It's something that freelance writers don't like to talk about or
hear about, but it happens more often than we like to admit.
The Scenario: The perfect project -- the one with a decent budget,
and a wonderful project manager or editor, has finally been
completed. You send an invoice to the person in charge, who promises
to forward it to the accounting department. The contract
stated "payment on acceptance/ completion", and you have their
signature on file, so you're pretty sure there is nothing to worry
about. Besides, they sent you a deposit. Of course they'll want to
send you the remaining balance as soon as possible.
A week goes by and the check hasn't arrived. You hear the sirens
going off in your head, but you decide to give your client the
benefit of the doubt. The check is in the mail, you're sure, and the
new Anthrax-prevention equipment at the post office sure has slowed
the mail down.
Week two sets in. Your bills are arriving on time in the mail, so you
decide that your client may have cut the checks late. You promise
yourself that at the beginning of next week, you'll make sure you
give a friendly reminder call -- if the check isn't here. When you
call, your contact person isn't there to take it. You leave a message
for them to call you -- you don't want to sound like a collection
agency!
Days go by with no return call. You send an email that goes
unanswered. Alarm bells are going off in your head. Did you do
something wrong? Are they going out of business?
How can you retain your client relationship AND get paid?
1. First Things First: An Ounce of Prevention
We all like to think the best of our clients and new projects, and
sometimes, in earnest, we gloss over some of the fine details.
It's important to "check out" our clients before we begin working for
them. Retailers and goods suppliers always do a credit check before
taking on a customer. Most freelancers can't afford the time or money
to do this. However, if the company is publicly traded you can always
look them up on the web. In fact, always do a quick check on the
search engines for any press releases the client has put out, bad
publicity, etc. If your client is a day away from bankruptcy and
you're their last hope, they're not going to tell you that! If
something looks unstable, go with your gut and ask for a larger
deposit or pass on the job. It will save you much frustration at the
end!
You can also check the following warning reports for writers and
consumers to see if other writers have had problems with your client
in the past. If they're listed, steer clear!
Writer's Weekly Warnings Report
http://www.writersweekly.com/warnings/iaq.html
The Rip-Off Report
http://www.ripoffreport.com
Writers Alerts
http://www.sfwa.org/beware/general.html
National Writer's Union Alerts
http://www.nwu.org/alerts/alrthome.htm
A legally binding contract is an essential MUST for any freelancer.
You can change the contract to reflect the time allotted, deposit,
and completion date. I always include the number of allowed
revisions, a "kill fee", and a statement explaining that the
copyright for the project transfers AFTER I receive the final
payment. Here are a few links to contract resources you can use
when "sealing the deal":
Sample Contract
http://freelancebank.com/resource.asp?id=14114
When is a Contract a Contract?
http://freeagent.com/advice/legal/makesacontract.asp
2. When the "Pay by" Date Comes and Goes: Nudge Them!
Nothing makes me, as a freelancer, want to panic more than an unpaid
invoice from a company. The thought of Ramen noodles and Tang are
terrifying - or, at least, humbling - and I must admit my cash flow
is still somewhat limited some months!
Approaching your client about a delinquent account, initially, isn't
too difficult; you can send a "thank you for the project" email and a
short note saying, "By the way, the check hasn't arrived in the mail
yet, I was wondering when you mailed it?" If you don't get a
response, call the main office phone number and ask for the fax
number to the Accounts Payable department. Send a polite note to the
AP office explaining that, "I'm afraid that this invoice may have
been lost in the shuffle. It's several days past due. Please update
me on the status when you have time." Usually, this will do the
trick, and you'll get a polite phone call or email with a notation
about the "paid" status. Make sure you note all of the dates and
times you've called and keep copies of all of your correspondence.
3. When the Client Ignores You Completely: Nudge Harder
What if your client won't return your email or phone calls and the
Accounts Payable department only has a voice mailbox? (This is a sure
sign of trouble!)
Make sure that your contact person is actually in town! I've had
editors leave for three weeks without any notice and the Accounting
department couldn't pay freelancers without approval from the Editor.
If this is the case, you'll have to call (or leave a message for) the
accounting department and fax them a copy of the invoice and initial
contract. Explain that the copyright doesn't transfer to their
company until you're paid and that the signature on the contract
authorizes your payment. (It's a matter of CYA for them...Cover Your
Assets)
If you're still being ignored, and it's almost been a month, it's
time to get serious. Before you go report them to the Better Business
Bureau, or decide to sever your relationship, make sure it's worth
losing their business in the future.
Try sending a "friendly" past-due postcard from this collection
agency website: http://www.madagency.com/postoffice.html. (I've used
one of the "light" postcards twice and didn't lose either client!)
Make sure you note all of the dates and times you've called and keep
copies of all of your correspondence. If you work for this client in
the future, make sure that you ask for a larger up-front deposit,
just in case.
4. When the Client Is No Longer a Client: They're a Debtor
Once you've figured out that you're NOT getting paid without some
outside interference, don't panic, harass, or spread vicious rumors
about your client. There *are* steps you can take, but if you're owed
a lot of money, it's wise to tread lightly and remain civil to stay
out of court.
If you're a member of the National Writer's Union or another
organization for writers, it's time to make a phone call. Your union
representative can help mediate disputes with clients. If you're not
a union member, you can try contacting Angela Hoy at Writer's Weekly.
She regularly "goes after" non-paying clients in front of an audience
of 67,000 readers/writers!
Report to Writer's Weekly
http://www.writersweekly.com/forms/report.html
If your client is a member of the Better Business Bureau, you can
contact their local branch. You may also want to consider hiring a
collection agency. If you handled transactions solely online, you can
also consider reporting them to the FBI's Internet fraud department
at www.fbi.gov. You can also start sending snail-mail collection
letters with 30, 60, and 90 days "past due" notices.
You can download some sample collection letters here:
http://www.toolkit.cch.com ools/letter_m.asp
Sometimes, however, no matter what you do, your client won't pay.
They may "skip town" or go directly into bankruptcy, absolving
themselves of debt. Unfortunately, as a freelancer, you can't write
this off as a "loss" in your taxes. What you CAN do is go to court
and try to collect what ever you can. As long as you keep records of
all of your correspondence, you'll have a decent court case. However,
even if you go to court and a judgment is entered against them, the
chances are slim that you WILL get paid.
The only certainty about a non-paying client is that you'll learn
from your mistakes. It's a painful lesson, but at least you can go
back to the warnings boards listed in the first section of this
article,
and share them with your fellow freelancers.
Luckily, the paying clients usually outnumber the non-paying and the
late-paying clients about 30-to-1. And they're the ones who make
freelancing worthwhile, anyway.
Melissa Brewer is a full-time freelance writer and author of The
Writer's Online Survival Guide, available at
http://www.webwritingbuzz.com. She hosts a website for professional
freelance writers and she publishes a free weekly newsletter, The Web
Writing Buzz, featuring articles on freelancing, writing jobs and
publishing news from around the web.
