A few weeks ago, I chased up my business client on the day that my invoice became due. He always pays late, and I can’t afford to wait around. So I reminded him about the outstanding invoice. “Yes, I haven’t forgotten” he replied.
“I completely forgot to pay you.”
A few days ago he sent me a text message: “Hi Nathan, will you please text your bank details. I completely forgot to pay you.” That was despite the fact that my bank details are clearly shown on every invoice that I have ever raised.
“He forgot to pay! How can he forget to pay me?” I asked myself. After all, he was so keen for me to do the work urgently so he could secure a large contract for his business. As always, he had left it as late as possible before he called me. In fact, I had even stayed up through almost the whole night to do the bulk of the work before my very busy day ahead. Then, after receiving my invoice and reminder, he still forgot to pay!
Was I the Problem?
Then the answer hit me hard. Obviously, I had not charged him enough! Of course, I knew that anyway. He was my first business client, and he still contacts me from time to time for help because he loves my work. I undercharged him from the very first piece of work (to secure my first client) and have done so ever since. That is until the next time! I recognise that it is a problem that I need to address, and I am working on it.
What really made me think is that if I were to be in his position, how could I possibly forget to pay him. Being in that position plays on my mind all the time. Would I really forget any amount of money? No, unless I would feel that it is insignificant.
Things became clear to me. And I guess that for many of you, the reality of the following statement certainly rings true: The late-paying client who forgets to pay must have been undercharged!
The late-paying client who forgets to pay must have been undercharged!Click To TweetWhat Do You Think?
Do you agree or disagree? I would love to know how you feel. Please leave your comment, and share below.
Hi Nathan,
What a neat way to look at it. Could be undercharging, as when you’re not charging your worth the Universe seems to hold back from you. If the late payment becomes a habit, and if you’ve been undercharging, might be time to fire them.
Now, in a nice way, “fire” means release them for a new, higher paying, prompt paying client. Set up a vacuum. It’s worth a thought, especially if the late paying becomes a habit.
If someone can’t appreciate you and your services many prompt, prospering clients with deeper pockets, more gratitude, and great mindfulness will be happy to take your client’s place.
Simply think about finding a good match and releasing on a non match. Then both parties can both find better matches.
This is uncomfortable though. I’ve fired a few team members in my day….never a freelance writing client, per se, but after a payment I did vow to never work with someone again. I think the feeling was mutual but just in case, I released on them and decided that we were a poor match. This decision felt wonderful to make.
Thanks for sharing. Tweeting through Triberr Nathan.
Ryan
Thanks, Ryan.
Yes, you’re right. I do need to replace clients, but I can’t do it immediately. In effect, I have started again from scratch and have just been building my new website.
I need to get some more clients, and as soon as I am able to focus on them instead, I will.
Hey Nathan,
Interesting situation. Undercharging could be the thing that’s motivating that client to “yank your chain” so to speak. Probably thinking that you’re fees are less than competitors, that’s what make them think “Oh, I can pay later.”
But the real situation is that this isn’t a one time occurrence and that it’s becoming more and more of an issue. Don’t want to tell you what to do with your business but if it were me, I’d either:
1. Start charging more for that client.
2. Request payment before they receive whatever they’re paying for.
3. Start collecting half the payment before starting on their project.
4. Start charging interest on late payments.
5. “Fire” them as a client.
It’s very tacky what that person is doing and not really professional. How can they maintain a business if they’re always late with their payments? So those are what I would do personally.
– Andrew
Hi Andrew.
Numbers 1 and 5 are the options that I have in mind. My plan is that when I can get enough of the ideal clients, then I can show him that this is the going rate that my clients are paying. I won’t be undercharging him anymore.
Although it’s tempting to do so as I really need the money, I’m sure that if I keep on trying to do the right thing then somebody will notice me sooner or later. That’s what I’ve worked so hard for, and I won’t be giving up now.
Thanks for dropping by to comment.
Nathan.
Truly, they could be undercharged. I have similar powerful client that hasn’t paid for a project our team embarked on in June. Thanks for the write up Nathan.
I know the feeling. Thanks for dropping by to comment.
You’re most welcome…
Hey Nathan
It’s not a nice situation to be in when you’ve invoiced a client and they never pay on time. It would be easy for me to say ditch them but that’s not necessarily going to be something you can or want to do.
What I would do is remind them well before the due date and continue to do so every few days. How long do you give clients to pay an invoice?
Hi Tim.
I give them 14 days, which I think is quite generous for someone in my position. He finally paid after a month and a half, after I called him every day for a week!
I’ve had the idea for a while of charging on a two-tier system, and I will probably use it. I need to raise my charges anyway as I’ve always undercharged compared to others. I will do that, but also have another charge which is much lower, and with a caveat. The lower charge will be available for those who pay up front.
Thanks for stopping by to comment.
Nathan.
Hi Nathan,
Interesting topic of discussion 🙂
I wonder if you take or took any advance payment before you proceed working for your client, which you must. That kind of divides the risk, and if they don’t pay their part, of course you shouldn’t work for them at all. I am sure there are many more out there who would pay.
Undercharging may or may not be an option, and I personally feel such people have a habit of not paying, not just you, it could be anyone. Being a freelance writer myself, I guess I can make out a little from the way they behave and haggle, and even if they don’t I always take advance before starting work, and that helps.
Thanks for sharing. Have a nice week ahead 🙂
Hi Harleena.
Thanks for your comment.
I have never charged in advance before, but I want to address that soon. I have an idea in mind which involves increasing my charges, and charging less for those who are willing to pay in advance.
Perhaps I should also have a third option between them, for 50% advance payments. I’m soon going to rebuild my website anyway, and by the time I’ve done that I will have come to a decision.
Thanks for stopping by to comment.
Hi Nathan,
Thanks for posting this. I think it could be a number of issues if a client doesn’t pay. I have faced a similar situation where I did work mostly for free for my first client!
It comes down to posture I think. Was there a written proposal agreement signed by yourself and the client? Also, taking money up front is key. Explain that you cannot start the work until 50% is paid upfront. Limits the risk for both parties. Wishing you all the best.
Kevin
@bantumarketing
Hi, Kevin.
Yes, you’re right.
I have established some written agreements since then. But 50% deposit upfront is the way to go for project-based tasks.
Having just rebuilt my website (again!), I intend to update and republish some of my old posts in the coming days. Then I will write some more new posts next month to look more credible again.
Thanks for stopping by to comment.
Nathan.
Hi, Nathan,
I agree with Harleena’s comment – taking something up front, and some upon completion is a good solution, but it has to work for you.
Payment in advance is also customary, so please update us to let us know what you decided.
I enjoyed reading your article, and I think you have a wonderful way with words.
Have a great Tuesday coming up.
Speak soon,
˜Carol
Hi, Carol.
Thanks for your comment.
Harleena’s suggestion is something that I will definitely put into practice with new clients.
I was hoping to post something new the other day, but I’ve been dealing with problems with my web host. I’ve just transferred to a new one, and all my updates, emails, and comments for the past 5 to 6 weeks since have been lost. I rebuilt my site during that time, so will have to start again.
I will try to fit that in sometime within the next week, and let you know.
Nathan.
Hi, Nathan,
I’m SO very sorry about your hosting problem and lost data. Oh my, that is horrible!
That should have been a simple migration – from one hosting account to another. Wish you had checked out my service, I would have definitely taken care of you.
Anyway, yes – please keep us updated and am looking forward to your new content. 🙂
Have a blessed day.
˜Carol