If the client doesn't pay...

Ruth Kaufman · Posted: Tue Mar 11, 2008, 20:22 (GMT) Post subject: If the client doesn't pay...

Suggestions on what to do if a client doesn't pay, please.

I sent her the MP3/invoice on Jan 14, payment was supposed to be in 30 days. I waited until this week, then followed up with another copy of the invoice. So far, no response. What next?

Thanks in advance,

Ruth

Gregory Houser · Posted: Tue Mar 11, 2008, 22:49 (GMT) Post subject:

If it were me, I'd send the invoice to Alex Torrenga (since he doesn't feel that we need protection from non-paying clients).

I'd send it with a 10% fee for late payment. My circumstances and resources are different, but when I've had non-payment after 2 months and the 15-day warning goes unheeded, I have my lawyer write a nice little letter with a copy of the contract included. That seems to get people's attention more than anything else (though I loathe to take that route).

Usually though, I get my bookings through my agent... make them do the legwork Wink

Frank Frederick · **Voice Seeker** Joined: 29 Dec 2006 Posts: 142

Gregory was close, since it has been quite a while since you sent the invoice; send a new invoice with late fees of $25.00 plus 1.5%/month (now two months late) contact your client - by phone. Explain the situation, offer the client a discount of one months late fee if they send the payment via PayPal today. If not, let them know you will send the invoice to your collection service on Friday. Then do so.

Good luck. You may still not get paid, and you may then take the non-payment off your taxes next year. You are a business person now, act like one.

Toodles

Frank Frederick
"The Voice" tm

Bill Campbell · Posted: Wed Mar 12, 2008, 00:08 (GMT) Post subject:

Call them every day! They'll get tired of it. You can make it a game.

Is this an advertising agency? They pay in 89 days!!!

Todd Ellis · Posted: Wed Mar 12, 2008, 02:23 (GMT) Post subject:

have you spoken with them? i think that's your first step.

do you know what their payment terms are? i have one client who is on a 90 day schedule. is it a P.I.A.? yes, it is. but i live with it because even though they pay slow --- they always pay, they pay pretty well, and they send me lots of work.

my point is, before getting huffy (and it MAY be necessary to become huffy) ask the question. assume, for a moment, that it is (a) an oversight (b) a miscommunication of terms or (c) something else that is easily fixable.

we are in the communication business ... let's communicate.

(edit) just read what bill said - yeah ... that.

Gaston Taillefer · Posted: Wed Mar 12, 2008, 11:29 (GMT) Post subject:

it happened to me that a customer does not pay me. In this case, I created a page "bad debtor" on my Internet site with the name of the customer and his company. I sent an email has this customer to inform it and I was very quickly paid.... Laughing

War is declared !! Cool

Caryn Clark · Posted: Wed Mar 12, 2008, 14:26 (GMT) Post subject:

I have clients that take 90 to pay. Like Todd said, just give 'em a call and ask them what their typical payment turnaround is. Remain friendly and positive... it is the key to good communication.

RE: sending the bill to Alex. I gotta tell you, I had a difficult client from TOS, and they wouldn't help me out with him b/c he didn't use SurePay. Won't even ban him from using the site, so he's still out there, posting jobs. Problem with SurePay - it costs both the seeker and the talent to use it.

Thomas C. Gass · Posted: Wed Mar 12, 2008, 15:26 (GMT) Post subject:

I think V123.RU has a special "money collection task force team" with powerful arguments... Shame on you

Seriously: If I agreed upon 30 days and the client does not pay, I send out a first reminder after 35 days, a second one after 45 days, a third one after 55 days giving him another chance for payment within 10 additional days before taking legal actions.

I never ever had a client that did not pay after the second reminder... A friend of mine who is working in debit management once told me, the biggest mistake one can do is not to react immediately. Sending out the first reminder after 60 or 90 days only gives your client the impression, that you have problems with your debit management and that it might be a good idea not to pay immediately - who knows, after another 90 or 180 days perhaps you might even forget that there is an open bill...

Thomas

John Bigl · Posted: Wed Mar 12, 2008, 17:15 (GMT) Post subject:

yiz bettah pay da purty lady if'n yiz knows whats good fer yiz aufs maul

Frank Frederick · **Voice Seeker** Joined: 29 Dec 2006 Posts: 142

If I may quote a line from the movie "Road House: " Be nice, but take out the trash..."

Be nice and remind them of their obligation to pay. Nudge them into taking immediate action by mentioning Late Fees (back that up with every client in negotiations by mentioning your policy of Late Fees and have it written and available to send if requested). Finally, resort to "taking out the trash" by taking to your collection department after 90 days.

Now, to quote the current J.G. Wentworth advertisement: "It's my money, and I want it now"; the truth is, it IS your money and everyday it is not available to you; costs you. As has been stated several times in this thread, be proactive about your business.

Toodles

Frank Frederick
"The Voice" tm

Caryn Clark · Posted: Wed Mar 12, 2008, 18:46 (GMT) Post subject:

EDIT TO MY POST ABOVE:

As a paying talent on TOS, I was no doubt disappointed that TOS couldn't help me with the particular client I mentioned above.

However, it should be noted that they have been helpful to me in other ways, unrelated to this situation. The staff there is great and they listen to suggestions, and Stephanie has been wonderful about giving me PR. For that I'm grateful. It's a good service... but they or V123 aren't going to be responsible for collection of your earnings (unless you use SurePay). That was my point.

Greg Houser · Posted: Thu Mar 13, 2008, 03:46 (GMT) Post subject:

Caryn Clark · Posted: Thu Mar 13, 2008, 04:15 (GMT) Post subject:

Hey... of course I know you didn't mean that literally; my point was just as you said above. They're not going to protect you (unless, in TOS's case, you use SurePay).

Unfortunately, this client wasn't willing to use SurePay or PayPal.

But I hear you....

Greg Houser · Posted: Thu Mar 13, 2008, 04:49 (GMT) Post subject:

I hear loud and clear, but I still think it'd be worthwhile to have something like that here.

I'm willing to give up a certain % (if it's reasonable) to ensure payment is properly received.

Caryn Clark · Posted: Thu Mar 13, 2008, 13:35 (GMT) Post subject:

Yes, I agree with that.

With SurePay, the seeker pays a fee (I can't recall what it is)... and on the backend, the talent pays a PayPal fee.... so it's not a fee that goes to TOS, but a fee nonetheless.

This was a large sum of money, and frankly, I wasn't willing to give up that fee. Normally, I would've negotiated it into my rate, but he wouldn't pay it. I asked.

And, the client wouldn't use PayPal OR SurePay anyway.