This is the Part-3 of “Pay Me… Or Else!”. 

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Chapter 4

Before You Get the Project

I get it. You’re in business for yourself, which means that hustling is part of the job. Working to get clients sometimes takes up just as much of your time as completing the projects that are meant to get you paid.

But guess what?

If you actually want to get paid, you have to be smart about who you work with before you commit even an hour of your own creativity to a job.

Pick Your Clients Carefully

Yes, you read that right. You should be picking your clients, not the other way around.

You might be thinking, “But I need to pay the rent… I’m not in a position to be choosey about clients.” While this may be true, and there are certainly times when you just have to take the work offered to you, there is still something to be said for being choosey whenever possible.

Because the right clients actually take up far less of your time and pay when they are supposed to – which opens you up for doing even more work. At the very least, you need to bite the bullet and avoid the horror clients who seem problematic from the start.

When meeting with clients – be it in real life or digitally – treat the meeting like a first date. A first date with someone you wish to have a great relationship with. Because like it or not, the client/contractor relationship is one that ties you together for at least a few weeks to come.

So just like on a first date, be on the lookout for red flags. If you were on a date and the other person kept talking about their ex or seemed to be a Stage V clinger, you wouldn’t make a second date. In this context, if the potential client spends your entire meeting badmouthing several past contractors they have worked with, or if they seem like they will need a lot of handholding throughout the duration of the project, think twice.

Look, even if you were on a date and feeling horny and lonely, there are still certain red flags that would send you running – no matter how hard up you were. This should be true of bringing on new clients, as well, no matter how much you need the money. Because if you end up spending an inordinate amount of time trying to get paid, or dealing with inane requests, you just screwed yourself out of the ability to work with other clients anyway.

If something feels weird, or this client is cheesy, sleazy or teasy – think twice before you get into bed with them. Ask questions, use Google and reach out to mutual friends to learn as much information as you can. Make sure you’re not going to be sorry for picking this person as a client. It’s not personal – it’s business. The fact of the matter is, some people can be great human beings who would be awesome friends, but they would still also be clients from hell.

A quick way to check on a potential client’s stability would be to mention that you require a down payment. It doesn’t matter how much your down payment is for – anywhere from 10 to 50 percent is normal – it just matters that you make it clear you expect to start this relationship off with a show of faith. At this point, you just want to see how your potential clients react to this requirement. Some will be more than willing to comply, while others will immediately want to avoid the need for paying anything at all – let alone up front.

Soon enough, you will each be signing a mutual contract anyway. But putting money down sometimes means far more than words. So if a potential client runs away screaming when you mention “down payment”, don’t run after them.

What to Look Out For

Not all clients immediately present with red flags, but these four bastards should be easy enough to spot:

• The Man With a Dream. The more you get into this line of work, the more often you will hear, “Listen, I don’t have a lot to spend, but we’re just about to take off and should be raising a lot of money very soon. So just bear with us and let’s consider this a test project. We’re looking to build a long-term relationship and will be able to pay so much more next time!” This guy may be sincere. He may genuinely believe everything he is saying. But you know what? Clients like him are a dime a dozen. And rarely do they ever hit it big or do their promises ever come to fruition. So proceed with caution and be willing to stand by your own value. If a client doesn’t have the budget to afford you, don’t go there. At least, not unless you really like the job and can imagine yourself doing it for free.

• The Cheapskate. For this guy, paying you has nothing to do with how his business is doing – it could be extremely profitable. He’s just… cheap. You can see this in a lot of ways up front. How often he brings up his budget, the places he suggests the two of you might meet, and even cost-saving measures he may be advocating for. It is one thing to be frugal and fiscally responsible, another thing entirely to be cheap. Ask this guy if he has worked with other freelancers in the past, and how it went. Pay attention to any comments he might make about another freelancer’s rates. These kind of people are always sure they are paying too much for what they get. Chances are he’ll make you sweat a lot before you ever see a dime.

• The Lawyer in the Making. This is the client who just likes to argue and be confrontational – he or she always needs to be right. And will likely fight you every step of the way during the project, just because they get off on confrontation. Spotting this client is actually pretty easy. They have an arrogance about them that is hard to miss, and will jump at the chance to trash talk other freelancers if you open that door. Listen intently, and then get the heck out.

• The Needy Client: We are in a business that requires a fair amount of customer service, so a client who has questions and would like valuable follow-up isn’t necessarily a bad thing. But one who asks the same questions over and over again, seems hesitant about every decision that is made, and wants you holding their hand every step of the way is going to be a huge suck on your time. Not only that, but they have such a need to be liked that they will absolutely consider not paying you if you hurt their feelings in any way – which could be caused by something as simple as not responding to their unrelated e-mail about their cat. Tread carefully. You may need the work, but is it worth it for a client who will take up so much more of your time just to get the job done?

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Chapter 5

At the Project Starting Point

I have this good friend, Dan. He’s a great freelance web-developer, and I love working with him because he has the eye of a designer. Hiring him for a web-development project is a treat. But Dan has one drawback – he’s overly optimistic.

You know the type, right? Always seeing the best in everyone. Forever convinced they are living inside a bubble where no harm could possibly ever come to them. The kind of people who get shit on by a pigeon, and then tell themselves its good luck.

Optimistic people are great to be around. They lift our spirits and get us thinking optimistically, as well. But being optimistic when you’re a freelancer can get you into trouble. You want to skip the formalities and jump right into the work, sure that all will be smooth as a baby’s bottom. In real life, however, things are rarely ever that easy.

And getting shit on by a pigeon just means you have to pay extra for dry cleaning.

Dan, just like any other creative freelancer, has encountered plenty of problems with clients in the past. In his case, those problems are often a result of his optimism – and the ways he has failed to protect himself from the start. Again and again, the same things happen: milestones are delayed, requirements change, and payments seem elusive.

Handling contracts and dealing with money isn’t fun for anyone. You didn’t sign up for all that administrative sludge when you decided to become a designer. But you know what’s even less fun? Finishing a project only to have a client stiff you on your payment. So hold your horses and don’t start the work before you protect yourself.

After two or three times of doing it the right way, you’ll get used to the administrative end of things. Particularly when you find yourself getting paid, on time, more and more.

The Power of a Good Contract

Every freelance website, blog or lawyer will tell you the same thing; that having a good contract in place will allow you to win in court if you have to take it there.

I call bullshit.

Look, I’ve never been to court over non-payment (or anything else, for that matter) and I get goosebumps just thinking about it. I have no interest in ever going down that path, for all the reasons we have already discussed. But I also never skip out on writing a contract. Because a great contract isn’t just about helping you win in court – it is about helping you to avoid ever ending up there in the first place.

That is what I see as being the contract’s superhero power: it gets clients to pay before you have to escalate things to the point of heading to a courtroom.

Before you start working, you need to create a contract. And you need to make sure the client is pleased with the terms and signs it.

I know a few freelancers who have never used contracts in their entire career. Freelancers like my buddy Dan who just choose to trust in people. Look, that’s one approach, but I feel like that is just asking not to be paid.

Do you like getting screwed over?

For me, a contract is a must. It helps me get things organized in my mind while also communicating expectations to my client. Having signed a contract, your client will think twice about not paying you at the end of the project. Because they don’t want to end up in court, either.

So What Does a Good Contract Include?

A good contract, and just basic project management, always stipulates multiple payments along the way. The down payment we already discussed, and then the full payment broken up over various milestones. This actually protects both you and your client. The client is able to remain appraised of the work as it is happening, and if payment is problematic – you find out long before reaching the end of the project.

The contract is also a great way for both sides to agree on the price and what is included in that price, right up front. Say the project is to brand an upcoming restaurant. How many iterations/revisions are included? How many concepts will the client pay for? Is print for collateral included? What files and formats will be delivered?

When these things are not detailed out ahead of time, the probability that your client will feel frustrated with the end product and not want to pay increases exponentially. After all, if you both go into this with different expectations and don’t communicate what those expectations are – it is virtually impossible to produce an end product that will match what your client is envisioning in their head. And that becomes just another reason for them to delay payment until they get what they were hoping for in the beginning – which can sometimes mean starting from scratch for you.

Another great thing to include in your contracts is a 15-day payment policy. Basically, this just stipulates that payment is due within 15 days of the completion of work. Why 15? Because 15 days is enough time for them to reasonably review the work and go through their accountant for a transfer of money – at least, according to standard business practices.

Some clients won’t agree to that, so you need to have a conversation with them about why. In certain cases, they may be working with a company policy that dictates payments not be made until 30 days after invoicing. Should that be their reasoning, go ahead and implement the 30-day payment policy in your contract. But short of that, you need to ask why they are afraid of committing to paying you within 15 days. If they don’t have the money set aside now, and are afraid they won’t have it then, there is reason for concern on your end. You put in the work, so you deserve to be paid in a timely manner – how else are you supposed to pay your own bills if clients can’t pay you in a reasonable amount of time?

Sure, you should have some savings. That would be the responsible thing to do, perhaps especially as a freelancer. You can already hear your parent’s voices echoing that same sentiment in your head. Save 10 percent of every paycheck.

Blah. Blah. Blah.

But you know what? Your client should have some savings, too. You wouldn’t go out to eat at a restaurant if you didn’t have the money to pay, and they shouldn’t be hiring a freelancer they can’t afford. They have the entire time you are working to put money aside and plan for paying you. Allowing for 15 days after the completion date is actually giving them far more cushion than they should ethically need.

Now, what about those cash flow problems we discussed earlier, where a company might not be willing to pay you until they get paid themselves? Well, I say screw that. Them waiting to collect their money isn’t your problem. They are your client, not whomever they are working for. So include a clause in all your contracts that stipulates your payment should not be dependent upon any other payments to them. That 15-day payment policy applies regardless of when they get paid.

Unsure of how to build a contract? Here is the best open-source, free-to-use contract I know of. You can use it yourself, plugging in your own information as you go. I actually use shorter contracts – I prefer never to go more than two pages long. But no matter what you use, I would suggest having a lawyer go over it at least once. Then you have a template you can feel confident in using for all future contracts.

Easing Contract Nervousness

You will undoubtedly come across at least a few clients who are hesitant about contracts. In some cases, this can be a red flag indicating you need to steer clear. But in others, it is just the sign of a client who is new to the business world and already feeling uneasy about all these big commitments they are making.

Let’s just say a flower shop contacts you, wanting you to design their website. The shop owner knows nothing about websites or the Internet, and makes that point very clear from the initial conversation. They might be afraid to sign a contract, because they don’t totally understand what they are signing or agreeing to. In this case, your job is to sit with the client and format the contract in such a way that allows them to feel protected as well. Write the contract in simple language that he or she will understand. Teach them something about web-design, build their trust in you, and make them feel a little more comfortable with this new world of technology.

The point is, there is no excuse these days not to have a contract. There are free templates you can use, and even products that help you write your own quality contracts.Don’t skip this step. It isn’t ever worth it.

Watch your money from afar

Every morning before I start working, I get on my fixed-gear bicycle for a long ride. My journey takes place next to the beach, on a special bike lane, while listening to music in my headphones.

I love this routine, but sometimes I lose my motivation and just wish I could be in the shower already. Then, when I’m close enough to my destination, a few miles away from home, the motivation hits me again. I speed up, feeling energized because I know I’m about to reach my goal. I can see it getting closer.

I have found those bike rides to be very similar to how I feel about working on my projects. When I’m getting closer to the end, I can imagine the dollar signs in my bank account, giving me the motivation I need to speed up.

You know what is even better motivation? When I can actually see that money waiting for me.

Occasionally I work for clients as a project manager to build websites for them. When that happens, I find relevant freelance developers and designers and hire them for the project. For those freelancers, I am the client. Because of that, I know how it feels to be on the other side of this whole freelancer gig.

I tend to hire developers from different countries (India, Ukraine, Israel, Poland). Since I work with them remotely, these are all people I’ve never met face to face. They also don’t know who I am, which must increase their nervousness that I won’t pay. Fortunately for them, I always pay on time. And to address any concerns they may have, I use Escrow accounts.

Escrow is a neutral third party, considered as safe as a Swiss bank, that can hold payments until the work is done. It’s very simple – when you start working on a specific milestone for me, I transfer money to a mutual Escrow account. You can’t get the money from that account yet, but you do see that I have it and that I intend to give it to you.

When a freelancer completes the work for this milestone, I release the money from the Escrow account, which allows them to withdraw it. They still need me to approve the milestone, so I could potentially delay the release if I’m concerned about the quality of work. But the fact that they can see my money laying there, waiting for them, makes them trust me.

Moreover, just like I speed up on my bike when I see home from afar, I find the same happens when Escrow accounts are being used. When the freelancer sees the money in their Escrow account, they get motivated because it feels more real.

If you have clients that you don’t totally trust, or if the work is being done remotely, you can always suggest an Escrow account in your contract. The client is not taking any risk because if they don’t approve a milestone, you won’t get access to the money. But by doing things this way, they prove to you that they are serious about the project and that they have the money for the job.

Using Escrow, there’s no need for bank transfers or checks sent in the mail, either. This is another advantage of the service. There’s less friction and it is especially convenient if you work remotely with clients from other countries.

Now, you may come across clients who are uncomfortable with the idea of Escrow because they don’t understand it. But that’s where it becomes important for you to do your part in educating yourself on how it all works, so that you can explain the process and reassure them. After all, if this is one way to ensure you get paid – it is worth doing your research so that you can appropriately pitch it to clients.

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Chapter 6

During the Project

Red lights can appear during work on any project. Clients might disclose discomfort over your lack of communication, over the quality of the milestones so far, or over any other aspect of the project.

If you plow past those red lights, you may be setting yourself up for disappointment come payment time. A good freelancer, the kind who routinely gets paid, remains sensitive to the client and pays attention to those red lights when they come up.

Keep the Communication Open

I love my job. I work from home, I don’t have a boss sitting behind me micromanaging my progress, and I get a say in the jobs I take on. But keeping that work environment copacetic means touching base with clients throughout my work on their project to routinely ensure we are on the same page.

Look, you can minimize communication with your clients to zero if you want to. A lot of work-from-home freelancers are true introverts, and that is certainly the default they prefer. They like to work freely, without interruptions or handholding, allowing themselves to be creative and productive. But trust me when I say: going radio silent is a bold and dangerous move. So take it at your own risk, knowing damn well you may be screwing yourself out of a payday.

In “The Honest Truth About Dishonesty”, Dan Ariely writes about a slew of interesting experiments that make one thing very clear. It is so much easier to cheat someone you don’t know personally.

So you know what? Protecting yourself means allowing your clients to know you personally. Meet face to face whenever possible. Create solid relationships, even emotional connections. Let them see pieces of your life and work philosophy, and treat them not just as a client – but also as a friend. When the day comes for them to pay, it will be harder to ignore your invoice if they remember your pretty face.

You don’t want to cross lines or be socially awkward, but in the context of business conversations, it is perfectly acceptable to ask a client about his or her family, spouse or dreams for their project. You can let information slip about your dog or the college you attended. This doesn’t always have to happen face to face. If you are working remotely, video chatting can come in super handy. But opening up those lines of communication allows your client to see you as a real person. And when that happens, they are far less likely to screw you.

So make sure to constantly communicate with your client. Ask questions, give updates, and let them know how things are going. This will remind them that there is a real person involved, investing real hours; hours they will eventually have to pay for.

If the project is doomed because the client is unhappy with what you’re creating, or any other problem they are dealing with – you will hear about it sooner rather than later if you keep those lines of communication open. Remember the whole “the project went south” scenario for not being paid? Well, if you are routinely touching base with your client – at least you are more likely to find that out before you put everything you have into the finished product.

The First Milestone

Working with milestones allows you to get an idea of your clients paying habits from fairly early on. If the first payment required is a down payment, you already have some security going into this project. The client has proven to you that they are serious. And by completing the job professionally and on time, you can prove to the client that they were right to trust you with their money – making it more likely they will do so again in the future.

But some clients resist down payments, either because they don’t trust you or because they don’t have the money. Obviously, if you are a junior designer, this might happen more. And you can’t blame the client – your portfolio of works and former clients is small to nonexistent. They have no clue if you can provide the work you are promising, and to an extent – this is a situation where you need to earn the trust, not the other way around.

I have a nice technique I use with clients who don’t agree to a down payment. It works the best for designers. Set up the first milestone as “The Concept”. In this milestone, you show the client drawings in your notebook and describe to him or her the general idea of the design you plan on producing. No Photoshop files, mockups, or anything else online. Not only will you be able to test the client’s paying habits in an early stage of the project, you will also have a chance to show them what they are about to get. If they don’t like it, you both saved time and money.

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Chapter 7

The Work is Done? Wait!

Congratulations, the project is finished! It is beautiful and you are proud of your work (at least – let’s hope you are). Feeling super excited, you want to send the client the files right away. Or at least set up a meeting to show them what you’ve done. We creative people get a little manic like that when we are on the high of finishing a project –we want instant gratification and praise for the work we’ve done!

But stop. Before you send everything haphazardly off, be cautious and protect yourself. No matter how much you like this client, or how excited you are to hear what they think, now is the critical point.

Even if you were smart enough to have a contract with specific paid milestones included and a down payment – there’s still always a chance you won’t get that last payment. Which is, in many cases, the biggest one.

The Ransom Way

It seems crazy to think that a client who has been paying all along might skip out on that final payment, but it happens all the time. Once they have the finished product in hand, they aren’t always as motivated to get you your money anymore. After all, they have nothing to lose by delaying.

And some people are assholes.

The simplest tactic to ensure this doesn’t happen to you is to notify the client you are done and that you will release the files once the final payment is made. They want to get the work? They have to pay for it.

Boom.

But wait just a second, because… that’s usually easier said than done. Most clients won’t pay you before they see the finished product. They want to protect themselves too, after all. And they want to be able to know that they can ask for changes, or approve the final files, before they pay you and reduce your motivation to finish the project out.

Now, a good freelancer would never cut and run. I have had clients pay me up front in the past, and I have always remained available to make any changes they have requested after the fact. But the reality is, yes, my motivation is greatly reduced once I’ve been paid. It’s hard to put even two more hours into a job you don’t expect to see anything else from. So I do understand why some clients would feel hesitant about this. It really can cut both ways.

So how to do you ensure everyone feels protected?

Well, you start by having this last payment outlined in you contract. If you want to get paid before releasing the files, and you are confident in your ability to continue working on revisions after the fact – include that in your contract. But if your client isn’t willing to go for it, you may need to consider one of the options below.

Above all else, update your client as you are nearing the point of completion. Regardless of what you have agreed to – you want them to know their time for paying is coming.

See But Not Touch

The reality is, very few clients are going to agree to making that final payment before they see the project. But there’s a simple solution you can implement to still protect yourself and them. You see it on stock images you are buying all the time – watermarks. Choose the most amazing image, Photoshop layers, and pages you’ve done, and then add watermarks to them. Let the client see your beautiful job, while also reminding them they don’t own the finished product yet. Then agree to remove the watermarks and send the complete files once that final payment is made.

Here’s a simple way to do that in Photoshop.

Basically, you’re giving them a taste of what’s to come – but they don’t get the full payout until they give you your full payout.

The Pressure Point

Sometimes we have to remember that clients are up against deadlines too, and it isn’t uncommon for them to turn their emergency needs into ours. A perfect example of this might happen shortly before your project is due. Your work is almost ready, but the client contacts you and explains they need to show it in a business meeting right away. Suddenly, he’s calling you to explain why he’d like you to finish it all ASAP and send him everything by the end of the week.

Now, you are a good kid. You want to make your client happy, and you’re proud of your work. You are flattered by the fact that your work is going to be shown to others – a strong indication that your client is happy with what you have done so far, too. But… you still haven’t received payment from him. Either because he wasn’t supposed to pay you yet, or because his last payment is late.

Most of the time in these scenarios, the client has a thousand excuses for why they can’t pay you just yet. A good businessman will try to convince you that “your check is in the mail” or that they will pay you as soon as their meetings are complete. They say, “Just send me the files, my accountant is on vacation – as soon as he gets back, I promise you, he’ll deal with your payment.”

And now, you’re stuck between a rock and a hard place. Because you’ve had a good working relationship up to this point, and you don’t want to screw it up now.

But you know what? Fuck that. You can still be pleasant and professional, but if your client wants your work early – they need to be willing to pay.

A good businessperson will understand why you ultimately can’t release the final product until all payments are up to date. The waiting for the account excuse? That’s bullshit. Any decent business owner knows how to write a check. And if they say the check is in the mail? Well, they can cancel the check and transfer funds to your account. They know how to do that, too.

Stand your ground. If nothing else, this is a great way for you to get your money sooner than you had originally anticipated. After all, if the client really does need the final product for those meetings – he or she will find a way to pay. I can promise you that.

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Chapter 8

Knowing When to Let it Go

Remember that whole, “Life isn’t fair,” lesson my 4^th grade teacher taught me? Yeah, well… it still applies. There will be times when you do everything right, and that asshole client still refuses to pay.

You’ve threatened, you’ve sent a collector and you’ve sued – but he just disappeared. Or filed bankruptcy. Don’t let it ruin your life. You played the game. You tried everything in your magic bag of tricks. There’s nothing more you can do here, so let this one go and focus your energy on new project.

We all take risks in our careers. If you were working in an office environment, you could get fired any given day, right? As freelancers, our risk is that we won’t get paid by clients. Shit happens. What’s important is that you move on. You have to, because otherwise it will hurt your focus. And when your focus is skewed, you stop being the creative person you are.

So just let go.

Go meditate or run a few miles to blow off steam. Eat pizza with friends or gorge on a pint of Ben and Jerry’s. Whatever you need to do to let it go.

Just make sure you learn your lesson. Think about what happened – could you have done anything differently? Why didn’t the client pay? Was it a communication problem? Or was he just a villain?

Find the silver lining. At the very least, this shithead client may have taught you how to spot other shitheads in the future. So learn your lesson and move on. You’ll be fine, and soon you’ll get another creative project that will help you get back on your feet.

Final Note

If you’ve made it this far, my hope is that you have already gotten paid – or at least learned how to protect yourself and ensure payment in the future. Need a brief reminder on how to do that, though?

1. Carefully vet your clients – don’t go against your gut.

2. Have an iron clad contract in place.

3. Find ways to get paid before submitting the final product.

4. Know how to pressure your client into coughing up your cash if they somehow slither past those due dates.

I know that it might seem like a lot of work, and if you haven’t done much up to this point – it can even seem a little overwhelming. But trust me, this whole book is about implementing simple changes to make a huge difference in your bottom line – and your stress levels. The more you follow the suggestions I’ve outlined for you, the more they will begin to feel like second nature. And that small amount of extra effort up front will be so worth it when you realize you haven’t dealt with a non-paying client in forever.

The truth is, yes, there are assholes in the world that will try to take advantage of the little guy. And as a self-employed freelancer, you are certainly at risk of being seen as that little guy. But you also have the power to protect yourself.

And you know what else? Not all clients suck. In fact, I would say the vast majority are a dream to work with. People who will appreciate your creative vision and be excited about the work you are producing. There are plenty of clients who will not only pay on time, but who might even give you unexpected bonuses for a job well done. There are clients who will make you love your job a thousand times over, totally making up for the few jerks who slip through the cracks in between.

So take a deep breath, and start making some changes to protect yourself from those jerks. Because you aren’t helpless in this and you deserve to get paid for the work you do.

Never again is a great promise to make yourself.

But then, take that money you worked your ass off for, and treat yourself to happy hour with friends. Not bourbon poured in a fit of rage, but celebratory cocktails earned after a project well done.

Hell, you could even shoot for a mid-day celebration, if that’s what you’re up for. After all, isn’t that one of the biggest advantages of what we do? You aren’t stuck in an office. You get to make your own hours and pick and choose the projects you love. You don’t have a boss breathing down your neck or a time clock to punch.

Life is good, my friend! And being a freelancer, making your own hours, defining who you are creatively and earning every dollar in your pocket? That is a perk well worth celebrating