Today let’s talk about the bad apples in freelancing: clients that do not pay! I hope you will not meet any. In over six years of freelancing, I never had an unpleasant situation related to non-payment.
However, it is always important to know what to do, in case if that happens.
But what if you do everything religiously and you wake up that you submitted your project and the client stopped responding and you are unable to get your last milestone payment? What are the steps you can take in this case?
In this episode, you will…
- Understand what steps you must take in case if a client doesn’t pay
- Find out what are the legal implications and how can this work in your favor
- Learn if debt collection agencies are a good option
- Get a clear idea of when should you stop ‘’chasing’’ your non-responsive client
- We all get caught in different issues, we might forget one thing or another. Give your client the benefit of the doubt that probably they misplaced your email or went into the Spam folder. Always start with a positive mindset, because even if you not noticing it, in time, you will create this defense mechanism when you think that any new client you get on board, will act the same. So, give your client enough time to respond back.
- Have open communication with your client regarding your expectations, so you can avoid any confusion.
- Keeping your records updated- When you are taking a new client on board, make sure you are keeping track of all the emails, calls, texts, work submitted, invoice, terms and conditions, contracts, just in case if you ever need to use that as proof in case of non-payment.
- Use escrow services when possible- you will lose around 3% when using an escrow service, however, this brings you peace of mind that you will be paid and no legal action will be necessary because the escrow company will act as a mediator between you two and there will be a resolution in the end.
- Never start work without a contract in place- as a freelancer you can issue an invoice, however, your invoice has no legal ground without a contract signed by both parties. So, make sure you are having a contract, an invoice, terms of service.
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Until next time,