How do you guys make sure you get paid?
jsng at wayoflife.org
Sat Feb 19 00:42:54 CST 2005
>Get paid/deliver in phases, timeout the last delivered version, perhaps with
>an unlock code, until final payment is received (and cleared).
>Tactile Media, Multimedia & Design
I'm no longer doing any of this stuff for a living, but this is what
we used to do:
1. Go for 50% downpayment or as high a downpayment as possible
2. We usually compute our downpayment quantum to be high enough to
cover our COSTS of doing the whole job
3. this ensures that in our worst case, we've already recovered our
cost of doing this job even if everything falls apart after that.
This is necessary in our case because the standard practice where I
live is that even big businesses have a nasty habit of working with
smaller firms on the basis of 90 days or even 6 months credit ("so
sue me"). This can create a massive problem with your cashflow if you
So if I ensure that I cover myself in the downpayment or initial
payments, then I can stay cool while the client starts to waste
valuable time and this also gives me room to move in cases where
things get stalled for reasons outside of our control.
Once you start sweating about the payments being delayed, if you have
a lousy client, they know they control you and you're in trouble. On
the other hand, if they know that you can afford to walk away from
the project without hurting, they're the ones with the problem and
they need to work on 'motivating' you.
Contracts may not mean very much, neither do court judgements. We won
a summary judgement before and the client was told to pay up and what
they did was to ship out every piece of furniture and equipment they
had and the owner left town and went to another country. We never
recovered the money and 2 years later, he showed up in their local
media as an entrepreneurship "hero" there.
More information about the use-livecode