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Home: Video University Forums: Marketing & Business:
How do I get clients to pay sooner?

X-Mike
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Nov 15, 2003, 1:19 PM

Post #1 of 7 (1348 views)
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How do I get clients to pay sooner?	Can't Post

I send out invoices which rarely get paid within 30 days.
When I ask my clients about payment they just say soon...
Meanwhile the bank, landlord ect... insist I pay on time!
How do I get clients to pay sooner? Ideas???

X-Steve_Yankee
Imported Account

Nov 16, 2003, 12:52 PM

Post #2 of 7 (1347 views)
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Re: How do I get clients to pay sooner?	Can't Post

: I send out invoices which rarely get paid within 30 days.
: When I ask my clients about payment they just say soon...
: Meanwhile the bank, landlord ect... insist I pay on time!
: How do I get clients to pay sooner? Ideas???

My business terms are pretty simple, and pretty standard. Net
30 Days. Which means that your check is due in my hands within
30 days from the date on the invoice I sent you. (Which I
religiously mail or hand-deliver within 24 hours of completion
of a job.)
We figure you're late on day 31. So we call you and tell you
about it right away. We don't yell, threaten or complain. We
simply let you know that your money is due --per our agreement
--and we ask for a firm commitment on when we can expect
that money. Whatever you tell us, we write it down on the
invoice. If it's late again, we call you immediately.
I've written an article on the subject -What To Do When You
Don't Get Paid On Time -that might help you out. The link
is below.
Regards,
Steve Yankee

X-Thomas_Spayth
Imported Account

Nov 18, 2003, 8:54 AM

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Re: How do I get clients to pay sooner? [In reply to]	Can't Post

One thing I've seen some guys do is offer a discount for total payment in advance to production. I haven't tried this myself yet. but if you have clients that are regularly late, get paid up front. I know when I was working for the local ABC station here the station got paid in advanced for political spots

X-jes
Imported Account

Nov 18, 2003, 12:41 PM

Post #4 of 7 (1347 views)
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Re: How do I get clients to pay sooner? [In reply to]	Can't Post

: I send out invoices which rarely get paid within 30 days.
: When I ask my clients about payment they just say soon...
: Meanwhile the bank, landlord ect... insist I pay on time!
: How do I get clients to pay sooner? Ideas???
Mike,
I learned a long time ago to offer no terms.
I get 50% up front and 50% prior to delivery. I used to get into
money back log and by the time they want to pay you are giving them discounts
that you lose most of your profits. Trading dollar for dollar is not going to
keep you a float. If they are ligitimate and you have
sold them on you they will pay you in this fashion.
Terms are only offered to repeat clients and they are only 15 days.
Remember if you are outsourcing part of the project there people need to
get paid and the will be hampering you for payment.
Dont be afraid to offer this up, you are in a creative business and should
be paid for services.
Good luck, je

X-Steve_Wells
Imported Account

Nov 23, 2003, 3:09 PM

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Re: How do I get clients to pay sooner? [In reply to]	Can't Post

My business has always operated on a 50% advance with
balance due upon completion. In our hosts business model,
he suggests 1/3 at signing, 1/3 at shoot, and balance upon
completion. In this fashion, he's got at least 2/3 up front,
so to speak. I've had no objections to this payment plan
either. As for sending a SECOND invoice, it the amount due
is say $3500, add an extra zero to the overdue notice, i.e.
$35000. You will be amazed at how quickly you get called.
"Oh, I'm sorry. It was just a mistake at the keyboard. But
as long as I have you on the phone, when may I (STOP BY)
expect the check"? Good luck!

: I send out invoices which rarely get paid within 30 days.
: When I ask my clients about payment they just say soon...
: Meanwhile the bank, landlord ect... insist I pay on time!
: How do I get clients to pay sooner? Ideas???

X-videojo
Imported Account

Nov 30, 2003, 3:28 PM

Post #6 of 7 (1347 views)
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Re: How do I get clients to pay sooner? [In reply to]	Can't Post

This is the way we do it.
Weddings: 50% at contract signing, 50% due two weeks before the wedding. We've been stiffed by broke brides doing it any other way.
Other Events: 50% at contract signing, 50% due on the day of the event.
Business clients: 50% at contract signing, and 50% due when product is delivered. We haven't had any trouble with businesses doing it this way.
I think by sending invoices, they just get thrown to the side with the rest of the bills until someone bugs them about it. By requiring payment on a specific date, it makes them more likely to come up with the money when it's due.
vj

: I send out invoices which rarely get paid within 30 days.
: When I ask my clients about payment they just say soon...
: Meanwhile the bank, landlord ect... insist I pay on time!
: How do I get clients to pay sooner? Ideas???

X-grinner
Imported Account

Feb 29, 2004, 10:20 PM

Post #7 of 7 (1347 views)
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Re: How do I get clients to pay sooner? [In reply to]	Can't Post

You could be like a lawyer and offer a discount if paid by this date.
There is no magic to getting to pay on time. My biggest and best client has never paid within net 30.
I've never called and hounded em either. The rotation is ion place even though it may take 90 or more days to get a check.
I look at it as an easy way to not spend money. :)