In the latest issue of Creative Business, Cameron Foote reports on his latest survey of current business conditions and provides a rationale for progress payments that you can use with the clients who don’t want to pay them. Here’s an excerpt:
Let’s say you’ve prepared a proposal for a new client company that likes your work. Your contact person readily agrees to everything, including price and schedule. Everything, that is, with one major exception: she gets hung up on the billing terms—an up-front deposit, a mid-term payment, and a final payment.
She can’t understand why you are asking for advance payments.
She says her (large) company pays for everything else after satisfactory delivery. Why should your (small) company have different terms?
Cameron discusses industry standards for progress payments, why they’re important, adding them to proposals, and how to respond to clients, saying, “You should be able to explain the rationale behind them in a non-defensive manner.”
Also included in this month’s newsletter:
1) The Spring business conditions survey report
2) Employee overtime and work break requirements
3) The rationale for requesting progress payments from clients
You'll also find advice on tax deductibility for labor, getting paid in client equity, insurance policy downsizing, new business pitch travel, having a "screw-up" account, providing a rate sheet, technical advice from CB, deciding between clients, and returning pre-payments.
Subscribe to the Creative Business Newsletter today to get in-depth business wisdom 9 times a year—plus FREE ADVICE from Cameron Foote.
Want to see Cameron Foote in person? He’ll be presenting “Marketing Design Services” on June 10th in New York.