Ensure Your Marketing Business Gets Paid On Time
Have a pricing guide to present to your clients that showcases all of your services and payment terms.
Running your own marketing business can be a gratifying way to earn a living on your terms doing something you love, but it can be pretty stressful at times, especially when you are struggling to get a client to pay you on time.
There is nothing worse than when a client will not settle their invoice. You spend too much time chasing them and stressing about what you will do if the money does not come through. The good news is there are several things you can do to ensure your marketing business gets paid on time.
01
Send prompt invoices
Using software to send payment invoices automatically when a job is complete is an excellent way to get paid on time because the sooner you send the invoice, the sooner it is likely to be actioned by the client. It does not always work out that way, but as a good first step, immediately sending out your invoices is helpful, and it is simple to do with an automated system.
02
Create clear terms and conditions
Right from the start, when working with a client, no matter who it is, you should ensure that you have a written contract with transparent terms and conditions around every aspect of your time working together, including payment timescales.
By creating a detailed contract, you will ensure that both parties know what is expected of them, and you can ask for payment at a specific time. You can also create a clause that lays out the fees you will charge for late payments and what will happen if a payment is not forthcoming so that you have legal recourse should the worst happen and the client refuses to pay despite you holding up your end of the bargain.
Have a company profile to present o your clients. It includes a pricing guide so that all bases are covered prior to you working together.
03
Track payments
One thing you should always do as a small marketing business is to track the payment patterns of your regular clients. Doing this is one of the best ways to reduce the risk of your company not being paid on time or, even worse, not being paid at all.
If you track payment patterns and you find, for example, that X company always pays a month late or that you have to endlessly chase Y company to pay at all, then you can make decisions about firming up their contracts so that they settle their debt in a more timely manner. You could also opt to refuse to continue business with them at all if it is too time-consuming and stressful to chase them. This will put your business in a much better position from now on and reduce the odds of you losing money in the future.
04
Offer incentives
If you are struggling to get paid on time, then take a leaf out of the marketing playbook and offer your clients incentives to pay just like you would create incentives for customers to buy products from your clients.
If you offer, say, a 10 percent discount for early payers or a freebie for clients who pay on time when it comes to them making their next order, you will find those slow payers suddenly become prompt at paying off their invoices., and everyone wins. Of course, only do this if you can afford to do so, and it is built into your business plan, but if it is viable for you, it can be very effective indeed.
05
Offer more payment options
Something else that can help your marketing business to get paid on time is offering multiple payment options--from Paypal to credit cards to bank transfers. By providing a wide range of options, you are making it easier for your clients to complete the transaction, which means they are less likely to hold off on doing so until they can find a convenient time in their window.
It has never been easier to set up numerous payment options, so there is no reason not to do this if you want to get paid on time and have an easier time planning your company's cash flow in the future.
Not getting paid on time sucks, but you can vastly reduce your chances of having it happen to you by simply incorporating some or, even better, all of the strategies above into your business model going forward. If you want to be paid promptly, these changes will help.
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