can’t weasel out of paying you again.
2. Disgruntled Suzie
This client is unhappy with everyone and everything, especially with all the work you do. They usually have the need to withhold payment until they are satisfied with your work. To avoid multiple revisions and added work on your end, it’s important to have a clause in your contract that dictates how many revisions are allowed on a project or task.
3. Croocked Bill
These customers just don’t pay or always pay late. When you realise this, advise the client you will require a certain percentage up front (go as high as 50 percent) before work commence and the remainder upon completion. The crooked ones usually hide behind big talks. Learn your lesson the first time when they fail to pay. Remember the saying: “Fooled me once, shame on you, Fooled me twice, shame on me”.
4. The Big Fish
These are big businesses that have longer pay cycles and can leave you without payment for months. Try to negotiate better payment terms. If you can’t, deal with this by having small clients who pay you on a more regular pay cycle. Remember the big fish always pay at the end.
Never work without a contract, your contract is your legal resource should things go sour. I know it’s frustrating to have to ask. My tip in these type of situations – Be KIND, COURTEOUS and RESPECTFUL. Even crocked Bill needs some love to a degree, don’t you think?