Not getting paid from a client?
Online Marketing & Sales solutions that drive results!       
about

Not getting paid from a client?
December 08/2015

Luckily for me, ForInsite is blessed with what I refer to as the best clients in the world! Many of them have become friends and mean a lot more to me than just the label of a "client". However every once in a blue moon this happens.... 

I have been in business for a long time and other business owners and independent consultants have asked me about what to do when their clients that have not paid them or shorted them on a contract agreement? By talking to them, it is easy to see they are extremely angry and showing hostility.  This is very unfortunate, but there are many scammers and dishonest people out there that would not think twice about taking advantage of you. Once upon a time a used to get very upset, down right obsessed with the fact that a client ripped me off or didn’t come clean with a contract agreement.  Luckily for me, this has only happened a couple times in the last 10 years, but still, It is hard not to take it personally as it is an indirect way of saying your work and time is not important or I don’t value you enough to respect you!

These types of clients will try every excuse in the book from:
  • “I found something much cheaper, 
  • “this price is crazy” (after the fact they agreed to the price)
  • “it didn’t meet my expectations”
  • Business is slow right now so I can't pay you
  • I need to see a copy of the contract (when you know they have one because they signed it)
or whatever they can think of to justify why they shouldn’t have to pay you.  In the end, remember this “They agreed to the terms at the beginning so there is no excuse not to pay you!” PERIOD.



What can you do to protect yourself?
  1. Never work without a written and signed contract! NEVER! Be sure that your contract clearly includes all the deliverables and payment terms. If on monthly services, be sure to put the duration of service agreement and when each payment is due. 

  2. Take a 50% deposit.  If a client has a problem with this then walk. You are going to get screwed! Trust me from experience!  It is a relationship, half your risk and half theirs.  They take a risk of losing 50% by you not doing the work and you take 50% of the risk of doing the entire job and not getting paid the last 50%. Sure they  can argue that if they don’t pay the second 50% you just don’t deliver the work, but that doesn’t change the fact that you put in all the time and did all the work which you would not get paid for. You would still be out if they didn’t come clean on the second 50%.  

  3. Credit Check – Look into if there have ever been payment issues before. Credit Bureau, Better Business Bureau, Equifax etc.

  4. Duration of business – If their business is a start-up. It is a pay as you go approach. Don’t let credit pile up. If money doesn’t flow, production stops. When money flows, production starts up again. This should be the practice until a trusted relationship is formed.

  5. Keep a watch on account activity – keep track of the number of declined credit card payments, late cheques, how often you have to chase money. These are warning signs! The more frequent this happens the more you need to consider replacing this client with a more respectful one.


What to do once it is too late?

Chasing money is a very maddening feeling.  In fact, I stopped dealing with it all together as it consumed way to much negative energy that only prevented forward progression with my business.  I let the pros deal with it now and so should you!  Don’t focus on it, as it will only hurt you.
Trust me, those clients will quickly come to wish they would have not ignored you and just worked it out with you when they had the chance.

  1. Play by the rules - Send them 3 invoices spread out over 90 days. They will ignore you... so expect it!  Be sure that you also send letters with the second and final invoice stating that they are behind in their payments and that you want to be paid in FULL.  Once the 90 days goes by, then your proceed to step 2.

  2. Establish a relationship with a reputable and effective collections agency. These guys are trained to squeeze in the right places. They are ruthless and will pester and hound to the end of time. They will call week after week until one goes insane. Simply sell the file to them. By file, I mean the signed contract, all documentation of bounced credit card records, bounced cheques,  late payment notices, email notices by you as well as all the deliverables you provided your “X” client.  They will handle the mark on their credit Bureau, filing to the better business Bureau and driving your “X” client crazy for the next 5 years. Remember these guys are connected to all the credit agencies and bureau's across the country and have the ability to create a lot of bad marks for a delinquent payer. Plus once you hand it off to them, it is no longer your affair to deal with.

  3. Make it public – Nobody wants to deal with a company or identity that are known to be a bunch of scammers so letting the next guy aware of what they may be dealing with is a public service in my opinion. If you have been ripped off, I would be happy to know about it so it doesn't happen to me!  Social media posts, public blogging systems, open forum boards can reach thousands of viewers.  Facebook, twitter, Google +, Tumblr are powerful agents of messaging. There are several tools out there that allow you to post to dozens of Social media sites with one single post which hundreds of thousands of people have access to.

  4. Google search – Imagine finding a one page website properly indexed in Google revealing that you don’t pay your bills with all the documentation proving it… NOT GOOD! 

  5. Hire a Lawyer - If it is for a significant amount of money (in the thousands) you may want to consult hiring a lawyer. For me anything over 3/4 thousand, I pass to my lawyer as well as doing the steps above.


Going Public

Remember this, if you decide to use public options as a means to collect payments, you should consult with a lawyer first.  We have the right to freedom of speech and freedom of knowledge in Canada and USA, however, slander is illegal.  For that reason:
  • Don’t embellish the truth or say anything that is untrue because you are angry. Stick to the facts! And the facts that you can prove. A signed contract, your deliverables, bounced payments, declined credit card records and late payment notices.  If any half-truths or lies exist that could cause harm, you may find yourself sitting in the hot seat.

  • Don’t let your emotions get you. When we are angry, we tend to give opinions…. Don’t! Opinions are slanderous.  Only post straight facts..
    BAD:
    - xxxxx are jerks, assholes etc.
    - xxxxx are unethical
    - If you do business with xxxxx, you will get screwed
    - I wouldn't trust xxxxxxx if I were you

    These are all subjective statements and could be considered slanderous, but easy to say when we are angry!

    BETTER:
     - I didn’t get paid by xxxxxxx or I didn’t get paid in full by xxxxxxx
     - I did xxxxxx work for xxxxxx…. 
     - I was owned $xxxxx 
     - I didn’t get paid this amount $xxxxxxx. 
     - Here is the documentation evidence to back up my claim xxxxxxx . 
    - The contract was for xxxxx months. I only got paid for xxxx months
    - They shorted me by xxxxx according to the contract that xxxxxx signed

    All factual, with documented proof which is not slander,  it is freedom of speech. People are smart enough to draw the conclusions themselves, you don't need to spell out they are jerks.

  • Don’t use their logo… It is trademarked… Only the name of the company in plain black text. Don’t even use their corporate colors.  If you are going to use an image only use an image of an "upset business man" or a "not paid" graphic that is generic and has nothing to do with you "x" clients business. 

People will find out if you turn to public avenues, but if you are truthful and stick to the facts and don’t offer opinions and say nasty things, then it is their own fault that they decided to rip you off and got publicly called out on it. However, you get out of line with your public postings, it can quickly turn your fault if there are damages. STAY PROFESSIONAL!



Conclusion

Spend your half hour and do what you have to do, then pass it on to professionals to deal with which will take the time and negative energy out of your hair. Then move on and never look back. Rather than spending the time dwelling, take that energy and get a new client that appreciates you and will have a long term, great relationship with you.  Even if you don't get any of your money, have at least a bit satisfaction knowing that by handing the file off to the pro’s and having the power of the viral web, they will spend time and money just putting out ongoing fires that will continually pop up while at the same time potentially lose business prospects without even knowing it. I myself have seen postings like this on the web by other people and I would not buy from those companies. How would I be treated as a customer if there is unethical business practices behind the scenes? Makes you think twice. 



   




First Name
e-mail
(will not be published)
Phone
(optional - will not be published)

Comment


Enter above value to submit form
used to stop form spam

I agree that ForInsite can communicate with me through email.



Comments

No Comments at this time!

Go to top of page
Like what you see? Give us a shout to discuss your objectives.


Latest from our Blog


( Jan 25, 2016 ) - What technology is behind what may be the most comprehensive all in one inbound marketing platform?....
( Dec 31, 2015 ) - I'm loving the Surface!....
( Dec 14, 2015 ) - Interesting Browser trends....
( Dec 13, 2015 ) - ColdFusion's role in the all New Web Power Box v5....
( Dec 8, 2015 ) - Not getting paid from a client?....


Your Digital Marketing Partner


Our mission is three fold. First to provide outstanding looking websites with top notch creative and branding impact to ensure a quality perception of your company. A "WOW" first impression!

Second to accompany that visual impact with an online presence that is highly functional and loaded with features and interactive value added client services. To transform your presence from a static, non-functional digital brochure to an application style active business delivery tool, lead capture tool, and a sales conversion tool.

Third, to help you design and execute a strategy plan to drive your website and the many other areas of digital marketing activities. Your online communication tools will only be as effective as how you drive them!

We are a premium quality website design and digital marketing agency located in Ottawa, Canada. We offer a wide range of online business services.


Get in Touch



832 March Rd, PO BOX 76074 Kanata, ON, K2W 0E1

613-864-3329


info(at)forinsite.com



                 
                                                     
 

Privacy Policy

What information do we collect?
We collect information from you within several areas of our website including, but not limited to, you subscribing to our newsletter, responding to a survey or filling out a form. You may, however, visit our site anonymously.


What do we use your information for?
Any of the information we collect from you may be used in one of the following ways:
• To send periodic promotional emails
• used to send you information, respond to inquiries, and/or other requests or questions.


How do we protect your information?
We implement a variety of security measures to maintain the safety of your personal information when you enter, submit, or access your personal information.


Do we use cookies?
We do use cookies on site, however in a secure fashion and cookies are set to expire upon closing your internet browser.


Do we disclose any information to outside parties?
We do not sell, trade, or otherwise transfer to outside parties your personally identifiable information. This does not include trusted third parties who assist us in operating our website, conducting our business, or servicing you, so long as those parties agree to keep this information confidential. We may also release your information to comply with the law, enforce our site policies, or protect ours or others rights, property, or safety.


Online Privacy Policy Only
This online privacy policy applies only to information collected through our website and not to information collected offline.


Your Consent
By using our site, you consent to our online privacy policy.


Changes to our Privacy Policy
If we decide to change our privacy policy, we will post those changes on this page so you should visit this page frequently


Terms of Service

In General

ForInsite owns and operate this Website. Access to and use of this Website and the products and services available through this Website (collectively, the "Services") are subject to the following terms. By using the Services, you are agreeing to all of the Terms of Service, as may be updated by us from time to time. You should check this page regularly to take notice of any changes we may have made to the Terms of Service.

Access to this Website is permitted on a temporary basis, and ForInsite reserve the right to withdraw or amend the Services without notice. We will not be liable if for any reason this Website is unavailable at any time or for any period. From time to time, ForInsite may restrict access to some parts or all of this Website.

This Website may contain links to other websites which are not operated by ForInsite, we have no control over the Linked Sites and accept no responsibility for them or for any loss or damage that may arise from your use of them. Your use of the Linked Sites will be subject to the terms of use and service contained within each such site.


Prohibitions

You must not misuse this Website. You will not: commit or encourage a criminal offense; transmit or distribute a virus, trojan, worm, logic bomb or any other material which is malicious, technologically harmful, in breach of confidence or in any way offensive or obscene; hack into any aspect of the Service; corrupt data; cause annoyance to other users; infringe upon the rights of any other person's proprietary rights; send any unsolicited advertising or promotional material, commonly referred to as "spam"; or attempt to affect the performance or functionality of any computer facilities of or accessed through this Website. Breaching this provision would constitute a criminal offense and we will report any such breach to the relevant law enforcement authorities and disclose your identity to them.

ForInsite will not be liable for any loss or damage caused by a distributed denial-of-service attack, viruses or other technologically harmful material that may infect your computer equipment, computer programs, data or other proprietary material due to your use of this Website or to your downloading of any material posted on it, or on any website linked to it.


Intellectual Property Content

The intellectual property rights in content (including photographic images) made available to you on or through this Website remains the property of us or its licensors and are protected by copyright laws and treaties around the world. You may store, print and display the content supplied solely for your own personal use. You are not permitted to publish, manipulate, distribute or otherwise reproduce, in any format, any of the content or copies of the content supplied to you or which appears on this Website nor may you use any such content in connection with any business or commercial enterprise.


Terms of Sale

By placing an order you are offering to purchase a product on and subject to the following terms and conditions. All orders are subject to availability and confirmation of the order price. Dispatch times may vary according to availability and subject to any delays resulting from postal delays or force majeure for which we will not be responsible.

In order to purchase with us you must be over 18 years of age and possess a valid credit or debit card issued by a bank acceptable to us. We retain the right to refuse any purchase made by you. When placing an order you undertake that all details you provide to us are true and accurate, that you are an authorized user of the credit or debit card used to place your order and that there are sufficient funds to cover the cost of the goods. The cost of foreign products and services may fluctuate. All prices advertised are subject to such changes without notice.

Whilst we try and ensure that all details, descriptions and prices which appear on this Website are accurate, errors may occur. If we discover an error in the price of any goods which you have ordered we will inform you of this as soon as possible and give you the option of reconfirming your order at the correct price or cancelling it. If we are unable to contact you we will treat the order as cancelled. If you cancel and you have already paid for the goods, you will receive a full refund. Delivery costs will be charged in addition; such additional charges are clearly displayed where applicable and included in the 'Total Cost'.

Payment cards such as Credit Card or Debit are charged at the time of purchase.


Liability

The material displayed on this Website is provided without any guarantees, conditions or warranties as to its accuracy.


Linking to this Website

You may link to our home page, provided you do so in a way that is fair and legal and does not damage our reputation or take advantage of it, but you must not establish a link in such a way as to suggest any form of association, approval or endorsement on our part where none exists. You must not establish a link from any website that is not owned by you. This Website must not be framed on any other site, nor may you create a link to any part of this Website other than the home page. We reserve the right to withdraw linking permission without notice.


Variation

ForInsite shall have the right in its absolute discretion at any time and without notice to amend, remove or vary the Services and/or any page of this Website.


Invalidity

If any part of the Terms of Service is unenforceable (including any provision in which we exclude our liability to you) the enforceability of any other part of the Terms of Service will not be affected all other clauses remaining in full force and effect. So far as possible where any clause/sub-clause or part of a clause/sub-clause can be severed to render the remaining part valid, the clause shall be interpreted accordingly. Alternatively, you agree that the clause shall be rectified and interpreted in such a way that closely resembles the original meaning of the clause /sub-clause as is permitted by law.