Archive for the ‘Getting Paid’ Category

Dear Danielle: Do You Use PayPal?

Dear Danielle: Do You Use PayPal?

This was a question posted in my private Facebook community last November. With Intuit Payment Network (IPN) ending next month, it seems like a good time to revisit the topic.

Dear Danielle:

Do you use PayPal for invoicing and payments in your business? Do you recommend them? —GB

Yes, I use PayPal as a payment processor, but I invoice clients with my customized invoice in Quickbooks Pro (which is the comprehensive software program where I do all of my bookkeeping).

I’ve been using PayPal since 2000 and have never had a single problem. It’s super easy to use, integrates quickly and easily with web coding, and it’s established and trusted.

A merchant account is an alternative to PayPal, but I’ve always found them more complicated to use, and not necessarily any cheaper, and in my experience, you don’t get the same level of tech support that PayPal provides.

Personally, I could never be bothered with using them, and when I was still in the web design business way back when, I hated trying to integrate their coding onto websites. So convoluted and difficult and they don’t necessarily care about providing more than a superficial level of support.

Maybe that’s changed. And of course, I have  programmer now that I let handle that kind of work when it comes up.

The other payment processor I use is IPN which is Intuit Payment Network:https://ipn.intuit.com/.

IPN only charges $0.50 per transaction, which is far less of a fee than others including PayPal charge (although personally, I never sweat those kind of fees, they are pennies in comparison AND they are tax deductible business expense that you get to write off at the end of the year which lowers your tax experience).

The only caveats with IPN are:

1) If you are billing a client over $1,500 on an invoice, they will need to be on IPN as well (you can bill guests up to $1,500 though).

2) You need a checking account with unlimited withdrawals and deposit; and

3) To get approved you will need from 3 – 6 months of consecutive bank statements showing an ongoing minimum balance, the amount of which depends on what you expect to bill out via IPN each month. So, for example, let’s say you will be billing $2,500 a month via IPN. To get approved for an IPN account, you will need to keep a minimum balance of at least $5,000 in that checking account for 3-6 months. The minimum balance they’re looking for all depends on the amount you intend to bill and they have different tiers that you’d have to call them directly to find out what your amount would be specifically. But once you get approved, you don’t have to keep that minimum balance anymore because they don’t monitor your bank account.

UPDATE: Intuit is discontinuintg their popular IPN (Intuit Payment Network) come April 2016. The company is encouraging users to move over to their Quickbooks-integrated merchant account product, Quickbooks Payments. There are two plans to choose from to fit your business, and you can also get mobile credit card processing if that’s of interest to you.

Personally, I probably won’t be switching over as PayPal meets all my needs. It’s easy, I trust it, and the costs are comparable.

Rant: I Have Never Seen Bigger Crybabies

Rant: I've Never Seen Bigger Crybabies

Rant warning here. This has been brewing for a couple months now, and I just have to get it out of my system, lol.

There is this crybaby series of articles that Freelancers Union puts out that have been driving me a bit nuts.

Every ezine issue, they feature some sob story from a freelancer about how a mean, evil client stiffed them hundreds or thousands of dollars.

Omg, I’ve never seen a bigger bunch of professional victims.

And now they’ve got this ridiculous “Freelancing Isn’t Free” campaign to get some new laws on the books to protect freelancers from deadbeat clients, as if they themselves play no role in why they aren’t getting paid.

The one thing, the ONE SINGLE PROBLEM at the root of all of this is that these people can’t seem to grasp or get it through their thick skulls that as freelancers they are in business for themselves.

And business owners decide how things work in their relationships with clients. Business owners choose who they work with and who they don’t. Business owners determine what they are paid, when they are paid and how they are paid.

Business owners can either run their business like a business, or they can be morons. The choice is theirs.

What contributes to this mindset of idiocy and victimhood is the word “freelancer.” That word needs to be abolished.

In society at large, people don’t understand that freelancer is merely another word for business owner.

It doesn’t matter if you have a day job and do a little work on the side. When you are doing that side work, you are being in business for yourself and wearing the hat of business owner. There is no in-between classification. It’s either/or. One or the other. That’s it.

So when you’re working your day job, you’re wearing your employee hat and all the rules, laws and taxes that apply to employment are in play.

And when you work for yourself and hire yourself out to people, you are wearing the hat of business owner. Doesn’t matter if it’s part-time, full-time or just a little here and there; doesn’t matter if you use the term freelancer, independent contractor, self-employed or whatever—these are all terms for the same thing: BUSINESS OPERATOR.

The sooner you get that through your head, the better off you will be because THEN you can start running your business like a business the way you should be.

Let Me Demonstrate

There are some common themes running through all of these stories. Here’s an example from the most recent victim article. This “freelancer” says:

“In 2015, I agreed to do some editorial work for a client. The agreement was verbal and, because I trusted her to some extent, we did not have a contract. Shortly after I completed the agreed-upon work, she slightly altered the work I produced, claimed everything as her own intellectual property, and failed to pay the $500 she owes me.”

Her first mistake was not formalizing the agreement in writing with a proper business contract. Whose mistake is that? It’s not the client’s job to do that, it’s hers. And she made the choice not to use one.

While a verbal agreement is still a legally binding agreement, it does make it more difficult should you have to take things to court. So, when you are a freelancer, you are in business, and that means conducting business properly and using proper legal business contracts — upfront, every time, with every client, no ifs ands or buts.

The other problem here is that this freelancer’s client seems to assume that their business arrangement was a work-for-hire one.

This is another reason you always, always use a proper business contract. It’s why I always rail against work-for-hire agreements as well, which is different from a business contract.

When you blindly and ignorantly enter into a work-for-hire agreement you can be giving away all your intellectual property, which you may or may not have bargained for.

The work you do and the ownership of a creative work are two separate legal values. This is why they are stipulated and charged for separately. And ownership of a work cannot be given away without express legal written permission.

If you don’t know what you are doing, are using the wrong kind of contract, or haven’t had an attorney draft or approve your business contacts, you could be signing away all rights to the creative works and proprietary intellectual property that you created!

Because of these critical distinctions in the law, it’s imperative as a business owner for you to get yourself some basic intellectual property education.

For example, let’s say as a business, I have a client with a particular need. I end up developing a tool for that need that ends up being useful for any number of my current and future clients. I realize that I could license use of this tool to others and add a lucrative additional revenue stream for myself, and decide to put it out to market.

However, if I entered into a work-for-hire agreement with a client, that tool could actually be owned by them automatically. Meaning, they could be free to sell it or do anything they want with it, including telling you that you may not sell it or use it with anyone else, and that it belongs to them because you were in a work-for-hire agreement and anything you create in the course of working with them belongs to them.

How would that sit with you?

As a business, I am damn sure not going to hand over ownership of my creative works, inventions and intellectual property or proprietary processes lock, stock and barrel. That would mean I couldn’t continue to profit from them, use them with others, or in any other way adapt them for other uses.

Even if I was a mind to do that, I wouldn’t be giving away that ownership for free. Oh, hell no!

But there would be nothing you could do because you were the fool who entered into a work-for-hire agreement instead of a proper business contract and didn’t set the terms properly.

This is why it’s so important to NEVER blindly enter into any blanket work-for-hire agreement, or ANY kind of work-for-hire agreement in my opinion, and to use proper business-to-business legal contracts that contain the proper languaging and terms when it comes defining the relationship and who owns intellectual property.

Here’s another excerpt:

“Although $500 may not sound like much, I’ve put together many small deals for less than a thousand dollars. If all my clients were to behave this way, my life would be a constant nightmare of living in fear of being shortchanged. Though it may seem disadvantageous to go through the stress of chasing down a couple hundred dollars, that couple hundred dollars could cover my electricity bill, or even groceries for a couple weeks.”

Wahwahwah. Then don’t do things that way. You act like you were prevented from doing things any other way.

Wrong. You made a choice.

On top of running your business like a business and using proper business contracts, upfront, every time, as a business you also have the CHOICE about who you work with.

Vet your clients properly. Put them through a consultation process so you have at least some idea of who you are doing business with and what they may or may not be like. You get to screen and prequalify clients as a business owner.

A proper consultation can help alert you to red flags that indicate someone may not be worth working with.

Stop rushing or bypassing these vital and important business protocols which also, by the way, help clients understand the CORRECT nature of the relationship and give it proper professional respect. These steps play a big role in setting the stage to make sure you get paid, in full and on time, every time. HUGE!

Likewise, who says you have to wait until work is done to be paid? You can charge the full fee upfront if that’s what you want to do. It’s a perfectly usual, legal, established standard business practice and option.

You can also split a project into phases with the payment for each phase due upfront before beginning work on any next phase. Or, you can charge a deposit or a percentage upfront.

Mitigate your losses if you are taking a chance on a client you don’t know and have never worked with before by getting some kind of payment upfront. Likewise, they’re going to take the business more seriously when they have skin in the game.

There Don’t Need to Be Any New Laws

There are already laws on the books to protect you in these matters and you’ve always had the choice to avail yourself of those recourses.

The problem is being a business moron and not conducting business according to how business is conducted.

It’s that YOU don’t understand that as a freelancer you are a business, and that YOU define these things in your contract that you should have been requiring clients to sign upfront.

You’re not a temp, you’re not a “contract worker.” (Tip: A contract worker is an employee, not an independent self-employed business owner.)

Stop letting clients tell you how things work in your business.

And stop accepting “positions” with companies that should be paying you like an employee but instead are stealing from you by illegally classifying you as an independent contractor. (Hint: Business owners don’t work in positions; that’s an EMPLOYEE.)

If that’s what they are doing, turn their asses in to the IRS and your state Department of Revenue and Employment Security Department.

Because if you really are an employee (which is determined according to the federal laws that define these two distinctions and which employers don’t get to just decide arbitrarily), then they are stealing from you your rightful wages and employer-paid share of taxes and benefits.

By not understanding these distinctions, by not educating yourself, by willfully disregarding these things, YOU are equally guilty of perpetuating the problem of deadbeat clients.

Stop being a bunch of wishy-washy, crybaby pushovers who whine about being victimized all the time. You have the power and the choice to do things differently!

Sure deadbeat clients are shitty people; there’s a special place in hell for them. But guess what? You allowed them to treat you that way by all the choices you made.

No one can take advantage of you without your permission. Stop acting like a victim and like you had nothing to do with it, and start running your business like a business.

Take responsibility for the choices YOU made to not run your business like a business, rushing processes, not conducting proper consultations and due diligence, choosing crappy clients, not using contracts, and not getting at least some money upfront. It’s really simple.

Until you take responsibility for that, nothing in your business and life will change.

And listen, I don’t mean to be picking on anyone personally.

It’s one thing to be new in business and learning the ropes and making newbie mistakes. There’s a learning curve. We’ve ALL been there.

Beyond that, though, there is just too much information out there any direction you look to remain ignorant long. These aren’t people who are new making these dumb choices; these are people who knew better and what they should have done and chose not to do it.

I’m equally annoyed with organizations like Freelancers Union that don’t do their job as a professional organization which should be to properly educate their members and the marketplace, so the stupidity continues.

Because 99% of these problems wouldn’t exist if these people understood how business works, how it is properly conducted between two businesses, and that as freelancers they are business owners (not “contract workers” or employees).

I’m sick to death of all these whiny articles collectively because they don’t empower anyone, they just keep them acting like victims who blame others for their problems and many of whom are going to keep doing the same bone-headed things over and over.

Want More Dissections?

Here’s another example:

“Because I knew and trust my contact in NYC, I went ahead and started work without a contract, though I did send my salary requirements and scope of work via email for their records. I was told the contract was in the works.”

Same ol’ song and dance. You don’t do business without a contract and you don’t start work until that contract is signed and everything is agreed upon.

The other problem here is this freelancer uses the phrase “salary requirements.” Um, business owners – which again, is what freelancers are — are not paid a salary. EMPLOYEES are paid a salary. Someone who is in business for themselves charges a fee or rate and tells the client what, how and when they are required to pay, not the other way around.

And another:

“I proceeded to organize vendors, source supplies, find caterers, etc. There was some drama around whether to have the launch party in the office or at a venue nearby. They changed their minds about 6 or 7 times. The indecisiveness was alarming, but I rolled with it and did my work. The entire time I kept asking for the contract.”

You should haven’t kept asking. You should have stopped working and told them that the contract was required before any work was to begin or continue. Period.

This also hints that there was either no consultation conducted or it was a sloppy, not very thorough one. Otherwise, you could have established all the specifications about how the work and decisions were going to be made, who the ONE contact person was that you would be dealing with, etc., and avoided all their internal drama. There is no reason you needed to be part of that.

Moreover:

“Finally, the week of September 21, the majority of the folks from Europe came to town. I had a few meetings and eventually received the contract. The rate was correct, but the terms and conditions were way out of line. I wasn’t about to agree to a six-month non-compete and 90-day payment terms. It just didn’t make sense for the scope of my work! So I redlined the contract and sent it back.”

So let me get this straight, you let them write your contract for you? Ridiculous!

You’re the business owner; your contract is YOUR job. You don’t abdicate that responsibility to clients. Your business requires YOU to set the terms. Clients have only to agree and sign or suggest changes. Or you don’t do business together, simple as that.

Instead, you let the client treat you as if they were your employer and it was their role to call the shots here. WRONG. And stupid. NOTHING should have moved forward until the terms were finalized and YOUR contract signed by the client.

And:

“At this point, I was told that I was only hired for the month of September and not October. They hired an office manager and I was to give her a download on everything I had set up, which I did without complaint. I was now a week out of the job and still hadn’t received payment. When I followed up, I was told there was an issue with my invoice and that the company wanted a work log. I had never been asked to submit my hourly tasks and my rate was a day rate. Furthermore, I had clearly stated overtime fee after an 8-hour day.”

This person clearly doesn’t understand that she is not an employee. She uses employment terminology, lets the client operate as if they were her employer and isn’t understanding how she herself is allowing the lines of employment and business to be blurred.

You aren’t “hired” by clients, you are “engaged” by them. And you don’t get “overtime” as a business owner. Overtime is something employees are entitled to, not business owners.

Instead, business owners stipulate IN THE TERMS OF THEIR BUSINESS CONTRACT BETWEEN THEMSELVES AND THE CLIENT when late, rush or after-hours fees and charges will be incurred.

If you don’t want to be in business for yourself, and you are working with a client as if you are an employee, then you ARE an employee, and they legally need to be putting you on payroll and adhering to employment laws.

On the other hand, if you do want to be in business (which you are, automatically, if you work for yourself at any time), then you have to run your business like a business. There just isn’t any way around this.

But here again, this is yet another freelancer who doesn’t understand that they are a business owner and is letting a client operate with the mentality that they are some kind of employer and dictating things to her, which they have absolutely no legal right to do. She abdicated her own business responsibilities and now that she’s having problems with them is her own damn fault.

I know YOU are going to be smarter in your business, right?

PS: If you want to save yourself these problems and learn how to conduct business properly, be sure to also read my article How to Avoid Getting Stiffed on Payment

The Simpletons Can’t Help You

It’s not difficult whatsoever to get clients when you charge peanuts.

The problem and real difficulty (extremely so) is dealing with the KIND of clients you get when you charge peanuts and being able to achieve a sustainable, profitable business, one that you can actually earn a healthy living from (as in, not just hand-to-mouth).

To be able to charge (and earn) more and get better clients requires more in-depth learning and understanding about marketing and human behavior and psychology.

And you aren’t going to get that from the simpletons and copycats.

Because if it were as easy and simple as they would have you believe (because that’s how they get into your pockets), everyone would already be millionaires (or at least earning well into six figures).

And we all know that’s not the case.

Dear Danielle: This Charity Is Offering a Low Hourly Rate. Do I Walk Away?

Dear Danielle: This Charity Is Offering a Low Hourly Rate. Do I Walk Away?

Dear Danielle:

I have recently been approached by a local charity that wishes me to work for them for a number of hours per week, but they cannot get away from the number of hours and are offering a very low hourly rate on the grounds that they are a charity and don’t have budget for more. No matter what I do or say they are stuck on hours/hourly rate. Should I walk away? Normally I would, but because it’s a charity I want to work with, it feels different. —Name Withheld by Request

I’m going to give you some straight talking tough love today, okay? 🙂

Do you want a business or do you want a hobby/charity?

If it’s a business you want, then you’ve got to stop wasting your time.

Not all business is good business—or business at all.

You, your family and the ones you love are your “charity.” They deserve for you to be smart in business—which includes being paid properly for your time, energy and expertise.

And by “properly” I mean at whatever business rate you (not clients) determine is profitable.

People in our industry have got to get off of this bleeding heart kick. It’s one thing to be charitable when you are doing well financially and can afford to give back. But most people in our industry are barely scraping by in their businesses themselves.

(And it’s not because they can’t do better; it’s just that they aren’t taking the time or making the investment to learn what it takes to be a financially viable, solvent, sustainable and humanly manageable business operation).

You’ve got to have a pot to pee in yourself before you can start sharing the wealth, know what I mean?

If you want a real business making real money, you need to start talking to real prospects.

Anyone who can’t pay your fees is not a prospect. Period.

First of all, clients don’t dictate or “offer” you anything. YOU set your fees. They have only to accept them or stop wasting your time.

Second, the reason they can’t get off the hours/hourly rate is because you don’t know how to reframe that conversation and what to talk about instead. And that simply takes investing in the proper learning in how to do that.

You’re trying to talk yourself into accepting this and I’m not going to help you. You’ve come to the wrong place for that. 😉

Here’s what you need to do next to start talking to real prospects:

  1. Stop calling yourself an assistant. You’re running a business now and when you are a business owner, for both legal and practical reasons, you are not anyone’s assistant. Calling yourself an “assistant” is the very first reason that people are approaching you in a non business-like manner and think it’s their place to “offer” you “positions” and “low hourly rates.” That’s because “assistant” is a term of employment, not business, and people only understand the word “assistant” one way: employee. When you call yourself an assistant, you predispose people to balk at your fees because they are expecting to pay employee wages, not professional business fees. You see? You are creating the wrong expectations and understanding in clients right from the start.
  2. Download my free Income & Pricing Calculator so you can get clear and conscious about what you really need to be charging for your business to be sustainable and profitable.
  3. Get a target market. You need a direction for your efforts and to improve your offers. That only comes by focusing on a very specific industry/field/profession and catering your support to that market.
  4. Fix your website so there is an actual prequalifying, conversion process in place. This will help ensure you talk to real prospects who are more likely to be ideal client candidates.
  5. Learn how to conduct a proper consultation. My consultation process shows you what to do before you ever speak to anyone, what to ask and talk about during the conversation, and exactly how to follow-up after, as well as how to prequalify prospects so you can weed out the poor broke duds who waste your time, and filter in the ideal client candidates worthy of your time and attention.
  6. Separate business and charity. Don’t get me wrong. There’s nothing wrong with helping those you think are doing good work in the world. Just don’t mix your charity work up with your business. Instead of taking on a discount client indefinitely (which impacts not only your profitability and administration, but your other clients who are paying full fee for your quality time and attention), volunteer some hours here and there as you see fit when you have them to spare. And by the way, the more financially successful you are in your business, the longer you’ll actually be around in business and the more time and money you will have to give and help others outside your business. But if you make people who can’t pay your proper fees your clients, your business won’t be around long enough to do anything for anyone. You giving yourself away to those who can’t afford you doesn’t serve anyone.
  7. Alternatively, if you insist on putting yourself on sale, at least do it in a way that will actually benefit your business. Charge them full rate with your normal invoice, and once they pay, you can turn around and write a check back to them for the discounted amount. That is the legal way to actually write that money off as a charitable donation. And in the process, that charity client never takes for granted what you really charge and the fact that they are getting a generous gift, not an entitlement to your time and service at a discount.
  8. Likewise, use your normal and customary contract and go through all your usual processes that you would with any other client. I would also advise that you set a time limit/end date for any discounted charity rate at which time it would go back up to your full fee.

Is It Time to Start Earning More in Your Business?

3dcoverweb

Do you hate tracking and reporting time to clients? Would you be excited to know of an easier, more profitable way to charge that clients also love? If so, you’re not alone.

Tracking hours is a HUGE administrative burden that eats into your profitability and takes time away from life. And clients hate being nickeled and dimed on minutes and hours.

If you’ve been in business any amount of time, you have at least some idea of the problems with selling time instead of your solutions, results and expertise. What you may not realize is just how much billing by the hour is killing your business and keeping you from earning better.

  1. It focuses clients on hours and reporting. When clients think they’re buying hours, that’s what they zero in on to the exclusion of just about everything else that’s more important.
  2. It measures time instead of results. Is that really how you want clients judging the quality of your support, by how long things take instead of how you actually help them?
  3. The faster you work, the LESS you make. When you charge by the hour, you’re penalized financially for being better and faster at what you do. How much sense does that make?
  4. The better you are, the harder you must work to make the same amount of money. That’s because the more you can do in an hour, the more you have to fill up that hour.
  5. And how do you track time for all those intangible, incidental things you do for clients, like thinking, reading and replying to emails and making calls? Are you really going to stop and punch the clock every second you lift a finger? How practical is that? And what happens when you forget?
  6. It puts you and the client’s interests and motivations at odds with each other. When you charge by the hour, clients want things to take the least amount of time possible, and you only make more money the longer things take. Instead of being focused on the goals and objectives the work is in support of, you end up playing a tug-of-war with hours.
  7. Most importantly, billing by the hour is keeping you BROKE! You automatically limit your earning potential when you tie it to how many hours you have to sell.

Your time is the least valuable thing you have to offer clients. It’s your skill, knowledge and expertise that make things happen and help them move forward in their businesses.

And be honest, aren’t you sick and tired of tracking and reporting time to clients like you were some little employee?

You’re in business to help clients, right? Well, how helpful is it to them when you have to stop work right in the middle of things because they’ve run out of hours?

Wouldn’t you rather offer your support in a way that allows you to get things done and serve clients better without discounting your fees or having your hands tied by a ticking clock?

The trick is to price the solution, NOT the hours. You want for both you and the client to be in alignment of interests and motivations. So the question becomes, how do you do that? How do you price the solution, how do you set parameters, when time is not the unit of measurement?

This is EXACTLY what I show you how to do in my value-based pricing guide, How to Price and Package Your Support Based on Value and Expertise—NOT Selling Hours.

Charging by the hour is keeping you from earning AND serving clients better. If you struggle to earn well even though you have clients; if you feel like there’s no room for you to grow based on how you’re charging and doing things now; if potential clients balk when you tell them your hourly rate, I can show you how to change ALL of that in your business!

This self-study course shows you how to create a simpler, easier business to run, where your earning potential is hugely expanded because it’s not tied to how many hours you have to sell.

Clients find it much easier to say YES to working with you, and, best of all, you’ll be able to toss those time sheets out forever!

I’ve been studying value-based pricing for over 10 years now and use this methodology that I’ve uniquely adapted especially for the administrative support business in my own practice.

In this guide, I show you the exact methods I use to earn more in a month with just one of my retained clients than most people in our industry are making with 5 to 10 (or more!) clients. I have far more freedom and flexibility to live life. And clients LOVE this way of working together because it’s easier to pay, easier to work together, and they see results more quickly and clearly because we’re focused on the goals and objectives the work is in support of, not the time it takes.

If you, too, would like more life, more money and more freedom in your business while serving clients BETTER, click here for more product details.

What’s Better: Charge Clients Upfront or Collect on the Backend?

What's Better: Charge Client Upfront or Collect on the Backend?

This question was asked on the ACA LinkedIn Group recently:

“Hi! So I’m looking at signing my first services agreement with a client. There will be a big kick-off project and then a monthly retainer. Do I charge the client half up front for the kick off and then have them pay the rest once I deliver? For the monthly retainer, do I have them pay me at the end of the month once my work is done or the beginning before I start? I’m trying getting burned as much as possible. Thanks!”

Here’s my advice:

Upfront, upfront, upfront!

It’s important to remember that you’re in the administrative support business, not the credit and loan business.

As  a service provider, you’re not obligated to extend anyone credit.

Which is what it would boil down to by you doing all work upfront and billing later.

The problems with billing after the fact include:

  • You deprive yourself of cashflow, which is the lifeblood of every business.
  • Clients will take you and the work less seriously and abuse your time more frequently. It’s too easy to blow things off and rack up debt on that which they haven’t paid for yet. When they have made an actual financial investment (skin in the game, as they say), they are more compelled to focus their attention to it.
  • You’ll have more late/non-payers.
  • Having to chase after and deal with those late/non-payers adds to your administrative burdens, creates stress, zaps energy, reduces your morale and spirits, and deprives good clients of your full, positive attention.
  • It doesn’t do anyone any good (including clients) to go into debt to you. The more they owe, the harder it will be for them to get caught up while you’re the one who suffers and pays the price for that.
  • You’re in a far worse position if a client doesn’t pay after you’ve expended your time and business resources helping them than if you were to mitigate possible losses by getting at least some money upfront.

So here’s what I recommend…

RETAINERS

Retainers, by their very nature, are always upfront. That’s the whole point of them. They are typically due on or before the 1st of each month.

In my practice, instead of having retainers due on the 1st, they are due (and processed) on the 25th of the preceding month. For example, April’s retainers are due on March 25.

This is because I don’t want my billing and being paid (along with all that beginning of the month work and bills we have to contend with in our own businesses) competing with the 1st of the month work I do for clients.

I also process my payments automatically… and I never pay myself late. 😉

To do this, I have clients sign a Credit Card Authorization Agreement (AGR-30) at the start of the relationship. By signing this agreement, clients give their consent for you to keep their credit card information on file (because you can’t do that without a consent agreement in place), and for you to automatically process their regular monthly charges.

Once I process the payment every month, I put a courtesy PDF copy of their paid monthly invoice up in a shared Dropbox folder for their business records.

Retainers are the holy grail in this business because it’s where the bigger, more consistent money is. To learn how to make retainers profitable and build a business where you can earn a great living working fewer hours with fewer clients (and get off the nickel and dime project hamster wheel where you always have to chase down your next meal), I highly encourage you to get my Value-Based Pricing & Packaging Guide (GDE-39).

PROJECT WORK

A project is different from ongoing support in that it is self-contained and ends upon completion of the work.

Designing a website is an example of project work because it’s not ongoing. Once the site design is complete, that’s the end of the project.

With project work, clients should definitely be paying at least something upfront, and 100% is entirely acceptable business practice.

With projects, there are a number of ways they can be charged. Getting a minimum or deposit upfront works like earnest money and helps clients respect your time and take the work more seriously.

Requiring payment upfront also helps weed out those who are not serious prospects.

I hate to say it but it’s nonetheless true:  there are dine-and-dash clients that new people in business often fall prey to who engage them to do a bunch of work, and then disappear when the bill shows up. You want to avoid that.

The rule of thumb in my business is that if it’s $1,000 or less, I charge 100% upfront.

If it’s a larger project, we break it up into logical phases and they pay for each phase upfront. If you do it that way, you get paid for work you were engaged to perform and complete, and work only continues beyond that once the next phase’s payment is met.

While you’re at it, if you want to learn all my secret policies and procedures that allow me to run my business 3 days a week while earning a full-time income working with just a handful of clients, be sure to get my Power Productivity and Business Management Guide (GDE-41).

Is this information helpful or eye-opening to you? Let me know in the comments. 🙂

Stop with the Money-Back Guarantees

Stop with the Money-Back Guarantees

Stop with the “100% money-back guarantee” on your service. You’re not selling a ShamWow, for crying out loud! Your blood, sweat and tears do not come with a money-back offer.

Plus, there are theories of law at play here.

Ideally, you have great skills and do great work for clients. But whether someone likes the work or not is a completely different value from the fact that they engaged you to do the work.

By law, you are entitled to be paid for work you were engaged to do, as long as you made every good faith effort and held up your end of the bargain.

Whether they like the end result is something else entirely. And they aren’t entitled to 100% of their money back on that.

Plus, think about it. You’d have to hold those funds aside and deprive yourself of their use until the end of whatever period you’ve given.

That’s ridiculous!

Clients who don’t like your work have the same recourse we all do:  to express our dissatisfaction and give the provider an opportunity to do better and/or stop working with that provider any further and take our business elsewhere. Simple as that.

It’s up to all of us to do our homework and choose service providers wisely, with quality in mind, not cheapness.

We usually get what we pay for in this life, and when clients cheap out, they shouldn’t be surprised when that’s the kind of quality they get in return. They just aren’t going to get a Rolls Royce for the price of a Ford, no way no how.

You, on the other hand, as a conscientious service provider of integrity who cares about your clients and doing good work can offer to redo any work that a client isn’t satisfied with.

But beyond that, you need to stop prostrating yourself and begging and bribing people to work with you.

You’re offering a service and knowledge work, not selling products that can be returned to the shelves.

How to Create a Payment Page on Your Website

A colleague asked me how to procePayPal Pay Now Buttonss a client’s payment herself with PayPal. She had heard about my Credit Card Authorization Form, but wasn’t sure about the actual mechanics of processing credit card payments herself on behalf of her clients and whether she needed to be able to log into their PayPal accounts.

So, here’s what I explained:

Okay, so the credit card authorization form is an agreement between you and the client whereby the client provides you with their credit card details and allows you to keep them on file. This is so that when their fee to you is due, you can simply run the credit card yourself instead of waiting for them to do it.

It’s best for clients who pay you a monthly retainer or any other usual or set amount on a regular basis. This is an excellent way to take another detail off of your client’s plate while ensuring you are paid on time every month. And it really doesn’t matter what credit card processing service you use. My client’s love it and I never pay myself late, lol. 😉

With regard to PayPal specifically, there are a couple ways you can process the payment. The first is that, yes, you can log into the client’s PayPal account if they wish to provide you with that information. However, it’s not necessary and for many reasons I really don’t recommend this.

There needs to be a great deal of trust there already for a client to provide you with their PayPal account info. That level is usually only established with clients who have been with you for several years, and you don’t want to get blamed for any problems with their account just because you are the only other person who happens to have access to it. Know what I mean?

I recommend the second option, which is that you simply process the payment as a guest. As a guest, you don’t need to log into a client’s PayPal account to process their payment. As long as you have their credit card details and the proper legal authorization form on file, you can process any payment without the client even needing an account.

Here’s how to set up a payment page on your website. Here’s an example of my payment page from my old website:

paymentpage

  1. Create a dedicated web page on your site. You can simply call it “payment” or “submitpayment.” Include the link in your navigation, site map or otherwise make it clearly visible and easily found on your site (perhaps as an image graphic in a sidebar on all pages).
  2. Get the HTML code to place a PayPal “Pay Now” button on the page.a) Log into your own PayPal account and go to the “Merchant Services” tab.

    b) Click on the “Create Payment Buttons for Your Website” option, then click on “Create a Button.”

    c) Select the “Buy Now” button type.

    d) Since this is going to be a generic button, leave the “Item ID,” “Price” fields blank. If you want to give a name, call it something like “Submit Payment” or “Pay Now.”

    d) Under the “Customize Button” section, click on “Customize text or appearance.”

    e) Under “Select button text,” select “Pay Now.”

    f) Read through the other options so you know and understand what’s there and change anything you need to accordingly. You also have the option to use your own button graphic if you choose.

    g) Once all that is done, click on “Create Button” and the HTML code will appear. Select that code and place it in the HTML section on your Payment page where you’d like the button to appear.

  3. Publish your new Payment page.

So now, whenever you need to process a payment on behalf of a client, you just go to your Payment page and click on the “Pay Now” button. When the PayPal page appears, click on the option where it says “Pay with your debit or credit card as a PayPal guest” and then enter the amount due and the client’s credit card information.

Simple as that!

How Billing by the Hour Is Killing Your Business (and What You Can Do About It)

Here’s a video I made a few years ago to help people understand how billing by hour (selling hours) is keeping them broke and killing their business.

This can be a difficult concept to understand at first. For many folks, it’s not until they’ve been in business for a bit that they realize the dilemma. It’s usually then that things finally “click” and they get it.

Then, there are people who understand the problem immediately and want to avoid it altogether in their practice.

Whatever camp you’re in, my Value-Based Pricing and Packaging Toolkit will show you how to stop selling hours (and selling yourself short) and learn how to price and package your value and expertise instead.

I’ve been practicing and studying this methodology since the 90s and been teaching it to our industry since 2004. I introduced the concept and adapted the methodology for our industry and I’m really the only person in our industry uniquely qualified to show you how to implement in your practice.

Dear Danielle: What Should I Have Done Differently?

Dear Danielle:

I really appreciate this service. I am a newbie in the industry. I started my administrative support service targeting doctors in the August 2012 and got my first client in December. The doctor signed an agreement for me to find him a new medical billing service. I put my heart and soul into that project. The problem is, I’ve received no feedback or payment from the client. I promised the six medical billing services I contacted that I would get back to them this week on my client’s decision. Because I’ve received no feedback from the client, I don’t know what to say to the medical billing services. Should I be completely honest and upfront with them about what has happened? If not, how do you suggest I proceed? My fear is now that I’ve provided the doctor with the details of all medical billing services contact info, that he contacted the one of his choice directly. That’s fine, but it puts me in a difficult position because I don’t know how to proceed or what to tell the other services. Not to mention, I don’t know which (if any) he’s chosen. Please advise as to how you’d handle this situation. Thanks SO much! —Felisa Wash

Hi Felisa 🙂

This is a common mistep with new business owners such as yourself (I prefer to call them “freshman” rather than “newbies.”) It may be that you just have to chock this one up to lessons learned.

Let me preface things by reiterating that my business advice is geared toward ongoing (monthly) support work and relationships with clients rather than one-off/ad hoc projects like that.

Ad hoc projects of that nature are rarely worthwhile financially so I don’t get involved with them in the first place. What I’m focused on doing and helping others do is how to have a monthly retainer-based practice and work with clients in that kind of ongoing support relationship. It’s more financially worthwhile and where the bigger, more consistent cashflow is.

That said, some thoughts do pop up.

You state that you’re caught in a predicament of not knowing how to follow-up with the medical billing services you contact. What I’m wondering is if that was even your role to do so.

I would have to ask more questions about what you contracted to do for the doctor, what roles and outcomes were discussed, but it sounds like basically you were just supposed to research medical billing services and then provide that information to the doctor so he could weigh his options, make his own decision and proceed from there.

If that’s the case, there wasn’t ever any need for you to engage in what amounts to negotiating talks with those services and therefore no reason for you to follow-up with them. So, I think one lesson might be to not create obligations where there’s no need to do so.

Beyond that I think the important lesson here involves examining how you go about engaging in business and adjusting things moving forward.

No matter what work is involved, whether it’s an ad-hoc project or ongoing administrative support, there should always be 1) some level of consultation with clients (and if you are providing ongoing/monthly administrative support rather than piecemeal project work, that consultation is going to be more lengthy and involved), 2) signing of a contract and 3) money upfront.

If your doctor client paid no money and you’ve provided him with all the goods, he has no incentive to take you seriously and not waste your time. If it turns out that he has stiffed you, here’s how to avoid that in the future >>

This is where some foundational work would benefit you greatly in establishing and building your business.

You say doctors are your target market, which is great that you have that. I would tell you to narrow that down even further.

What kind of doctors? What specific specialty do they practice in?

Because a business specializing in one practice area can be operated and administrated completely differently from one in another practice area. Which means the support and solutions you offer them will be completely different.

If you’re going to really resonate with potential clients, you need to determine EXACTLY who your audience (i.e., target market) is so that you can focus your message, be more compelling and be able to research and learn how you can best support them and how to offer your solutions. That simply cannot be done in any general way.

As you go about that work, you begin to also easily see that it’s always going to be the solo and small practice/boutique physicians who will have the greatest need for administrative support such as ours and, thus, place more value in it, so focus your efforts there.

The other foundational part of determining and narrowing down your target market is also clarifying who your ideal client is.

While a target market is simply a very narrow/specific field/industry/profession you cater to, an ideal client profile is where you sit down and make a list of all the traits, characteristics and demographics of kind of person you’d like to work with and with whom you work best.

Do you prefer to work with men or women? What kind of personality and workstyle does your ideal client have? Do they need to earn a certain amount of income in order to work with you (so that you aren’t inheriting money issues that will cause difficulties in your business and relationship with them)?

These are just a few of the questions that might come to mind as you go about compiling this list. And it’s a list that you will add to and refine throughout the life of your business as you work with more people and get clearer and clearer about who is ideal for you.

So basically, an ideal client is the kind of person you work best with and seek to find within your target market.

Getting conscious about these things will help you weed out non-ideal clients and better help prequalify your ideal clients when they show up. You will also be able to better hone your message on your website to help in the prequalifying process so that it attracts more of the people you want to work with and weeds out those who don’t.

My guess is that you may still have lots of work to do in getting clear and conscious about your standards as well as policies and procedures and operations and workflows in your biz. This may be a bit overwhelming, but it’s what’s involved in growing a business and getting clients who pay and pay attention to you so I can’t tell you otherwise.

I also have a product that gives you a roadmap or system, if you will, of policies and procedures that will help get you on the right path.

Just remember, you don’t have to learn it all overnight. This is going to be a process and a journey. You’ll make misteps, but that’s okay because you will gain valuable experience, lessons and insights from them.

I think right now the best next step you can take is to read, which is simple and doesn’t cost anything but your time. Read through the entire ACA website and then my blog. That will help flesh out some of the ideas and concepts you will need to start tightening things up in your biz and figuring what you really want to be doing and who you really want to be working with.

Lastly, remember, you won’t get what you don’t ask for. 😉

If you aren’t focusing prospects on becoming retained clients, then you’re just going to keep getting non committal, nickel-and-dime project work and clients. If you want retained clients, that’s what your entire website message, marketing and efforts need to be focused on getting.

You can pick up projects through your networking and other avenues, but keep if you want a retainer-based practice, keep your website focused on that message and getting those kind of clients.

Hope that helps somewhat, and thanks for the question!