23 September 2013

Don't chase money...

So very often I hear about this business or that business holding huge receivables for overdue amounts that should have been paid either up front or on time. I saw it in the radio biz when I was on the radio and I've seen it time and time again. Owners lamenting about how they signed up a client who supposedly all with good intent promised to pay their first billing on time, only to have them either string it out for months or not pay at all. Nobody works for free. If you're not collecting at least 50% up front at signing, you're setting yourself up for weeks if not months of possibly chasing money. Never have I seen it as often as I have over the years, with businesses and individuals signing on for someone to do their social media. Because of the realistic time frame for seeing any results from social media marketing, so many individuals and businesses alike think nothing is being done on their behalf. One can spit out all the "jargon" and "analytics" they want, but if the client doesn't see instant gratification in too many cases they believe that not enough if any work is being done. And as I have heard too often, that client tends to not want to pay for the work that has already been done.
If I have a client who balks at paying up front, I simply explain that 
a. Why it takes more time than they may imagine to realize ROI yet I will be working all that time and... 
b. If they are not satisfied and I have to do more work, it's easier for me to make up any additional postings, etc. than it is for me to have to chase money. In most cases, the client understands and agrees.
So my advise is to always collect 30%, to 50% up front when signing a new client. That way if you do have someone go "south" on you, they have at least paid for a solid portion of the work you have completed.

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