People ducking payments - what do you do?

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  • Rob
    I'm a great bowler.
    • Nov 2003
    • 13310

    #1

    People ducking payments - what do you do?

    I have several clients who have signed yearly contracts to be paid monthly, and for the most part, they pay me as soon as I invoice them. But there are a few that just buck payment using crappy excuses. They continue to post extravagant photos online while maintaining they're "broke right now", and can't pay the invoice. The invoices are only $1,500 - $2,000, which isn't going to kill me. But it bothers me when I ask for an update a week after sending the invoice, and they tell me, "Oh, I can't pay that right now, I'm hurting until I get some more money in." -- then you see photos of them on expensive vacations, bragging about how much they spent at the casino last night, and picking up the tab for 20 people at Texas de Brazil (that's over a $grand right there).

    I have full control over their sites (domain, hosting, payment gateways, everything). Should I be a dick and shut off services until payment is received? That's a real fucked up thing to do, and they're not too delinquent on payment - yet. It could have a lot of negative blow back. I get almost all my clients from word of mouth, and I don't want to be the guy known for shutting down an entire business for missing one payment. But I have bills to pay and kids to spoil.

    How do you get people to pay your invoices on time? Any trade secrets I'm missing out on?
  • Sly
    Let's do some business!
    • Sep 2004
    • 31377

    #2
    Give them a warning that you will need to disable services if payments are not made by X date.

    For all future clients, make it very, VERY clear that this is your policy and you do not fuck around.

    The moment you allow someone to walk all over you is the moment they realize they can, and they will. If their website is vital to their business, which I'm guessing it is, they will learn to understand that paying that bill is akin to buying groceries.
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    • Mediamix
      Dutch Webmaster!
      • Sep 2013
      • 3228

      #3
      Originally posted by Sly
      Give them a warning that you will need to disable services if payments are not made by X date.

      For all future clients, make it very, VERY clear that this is your policy and you do not fuck around.

      The moment you allow someone to walk all over you is the moment they realize they can, and they will. If their website is vital to their business, which I'm guessing it is, they will learn to understand that paying that bill is akin to buying groceries.
      Solid advice!
      Sig too big

      Comment

      • CamTraffic
        Confirmed User
        • Feb 2008
        • 6538

        #4
        Originally posted by Sly
        Give them a warning that you will need to disable services if payments are not made by X date.

        For all future clients, make it very, VERY clear that this is your policy and you do not fuck around.

        The moment you allow someone to walk all over you is the moment they realize they can, and they will. If their website is vital to their business, which I'm guessing it is, they will learn to understand that paying that bill is akin to buying groceries.
        ^^ This

        The longer you wait, the harder it will be to collect.
        I will add a late fee and then a warning to shut them off. (just like rent)
        I am always buying traffic and white labels. Hit me up.
        Email me HERE!

        Comment

        • DVTimes
          xxx
          • Jun 2003
          • 31658

          #5
          Send them a letter stating they have a months note and that service will automaticly end by xxx unless payment is made.

          Make it look like its automatic rather than from you.
          XXX

          Comment

          • Miguel T
            ♦ Web Developer ♦
            • May 2005
            • 12473

            #6
            Originally posted by Sly
            Give them a warning that you will need to disable services if payments are not made by X date.

            For all future clients, make it very, VERY clear that this is your policy and you do not fuck around.

            The moment you allow someone to walk all over you is the moment they realize they can, and they will. If their website is vital to their business, which I'm guessing it is, they will learn to understand that paying that bill is akin to buying groceries.
            Couldn't have said it better!

            Full Stack Webdeveloper: HTML5/CSS3, jQuery, AJAX, ElevatedX, NATS, MechBunny, Wordpress

            Comment

            • Barry-xlovecam
              It's 42
              • Jun 2010
              • 18083

              #7
              I have always felt that customers (other Debtors) that repeatedly do not pay their bills are not valued customers.

              Comment

              • ilnjscb
                Confirmed User
                • Jun 2009
                • 8973

                #8
                I keep emailing and sending invoices like an impotent bitch.

                Comment

                • MakeMeGrrrrowl
                  Grrrrrrrrr
                  • Oct 2002
                  • 4986

                  #9
                  Originally posted by Sly
                  Give them a warning that you will need to disable services if payments are not made by X date.

                  For all future clients, make it very, VERY clear that this is your policy and you do not fuck around.

                  The moment you allow someone to walk all over you is the moment they realize they can, and they will. If their website is vital to their business, which I'm guessing it is, they will learn to understand that paying that bill is akin to buying groceries.
                  I agree with this.

                  Comment

                  • j3rkules
                    VIP
                    • Jul 2013
                    • 22111

                    #10
                    Originally posted by ilnjscb
                    I keep emailing and sending invoices like an impotent bitch.

                    Comment

                    • suesheboy
                      Confirmed User
                      • Nov 2002
                      • 5211

                      #11
                      Originally posted by Rob
                      They continue to post extravagant photos online while maintaining they're "broke right now", and can't pay the invoice. The invoices are only $1,500 - $2,000, which isn't going to kill me. But it bothers me when I ask for an update a week after sending the invoice, and they tell me, "Oh, I can't pay that right now, I'm hurting until I get some more money in." -- then you see photos of them on expensive vacations, bragging about how much they spent at the casino last night, and picking up the tab for 20 people at Texas de Brazil (that's over a $grand right there).

                      I have full control over their sites (domain, hosting, payment gateways, everything). Should I be a dick and shut off services until payment is received? That's a real fucked up thing to do, and they're not too delinquent on payment - yet. It could have a lot of negative blow back. I get almost all my clients from word of mouth, and I don't want to be the guy known for shutting down an entire business for missing one payment. But I have bills to pay and kids to spoil.

                      How do you get people to pay your invoices on time? Any trade secrets I'm missing out on?
                      I go crazy with that and i have one client that drives me insane with this. She would be in the shitter without me (she has been with 6 years now) and tempted as I am I have never shut her off. I have been 90 days past due at one point for more than 10K and it was killing me as I didn't do other things on order to make that money with her.

                      Killer is I have full access to all her back ends and know her sales and profit. I know when she is making big bucks and what her bills are and she has no excuse.
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                      Comment

                      • Sly
                        Let's do some business!
                        • Sep 2004
                        • 31377

                        #12
                        Originally posted by suesheboy
                        I go crazy with that and i have one client that drives me insane with this. She would be in the shitter without me (she has been with 6 years now) and tempted as I am I have never shut her off. I have been 90 days past due at one point for more than 10K and it was killing me as I didn't do other things on order to make that money with her.

                        Killer is I have full access to all her back ends and know her sales and profit. I know when she is making big bucks and what her bills are and she has no excuse.
                        There is no reason to be nice about these things. These people are putting you out. Keeping food off of your table and causing you stress because they don't think you are worth the money. That's what it comes down to. Show them that you are, because you are, and stop messing around with this nonsense.

                        Like you said, she would be lost without you. If she needs to suffer for a month in order to get back in shape, that's her business, there's no reason you should be doing the suffering for her.
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                        Comment

                        • sperbonzo
                          I'd rather be on my boat.
                          • May 2003
                          • 9750

                          #13
                          Personally I think that the direct approach will work the best. Observe....

                          Michael Sperber / Acella Financial LLC/ Online Payment Processing

                          [email protected] / http://Acellafinancial.com/

                          ICQ 177961090 / Tel +1 909 NET BILL / Skype msperber

                          Comment

                          • candyflip
                            Carpe Visio
                            • Jul 2002
                            • 43069

                            #14
                            Originally posted by CamTraffic
                            ^^ This

                            The longer you wait, the harder it will be to collect.
                            I will add a late fee and then a warning to shut them off. (just like rent)
                            And another fee to turn stuff back on. I've had to do this a few times as well.

                            Spend you some brain.
                            Email Me

                            Comment

                            • L-Pink
                              working on my tan
                              • Mar 2005
                              • 39151

                              #15
                              I always offered a "cash" discount if paid upon receipt. If people don't take a discount for paying immediately it tells you everything you need to know about them as business owners.

                              Comment

                              • American Psycho
                                Confirmed User
                                • Feb 2009
                                • 3068

                                #16
                                Break something vital but not everything and require the account to be paid full before you will fix it for them.

                                How should I send you the address for my gift basket?

                                Comment

                                • ilnjscb
                                  Confirmed User
                                  • Jun 2009
                                  • 8973

                                  #17
                                  Originally posted by L-Pink
                                  I always offered a "cash" discount if paid upon receipt. If people don't take a discount for paying immediately it tells you everything you need to know about them as business owners.
                                  I need to try that and boy is that true. When they say, send me an invoice and then don't pay it right away, I'm always like, oh shit, here we go. People who have the money pay for invoices they ask for very quickly. Past the second excuse or email, you are in collection hell.

                                  Comment

                                  • newB
                                    Confirmed User
                                    • Jul 2006
                                    • 2870

                                    #18
                                    You're charging them with compounding late fees, right?

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                                    • Colmike9
                                      (>^_^)b
                                      • Dec 2011
                                      • 7230

                                      #19
                                      What happens when that person tries to fake their own death?...
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