[thelist] Business/Payment Question........

aardvark roselli at earthlink.net
Sat Dec 29 01:24:50 CST 2001


> From: "iibiz" <sales at iibiz.com>
> 
> One of my clients, who is very demanding by the way and expects
> immediate turn around on updates, then proceeds to take anywhere from
> 30 to 60 days to pay.  I'm done messing around with this, and want to
> post their changes to the "temporary" file that I have set up for
> approval, and then tell them that they won't be posted to their site
> until payment is made.  I know they're gonna have a cow, but I don't
> think this is a very unusual practice - is it?

i think that's the kind of practice that fosters anything but a good 
relationship with the client... holding their work hostage is how it 
can be seen on their end, and it removes any trust...

try a different approach, one that can benefit you both...

how many hours a month do you spend doing work for them (on 
average)?  take that number, put together a reduced hourly rate, 
and offer them a pre-payment deal...

so, let's say you spend 40 hours a month on their site... offer them 
a deal where they buy 40 hours every month at, say, 10% off... you 
do all your work up to 40 hours, and then bill them as normal (or 
halt work until they approve it, etc.)...

this way, you get your money in advance, and they save some 
money (also makes it easier for them to budget it, and they're on a 
regular payment schedule, which makes it much easier to get 
checks out)... that discount should be based on admin time you 
would normally spend to track down your money... so if you spend 
4 hours a month on the phone normally, even selling your 40 hour 
block at 10% off, you come out ahead since you would no longer 
be wasting 4 hours a month tracking down checks and managing 
your client...

explaining it this way to your client (in nicer terms) shows them 
that you value them as a client, still want to offer same-day turn-
around on tasks, and they save a bit on your rates...  it's win-win, 
and no deal is a good deal unless both sides win...

remember, this is the web... if you insist on holding up changes for 
payment, that client will walk when someone comes along who can 
offer the immediate service they want...  i hate to say this about 
the other feedback you've gotten, but you're probably better off 
disregarding it...

> What kind of payment terms do you all demand?

30 days, which is pretty normal...

and if someone demanded i pay before they hand over my work, i'd 
hire someone else with whom i can have a more trust-based 
relationship...





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