HN Explorer

Ask HN: How do you deal with deadbeat clients?

3 points by jayroh ↗ HN
As a result of an old ALA post that Zeldman recently brought back up (http://www.alistapart.com/articles/gettingpaid/) it got me thinking about the never-ending war those of us in the services business deal with - just getting paid for the work we've done for our clients.

It raised a number of questions for me - Is it just a matter of patience and perseverance? Knowing that eventually all the chasing you do will pay off with the amount you invoiced? Are there ways to mitigate this issue?

The first comment I normally get when I bring this up in conversation with peers is that you have to have a ROCK-SOLID contract and statement of work drawn up for your clients. Sure, this helps people understand that you mean business, and will normally help with the majority of your business relationships. But there's that fraction of clients that will laugh in your face and drag it out for however long they want because they know you can't afford to retain a lawyer to fight them.

So what are the other options? cap deploy:web:disable? Backup and delete everything? That tack, to me, is a very last resort but still reeks of legal quagmire. You, obviously, wouldn't want to be brought up on charges of "hacking", right?

The only other option I've considered - public shaming/outcry. Designers and copy-writers who've had their work stolen/plagiarized have been quick to post on their blogs about it and circle the wagons w/their communities. And quite often it works. But what about posting about that deadbeat client? Does that smell of desperation, poor business practice, and would it be a reputation killer?

2 comments

[ 4.5 ms ] story [ 20.8 ms ] thread
tonystubblebine
There's three things I do.

One, work with people who I think will pay. I get a lot of calls from people who sound stoned and don't seem to know what they're talking about. I don't move forward with those types of people. In general, I also try to avoid individuals. Companies pay slowly, but are less likely to disappear on you.

Two, I always ask for some money up front or spread the project out so that I get a chance to see their payment process before they get a delivered product.

Three, I send reminder emails about late payments on the first day that it's late. These aren't big emotional emails, just, "Could you give me an update on this invoice." Companies have institutionalized processes for making slow payments so you just need to expect that you'll be sending reminder emails.

kls
If you have a signed contract with a stated amount you can put a lien on any business assets that they have. You can file a D&B report on their business credit or you can file a complaint with the BBB. The last, while easy, is not that great unless they have a large consumer base.