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Avoiding the Dangling Carrot Effect

What’s on the iPod: Lonesome by Dr. Dog

It’s been a busy week despite not having a ton of work. One project is monopolizing my time, but there’s real headway on it. Another project is coming in tomorrow (I hope), and I’ll have to split time yet again. Meantime, I write.

I was listening to a friend’s story about a client who’s late to pay. Just as she’s ready to call in the collection agency, he coughs up the dough.  However, it’s what he does right before she’s at the breaking point that really unnerves her.

He dangles another project in front of her.

It’s usually the promise of a project, and she says to date, none of these big, well-paying projects have come to fruition. Just a lot of small projects where her time is wasted chasing overdue invoices. She’s dumping the client because after three rounds, she’s on to him.

Who hasn’t been there? I sure have. I had a client once who would send me small gifts — gift cards — when all I really wanted was the damn check I was owed. I’ve also been where my friend has been. In a few cases, my otherwise-ignored conversations about where the hell my money is were answered with these same projects — the ghost projects that have no legs, no shape, and no chance of being seen.

It’s a ploy to keep a writer in a bad situation. Well, bad for the writer. The client? Happy as a clam getting work that gets paid for in his own sweet time.

I know some of you have already gone through or are going through these types of situations. There are ways around it, and ways you can deal with it and break the dangling-carrot cycle. Try these:

Refuse further projects. See, the carrot only works if you’re willing to bite. If you tell the client that no, unpaid invoices must be settled first before you accept any future work, you shift the focus back to the problem. I know why you don’t — you’re afraid the client won’t pay. Guess what? He’s not paying now. Have your collection process in place and act on it.

Bring up late fees. First, have them written in to your contract. Then when that conversation occurs, tell the client that at this time, he’s one day from incurring a late fee (or another late fee, as the case may be). And be firm — he needs to clear up the obligation to you or late fees won’t be his only problem.

End the relationship. Thank the client for the work, explain that you’re terminating any future relationship, but that the money due is still owed per the agreement. Don’t fall for the “I promise to pay more promptly” spiel, for it’s rare they follow through with it.

Remember it’s a business transaction. See, it’s the nice ones who get away with it. Sometimes it’s easy to get tough with the nasty ones, but the nice ones are used to getting away with things by using that charm of theirs. Ignore all emotional ploys, including the sweeter-than-sugar crap that tends to make you feel badly for demanding what’s due you.

Have you ever had a client who dangled a carrot? How did you respond? What works for you?

7 responses to “Avoiding the Dangling Carrot Effect”

  1. Devon Ellington Avatar

    Yes, I've been there. And now, when it happens, I refuse further projects. I don't need the stress. This year has been a rash of late-payers, and they are all getting replaced.

    If you've already demonstrated you can't cough up the dough on time, why would I think you change your ways if we work together again?

    The exception is if I toss out that I'll do it if I'm paid 100% up front BEFORE I start. That usually gets them scuttling back under the rock from which they came.

  2. Paula Avatar

    At one point, the chronic LatePayer promised to pay me for one project when I started the next. He didn't. I knew he wouldn't. I also knew they were up against a tight deadline, so I refused to turn in the new assignment until I'd been paid for the first.

    Yes. I held my own work hostage.

    After that I wouldn't take any new assignments if they had any past due invoices. (That's when they tried assigning me two long articles at the time time. No thanks.)

    Another writer didn't set those terms. I think she was afraid of losing her status as their most reliable writer. At one point she said they owed her over $5,000. I would have balked at $500. She'd worked with them long enough to trust that they would eventually pay her. After a while even she had enough of them and refused to take any new assignments – that was also about the time the publisher's two top editors quit. A couple weeks ago LatePayer asked if she'd be interested in writing for them. She refused.

    The only way I'd ever agree to write for LatePayer is if they paid upfront. They'll never do that, so I'm safe.

  3. Lori Avatar

    It's a never-ending cycle, isn't it Devon? I say they break the trust, they lose my skills. I like the upfront payment idea, though.

    You know another method that works for me, Paula? If I've sent the piece in and the check isn't forthcoming, I remind them that I still own the copyright until the bill has been paid. Knowing that they could get in trouble for copyright violation can help with the stubborn ones.

  4. Cathy Miller Avatar

    There have been a few times I broke my rule for waiting to start a project until a deposit was received. It's rare that I do it and I only have done it with an existing client.

    More than once, I've stopped the work and told the client that I would continue once the deposit was received.

    But, I can't say I've had a client who dangled another project while being past due on another.

  5. Lori Avatar

    You've had good clients, Cathy. I think you know the situation I've dealt with not too long ago where the client kept promising new projects that never materialized. In that case, there was no money owed, but there was something they wanted from me — a commitment of attention and effort (unpaid, of course).

  6. Cathy Miller Avatar

    Lori, I guess it depends on your perspective. I've had my share of late-payers. They just don't offer additional projects while I'm waiting for payment. 😀

  7. Lori Avatar

    Smart woman. 🙂

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