Re: FN-FORUM: client not paying(advice)

date posted 13th June 2003 20:09

Hi
>
>1. Payment in stages:
>
>30% of total at project start - "project start-up fee"
>50% of total at project delivery
>20% of total 30 days after project delivery - "support stage"

This is similar to what we use - although we're less nice.

We work on a 40% deposit, 60% on delivery with 15 day terms on=
the invoices
and the system is:
- production work on the project starts when the deposit is=
paid.
- throughout production the site is visible (passworded) on a=
subdomain of our own domain.
- when final payment is paid we flick the switch and the site=
goes live on its real domain.
- email is typically set up before final payment is made, for=
smooth transfer.

It works because
- we paid a sollicitor to write really clear and watertight T&Cs=
for us.
- we make it clear up front that this will be the procedure.
- the client has been playing with the site on the subdomain and=
can verify that the site is 100% on spec. He's not paying the=
final invoice on blind faith.

We find we only have a problem when subcontracting - working=
for/with another web company or freelancer group. The "client=
hasnt paid yet" excuse and similar things. Not totally sure how=
to play that one yet.

We do sometimes agree to different payment terms for clients who=
just cannot afford to pay it all at once. Then we have very=
clear procedures on what happens should a payment be missed.

Until now we have never dared turn email off - I'm concerned that=
a client could claim we hurt his business in a disproportionate=
way. If i turn the whole thing off then emails bounce and it's=
very bad. If i only turn pop off so that email still gets=
collected it's less bad but the client could argue that i am=
stealing company correspondance or something. Don't clients get=
real upset when you turn their email off?

-- [EMAIL REMOVED] [EMAIL REMOVED] on 13/06/2003