Stop chasing clients for money and always get paid on time - A guide for business owners and creatives
Hi Friends! If you’re tired of chasing clients for money and would like to get paid on time, every time, join me as I show you how. (If you prefer to watch the video, please check it out here…)
Hi, My name is Lucas and I love to help business owners and creatives improve their finances - one of the easiest ways to do that is ensure that we get paid on time.
Whether you’re an artist, plan weddings, coach people or have some other small business… getting paid on time is crucial for good cash flow. Now let’s get to it.
Stick To Your Guns
In my mid 20’s I used to assist one of the world’s top photographers. There we were on day 1 of a 5 day photo shoot. The client was a well known brand, the budget was over a million dollars and the lighting and camera were set BUT.. there was 1 small problem.
My boss refused to start. WHY? He had not been paid.
The client had signed his contract, put down a deposit and assured him that the rest was “in the mail” but his terms had not been met so we sat.
They did their best to persuade him to start, but after 45 minutes they realized he wasn’t bluffing and he wasn’t budging, so they scrambled to transfer the money. It took a few hours but once the funds hit his account, we had a great shoot!
The takeaway? When we allow it, client’s will take their sweet time to pay. The solution? Have a clear payment policy, a simple contract & invoice and ALWAYS stick to your terms…
Step 1: Have a Payment Policy (that you never stray from)
The first step to ensuring that you get paid on time is to create a clear set of guidelines as to how and when you would like to be paid.
My boss required 50% up front and 50% due before he captured the first pic. My video editor requires 30% up front, 70% when he delivers the video. I know a few event planners who require 4 payments at 25%.
Every industry is different so chat with a few colleagues to see what they do and then test a few things out. The goal is to keep your terms simple - If they’re too complex or confusing, the perspective client will go somewhere else.
When it comes to your policy, it’s a good idea to ease into things. For example, on the first call, I get them talking about their goals. Then I guide them to the services I think they’ll enjoy and get them really excited about working with us. Once they’re feeling comfortable, I share my payment policy.
As a bonus tip: take notes so they don’t have to and immediately follow up with an email. Be sure to include your services, pricing, payment policy and what the next steps are should they want to hire you. And since you’ll be sending this email to all perspective clients, create a template that you can use again and again.
We’ll look at how to implement these terms in the next step but for now, all you have to do is decide how much you would like to be paid and at what time.
Step 2: Enforce your guidelines/terms with a proper contract and invoice.
Now it’s time to implement your guidelines with a contract and invoice that clearly outlines what the client can expect and when payments are due.
It’s your job to remove all friction from this process and make it as easy as possible for them to give you money.
I used to accept regular checks (to save on fees) and have clients sign a pdf contract but both created more work for the client so I switched to a software named Dubsado.
Now, the client can sign and pay in less than a minute. Plus, they can choose a payment method that works best for them (cc, PayPal, bank transfer, etc). Dubsdao makes everything so easy for the client and it’s like having my own personal assistant.
Regardless of which contract and invoice system you use, the important thing is to clearly outline your payment amounts, due dates and of course all necessary details for the job and then get it signed by the client. Now this is where most people drop the ball…
If you’d like to guarantee payment, DO NOT start work of any kind, until the contract has been signed and the deposit is in your account. And of course, DO NOT hand over the final work until you have been paid in full. Stick to your terms.
My boss had been in the game for 3 decades so when the client started in with the “the check is in the mail” excuse, he smiled with confidence knowing he was covered with the contract and called their bluff.
And if you’d like to avoid that situation all together, clearly communicate your policies up front.
If you’re tired of chasing clients or not being able to plan out your finances because of late payments, Have a clear payment policy, a simple contract & invoice and ALWAYS stick to the terms.
If today’s subject is helpful, I’d love to hear from you. Please feel free to comment and I’ll do my best to respond.
Today’s lesson is a tiny fraction of what I share in the Big Split program so if you’d like to transform your finances in 1 week, click here to schedule a free 60 minute call with me.
Thank you for your time and energy. I’ll see you in the next one.
Lucas Z.