What if My Client Refuses to Pay?
They may not be the gutless, yella-bellied liar you think they are
You agreed on a price before you began the project. Everything went smoothly: you met your deadline, you were happy with the end result, and (more importantly) your client was happy with the end result.
You sent your invoice and…BAM!
Your client refuses to pay you!
Now what?
My first question is: have you already given them what they want? If you’re a graphic designer, have you already given them your files? If you’re a photographer, have you already given them the photographs? If you’re a videographer, have you already given the link to the video. You get the picture (pun most definitely intended).
If so, I’m really sorry to say this but you’re kind of screwed. It happens to the best of us, my friend. And it certainly sucks.
If I can give you some advice for future reference, use a watermark until you get paid. Don’t have one? Send me a tweet and I’ll help you—I’m serious.
Let me be clear, this usually happens because of miscommunication.
That’s right, your client probably isn’t trying to rip you off. However, having a contract or a project agreement upfront is a good way to conduct business. It’s also a good idea to require payment upfront.
When I freelance, I like to charge 1/3 upfront. To put simply: I charge $500 upfront for a $1,500 project.
I know some freelancers who charge 1/2. You don’t have to split hairs over it, just make sure the client has some skin in the game.
In case you’re wondering: yes, I have had some less than ideal experiences with clients. One time, my client actually hired a different designer to finish my project without telling me. You’d better believe I kept my non-refundable deposit that I had required upfront!
I also recommend establishing a clear deadline on payment. I like to give my client a 30 day pay period. A 90 day pay period is also common (that’s a bit long for me). Be very clear about the late fee in the project agreement. You don’t want to give them any unpleasant surprises—this is one of the many places in which miscommunication can take place.
Here’s what I put in my project agreement and in my invoice:
Invoice may be paid by check made out to (your name or your company name). Payment is due within 30 days from (insert current date) Late fee is subject to a fee of 5% per month.
You don’t have to become a loan shark or break legs to prove a point, but you do have to stand up for yourself.
Don’t mistake my kindness for weakness. — Robert Herjavec
—Nik Parks, Co-Founder of Launching Creative
