Comment by tacostakohashi
4 months ago
This is totally correct, and something that took me a long time to learn.
Doing lots of slowly escalating "check-ins" and "reminders" means you are owning the problem, not the other party, and you're teaching them that every time they do nothing, they can expect another "reminder" or escalation that is not much firmer than where they are today. They become like the frog that gets boiled in slowly increasing water temperature.
Instead, I've found it much more effective to have only a small number of very clear interactions. Step 1) ask nicely - say what you need, when you need it - "payment is due in 14 days". Send approximately _one_ "first and final friendly reminder". That's it - if it doesn't work, and the 14 days has come and gone, then switch immediately into thermonuclear asshole mode - call them, show up at their office, hand it over to a lawyer/debt collector, etc, etc. It works best to a clear, contrasting, binary distinction between "asking nicely" vs "not nicely", good cop / bad cop, so that the transition is very obvious and gets a reaction.
> then switch immediately into thermonuclear asshole mode
I can't imagine the number of clients I would have lost over the years if I'd had this approach.
People need time to pay for soft services. Unless you're billing hourly for your time at general labor rates, surely the margins are incredible for what you're doing.
Being a jerk to a client is a surefire way to end that relationship. Some clients who have taken their sweet time to pay over the years are also some of my longest and overall most valuable business contacts. Being a jerk to them would have given someone else a chance to step in and earn their business by providing better customer service.
Invoice dates aren't thermonuclear deadlines and treating them as if they are is shortsighted.
> I can't imagine the number of clients I would have lost over the years if I'd had this approach.
Nonsense. I've been consulting for 13 years. The clients that are always late are routinely the most annoying, those that expect the most for the least, and with rates always below the best paying clients. I can already tell from the first interview what kind of client they are, if they balk at the price or try to micromanage time and expenses, I don't even accept the contract.
If a client is always late paying invoices, asks for discounts or expects me to work for free, I drop them. Has worked wonders. I haven't had a late invoice in like 6 years.
(On the other hand I had a client that texted me sorry whenever he was ONE day late, taking time over the weekend to set up the bank transfer, and he was the best client I've ever had. Stayed with them building up their business for 6 years)
It's simple really: I create good solutions on time, you pay for whatever I ask on time. None of this is negotiable in any way. Shit happens, but needs to be communicated clearly and be an exceptional event, otherwise something's gone wrong.
> I can already tell from the first interview what kind of client they are
I don't think you can tell, but you believe it - if you approach people with this kind of attitude, it is no wonder you have never made it over the hump with someone who actually needs help and is busy with their pressing business and isn't a perfect client
It's great when someone pays promptly, but I'd be a fool to turn my nose up at someone because they take a few weeks to open their wallet and pay an invoice for temporary use of my brainpower to do something for them when they needed my help.
I see clients as human beings with different routines, ryhthms, and even procedures of getting something paid. Just because I mark something on a piece of paper as the day I'd like to be paid for it doesn't mean I'll lose my mortgage and go hand to mouth the day after, and I don't expect a client to call me feverishly worried if they forgot to turn in an invoice until yesterday and the payment will be a few weeks. OK. I run my business & life in a way that doesn't put me in a bind if someone else needs a little time.
Treating people this way allows you to form relationships - which is in and of itself much more rewarding, on a more meaningful level.
I don't value or see a reason to enforce military-like pay schedule with the people that I judge on their... what did you say?
> from the first interview what kind of client they are
I think this says a lot more about you. Usually, this is called stereotyping. It can lead to inadvertent racism, sexism, and biases against those your so promptly judge.
You should be aware that you might be focused on the cheque, which has a finite and set value, instead of the person and relationship you can build with each client - which has an unlimited value.
Plus, as far as we know, we get one chance to live our life. Maybe you could try not treating people like you describe, it might make your one life experience different when you see how other people respond.
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