Asking For Money From Your Client

by Jason Baird – weboutsourcing.com

I want you to ask for money and want you to do it frequently. If they won’t pay you shouldn’t play.

People have crazy ideas so don’t expect them to be reasonable.

If someone talks to you about a project, you should do enough work for free to figure out what the client wants and how much it might cost. No more or less than that.

Meeting them in person is good too but you might want to at least throw out some sort of money amount for a minimum project. If that minimum amount gives them cold feet then you shouldn’t bother to meet with them. They might be calling up 5 companies and they will just get free ideas from you.

Give them a proposal, which can be extremely brief, but give them something that describes what they want and what you will deliver. You can put a range if you want, and you could even say that this is a “good faith estimate” but that the final amount will be based on time spent.

Then ask them for a downpayment to begin work. People and companies can change their minds for all sorts of reasons. If they want it done fast, they can pay fast. Reason they might change their mind after you think you have a deal include the president or owner having other ideas or a cousin in the business, a sudden cashflow or budgetary freeze at the company, the marketing person getting fired, the company getting bought out and on and on. 

I advise not doing any designs on speculation. They assure you they want to do business with you but they “Want to see what you have in mind” for the project. Don’t do this unless you are willing to risk doing all the work for free. I will not do it. Some clients have horrific tastes and will not like anything you do. Once you start doing stuff for free when do you stop? Mmm I like those designs but can you change the blue to red and change out those pictures to something else?  

Well, mr. client, I sure can, if you want me to do that I need a downpayment for half the amount of what I estimate to be the total amount for that peice of the project. If you do the designs for free, make sure you immediately close that door once they like it or don’t like it. Don’t let them keep dragging the free out.

Besides getting a downpayment, you need to put the terms down in the invoice or contract. The terms are, 50% down and 50% before the files are delivered to the printer, to the client or go live on the internet.  Once you hand over the files, they have what they want… they could then “run of money”, get bought out, or just put you at the bottom of their priority list.  They have the files which is what they needed, now you can wait. So like I said, if it so damn important they get the files asap then they can get you the money asap. 

Currently I have one ad agency and another client who owe me over $10,000. They are paying employees, rent and other things and they are using my brochures and websites, all the while telling me they can’t afford to pay me. So I am not some genius telling you things because I am so smart, I am telling you things since I have gotten screwed enough to try and be more careful.

When it comes to working over time such as updating a web site or little tweaks they want to print designs over time, ask for a pre-paid block of hours. Whenever something comes up it is always urgent, so you have to do it so quick they almost couldn’t pay you quick enough. If you had them buy a block of prepaid hours, you will feel much better when you have to drop everything get their stuff done yesterday since at least you know you have already been paid for it. Otherwise you may never be paid for it. Clients are not so put off by this, and I know for a fact it is standard practice with companies that provide networking support. You will be surprised on how few companies see it as a problem.

So we need to strive to always be paid for our work ahead of time whenever possible. Doing all the work up front and being paid after all work is done is a recipe for disaster.

3 techniques:

1. ask for 50% downpayment to begin work

2. ask for final payment before handing over the files

3. ask for a block of hours for ongoing work or work that will probably pop up over time

If you watch a hostage movie, you will see the half now, half later concept over and over again. It is a compromise on both sides. It is very equal and fair. For example in the kidnapping example, what happens to the hostage if you gave them all the money they wanted before you get the hostage? What happens to their money if they give you the hostage and then expect their money?

—————-
Use this maintenance pricing guide to help you determine what to charge for these types of deposits.

======================
Estimate – Website maintenance plans*
======================

These options below would be used for updates to your site such as archiving magazines, issue updates and adding new content to the site.

- Option A: 2 hours time = $150

- Option B: 4 hours time = $275 (save $25)

- Option C: 6 hours time = $400 (save $50)

- Option D: 8 hours time = $525 (save $75)

*Minimum charge for an update is billed by the 1/4 hour = $18.75

*1/4 hour updates consist of minor file uploads such as PDF files, changing links etc…

*Some items may require more time, costs will be notified up front before work begins.

*All maintenance plans are non refundable. The credit on your account will remain there until it is used up or applied to another project.

======================

Visit Weboutsourcing.com — hire them for your next web design or programming project.