How to Handle Clients Who Don’t Pay
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- čas přidán 17. 05. 2019
- HOW TO HANDLE CLIENTS WHO DON’T PAY // In this video, I share techniques to help you handle a client who doesn’t pay their invoices. This video was in response to a question by a good friend of mine who runs a UX design agency in Moscow, Russia.
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Thanks for your words! I needed to hear someone talk about the emotional damage. I feel like that and it’s much less than what you are sharing. I need to move on but I still can’t.
As a beginner freelance designer I really needed to hear this. THANK YOU.
Glad you saw the video, Alexa!
Thank you for concrete examples of how you do it! So many channels offer vague advice like "it depends."
I'm the opposite of "vague advice" haha. Sometimes I probably overdo it. But that's the void I'm trying to fill. Super actionable!
This is great advice! Love the phased billing concept - I will definitely be implementing this. Thank you!
Phased billing is a game changer. Glad you found the video. I have a few more on the topic too.
Thank you Michael! This is great advice - especially letting go of the toxic ones despite not getting your money. Horrible people don't deserve our energy.
So true! Life is to short to work with toxic people.
thank you. it is some real advice, love the way you sort things out and put them in plain and simple words...
Glad you like it!
I really needed this video today! Thank you for sharing your wisdom and experience
Hi Joy! So glad you found the video and it was helpful for you. Thanks for the comment!!!
Mr Janda you are AWESOME!
Thank you sharing your experience
Thank you so much! My pleasure to share!
Such a great video. Happy you dialed down the thumping pumping beats in your newer videos.
Thank you! Yes, I'm figuring it out. Everyone starts with problems in their first videos and improves over time. 😂
@@morejanda Not throwing shade here, cause my first videos sounded like they were recorded in a club. 😂
Thank you so much for this video, it was what I needed to hear! I've been emotionally wrecked by my client refusing to pay after all the hard work, and I need to let it go before it distroys my faith in humanity haha. At least I've learnt from this project and know that I'm not the only one going through this! Thank you
LOL. I've lost my faith in humanity from client trauma before! Sorry for your challenge. You're not alone. I've been there many many times!
Good stuff. I feel like people are way more open to work things out face to face.
Thanks, Matt! Totally...face to face makes a big difference!!!!
Your video is so helpful. Thank you
Thank you so much for this video. This is soothing for me. ❤️
My pleasure. Glad you like it!
Powerful.. thanks a lot. I needed this
You are so welcome
Incredible content as usual. Thanks Janda
You are most welcome! This one is an old one, but a good one.
and your video is super cool! loved the background :)
Thank you!!!
Great advice for all types of businesses 💯👍🏼 Thanks 🙏
Thank you!!!!!
I've just watched your interview on The Futur and I love your approach and energy. Your voice is so soothing and the content you produce is amazing! Thank you for doing this for the design community. 👏
Thank you for your comment! I really appreciate it! Lots more content coming...and I'm happy to know you will be watching! Thank you!
@@morejanda I agree with WiWi Donegan I love your videos as well, but I have a suggestion, I would turn the volume of the background music down just a little bit. Keep up with the great work 👌
@@morejanda I didn't see it yet. Which is what I am going to see now :D
I knew I recognized his face! Thank you Michael, for your advice. I think it would be safer to have the 5 step plan, than to do 50% before the project begins and 50% at the end. I'm dreading a conversation with a client that gives me the feeling that they may not pay their last payment on Friday, this makes me feel much better about the situation.
Great information! Thank you.
And I love so much your English:) so clear and understandable for me (learning both - English and UX lol) 👍❤️
Haha. Thanks Oksana! Sounds like I'm your guy if you're learning English and UX!
This is great advise. I really like this type of billing structure
Thank you! This structure works great and it keeps things clean!
Thanks. I just today received a message after I have created 6 months of social media content that client wants to pick only one month package and wont pay for the rest.
Definitely implementing this strategy
Oh my gosh. That is a miserable. I hope you get it resolved and your client is fair to you.
Thank you, Michael. You're a life saver.
Thank you! It is my pleasure to share!
Thank you so much for this video - very much appreciated. God Bless
You're welcome. So glad you like it!
Great advice, so true, thank you
Glad it was helpful! - What Was the aspect of this video you liked the most, and What would you like to see in the future?
This happened to me as a painter yesterday, i did a job painting a living room and when i finished she said she can't pay me right know so she gave me 75% of the job till that moment, i know deep inside she won't pay me the 25% percent left, so i will nicely ask the rest of the money tomorrow and maybe torture his mind daily about the payment till she blocks me, i know i won't get the money anyways, the thing that bugs me it;s that i gave her a cheap bid because i was recommended when i really needed the money and i even did an errand for her just to being nice with the client, i never being good again in my life, tired of being with people, they just abuse you and laugh at your back fucking miserable job
Always bugs me too. I never understand how people can live with themselves when they don't pay what they commit to. Thanks for sharing your experience in the comments!
thank you so much for this!
You’re most welcome! Thanks for the comment!!! 🙏🙏🙏
Thank you, Michael
My pleasure!
You are very generous, sir.
Thank you!
very valuable advice,, much appreciated, I'm faced with some difficulties in collection with 6 clients in my entier career thanks god for this,, everyone has different stories, I'm pretty sure phases are the best way to keep everyone compensated, but most of the clients they look at it from their perspective not practical but of course its the fairest way to get jobs done.
Thanks for your thoughts Ahmed. I invoiced based on phases for years and never had a client push back on the approach.
Thankyou. Cleared my head. I'm an artist with a simp client. Time to move on..
I'm glad I could help!
Thank you so much your expertise are going to help me so much in the future. Currently I have a customer that owes us $75,000 they’ve given a 20% down payment of 14,000 mind you there’s extra work orders on that contract, but they are refusing to pay it’s been a nightmare and I have been going through emotional stress. watching your video is making me realize I might not get that money even though I have a lawyer at my hands. This client of ours is a very important person owns a very powerful military company that does work for the U.S. it looks like I might not even have a good fight in my hands because of the type of money they hold and the lawyers they can hire I am upside down with labor and materials but I think I might as well just quit as this is taking a toll on my life. Anyways thanks so much I really appreciate your help moving forward into the new year.
Ugh. I’ve had clients owe me large sums of money like that. Sucks. The truth is that at some point you have to let go of it and move on with your life. That stuff can consume you and it ruins people. Sucks. Sorry you’re going through it. Thanks for sharing your story in the comments!
This helped me A-lot client liked my worked and used my content and refuses to paid me and abuse me than you so much
I'm really glad my advice helped you bro!!
Really sorry how you were treated! Hope all is going well now!
All the best.
This was so simplified! I’m in the beginning stages of my business as a designer/seamstress! I’ve completed 100% of the work a couple times w/o a dime! Only someone’s word! NEVER AGAIN! Thank you thank you!
So glad you like it and so glad you found this advice early in your career!!!!! It will save you pain in the future!
It's really a horrible experience. I understand, and I'm truly sorry.
Great video!
Thank you so much!!!
Thank you so much!
My pleasure!
Good content sir!
Thank you so much!
Great video
Thank you so much! Lots more planned for the future!
Just found your channel via @thefutur ... looking forward to digging into this content for designers.
Thanks for commenting and visiting my channel. I've been slow on CZcams lately...so much focus on Instagram.
Great advice
Thanks so much!
Great advice! I have a client who doesn’t pay partly because they can’t afford to, also because they don’t think they should. I sell rides to different cities as one of the many experiences and products I sell. They booked a ride and they knew what they were supposed to pay. Then, they didn’t and now they are trying to get out of it. I am close to hiring a lawyer to sue them if they don’t pay.
Agh. Some people drive me crazy with things like this. So frustrating. Thanks for sharing! Hope you got it resolved with them.
you just completely described the situation i am in, but a massive barn rebuild. it temporarily immobilized my business
Agh. Sorry to hear it. Hopefully you got it resolved.
For designers, view only link is end of project, followed by payment, then they can get the actual file. For writers, the only way is an in-person meeting to show them the content or a temporary link, just enough time to read it once so they don't have time to just copy it, or read it to them via zoom. If they have an issue with this then they were never planning to pay for it. Also, if you are an established writer with a proper portfolio, then there is no need to give any sample writing. If you must, put a condition that the sample will be nothing they can use in their business. Just give a sample for something totally different, but similar enough for them to know you can take on theirs.
All good tips and thoughts. Thanks for sharing!!!
@@morejanda thank you for the content and keeping us sane 😅
Very helpful
Thanks Dan!
Thank you sir.
Most welcome
Thank you
Thanks so much!
Thanks for this great advice!
*background music in this video is too loud dough
I've gotten much better at my videos and video editing over time. This was an early one. Thanks for enduring my learning process.
Thank you ❤🙏👍
My pleasure.
Really good video, thanks. Have one client on the hook for 5G (a design agency ironically) and it's really been getting to me. 8 years and this is the first time this has happened. They stopped replying to my emails two invoices ago.
Thank you. And ya...that sucks. I replied to your other comment with some thoughts for you to try. Cheers!
These videos are FANTASTIC! I wish someone told me this when I started my business. Phased Billing applies to SO many other service business models.
Two thoughts:
1. Follow up important client conversations with a short email confirming the conversation, what was discussed, and what was agreed to. If one needs to involve a lawyer (been there, done that), then the confirmation email can make a huge difference.
2. Definitely "Be the Nice Person" when a client hasn't paid you. Great advice! I love this. Under no circumstance should one do any harm to the client whatsoever. Always be in the right. Professional at all times. If one harms the client, regardless of the harm they have caused you, then they may have a legal claim against you. (ie Don't bad mouth them on social media, don't hack their systems and crash their machines, don't delete their data, don't shut down their website and email system, don't tell their customers, don't shame them, and don't threaten them.)
Thank you for making these videos!
Yes! Great comments, Todd. Thank you! Especially number 1.... oh man....everything must be in writing. Everything!
Same thing happened to me , there was an online client and I worked for him for 20 pages typing but he didn't pay and said you will need to link your account with our company's server ..its just so heart-wrenching and I hope god shows him a lesson ....
Sorry to hear this, Archi. Everyone gets opportunities to learn the lesson. I'm sure he will get his.
I really love your talk
Thank you!
This is way back 2019 but the most professional advice I heard on youtube. This content is full of detail. A lot of freelancers are struggling with this. Thank you so much Michael.
Hi Ligaya! Yes...it is an old video...one of my first on the platform. And I'm glad you found it to be valuable! I have been on and off CZcams content over the years as I've managed my large Instagram community over the past couple years. But I am now making a big push to build more content here. I hope you find a lot more things of value from me in the future!
Thank you for this video. I’m an independent Paparazzi consultant. It is a jewelry company. I am dealing with many customers who are not paying me for jewelry that they are claiming. I’ve had to block three people so far because of it.
Hey Audrey! So glad you like it!!
Also I'm really sorry for the experience you had to go through, the lack of integrity by some people in business drives me insane!
Nice video.
Thanks!
I have a question, so we have a relatively big project near to start. The estimate has been approved, a verbal agreement with the client on paying 50% before start was accepted. Now my question is, When I want to do the payment in phases. Do I send seperate invoice for each phase? (The initial 50% in first invoice, then two seperate invoices for 25%, one in the middle of the project and the last when complete?) Thank you for your patience. Great video lots of Info to take in.
Thanks u
My pleasure.
Hey good afternoon I'm a new subscriber and I appreciate the concept of phased billing I'm not sure that it always works and I'm wondering how you might address my unique situation I own a commercial cleaning business and I often get subcontracting opportunities to perform post construction cleans for other businesses. More often than not a job will only run 1 to 3 days, Do you have advice for me in no situations because clearly a phase billing is not going to work.
This was good
Thank you!
I run photography studio, in the beginning of my business i made it optional for customers to pay before or after, i always make sure that customers aware of my prices, before i start the services. I had some assholes came to my studio and agreed on the price, then after i handle the photograph them and spend my time do editing and print the pics and handle it. Then they changed their minds, and started arguing with me about the price, and waste my time. Then i changed the policy. Pay first, then i will stand up, and start my services. It was hard in the beginning then i get use to it. I teach them how to respect me. However, i have some rice customers who come to me from time to time, and they don’t give w shit about the prices, and they don’t even ask about it. With these customers i have no issue, i charge later. I even like to work with them. Because i feel they appreciate my work. I have 15 years of experience, not to service assholes who makes me feel i’m selling veggies in the Wednesday’s market
Thanks for sharing your experience. Painful way to learn, but sounds like your business mindset is in a stronger place as a result. I learned these lessons through painful experiences like yours.
Awesome
Thank you!
This was great, thank you! Any tips when they pay you, but then contact their credit card company months later and dispute the amount and the cc company gives them their money back!!!? They have all the files. The cc company completely ignored all the work done and the signed contract. HELP!
Tracking people down for payment is the single worst part of owning my business. Every month it's at least 10% of people past due. Most are forgetful, or so they say. But at least once a month I get fully ripped off by someone I never would have guessed. I've never paid a single bill late once in my life, I couldn't even imagine being in a position to mess with a small business
So true! I'm the same...never paid a late bill ever! I am so shocked at how often some clients feel like they can pay whenever they want or not pay at all. Crazy and unethical.
Just had a situation today where a client has refused to pay the last instalment on an invoice.
Rather than charging and be the smaller person I decided to come to CZcams and do some research and I found your video.
I know deep down that I’m not going to recover the final instalment of the invoice and I accept that, but from now on I will be implementing the phased billing concept you counselled us in.
Thank you.
Hey Wilson! Sorry that happened to you. Phased billing should alleviate 99% of those problems in the future. Cheers!
Thank you so much for this.
I'll be honest I'm kind of angry with myself. I've been working for a friend in a pseudo employee relationship as a creative marketer since our first contract ran out. We've been trying to renegotiate the contract, but I realised he's put in a clauses about owning my future work and signing away my moral rights to claim it. It's been a few days now since he was due to pay and I'm still waiting. I've not signed anything thankfully, but I feel betrayed and frightened. I want to jump ship, but I'm worried I'm not going to get the financial runway or time to do it safely.
MoreJanda!!!!!!!!1111111
🙌🙌🙌
great advise for me right now is to review every project I have mo I'll feelings with anybody as a matter of fact top priority to my long term insurance friends
Thanks so much for the comment!
I agree with you up until you decide to move on after legal action. I have successfully chased multiple judgments, and collected on all of them. It does require patience and assertiveness, but it is effective in collection.
Good for you! Glad you had success with that approach.
I work in a similar way, but I have encountered such a problem. I do not proceed to the next stage until the client pays for the previous one. But payment is delayed by an average of 1 week. As a result, I am associated with the project for an additional month. Not yet figured out how to solve this problem.
Ya... it is a tough thing thing to navigate! Watch my longer video about Phased Production Strategies. Maybe that will help a bit too.
Further a suggestion is very early on when you set the quote and payment schedule and all of that, make sure to add a note that says delays beyond 3 working days will be charged. Make it super clear to them that they are renting your time and although you are understanding and bla bla, your time has a fee.
Hi, thanks for your video!! What if I already made the terrible mistake to give them credit? I made a social media strategy and because of the actual situation, I gave them until next month to pay for it. but now am super concern cause they haven't been paying on time for other smaller services (about $ 50), and literally have to chase them for 2 weeks to pay me 50 dollars. The strategy is suppose to be paid on june and thats 280, and it was deliver since april, so am concern they are not going to pay for that one.
Agh. Sometimes we get stung on things like this. Keep on them to try to collect...but at some point you need to decide if the hassle and emotional pain to try to collect the money is worth the value of the money itself. I hope you get your money! And if they don't pay...I trust that karma will catch up to them in life.
Thanks for the tips! What if it’s a long time client, but they never pay on time but keep hiring for more work? Always an overdue balance of at least 5-10k because as it’s getting paid off in installments, they pile on more work so the balance grows?
Long term client but seems like in this situation it’s time to be bold?
Don’t be afraid to push back on a client like that. You have been overly generous to them. They should be more afraid to lose you and your generosity than you are to lose them. You could set some limits on the amount that you’ll let them float. Then, in order to do more work, they need to be current with that amount. For example, you could let them have an outstanding balance of $3000 maximum. Then if they request more work, tell them they need to get current at least to the $3k amount. This is a way to still be generous in letting them float some balance, but not letting it get too out of control.
I hate it when I have "family connections" with my clients. The case is they always try to get "family discount and benefits", and it's not that I hate helping my relatives, I just don't have the energy to work so hard on a project but get nothing or very little in return.
I could've spent my time and energy on something that would actually make me some money, if only I didn't waste my hard work on them. It's not fair, but they never see it that way. They think because we're relatives, I'm supposed to carry all the pain for the project with no benefits for myself who works so hard. Just because we are "family" or close friends :(
Ya. It is a challenge when family members have that mindset. I always think, "So, me working for you for free is helpful for you...but you paying me extra would be helpful to me. Why are we one sided in this relationship?" Expecting free work from family is a lopsided expectation.
With Covid the trade show industry haulted. I've held an international account from Canada, im located in So cal . I ve received no payment with the past year..? I hold properties of theirs (show booth and materials) gone back and fourth stayed cordial to no effect? This is difficult as they also operate outside of the industry i cater to. They are in the grocery industry. They are still thriving.?
Sorry to hear this Jesse. So frustrating when people don't operate their businesses with integrity.
How to do it when you can't divide the work in stages.. e.g when you are in consultancy?
It can be tricky with some types of engagements. But oftentimes consultancy engagements can be phased by 1. Research and discovery 2. Strategy and planning 3. Execution --- something along those lines depending on the type of work.
is there any way a freelance designer can set an automated payment system to grant his money come on time?
You can set automated payments as "subscriptions" in PayPal etc. Might be worth looking into.
and if he refuses communication or meetings?
It is so frustrating when clients do that. So unethical. Try to chase them down until you can't take it anymore. If it is a large amount of money, consult an attorney and/or collection agency.
Thank you for this video. I actually came to the terms that I have to let it go and you said the same thing. My client paid 50% initially, and I trusted them because the communication was going strong. Generally, I don't submit the final files before they pay the remaining amount but considering the festive time, I submitted the final files and then they just stopped responding. They even blocked me on LinkedIn which made their intentions clear. We are in two different countries so I can't show up in their office as well. Like you said, I need to eat this loss, learn the lesson from it and move on but be careful next time and implement Phased Billing.
I was wondering, like NDA, is there a possibility for any type of agreement where we can mention the payment terms and if they fail then we file a lawsuit in our local court and they are bound to answer? Is there such an agreement?
Sometimes we do have to let it go and move on with our lives. It hurts short term, but in the long run it is better. Yes. I have payment terms and conditions in my pre-written agency contracts in my courses and I go through every clause in detail.
@@morejandawould you mind sharing a sample agreement with me to see how it’s supposed to be? I would like to get it done for myself asap. Thank you :)
I need help. I started a commercial business where I make clients commercials and a lot of people want my services, but don’t have enough money. What do I do when this happens? And where are the people with money?
Hi Shea! I have a lot of sales content coming for this channel and tons of strategies in my freelance course. There are a few episodes on our podcast, Biz Buds Podcast, that can help too. Check Episode 23, "Finding Better Clients." podcasts.apple.com/za/podcast/episode-23-finding-better-clients/id1496156524?i=1000483510821
@@morejanda appreciate it
This is so painful. My damn client who was a businessman didn't pay me for 6 months' work. He stoled all of the designs I did for his company!
I'm really sorry for the experience you had to go through!
I've been having consistent panic attacks for a month now. They are not paying, yet asking for more work, with rushed deadlines, then blame me for wasting time cos I refuse to budge until I receive past dues! All this with a micromanaging faux leader. I am pissed.
Agh! Miserable client. So sorry. Don’t budge until they are caught up on payment.
@@morejanda Update: Turns out they were professional con artists. I fell into the trap because one was supposedly a childhood friend who knowingly partnered with some international psychopath. I told my former friend that going down this path will not end well for him and you both will turn against each other, and he will outcon you. I cut my losses and heard what I warned him of is exactly what happened. I learned a lot and modified my contract. I wrote a blog about it, in series. Now, I do not do any work unless I have a downpayment when applicable, and some work is upfront payment only such as content creation. Thanks for your videos. Wish you wellness in this mad world.
Do you think it's fair to log in remotely with Teamviewer and syskey his
Laptop till client pays? I told him I had put teamviewer on so that if
he needed more support I would be able to log in.If he is too dumb not
to remove teamviewer, that's his problem?
"Two wrongs don't make a right," as the saying goes. Clients who don't pay can be frustrating, but I usually trust that bad karma will find them in the end
The emotional damage is terrible
What about that you finish the project and the customer comes up with a punch list of 15 different things?that honestly it's so stupid.... And they just run away whit out the final payment....
Please help!
Agh. Ya, there are bad clients out there. Sorry that you went through that experience.
Look for red flags if mowing grass ,if they know yur coming and there not home,or if they leave when yur mowing/,don't answer phone/ bin ripped off by people in there 90's - not weird cause prolly they bin doin it for 60yrs
Probably.
Best ..is ...have dayly progress payments..snag dayly with client..have a daily program..of work to be done..with small dayly payment...snag daily!!!!!!
Best to keep payments in balance with work completed. Daily payment would fit with that objective if it works for the client and project type.
The title was how to handle clients that do not pay not the payment structure
Seems like you need to watch the video through to the end. The payment structure conversation at the beginning was part of the answer.
If they dont pay. Sue them.
That is an option. But suing them costs money and emotional stress. Sometimes suing isn't worth the cost of those two things. Just depends on the situatiuon.
Louser music i can still hear
Sorry. Old video. I was learning how to make video content.
16 mins for one questions um…
Some questions take a lot more than 16 minutes to answer. Some questions take a lot less. I guess this one took 16 minutes.
:)
Thanks Adam!
Thank you
You're welcome!