From the article: What To Do When a Client Will Not Pay
In a perfect world, clients would always pay on time and in full. However, over the course of a graphic design career, it is almost inevitable that you will come across clients who pay late or not at all. When this happens, you want to handle the situation professionally to maintain the relationship, but you also want to get paid... share your advice below on how to handle late-paying clients. Share Your Advice
Handling Custom Orders
- I've had a few clients duck out or plain disappear after completing an expensive custom order. Those things that I make are very personalized, 50% of the price is to cover the material cost and since those items are very personalized and cannot be resold to someone else. It was a total loss. When your just starting out it's okay to accept pay after completion orders. But once you build up about 5-8 sales with happy clients it's time to shift gears and make your business and time worth it for you. I now only accept orders if people pay in full in advance.
- —AmericanSilver
You can't call people out like that
- Calling people out and putting them on a weblist because they can't or don't pay is blacklisting. It's irresponsible behavior and should not be done. If someone owes you money it's your responsibility to go get it.
- —AmericanSilver
GET PREPARED
- I'm suggesting you always have a background information on your clients. A few principles can realy help... Every potential client will fall within three categories: The serious ones, the skeptical, and those who will merely waste your precious time. Devise a means of handling each category. I hope you'll get through and still have your money in the end. Try to find out about your client's system, status, and associates to gain knowledge of whom you are dealing with before you go too far into business with them. Everyone wants to make profit either legitimately, or by not paying for services rendered.
- —Guest James Odo
firm hand
- I take the personal approach at first. Ask them if there is a personal problem, and tell them that I can work with them on trying to provide a situation that is helpful to them and amiable to both of us, usually a payment plan. They should, however, be willing to offer something, a gesture, if they would like to delay payment. Whatever the results, I hold them to it. If they fail to remit some kind of payment, then my working assumption is that they are not going to pay. At that point I leave one more email, maybe a couple if I think they will really come through. Never sound desperate or angry, and I never try to guilt or shame. I keep it strictly business, and even have an understanding tone. If they don't respond, then a legal document is on the way. The shock at that point is that I mean business, no more mr nice guy, has always done the trick. If they are feeling shame, they will pay, and the relationship can continue, though with conditions.
- —Guest dogbreath
Learned the Hard Way
- I've learned the hard way that if a client has your work they have no reason to pay you. So instead I look at it as buying a piece of bread... you don't get ownership of the bread until you pay for it. Also, another safety I require is a 50% deposit based on the estimate and don't release any files until payment is received in full whether it be by check, or Paypal, etc. If a customer complains about a deposit, explain that they have seen your samples, so they know what type of work you do and that you can not make an investment of your time if they are not willing to invest in their own product. I've had much more success in getting paid this way. But you have to use your best judgment. For smaller jobs or for an established client I won't require a deposit, and when I work for one PR firm I don't push any of my rules on them because the pay is good... but it is ALWAYS late. At that point my last tactic is the holy late fee which no one likes to pay. Good luck!
- —Guest YELLmedia.com
What we need...
- I wish someone would set up a web site that designers could use to warn each other about notorious clients who do not pay. I have had two in all these years that if someone had warned me I would have seen the obvious red flags. I am not a web designer or I would do that myself. One of the clients I mentioned is a movie director who has a trail of unpaid designers. She continues to use our art and nothing short of a law suit will stop her but who has time for that? With my regular customers only a gentle nudge takes care of late payers. It's usually an oversight. After you have freelanced for a while, the gained respect helps a lot. None of my customers want to lose me anymore than I them. Have confidence in your work and customers will too.
- —Guest Jac - FREELANCER
It's the principle
- I have had 2 clients that thought they didin't have to pay, and even though they were in a different city, I sent a collection agency to collect from them. This was after numerous attempts of talking to accounts payable and emails stating the "cheque was in the mail." This went on for 6 months, but in the end I got my money for the services. One of the amounts was just over $300, it was the principle, and I didn't want them thinking they could do this to someone else. -M
- —Guest Mandy B
