How to Avoid Late & Non-Paying Clients
If you’re a business owner or a freelancer, you know that it can be stressful enough having an unstable and variable income. The last thing you want to worry about is clients that ghost you after your work is done. Your livelihood depends entirely on invoices paid on time by your clients. Unfortunately, that doesn’t always happen.
Although it really shouldn’t be, overdue payment is a sensitive topic for many people., furthermore, if the incident is handled poorly, you can easily damage the relationship with your client.
Since starting my web design business, I have not encountered this problem once. Here are some tips to prevent late and non-payments:
Own the Squarespace Website
I always make sure to start the Squarespace trial website and I retain ownership of the website throughout the build phase. It's not just about being financially secure and ensuring my work is compensated - it's about being smart and protecting myself. My payment structure is simple: a 50% deposit upon signing the contract, and the rest upon delivery of the completed website. Only when payment is received do I transfer ownership to the client. Think of it as a virtual security blanket for your hard work and expertise.
Charge Upfront for Jobs on Pre-existing Websites:
A big part of my business involves helping website owners solve issues or create custom code solutions on their existing Squarespace sites. In these cases, it's not possible for me to own the website or have control over my access to it. There's always the risk that a client might revoke my access once the work is done. To mitigate this risk, I charge the full amount upfront. Most clients don't object to this, especially if you have a strong reputation and positive reviews. That being said, I don't always use this payment structure. For repeat clients or those with whom I have a strong working relationship, a deposit and balance structure or billing upon completion may also be an option.
Communication
Clear communication is key when it comes to working with clients. Make sure they understand the payment terms, schedule, and deadlines from the start to avoid any miscommunications. It's also a good idea to send a friendly reminder email as the website delivery date approaches, just to keep them in the loop about the upcoming invoice. Trust me, your clients (and your stress levels) will thank you.
Always Use a Contract
A contract is your best friend in the world of web design and development. It clearly outlines the terms of the project and serves as a reference point in case of any payment issues. This is important for all clients, whether they're past clients, friends, or family. A contract protects all parties involved and, in the unlikely event that legal action becomes necessary, you'll be covered. Don't take the risk of not having a contract - if things go south and you don't have one, you may not have a leg to stand on in trying to claim your rightfully earned money. Better safe than sorry!
So there you have it, some tips to prevent those pesky late payments from ruining your day. Just remember, clear communication is key, and a little bit of proactive planning can go a long way. Happy invoicing!
