This is the Part-1 of “Pay Me… Or Else!”.

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Chapter 1

Show Me The Money!

So here you are, looking at your empty bank account and on the verge of freaking out. Contemplating what to do about the client who has still failed to pay, for the job you were counting on to cover your rent with. I mean, if you hadn’t been counting on that money, you probably wouldn’t have dropped a few bills at the bar last weekend. But that’s another story for another day.

The point is, you’re in trouble. And your client? They’re MIA.

Let’s figure out what to do next.

Know Your Rights

Personally, I never want to go to court. Sure, I invest a lot of time and effort into ensuring I have written great contracts, but that is more about communicating expectations than serving as a backup in a lawsuit. Because as we’ve already discussed, who has the time or money to fight this stuff legally?

None of us creates contracts with the intent of winding up in court one day – we do it as a stopgap, to make sure everyone is on the same page and to hopefully leave clients feeling obligated to pay.

Which, of course, they should.

Still, when you email or call your non-paying clients, you want to know your legal rights. You want to know that contract could actually protect you, should you wind up in court, so that you can make sure they know that as well.

So let’s get into the nuts and bolts of contract legalities first. Legally speaking – what is a contract between two people?

You might be surprised to know that a contract doesn’t have to be written. In fact, a verbal contract can hold just as much weight in a court of a law as a written one.

Yes, you read that right. A verbal contract is valid, so long as it includes these three factors also required of a legally binding written contract:

1. An offer

2. An acceptance of that offer

3. A consideration

The first two are obvious, we all know what an offer and acceptance of that offer mean. But what is “a consideration”?

Well, it’s simple. A consideration means that, “I will do this if you pay me for that”. It’s just both sides agreeing that the production of X will result in the payment of Y.

And that’s the thing – you’re not working for free. This isn’t you doing a favor for a friend or volunteering over at the soup kitchen in your free time. You’re putting in honest work for honest pay. Your production of X should result in the payment of Y. And as long as you and your client both agree to that up front, you have your consideration.

Now, the tricky part comes with proving that you have a contract with your client. This is where the benefits of a written contract come into play. If the agreement is in writing, it’s easy to prove it exists. But how can you prove a verbal contract? Or one that was somehow created in-between dozens of emails?

“I don’t have a contract”

Let’s be honest: I wouldn’t recommend ever relying on a verbal contract as being something you can enforce. But if the entirety of your contract negotiations takes place with your client over the phone, let’s at least hope you thought to use one of those call-recording apps.

This can actually be beneficial for you for all of your client calls, even if you have a written contract in place. In fact, I have been using one myself for the last year, as it allows me to maintain a record of all client communications and instructions. Some of my clients know I record their calls, as I tell them (and smile to myself) during that first introduction. Others are probably finding out about it right now.

Hi there!

But let’s just say that, for whatever reason, you didn’t think that far ahead. What if you met face-to-face and didn’t record the conversation?

Then, you need to ask yourself if there is a possibility that someone overheard the agreements made between you and your client and can back up your claims. Because without that, it becomes a twisted case of he said/she said that can be a little more difficult to win.

Still, absent a written or recorded contract, you can still legally prove a contract on the basis of the actions of both parties. For example, if your client claims the two of you never agreed to the work being done or any payment being exchanged as a result, but they accepted and commented on website mockups you sent them – it’s easy enough to prove they are lying. After all, why would they send you requests for revisions otherwise? Out of boredom? Just for kicks? I don’t think so. And most courts probably wouldn’t either.

In a perfect world, you would be maintaining records and contracts all along the way. But in the real world, you may find yourself in a situation with a non-paying client and none of that already preserved. In that case, back up every bit of communication you have had with your client immediately. Text messages, emails, even phone records and Whatsapp screenshots. Whatever you’ve got, take the time to save it now.

For whatever it’s worth, I personally never use Whatsapp with clients because it’s hard to document. Also, I hate to get a Whatsapp from a client when I’m sitting in the bathroom – but let’s go ahead and pretend I didn’t just give you that mental image.

Talk First, Shoot Later

When you’ve dealt with non-paying clients in the past, it can be easy to jump to a panicked state whenever a client is just a few days late. Oh no, not this again, you think. And your instinct is to immediately do whatever it takes to get your money. To show up, guns blazing, and demand what you are owed.

But guess what? No one benefits from you threatening legal action or dropping f-bombs right out the gate. In fact, most people are bound to go on the defensive in a situation like that – and it is a surefire way to ruin client relationships.

Yeah, yeah… you may not ever want to work with this jerk again. But how you handle him or her now could absolutely affect what they say about you to other potential clients in the future. Everything we do has a ripple effect, and sometimes… all you need are the kid gloves to get the money you deserve.

So for the time being, let’s give them the benefit of the doubt. They might not be aware they’re late with the payment, or that you’re unhappy about it. Of course, they’re supposed to remember they owe you, and you shouldn’t be the one reminding them of that. This isn’t kindergarten and it isn’t your job to wipe their snotty noses after recess, either. But sometimes, clients just forget. It happens. Keep your cool, at least in the beginning. It is better to be smart and get paid, than to be right and broke.

First things first, follow up on your invoices. Make sure you actually sent them the invoice, and then go to your calendar and set up reminders for every 10 days after the fact. Once those 10 days pass, shoot them an e-mail and politely remind them they have an invoice due. For some clients, that’s all it takes. For others, the every 10-day reminders shows them that you are serious – and that you will stalk them right into their dreams if you have to.

A few months ago I gave a workshop in a design studio, teaching attendees how to build websites with a cool new web app. After the workshop was over, I sent the invoice to the contracting client and waited for the payment like a good kid.

Nothing happened.

Fifteen days went by, and still nothing. So I wrote an email to the secretary of the studio. She forwarded it to their accountant, who then replied that they typically paid invoices 30 days after receiving them. I was cool about that because it was in accordance with their accounting protocols, and would still be in line with our contract. .

But then those 30 days went by, and the money still wasn’t in my account. I emailed the accountant again. This time she didn’t reply. So 10 days later, I emailed her once more and cc’d the secretary. Still, no answer.

Were they too busy to respond? Or were they trying to get away with not paying?

I felt anxious, that familiar sense of dread over non-payment creeping up within me.

I’m not an enforcer, I thought. Why do I have to fight people to pay me for work I’ve already done?

But experience had taught me that going straight for the jugular never really produced the results I was looking for. So instead, I took a deep breath and sent a third email – this time directly to the head of the studio. This was the same guy who had contacted me in the first place with the idea for the workshop. I cc-ed both the secretary and the accountant when I wrote:

Hi Joe,

Have you guys already moved to the new space you were telling me about? I hope all goes well with that!

I have something I need your help with – I still haven’t been paid for the workshop I ran at your studio. I sent the invoice on June 3 ^rd and a reminder email on July 4th, July 16th and a week ago.

Your accountant got back to me initially, saying the invoice should be paid within 30 days. But it has now been 51 days since I sent the invoice, and still no payment.

I feel uncomfortable sending this email – I was sure your studio was professional and that our original agreement would be honored. I am still hoping this is simply an oversight and can be easily rectified.

What’s next?

I hope you have a great weekend, and I look forward to hearing from you on this matter soon.

Lior

I want you to pay attention to a few important details from this e-mail:

1. I wrote down everything that had happened up to that point. Listing out the steps I had taken showed that I was on top of things, and that this was important to me.

2. I cc-ed the people I had already contacted. Sure, it’s kind of like ratting them out for not doing their jobs – but that isn’t my bad. If the boss is the one delaying the payment, it doesn’t affect the secretary or the accountant to have their names dragged into this. And if they are the ones responsible for the holdup? Well, then… their boss should know. You, as the contractor, shouldn’t have to protect incompetent employees.

3. I hit a nerve by mentioning the lack of professionalism. This was intentional, touching on a sensitive point – their reputation.

4. I still maintained professionalism on my own end, beginning and ending with pleasantries. Basically giving them the chance to resolve the issue with things still on mostly pleasant terms.

I could have written phrases like “I’m angry!” “You bastards!” or “Give me my money!” Those are certainly sentiments most of us would want to express. But doing that would only ignite a war of words. If you want a client to respond professionally (and to give you your money!) you sometimes have to set the example first.

This is the email I got that same day from the head of the studio:

“Hi Lior,

I’m sorry to hear that we got to this point. I wasn’t aware you hadn’t been paid. Thank you for alerting me to the issue! I will make sure the check is on its way to you by the end of today.

Sorry about that, hope to work with you in the future again,

Joe”

There was no CC on this email – neither the secretary nor the accountant had been included. So I don’t know who was responsible for the delay, but I actually don’t care. The check was in my mailbox within 72 hours and I went on with my life.

It could have been that the accountant was too busy to handle my payment. These things happen, clients get busy. So remind them about your payment, and don’t expect them to remember themselves. Remind them frequently if that’s what it takes, and don’t be afraid to go up the chain of command. Because you want to make sure the client is well aware you’re unhappy and has the opportunity to fix it, before shit really hits the fan.

Bringing in the Big Guns

But what happens if your attempts at playing nice get you nowhere? Maybe going up the chain of command is still only producing silence? Or perhaps you are working for a smaller client who doesn’t even have a chain of command to follow – they are it, and they aren’t responding. Then what?

If you have the budget for it, hire an attorney to send your client a letter. A great attorney by your side, can help you reduce the chance of having a non-paying client, as Mike Monteiro teaches us in his famous “Fuck You Pay Me” lecture.

You see, non-paying clients are typically cowards. They aren’t paying you, because they think they can get away with it. They think you are weak and easy enough to ignore. So if months go by and your reminders remain un-responded to, it’s time to step up your game and scare them a little.

Such a letter should state that the client is in breach of contract and you have no choice but to withdraw your services. Your lawyer will state that you will be instigating legal action on a specific date and they will be responsible for all debt recovery costs.

Obviously, having a written contract can make the threats of a lawyer even more frightening. (“Starting work without a contract is like putting on a condom after taking a home pregnancy test,“ says Monteiro). But even without that, some good legal jargon can intimidate a non-paying client enough to get them to cough up what they owe.

If you don’t have the budget for hiring an attorney, this is where having a friend (or girlfriend) who is a lawyer (or who isn’t afraid of pretending to be one) can come in handy.

But in this case, be damn sure that what is sent is as authentic as possible. Because if your client catches on to the fact that you are just playing pretend at this whole contract enforcement thing – they will laugh you off and never pay a dime.

On that note, don’t ever make the mistake of impersonating a real lawyer. It might seem like a great idea at the time, but the last thing you need is to get sued for fraud while in the process of trying to avoid suing someone else.

And Then, There Are the Enforcers

Debt collectors have a bit of a bad wrap. They are perceived as being ruthless and nasty, and certainly aren’t the nicest people to have on your side. But you know what? When nice isn’t working, you need someone willing to go a little more cutthroat in the collection of your money. You don’t want that blood on our hands (those pristine hands you use for that beautiful design work!) so let a debt collector do it!

Besides, you might be surprised to find that most debt collectors are not as evil as you imagine them to be. They keep their teeth clean and their hair washed. They aren’t necessarily emblazoned with tattoos and scars of victory. They can be people who look just like you, but who have ten times the patience you do. Patience that permits them to call, text and visit your client relentlessly until you get paid. It is that enforcement that will eventually convince your non-paying client to just write the check – just to be rid of that ever-present collector breathing down their neck.

There are more than 6,000 small debt collectors in the US alone. And there’s a new method for handling that enforcement that can be pretty flawless. It’s a Startup called TrueAccord. I haven’t used them myself, but have heard good things. These guys will help you collect your debt with their smart online app. Using machine-learning and smart algorithms, they automate the whole process. From the moment you give them the details of your project, you have nothing to worry about. If they get you your money, they ask for 33% of the payment. That might sound like a lot, but it’s still better than 100% of nothing. And if you have gone through the process of trying to play nice, and of bringing a lawyer on board, and your client still isn’t paying? Hiring someone else to do the dirty work can be totally worth it in the end.

***

Chapter 2

Or Else…

And then, there are the clients for whom none of the standard methods will work. They have nerves of steel, the ability to ignore just about anything, and no desire at all to pay. If you have a client who still refuses to answer your calls, emails and text messages, it’s time to get your hands dirty.

The following tactics are inappropriate. They are immoral, and you need to have huge balls to pull them off.

So do me this one favor: make sure to read through to the end of this book before you try any of these. They should be considered your last-ditch efforts.

Airing Dirty Laundry in Public

Publicly shaming a client can be extremely effective, but you have a lot to lose.

Most businesses have an online reputation they care about. In fact, that might even be why they hired you in the first place – to design a website, or create content, that could help to boost their online reputation. So doing anything that might affect that, or that could mar their search engine results, is a big motivator for most clients to pay.

I have a friend who is a bit of a hothead, and who was dealing with a client who not only wasn’t paying, but who was almost mocking my friend every time he responded to one of his e-mails. So what did my friend do? First, he posted all of their e-mail exchanges to his own blog. Both the rave reviews the client had initially given and the asshole responses where this client claimed he had no intention of paying and mocked my friend for not being able to do anything about it. Then, he did a search for the client’s company, and went through page by page leaving comments wherever he could. He told people what a jerk this client was, urged them not to support the business, and directed them to his blog post.

The client was furious and humiliated, but he agreed to pay if my friend would agree to erase everything. My friend waited until the check cleared and then held up his end of the bargain.

The downside? Any potential client who came across this exchange prior to it being all handled and deleted probably would have been scared away from working with my friend. Even honest, paying clients shy away from working with contractors who seem willing to cross such unprofessional lines.

So this is a proceed with caution option. You really need to make sure that getting paid what you are owed is worth potentially harming other professional relationships.

But if you’ve decided it’s worth it, start by going on Facebook, Twitter, and any other social media your client hangs out around. Find their profiles and pages and subscribe, follow and connect. Then tell everyone that they’re assholes. Tag them when writing about how they’ve ignored your calls, emails, and requests for payment for the work you’ve provided.

The bigger your client’s social presence, the more effective this tactic is. You can tag them and make sure their clients see they aren’t as fair as they portray themselves to be. Credibility and quality reputations can take years to build and only hours to destroy (thanks to Mark Zuckerberg and his friends). So touching this sensitive corner can get you quick results. But you need to be sure you are ready to really hit their business where it hurts. Reserve this only for the biggest of assholes. Destroying someone’s business reputation is something that should never be taken lightly, and these things have a way of snowballing. Some damage can’t ever be reversed.

If You Must Threaten, Do it Smartly

I don’t think it is ever the smartest move to threaten anyone. But if you must, there are some ways to make threats that are better than others. I know some of you have shorter fuses than I do and are willing to take extreme measures. For you, this could be one option.

I found this nasty trick for making your client pay in Marc Collins’ blog. He is an experienced, talented designer who had reached his threshold for dealing with non-paying clients. So he came up with something a bit extreme. A “last resort” that he used only twice in his career, when he’d been “fucked by a client”.

He sent one last email to the client, who he refers to as PigClient:

Dear Mr. PigClient

You are using my work but have refused to pay me and you are clearly avoiding my communications.

I have just launched pigclient-warning.co.uk and here I will document proceedings. Also, as a Webmaster I will use my considerable SEO skills* to ensure that pigclient-warning.co.uk is the first search result for anyone looking for your own website. I feel it is in the public interest to openly document this.

To end this today you could pay my final invoice and I will immediately remove the page. That will be an end to it.

I have attached a revised final invoice to include the cost of buying pigclient-warning.co.uk plus a £50 admin fee for writing this email.

Regards.

In both cases, the bill was paid within the hour. Bang!

Marc himself does not recommend you use this method, explaining that your client could easily sue you. Yes, it worked for him on two occasions. But that isn’t a guarantee it would work for you. So think very hard before going this route.

What Would Tony Soprano Do?

This method works in cases where you are not only the designer of a website, but also responsible for the development. When that happens, don’t give your client the code until he has paid. Plain and simple. Run his website on your server, and make sure he knows that if he does not pay, you will shut the site down.

Beware of this move – you might hurt his real business and then get sued. It’s better if you do it like Tony Soprano. Let him know you can break his legs, so that he pays before you really have to break them.

As with all the other extreme measures mentioned, there is no way back once you reach this point. Your client will probably hate you until the end of time. They will never recommend you to anyone else. So keep that in mind before you act.

A front-end developer pulled this exact move on a client in 2014. The client had missed a single payment of 29 Euros. The developer then decided to show off his move at the “designer news”. Read the responses he got from the community to understand why this is a questionable move, at best.

So yes, these are all last resort methods. And hopefully, if you read through to the end of this book, you can avoid having to pull any of them.

Which brings us back to where it all starts. Let’s talk about why your clients aren’t paying you in the first place.