What to do with run-away clients?

epithet · 08-31-2006, 03:54 AM

I guess the hardest thing in running an online business is dealing with run-away clients. Even after a month of vey good output they would no longer show up with some bills left unpaid. I tried to revise our contract but still it's not doing any good.

What can you suggest me to do in dealing with this?

SOS

Mercness · 09-06-2006, 02:32 PM

Depending on your contract/country of origin...you could do quite a fair bit

JuggoPop · 09-06-2006, 02:52 PM

are we talking web design clients, graphic design clients, seo clients...?

Aviva · 09-06-2006, 05:32 PM

1. Get the money upfront.

2. Sue in small claims court. In most jurisdictions this is quite straightforward and doesn't require a lawyer. Basically write your story --> here's the contract, here's proof I did the work, they didn't pay.

3. Raise your prices. No kidding, if you're work is good and you raise your prices, you'll get better clients who will be more likely to pay.

JuggoPop · 09-06-2006, 08:01 PM

#3 is very important. seriously.

epithet · 09-08-2006, 04:28 AM

Can you please explain further mercness?

Yes you're right juggo. We provide programming, design, webmastering and other services thus our clients fall in those categories.

We do have start-up fee aviva. So hard to do #2 because we live far away from them. #3 is something that I will really propose to my boss. When do you think is the right time to raise service charges?

Klaas Koopman · 09-08-2006, 05:01 AM

Quote:

Originally Posted by epithet

Can you please explain further mercness?

Yes you're right juggo. We provide programming, design, webmastering and other services thus our clients fall in those categories.

We do have start-up fee aviva. So hard to do #2 because we live far away from them. #3 is something that I will really propose to my boss. When do you think is the right time to raise service charges?

If you can't value your services/products, then why would clients? If you don't know how much you could sell your service for then do some investigation!

designer007 · 09-08-2006, 05:16 AM

I have similar problems earlier. But now, i will ask for advance and explian them about this.

Aviva · 09-08-2006, 07:52 AM

Quote:

Originally Posted by epithet

We do have start-up fee aviva. So hard to do #2 because we live far away from them. #3 is something that I will really propose to my boss. When do you think is the right time to raise service charges?

Not sure what the final price of the projects you do, but a start up fee of at least half might be reasonable. Or get half in advance, do half the work, show the results, then get the second half advanced.

Re #2 - depends on how far away you are. If you're in the same state, that's not an issue. You can normally sue locally, it's just a matter of trying to enforce the judgment in a different jurisdiction, which can be difficult and expensive. Depends how much you're owed.

The right time to raise charges is now! If you're not sure what to raise it to, first do some research about what others in the field **that you respect** are charging.

Nothing sucks more than doing a lot of work, doing it really well, then not getting paid. Even if the dollar amount involved is small, it's really hard because it means that the other person is putting a *zero* value on what you've worked so hard at.

linknz · 09-10-2006, 04:34 PM

Quote:

Originally Posted by epithet

I guess the hardest thing in running an online business is dealing with run-away clients. Even after a month of vey good output they would no longer show up with some bills left unpaid. I tried to revise our contract but still it's not doing any good.

What can you suggest me to do in dealing with this?

SOS

Well if they have ordered a website then change the index.html page to say that due to them not paying you will place links to all the other websites they own or have dealings with.
THIS WEBSITE HAS NOT BEEN PAID FROM BY BILL SMITH ASSOCIATES!

AND IF YOU DEAL WITH THIS COMPANY YOU HAVE NO CHANCE OF BEING PAID BY THEM!!!

cimmeron · 09-10-2006, 05:21 PM

1. always get half up front
2. never put product live until paid in full

Obviously there are exceptions to these rules, such as with long standing clients, etc., and another thing, always go with your gut. If you feel like they're not gonna be honest with you money-wise, think about turning them away. I've had pretty good luck with the above.

epithet · 09-12-2006, 12:23 AM

Thank you guys for all of your responsed. They've boosted my morale and self-esteem. Maybe they think that since we're only asking for a little payment our work quality is not that good but then it's not. Although I can't back this up with testimonials I believe that despite of the low cost we never sacrifice the the quality of our work.

You know of all the replies I got here, the most interesting one is that from linknz.

Wow!!!

You think if I do that I'm not stepping down to their level?

JuggoPop · 09-12-2006, 08:08 AM

I wouldn't go to that level... just forward their sites to your design company. their visitors will get the point that something is up. and you will get the traffic until they pay.

alinush · 09-13-2006, 04:31 PM

upfront payments should sove the problem