Self-Employment

» jmattern - Getting Paid When Self-Employed

I just stumbled upon your article about getting paid sporadically when self-employed through the home page. Ironically, it's an issue that's been bugging me today, so I thought I'd comment.

In addition to freelance writing and editing, I manage several websites and run a small PR firm as my primary business. While the workflow has been unusually high, the pay has been unbelievably low... not in what I'm invoicing, but in how slow people are to pay.

July was the same. It felt like it was national "Don't Pay Jenn" month. ;) Everyone was caught up by August, and September's been having the same issue.

So I wonder... is it just me, or do others in the self-employed circle notice the same thing - where work comes in but it seems like everyone's paying late at the same time? Of course, at least the work itself has a steady flow, which is great. I just can't understand why the pay problem despite the workload happens in cycles the way it has been for me. Any thoughts?

Jenn

-- posted by jmattern

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» KC Morgan - Getting Paid When Self-Employed

In response to Getting Paid When Self-Employed posted by jmattern:
No, the same thing happens to me. I've even had people suddenly switch their payment schedule on me, and then act as though it's been that way the whole time. The only advice I have is to get agreements in writing regarding pay. Then, when they fail to pay on time, they're legally liable for their slowness. Point out that you're running a business, and withhold new work until you've been compensated by that company for services rendered.

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» Lisa Manfield - Getting Paid When Self-Employed

In response to Getting Paid When Self-Employed posted by MorganKC:

I have had the same thing happen. I had a client for whom I did some work in April and only just recently got paid for it. Someone suggested that I should have invoiced them with interest, although I can't say it's something I've ever tried, probably for fear of pissing off the client to the point that they won't want to work with me again. Has anyone else tried this?

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» Andrea_Coutu - Getting Paid When Self-Employed

I've been consulting for 10 years. When I first became a consultant, I sent people quotes and my contracts were pretty short. Now I use detailed legal consulting contracts that spell out all my terms. I get a deposit up front and at key milestones. I invoice promptly and I send out reminders. I also charge interest for late payments -- I use a rate that is higher than a department store credit card, so that there is an incentive to pay me first. I also sue people who do not pay me. And I calculate bad debt as part of my consulting fee rates.

Result? I get paid promptly. 99.9% of my clients pay me within 30 business days. I've only ever had to sue two clients -- and I won both times.

-- posted by Andrea_Coutu

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