My writing business has changed a lot since I started freelancing. Then, I did lots of one-off jobs for a wide range of small clients, getting many of them through copywriting agencies and the occasional job board posting or ad. Now, I work for a few bigger clients, and many of those have come to me via word of mouth and referrals from other people who have been happy with my work.
One of the advantages of having this type of client is that it makes for a more stable and reliable income. I know that each month, unless something major happens, there’s a basic amount that will be coming in – and I can always increase my earnings by taking more work for a couple of clients who offer regular single item jobs (like resumes).
Of course, that only works when the clients pay up on time. Most of them do, but then there are the others. I’ve been lucky enough not to get stiffed too many times in the last five years. That’s because I ask for a 50% deposit on all work for new clients and keep that up till we have established a relationship of trust. But it’s after that point that things can go wrong, especially if your client runs into financial difficulty.
Case Study One
One of the sites I blogged for a few years ago (I won’t say which one, as it’s now under new management and it wouldn’t be fair to the new owner) started off as a good gig, where the owner always paid in arrears, but on time, promptly on the first of every month. So when he was a couple of days late one month, I didn’t panic. I figured he was on vacation and would pay when he got back. After a while, though, so much time had passed that I realised that there had to be another reason. After several weeks he finally responded to my email, saying that he’d had a health problem (read ‘an addiction problem’) and had no money but would pay up when he got on his feet. I’m still waiting. One of the problems I had in this case was that I didn’t have all his contact details. That was a $500 lesson. It’s something that’s now at the top of my client questionnaire.
Case Study Two
In the second case, I was writing for a publication that operated like a print magazine. In other words, you invoiced and got paid once you had delivered the articles. That’s the way it works, and they weren’t going to give a deposit to suit me, though they did make a one-off good faith payment at the start.
I feel a bit sorry for this client, actually, because the recession hit and the client’s advertising income (which basically funded the publication) dried up. Big companies moved from 30 to 90 day payment and the client’s ready cash disappeared. The only trouble was, the client still owed me money and tried to persuade me that I should hang in there a bit longer. I did the maths – had I waited another month, the client would have owed me double the amount, with even less prospect of paying me. So I got out, and the client has paid the debt in increments, though some is still owing. The lesson I’ve learned is to only work on that basis for a bigger, well established publication and to make sure it’s not a big part of my income.
My writing career is a constant learning experience and there’s nothing to make you learn like not getting paid. I have to be honest – the missing money isn’t hurting me financially, it’s just the principle of the thing. I did the work, I should get paid. The big lesson is that even when you do everything right in managing your career, random events can affect the bottom line.
The Lessons
1. Make sure you have full contact details for every client.
2. If you have clients who pay in arrears, make sure they don’t represent too big a chunk of your income – and be rigorous about collecting payment on time.
3. Know when it’s time to end the relationship and get out; don’t be sweet talked or pressured into continuing to deliver work you’re not getting paid for.
4. Remember to consider the effects of random happenings and chance events on your writing income.
Article by Sharon Hurley Hall
Sharon Hurley Hall has been mentoring writers here at Get Paid To Write Online since 2005 to help them improve and build sustainable and successful writing careers. Check me out on sharonhh.com. Feel free to connect with me online on Google+.
Sharon has written 653 awesome articles for us at Get Paid to Write Online
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{ 11 comments }
Twitter: danaprince
August 27, 2010 at 12:28
In almost 5 years I’ve done fairly well with my 50/50 policy (which I think I adopted due to YOUR advice. Thanks for that!) as well. I even make it 100% up front if it’s below $100 so it sames me on admin time (which costs me money)
I’ve had two situations where clients haven’t paid me for work done. In one case, it was a long-time client who ran into financial difficulties. Up until then he’d been reliable, he’d helped me with my business, and was very professional. It took him almost a year to pay me what he owed me. But, he finally did. I was glad someone I’d respected and worked with me for so long made good on promises, even if it took longer than he promised.
In another case, a client was clearly a con artist. I’m owed quite a bit of money but I’ll probably never see it. I didn’t trust my gut, which typically doesn’t steer me wrong — ever. Lesson learned.
Dana wants you to read Freelance Writer Marketing Tips- Get Traffic to Your Professional Writing Website
Twitter: shurleyhall
August 27, 2010 at 20:18
I’m pretty sure that in the second case, I’ll eventually get paid in full, Dana, but it’s still annoying. I like the idea of asking for full up-front payment for jobs under a certain value and will be implementing that immediately. Thanks.
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Twitter: millercathy
August 27, 2010 at 13:16
The 50% upfront was the best advice I ever received. I do quite a few white papers, which are time-consuming, and I find I do the lion’s share of the work at the beginning with the interviewing and research.
It’s written right into my contract that the work does not start until I receive the deposit. That has saved a lot of hassles. And, knock on wood, I have not had anyone flake on me for the remaining 50% when the assignment’s over.
Like Dana, I only recently started asking for full payment when it is under a certain $ amount (a bit higher than Dana’s). I found before I started doing that, that those were the most likely to be slow in paying, and tracking them down is a real time drain.
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Twitter: shurleyhall
September 2, 2010 at 14:19
It certainly saves a lot of hassle, Cathy. I’ve also found that some clients are quite happy to pay in advance – after all, it’s easy enough to refund them if it becomes necessary (which it hasn’t, so far).
Hello Sharon. I think the whole industry is a bit sketchy and one must definitely be careful. I have been bidding on Freelancer a little bit, and I find it all bit dodgy. Employers wanting to pay $1 for a 500 words article that is originally and researched passing copyscape. And then people who will work for those wages. Are there better freelance sites?
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Twitter: shurleyhall
September 2, 2010 at 14:21
There are better sites, Ivin, though I find going through a copywriting agency can help reduce the hassle. Of course, the agent charges a commission for finding the work, but you end up with fewer scammers that way.
Do you perhaps have links to those sites? And do you have any contacts for such agencies? Do they take on workers ort do you need to have a strong rapport?
Thanks.
Ivin wants you to read How to write a story like a world champion – tips from the WWE Pt2- Elements needed to make your story great
Twitter: shurleyhall
September 4, 2010 at 11:41
Hi Ivin, here’s my post on favorite writing markets. Good luck!
Twitter: DebraLStang
September 3, 2010 at 22:18
I’ve been writing for different websites for a long time, but I’m still not so used to writing for individual clients. I hadn’t thought about asking for cash upfront, but it sounds like a good idea, especially at the start of a professional relationship.
Debra Stang wants you to read My 5 Favorite Writing Blogs
I just found your blog and immediately went to this post because this happened to me recently (the first time in 2.5 years). More specifically, a client is asking to reduce the invoice AFTER I completed the work because they don’t have the budget; apparently, they knew this all along.
This is after an intensive few weeks of work and if this happens, it will set me back several K plus the headache of compromising (what am I? an auction?).
I’m going to strongly consider the 50/50 idea here, or see if other people in my industry are doing this.
Twitter: shurleyhall
May 4, 2011 at 14:57
Getting the deposit saves a lot of hassle, Susan. I hope you manage to get the full payment. Dana’s tip on getting up front payment also works well. I’ve tried it with a few clients and it reduces the headache of worrying about payment.