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Free Advice Friday: Extracting Pay from Writing Clients

What’s on the iPod: Call Girl Blues by Diamond Rug


Snow. I love it. Good thing, because late Wednesday night after we’d gone to bed, it started coming down. By morning, we had over 6 inches in the driveway and it just kept coming down. I’m writing this ahead of time should the power decide to abandon us again, so the snow totals, expected to be upwards of a foot are yet unknown.

Because of last week’s electric deficiency, I hadn’t prepared the Free Advice Friday post. I had a feeling the power would cut out, but who knew it would be four days later before the lights came on? I’m taking no chances this time. Our snow is expected to turn into sleet by noon before changing back to heavy snow. That sounds like a bad, bad combination.

Today’s Free Advice Friday: Getting Clients to Pay

One of the questions most writers struggle with, at any career level, is “How do I get clients to pay?” It’s not a new question — I wrote an article for Writer’s Digest back in 1997 on that very topic. As long as there have been freelance writers, there have been clients looking to skip out on payment. The reasons can be justifiable, but more often than not, they just don’t want to pay. Here are a few reasons why you might have a client refuse or avoid payment:

  • Their budget disappeared
  • The project got dropped/they decided not to use what you wrote
  • Your contact person left the company
  • Their friend/spouse/uncle/cousin has decided you’re not a very good writer
  • They’re having financial difficulties
  • Your invoice is low on the list of priorities
  • They forgot
  • They suddenly decided they don’t like what you wrote
  • They’re now looking for something else and don’t think they owe you for work they’re not using
  • They never intended to pay
There are plenty more reasons, but this gives you an idea of what you’re up against. For some of those reasons, such as them not intending to pay you, you can build some protection into the arrangement that makes it a little easier to extract payment. 
Contract up. If you’ve not worked with them before, that’s absolutely essential. If you have, make sure you have at least an emailed agreement of project scope and price and ask them to confirm it. It’s much easier to get them to pay if you’ve formalized it. Also, it’s a psychological edge — they’re committing to the project by signing, which means you’re now partners. For more on what should go into your contract, read Cathy Miller’s guest post here.
State your payment terms explicitly. Not just how much you charge, but that payment is due even if the client decides not to use what you write. If you have it in a contract and if you explain it in email and they agree, there will be fewer questions later.
Get a deposit. Especially with new clients, you should be getting at least one-third of the fee upfront — ideally, shoot for half. Again, it creates a psychological commitment, plus it gives you some compensation should the contact leave, the project get dropped, or any of the other issues that can come up at payment time.
State specific project end dates. I made this mistake early on — I stated that the payment was due at the end of the project. Only, I hadn’t defined when that was. With one client, I waited nearly 18 months for payment as he kept coming back for minor edits. Use your better judgment, but it’s good policy to allow them two weeks to respond with any revisions before you send the final invoice. 
Clearly define late fees. Just try collecting a late fee if you’ve not put it in your contract. On the few occasions I’ve had to charge one, I’ve never collected it until it went into the contract. For me, the goal was to get the original amount owed, but why shouldn’t you be compensated for having to waste time chasing the payment?
So now that you’ve beefed up the contract language, let’s deal with one more way to get the payment that’s due you. We’re going to create an invoicing system. A simple one would be:
Decide on due dates. Are you giving them 30 days to pay or 15 days? Make sure it’s spelled out, and you can do what I do — I point them to that particular section of the contract so that they understand there’s an expected timeline and a collection process. While it’s true they should be reading contracts thoroughly, you’re not their only contractor, I’d wager, so the extra reminder might be welcome. I usually word it like this: “Just wanted to point out a few key sections of the contract, including the invoicing process. Let me know if you have any questions.”

Send invoices on time. If they have to pay on time, you have to remind them of it on time. Get in the habit of sticking with your process. Should it ever come to something litigious, you have proof of a consistent process, and that looks good in court.

Send a set number of invoices. I wouldn’t allow late fees to just keep piling on with no recourse for collecting. If all you’re doing is adding to what the client owes, you’re not really motivating them to pay what’s turning into a really large bill. Instead, give them two or three invoices, then kick it up a notch.

Escalate. Three invoices in, your client is clearly not paying. Time to haul out the alternative. My last invoice states “Pay within 10 days to avoid litigation.” Every time I’ve used it, it’s resulted in payment. Beginning writers, don’t be afraid to use it. You’re running a business, not a charity. Offending a client who’s showing no reason to be trusted isn’t costing you anything. And if your client is worth keeping, they’ll apologize, pay up, and not repeat the behavior.

Writers, how do you ensure you get paid for your work? What can you add to the list?

10 responses to “Free Advice Friday: Extracting Pay from Writing Clients”

  1. Anne Wayman Avatar

    Like most, I've been stiffed… knock on wood it hasn't happened in a long time – for all the reasons you state – contracts! Deposits!

    I've had book ghostwriting contracts blow up… but I've always gotten paid for the amount of work I've done… because I get it up front.

    Learned to do this because of getting stiffed actually.

  2. Jake Poinier Avatar

    Like Anne, I've been stiffed more times than I care to remember over the years, though it's been a while. Defense is the best offense: Get a deposit from any new client, particularly if it's a sizable project.

    In the interest of honest disclosure, the area I struggle is sending invoices promptly. I loathe bookkeeping. 🙂

    Lori, thanks for your contribution to my "things I love about freelancing" post this morning–happy Valentine's Day!

  3. Cathy Miller Avatar

    Then outsource the invoicing, Jake, to a reliable, needy assistant. 😉

    Like all of you, I'm sure, my contract changes are proportional to all the ways we've been burned. 😉

    I spell out the number of rounds of revisions included in the fee (never more than two).

    I put that no feedback within XX # of days assumes the copy is final.

    I spell out that the work will not start until the deposit is received. I admit I tend to relax that for existing clients. I still require the deposit, but may get started on the research.

    I've also started billing when the draft is sent. Accounting departments seem to have their own special kind of clock. 🙂

  4. Paula Avatar

    Despite my ex-client LatePayer's best efforts, I managed to collect every penny due. That took several late notices, almost daily phone calls and, finally, a reminder that the right to publish my work is contingent upon payment, and if they didn't pay immediately I would be forced to pursue other avenues to collect payment. Then I threatened litigation. Amazing how quickly they found their checkbook.

    On two occasions I've written articles for publications that folded. Once you get the dreaded letter from an attorney outlining how the company's meager funds will be allocated to creditors – and see you're near the bottom of a very long list – you know you're out of luck. The worst part was discovering self-employed people who use the cash accounting method can't declare those unpaid invoices as lost income. Doesn't seem fair.

  5. Lori Widmer Avatar

    Anne, ditto. That's how I learned in a number of cases.

    Jake, I used to waffle on sending out invoices, but now I'm in the habit of sending them with the final revision. Then I open Outlook and make a note 20 days out to tap the client on the shoulder if the payment hasn't arrived.

    Cathy, I relax that too for existing clients who have already paid and proven they're intention to continue doing so. One former client used to like to tell me "the check was just sent" and then ask me to do something else. I'd usually hold off a day or two before answering, then tell him yes but extend the deadline another week just to make sure that check was really on the way. He would always dangle the carrot, though, as if he were talking to some starving artist type. Weird.

    Paula, I've had that dreaded letter, too. I'm going to talk to my accountant — I wonder since there's ample proof that the money was owed thanks to reams of court documents, would that be allowed as a deduction?

  6. Paula Avatar

    I'm no tax expert, so when it happened to me I dug around online and at that time (8-10 years ago) I gleaned that those types of bad debts are only deductible if you use the accrual method of accounting. Like most freelancers, I use the cash method of accounting. (I know this thanks to Schedule C.) If you're incorporated, you might have better luck.

  7. Jennifer Mattern Avatar

    I had to have the late fee lecture w/ my hubs recently. One of his development clients kept stalling the project (waiting on another one of their contractors — completely out of my hubby's control that they weren't staying on top of the guy to get him what he needed).

    Anyway, the client threatened to "hold his invoice" until the work was complete. He's on an ongoing contract where he invoices and gets paid by them every two weeks for hours put in. So they want to hold his contract (not pay on time) because they delayed the project by outsourcing another part of it without telling my hubs that up front or staying on top of the other guy.

    I asked him how big of a late fee he'd be charging if they did hold the invoice. He turned bright red and looked like he wanted to kick himself. Then he got the spiel about how important they are. (Poor guy. I'm a nag like that.) You can be darned sure he'll never make that mistake again — or work with this client again.

  8. Lori Widmer Avatar

    I think you're right, Paula. I just wish there was a way to claim it when there's a proven instance of the invoice and its rejection, as it is now a court document. I'll give the IRS a call. They're usually very helpful.

    Jenn, I hear you. Most of us have been there. 🙂 It's that a-ha moment that comes just a little too late, isn't it?

  9. Devon Ellington Avatar

    The deposit, especially for new clients, is essential.

    When a potential client drags his feet on the contract and the deposit, I know there's going to be a problem further down the line, and I go ahead and give that slot to someone who's professional about contract and deposit instead.

    Professionals dealing with professionals don't balk at either contracts or deposits. They want to get the work done, and get the details sorted.

    The others aren't actual clients — they're grifters.

  10. Lori Widmer Avatar

    Great point, Devon. I agree — if they're not inclined to show good faith, there could be a problem later.

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