How does it make you feel when you do a kick-ass job for a client and then have to hassle them for payment?
Personally it makes me want to punch someone’s teeth out.
On a weekly basis my business receives dozens of payments. Every morning my controller sends me a money sheet with updates on who owes us what and when. He places all delinquents in bold red. Let me tell you, when I see red my blood boils. Veins start popping out of my neck and tunnel vision sets in. I usually drop a loud WTF-bomb followed by a “Cliff – get us paid.” That’s Cliff’s cue to go after the jugular.
Here’s why I get so mad when people play around with our payments: Not only do I take great pride in my work, I am thoroughly convinced that we are the hardest working MOFOs out there. I’ve met very few companies that give their clients 110% day-in and day-out. We win contracts through results. We keep contracts through continued results.
When I receive a call from a client with a request, I immediately assign people on our team to handle it.
i.e. A company I’m doing work with needed copy for their presale page asap. They had waited over 4 weeks for someone else to do it and just couldn’t wait any longer. I took the assignment on a Tuesday and had it submitted to them by Friday. They told me it was URGENT because they can’t run US offers without compliant presale copy. I URGENTLY completed the assignment. Then they had the audacity to reject my net 1 invoice and reassign it to net 7! You’ve gotta be fucking kidding me.
i.e. A few months ago I did a small promotion on a hardsale offer. Soon after I was notified that payment was on a net 30 basis! Then well after the net 30 was due we asked for a wire and were told a check was going out instead! The guy who runs the offer is seasoned in this game - you would think he’d pay his people quicker. Think again.
If you’re a trusted vendor of mine then you know how fast I pay. I pay invoices the same day I receive them. Moreover I’ve had accounting setup every payment method under the sun: Wire, ACH, Direct Pay, PayPal, Payoneer, and Check. It’s important to give your vendors/employees options on how they want to receive payment.
All men are NOT created equally. Top performers deserve to get paid more. They also deserve to get paid faster.
Here’s the benefits to paying more and paying faster:
- Projects will get turned around faster.
- Your work will take precedent of other work.
- Anytime you have an emergency you’ll have people that will hop right on it.
- You’ll attract better talent.
- You’ll hit higher volumes.
NOTE: If you come across a bad vendor cut them off abrubtly. My policy is simple: If I believe someone has performed well below contractual expectations I will immediately remove them from our network and hold payment. I’d much rather spend the money litigating than allow someone to rip us off.
On principle your vendors need to deliver on their promises. Pay top performing vendors faster and more.