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Not being paid? The key is to not get into this situation in the first place. Here are a couple of ways to prevent this from happening. Get a contract, have it signed, dated for the services to be rendered. Forget a verbal agreement or a handshake. With the turnover in staff at all levels the guy you make the deal with could be long gone by the time you need to get paid. SPELL OUT in clear English the dates that payments are to be made and the amounts. This holds up quite well if you need to get a lawyer involved for the collection. Offer a discount if the contract is paid for in advance. 10% is a good number. You'd be amazed at how many people will jump on this. There are tax advantages for some, there are others who like the 10% savings. Offer this incentive and it will work for a percentage of the business. Next, take credit cards and tell customers that they will be charged on a certain date on the following months. It can be a fixed amount or the actual amount of the service. Also get a signed document that indicates the service charged is non-refundable so it'll hold up with the credit card companies should the customer decide to try to get the money back. The last thing you want is several hundred or several thousand dollars being removed from your account without notice. Knowing who you are doing business with and having this form signed will help you fight the "charge backs." Get a credit card backup on all accounts. Tell customers that they have ten days to pay the bill by check OR, the credit card will be charged. You'll know if there's a problem right away if you've got money issues with a client. Why wait until they owe you several months worth of work find out? Get paid in equal monthly amounts NOT based upon anticipated work flow. This way you get even cash flow month to month and can plan accordingly. Do bad things happen to good people? Yes you bet. Even as I write this I have clients who are negatively impacted by the changing economy and have slowed down their payments. What can be done about that? Stay in touch with the person responsible for paying the checks, signing the checks etc. Develop a relationship with them, be polite, do not demand, be friendly, so when they have a chance to pay someone they select you over someone else. Sound simple? It is. Scott
Lorenz is President of Westwind Communications ( www.westwindcos.com ), a public relations and
marketing firm which specializes in marketing authors. His clients have been
featured by Good Morning America, FOX & Friends, CNN, ABC Nightly News,
ESPN, The New York Times, Nightline, TIME, PBS, NPR, the Los Angeles Times, USA
Today, Washington Post, Family Circle, Woman's World, & Howard Stern to
name a few. To discuss how Westwind
Communications helps its clients get
all the publicity they deserve and more visit www.westwindcos.com/book or call
734-667-2090 or email scottlorenz@westwindcos.com.
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