I just got paid today. Or, I should say, I hunted down a long-overdue paycheck.
It wasn't supposed to be this way.
About three months ago, I was asked to judge a high school debate tournament. Easy money, I thought. I'd download The $100 Startup to my iPhone and read it during downtime.
The thing is, it was easy work, but it wasn't easy money.
I didn't realize how much effort it would take to make sure I got paid.
When I first started freelancing, I thought it went something like this: you worked a gig, you sent out an invoice, and you got paid for it. That's how it's supposed to work, right?
Only, it doesn't.
I spent three months waiting for that debate check to come in the mail. Every two weeks, I'd send the coach a reminder. "It'll be ready next week," he'd say.
Finally, he e-mailed to say that the check was sitting in the business office and was ready for me to pick it up. I went down to the school, and after half an hour of wandering around campus and being sent from one office to the next, I had the check in my hand.
It looked awfully small compared to the effort it had taken to get it.
That day's work didn't seem worth it any more, not when I factored in the three months of follow-up e-mails and the drive to pick it up.
I felt ripped off, even though I was paid exactly the amount I'd agreed to at the time.
Here are five things to keep in mind when getting paid for freelance work.
1) Factor in the hassle of getting paid when setting a flat or hourly rate. If you know that it's going to take extra work to get your money, consider that part of the equation. A $10/hr gig turns into $9/hr if you spend an additional hour hunting down your check.
2) Be clear up front when you expect your money. It's better to say, "You've missed the date that we agreed upon," than to ask, week after week, "When can I expect my check?" Having a specified time-frame is the difference between "You're late" and "It's taking a while."
3) Don't be afraid to charge a late fee. Getting paid late isn't just inconvenient -- it can cost you money. That check could have gone to pay off your car loan three months ago. Instead you've been incurring interest while your client dilly-dallied. It's reasonable to pass on that cost to your client as a 10 or 15% fee.
4) Have a friend be your invoice wrangler. If you think that hearing from a third party would speed up the process, ask a friend to call up your client as your "personal assistant". Some people are better at talking about money than others. Offer your friend a 10% commission if they can hunt down a delinquent check.
5) Avoid invoices altogether if you can. It's easy to get a credit card reader for your iPhone, or set up an online storefront so clients can pay you directly. Whenever possible, arrange to be paid up front, or immediately after the job. Avoid gigs that require an accounting office to "process" your check.
Finally, don't take late payments personally. Most of your clients aren't out to swindle you.
Even good people can be bad at paying debts.
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Can you think of any other tips for making sure you get paid promptly? What strategies have you used to negotiate with clients?