Monday, November 26, 2007

How to Get Your Clients to Pay on Time

Well, I've gone and done it.

First of all, the headline is not true. I don't have the answer. I have some ideas, like taking credit cards online and calling the client rather than emailing them, but nothing works every time.

The real advice is that I should: 1. Not do any more work for them until they pay, and then 2. End the relationship once they pay.

I had this idea a while back about how to make my clients pay me sooner. We all have those clients. You know, the ones that somehow forget that you need money to pay bills and buy food. Well, I've got a couple.

I'm usually very forgiving and email a few times, then call, then call again before even thinking of doing anything drastic. I'll even show up the clients' home or office in hopes that they have a check waiting on the "outgoing" pile they were going to mail.

I always start my emails: "I've been having problems with my emails lately and I'm wondering if you didn't receive my last invoice...I've attached it again just in case."

That works...usually.

My next effort is to email them and tell them that I have a bill that hasn't been paid. I blame my accounting system and ask if they would check their records to see if they paid it and got lost in the mail, or if I deposited it and forgot. I've actually done that, so it's not a total fabrication.

I've had my wife call and say, "This is Leigh of GoycoDesign, and we show an outstanding payment here for (this amount), when can we expect to receive payment?"

She's got such a sweet voice.

Of course, I have had to resort to calling and asking them outright if they are able to pay a partial payment of the invoice. Anything. A good faith amount!

I've thought about early payment discounts and late payment penalties, but have never done either of those.

My assumption is that they overlooked writing me a check.

Well, for most clients, that's the case. But I have one client who owes me money and just keeps on coming up with excuses. His latest was to tell me that he's got many people he needs to pay, and the loudest is the one who gets paid.

Basically, he just gave me the go-ahead to bug him until he pays me, right? You see that too, don't you?

That brings me to my crazy idea. I constructed a campaign using my kids in an effort to pull some heart strings.

I realize I could just call a collection agency, pay the fee and be done with it, but I guess I'm too nice. I try to justify it by saying that they might need me for more work in the future, but do I really want to work with them again?

It's really become a game. It's been so long that they've owed me this money, it's become a challenge, a conquest. Like a dragon I need to slay. Well, sort of.

The image to the right is part one. I sent it last week and I have yet to be paid.

I'll let you know how it goes.

Hope this helps

Jorge

5 comments:

terry said...

In business, Our reputation and good-will depends upon our dealing with customers. Money and work is deal between us and customers. After completion of the work every person need to get his payment by time. Here are very good tips on Brave Heart Community www.braveheartwomen.com

Bri said...

I like the sad kid campaign - but it's more humerous than incentive. I remember having an issue like this once before and printed out a newsletter "Man Abducted by WorldComm!" and made it very inquire-esque. Then it was mailed to the CEO, CTO, CIO, Marketting Director, IT Director, and the secretary of the department that I had business with. I was somewhat promptly compensated.

I think the point here is twofold - 1. Creativity gets marks and attention. 2. Get ahold of as many influential people as possible. You'll eventually become a watercooler conversation and not easily forgotten. That makes you a thorn in the side of whoever in the company made the mistake of not paying up.

Cheers
-Bri

DesignTime said...

Hi Jorge,

Interesting Idea, did it work

Tara GDB

Jorge said...

Hasn't worked yet. I sent photo number 2 and it got their attention. I'll post about it this week.

jorge

Tim Symchych said...

Jorge,

Your post made me laugh. I doubt it will convert those that are having difficulty paying but it certainly shows your positive spirit.

Hope all is well with you and your family.

Tim Symchych