Relying on the Unreliable
There’s one huge obstacle that is a constant threat to your freelance success – your clients.
Strange, but true. The very folks who give you work and who rave about you to others are also the ones who don’t pay you on time (and in a few rare cases, not at all) and who drag out the process and the payment and create stress on your relationship. In my current situation, I’m worth a good deal of cash. On paper. The contracts are completed or nearly completed, yet here I sit wondering how I’m paying the bills this month. Why? Because a few of my clients have ignored the invoice or delayed payment on it.
From one client I billed two months ago: after waiting 29 days receive payment, I get a note asking for my SS# so she can pay me. That’s all it said. I sent that and inquired as to when I might expect payment. A week goes by and the response: “by the end of the month.” Uh, which month exactly?
From another client I billed recently: “I’m having some cash flow problems, but I promise to send something right away. Meanwhile, I have some more work for you.” Can you guess how eager I am to take that additional work from an already unreliable source of revenue?
One client was billed in May a few years back. I contacted him once a month regarding payment, adding late fees to my bills. It wasn’t until I threatened litigation in October that he called and put on the shocked-and-dismayed act: he said, “Lori, what’s the problem?” I said, “Dude (not using his real name), you haven’t paid me.” He then claimed to have never received an invoice, when all his prior emails, including the one in August that promised the check was just sent, proved otherwise. Whatever. Just pay the freakin’ bill. He did, but not the late fee. Fine. Whatever. Don’t call me; I’ll call you, pal.
Yes, I have many terrific clients who pay on time and without argument. To them, I give both my thanks and my best work. I’m a faithful worker bee if treated with respect. To the others – save your breath and my time. If you think it’s okay to let my bill lapse for three months or more, lawyer up. In my business, that’s my paycheck and I need it as badly as you avoid it. Oh, and for the love of all that’s intelligent, please don’t think your complaints about your own cash-flow problems means a hill of beans to someone who’s worked her tail off under contract for you. You knew going in (and you signed to that fact) that once we were done, you would owe me my fee. If your boss were to decide that your paycheck was an afterthought, you’d feel the same way.
At the moment, I’m looking for full-time work. Why? See above. I have tons of work and I have some very good clients. However, a few bad ones have caused me to drain my bank account in an attempt to pay the bills while they wait for a time when they feel like paying. It’s unfair, but I suspect there’s not much any writer facing this situation can do beyond threatening litigation (and frankly, who likes doing that?) and supplementing the income to cover for the lean times.
As you consider your freelance career, consider just how tough your resolve is. You must have an iron-clad collection plan alongside your business plan. You have to be willing to lose clients and possibly a little money in the process in order to protect your bottom line. And you have to understand just how often this happens. I would love to say that one or two defaulted clients in a career is all you’ll see, but I’d be lying through my teeth. It’s more like one or two a year. While I may be searching for alternative, more traditional ways to make ends meet, that doesn’t mean freelancing is not a good career. It is. You just have to plan for unreliable clients and hope they don’t come in multiples. Trust me – when they do, it’s damn tough to stay afloat.
Hi Lori,
Thanks for the boss story — I’m glad you saw him coming! :o)
I don’t know if it would help in these cases, but I found that adding a simple phrase to invoices helped. I was getting checks after 2 to 3 months, so I started adding “Payment is due in 30 days” to my invoices” (or pick whatever time works for you) and the difference was amazing. Mind you, this was with large corporate clients so it may be different for you.
Good luck!
Andrew