Pay Up! (Another Rant)

Scott F

Scott F

Pug Life
This could go in the business section, but I know the Cafe gets a lot of traffic, and it's kind of just ranting. :Drogar-Sick(DBG):

Lately it seems like I'm really pulling teeth trying to get paid for services. I know the economy is in the toilet, I know it is traditionally hard to get paid for freelance work. But it just seems like this year things have hit an all-time low.

I'm a jack of all trades/master of none. Event videography, commercial production, editing and post, etc. In the past the people I work for have been good about paying in a timely fashion. Lately, not so much. If I contract someone to do lighting/sound on a small gig, I try and get them paid that day, if not within the week. I'm taking this stall in payment thing as a lack of respect.

Another avenue: I had to do a return/destroy of software from Adobe. I requested a refund in June. I just got a credit on October 1st. 3 months? Really? And that was with an incredible amount of runaround and BS on their end.

Even selling on eBay. I just had some chucklehead stall for a week before sending a payment. "Oh yeah, my account is locked up." Then don't cut everyone off with a bid that you can't commit to! It's 2009, it cannot be any easier than using PayPal.

So I'm just curious, how are you doing with clients/getting paid? Has it been crap lately, or is this just happening to me? Anyone got any good stories?
 
It really seems case by case with my clients. Projects for the county = waiting 3 weeks at least. They *laughed* and told me I was ridiculous when I asked to be paid at the same time I handed over the final deliverables.

The indy producers I do day shoots and small edits for usually pay me within a week. The real companies usually take forever, which is why if they are a first time client, I demand a deposit. In the end, most companies are just not used to paying for a service up front, or even in a timely manner.

I put in a contract one time to get paid in 2 weeks, and after 3 months of no pay and horrible communication, I filed a small claims suit and got paid rather promptly. I burned that bridge, but I'd never want to work for them again anyway.
 
My experience has been pretty good overall. I rarely get paid on the day, but it happens. I have waited as long as 2-3 months for payment a couple of times, but it was the same client, and now I just don't expect to get the money until then and budget accordingly. I will still do work for them because they cover all expenses and give me my full rate without blinking. That doesn't happen very often.

Like you I do a variety of projects, and at this point it is mostly for clients that I have a history with. That helps. But if I am taking on a new client for something that will take some work and development, I submit a contract, with clear expectations for payment dates. If it is just me and my wife I go as much as 2 weeks after completion for full payment. If I have to bring on more subs, I always get 1/3 or 1/2 at different stages so I can pay the subs. I don't expect them to have to wait.

This is exactly why I nurture the regular clients I have. I don't like surprises, especially when they involve me not getting paid :)
 
Ask for installment payments at milestones on larger jobs (e.g., deposit upon contract; installment upon completion of pre / physical / post; final installment upon deliverables). We don't do business with anyone who can't pay a portion up front.

On freelance jobs, that's harder to do. If you have box rentals, you can certainly request a deposit and bill the rest on net terms.

We have also successfully employed a 15 day discount structure. Show two prices - one paid in 15 days after invoice and one for 30 days. You'll be surprised how many clients will postmark on the 15th day or earlier.

Get bulletproof legal language on your agreements, incentivize your clients to pay early through discounts and, finally, go mess up anyone who doesn't settle up in a reasonable timeframe.
 
I give 30 days, then turn it over to a collection agency. Yes, one loses a percentage of the total, that way. But at least one gets most of what's coming. And frankly I view it as a worthwhile punitive measure, too; having outstanding collections doesn't look good for anyone.

Although sometimes simply mentioning collection does wonders for a client's motivation. Even when - as in one case - the client is a company the size of Universal/MCA.
 
Thanks for the replies, all good info.

Generally speaking, I always get paid, it just seems like lately the people I work for have taken a more casual attitude. "We'll pay him when we get to it."

And I'm just wondering based on the economy (or any other factors) if anyone else has been feeling the pinch. Or is it business as usual?

If anything, I just learned that "incentivize" is a real word. :beer:
 
I did some freelance work for a local video company and it took 2 and a half months to get paid. They claimed that the "boss" wasnt signing any cheques for the summer??? What kind of excuse is that. Regardless I sat out front of the building and waited for his car to pull up and I went straight in and went all Arri Golds on him. Complete jackass and I never did get the promised amount.

I always take some cash or cheque up front. There is nothing more crappy then waiting months for something that should have been signed right then and there.
 
arges03 said:
The indy producers I do day shoots and small edits for usually pay me within a week. The real companies usually take forever
Click to expand...

I have this same problem. The Indi's know this ain't an easy world and cut me checks quick....They also know that the quicker I get paid, the better I get paid, and the more gigs they get me, that I'll have that much better of equipment, supplies, etc. that they can use on a production. I end up adding new things to my package all the time, and the only way I'm able to do this is by getting paid.

The corporates, places with a board, and such as that.....they use everyone around them as an extra line of credit. I understand the advantages to this method, but I also understand that they take out ACTUAL lines of credit to pay their salaried employees on time, every time. I have a corporate entity that I'm actually having trouble with right now, and do you know how long it's been since I invoiced them? 4 months. That's right, FOUR MONTHS. It ain't easy bein' a gangsta. :violin:
 
True. The first time I sent an account from one of the majors to collection, I expressed surprise that such a huge heavy international corporation had to be dunned to pay their bills - and the collection agent laughed: that's most of our business!

Also a reason I usually prefer being a salaried employee: you get paid on time and per agreement, which almost eclipses the other benefits of salary-ness.
 
A few years ago I was offered the chance to take some overflow ProTools work from a local post house since their in-house suite was booked solid. This required getting my own PT system, which I'd been wanting to do anyway so I figured that this was the best chance I'd have. I was booked for enough episodes of a series to pay for the PTLE Digi002/DV ToolKit system and still make a little money, so I took the gig.

I do the standard 30 day net invoicing. I'd been picking up two or three episodes at a time, and I invoiced after each set was delivered. 30 days... nothing. 45 days... nothing (and a mounting pile of invoices). 60 days... nothing. All the while, I keep emailing asking why I have not received payment.

After about 75 days, and the explaination that I took this gig under the understanding that it would pay for the PT system (on which I'm now paying more interest), I finally get the response that he hasn't been paid by the production company because they haven't been paid by the network. I explained that I did not agree to deferred payment, and had those actually been the terms I should have been informed from the start.

At 90 days, and still no payment (all episodes complete and invoiced at this point), I find out that the guy has taken a new job in another state and will be leaving his employees with most of the company, and all the debts that he's acquired through poor management. I go after him.

I finally got my check, and a threat that he'll punch me in the face the next time he sees me. And to add insult to interest (that's APR), a couple of regular clients I had that were also in contact with this guy suddenly stopped calling.

I hear that he's back in town. Can't wait to run into him.
 
Because of the present economy and because it seems like you're not getting paid, I would suggest it to ask for a 20% fee upfront and then the rest within the week. This would mean that they are a paying customer and that will weed out those who do not.

Ebay is fine for me, I haven't had any trouble, it just seems like you've had a run of bad luck.
 
I've got a client with three outstanding invoices right now. It's been about three months. I'm not going to work for them again until I start seeing payment. Let them find someone else in this town who can offer my quality to cost ratio. Not gonna happen.
 
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