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business words for Freelancers
Doug Pizac, Photographer
Sandy | UT | USA | Posted: 2:16 PM on 11.05.17
->> Here's the link to an AP story on the perils and woes that freelancers have in trying to get paid for their work along with some advice and remedies.,-small-businesses-struggle-to-get-paid

While the story is about writers, it certainly applies to photographers too -- all of which deals on how to conduct yourself as a BUSINESS.

In addition to what is in the story, I would like to add another tip on getting paid that I got from an ASMP webinar featuring an attorney. It is common practice for us to add 1.5% to unpaid balances each month -- a small amount that is usually ignored by those unwilling to pay on time. The lawyer suggested to also add a fee the same everyone's banks do on late payments, overdrafts, etc. In addition to the percentage there is also a set fee that accrues too to handle the overhead of having to do follow-up billing statements and pay for collection efforts such as your time making phone calls. The fee can be any amount, unlike interest percentages that are regulated.

While 1.5% is nothing to take note of to many, an additional $35-50 fee each month on top of it is noticeable. For example, if a client is late paying their $100 invoice, a buck and a half in interest is nothing as an incentive to pay it on time. But if that $1.50 also comes with a $35 service fee then paying the $100 becomes very important to avoid the charges. I recently incorporated a $50 fee in addition to interest in my contracts. I used it for a new client whose business is similar to GameFace Media. I sent an email noting the fee a week before the due date as a reminder. A check soon arrived for the full amount.

Clients who are good ones and pay on time have no reservations about agreeing to the fees because it does not affect them. The ones who become concern or balk could be those who may not pay promptly and/or cause collection headaches later, which in itself can help you vet new clients.

If anyone has other tips on billing/collecting, please share.
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Thread Title: business words for Freelancers
Thread Started By: Doug Pizac
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