Re: Client hemming and hawing over payment

[Andrew Plato <intrepid_es -at- yahoo -dot- com>]

"Brian Hooper" wrote...
 
> Has anybody else experienced how potential clients can talk you to death
> about a project and then get quiet or evasive when it comes to
> discussing your compensation. I just had a meeting with a potential
> client who took 2 hours and 2 lattes to defly explain her business. Then
> when I broached the topic of compensation for all of the fabulous work
> I'd be doing for them, she hesitated. And then informed me about 30-day
> payment terms, etc., which I specifically indicated I did not want, but
> that I wanted 7-day payment terms. Why do they do that? Does anybody
> else have stories to share that are similar? Or just me on a rant.

Ha! Welcome to contracting. They always have time to tell you about all
the work they want you to do, but when it comes time to pay - they're
busy.

First rule of contracting - its all talk until contracts are signed. 

30 day terms (NET30) are very normal. You are not likely to get anybody to
pay you on 7 day terms. Also, be prepared to fight for you money,
especially if it is a large company. We have clients that routinely go
into 45 and 60 day cycles. Of course we drill them with late fees, but
that doesn't stop them. 

Also be prepared. AR/AP departments will lose things, forget who you are,
and generally drag their feet at every possible turn. AR/AP clerks are
without question some of the most incompetent and lothesome humans in the
world. 

Get a contract, lay out payment terms, and make sure you know who to
invoice. Expect that it will take 45 to 60 days from the day you start
until you get paid. (You work 30 days, invoice, then it takes them 30 days
to pay.)  You might want to invoice weekly, thus you're only out about 35
to 40 days from your first check. 

If you can't handle that, they you might want to look into running your
invoices through an agency that will front you the cash while they
collect.

Good luck.

Andrew Plato 



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