One of the questions I get asked the most often is, “How do you deal with clients who don’t pay you?”
First of all, I never let money get it the way. I will always work out a financial solution that will get me working and will service the client. Secondly, I set the stage for success with my clients by communicating my rules to them right from the beginning of our working relationship.
When the client is on a budget, I’ve got two rules. The first is, you can’t cancel an appointment. If they are on a budget, and thy cancel an appointment, now they’ve cost me money. I could have spent that time with a full paying client. Do I let them cancel? Of course I do. But I make sure I communicate the impact.
The second rule is that there’s no such thing as not sending me a check. There are only two things the client can do: 1. Send me money or 2.Call me up. But they don’t have the option to either not pay, or not call me. It’s not okay.
I’m very immersed in my client’s business; I know where they stand financially. I will tell you I’ve gotten calls where the client has said, ‘Mark, I don’t think you handle your accounting very well.’ I say, ‘What do you mean?’ and they say ‘Well, you haven’t sent me an invoice in 90 days.’ In my mind I’m thinking I know they can’t afford to pay me; that’s why I haven’t sent them an invoice in 90 days. I say thank you so much, let me check into it. I’m cognizant of what’s going on and I’m reacting to it.
By having these straightforward conversations from the beginning, communicating impact and not making it about the money, you’ll find that non-payment becomes much less of an issue.
What are your rules with your clients? Are you clear and straightforward from the beginning what your expectations are around billing? How do you deal with clients that don’t pay you? Leave your comments below.