Thought I'd followup on this once more -- this thread might be useful to peruse through if/when someone else is in similar circumstances, plus it allows me at least one last rant in relevant thread. (Feedback from each one of you has been excellent - thank you!)
So ... to recap and expand a bit ... Recap -> I have this client that I've been working for over the past four years and until now, they've always paid within 30 days of due date, (my terms are Net 15), and that's fine. Now I'm 60+ days overdue for $4k+ in invoices including work done as far back as October 2008 (couple hours of support that month), and quarterly hosting bill sent in December, to cover Dec, Jan, and Feb hasn't been paid (new quarterly hosting invoice goes out March 1st). Have emailed contact multiple times about payment, but no word on when. Client wants to bring in another developer they've been affiliated with to "help out" (turns out they're willing to work with the hopes of getting paid if things turn around). Exansion -> Talked with client the other day and ... she didn't sound happy -- and actually had a rude tone of voice overall. When asked about setting up a payment plan and attempting to get idea on when they could pay hosting, she forwarded me to accounting -- at which point I went into voicemail and accounting hasn't returned my call. Bottom line is: this company has layed-off numerous employees this past week, and the third-party developer + other companies that have been working with them long term are "working with the hopes of getting paid" (one company contact took out a loan to continue working with them and apparently pay his employee(s); don't think the employees are working for free/hope of being paid, but I've heard of it happening in other companies that went bankrupt). My issue is: I asked very nicely, "can you give me some sort of timeframe as to when I will be paid at least a portion of hosting or programming & support services", and ... nobody wants to give me an answer as I'm apparently one of many in the same situation. I can imagine accounting has a lot to deal with when a large number of people have been layed-off, but to "ignore me". Lastly -- to top it off, I've been forwarded a "support request" to contact one of their affiliates to help them get logged into my system and answer questions. So ... the lack of them not responding to me, expecting me to work for free or in hopes of one day getting paid ... seems very ridiculous to me. (They aren't a non-profit, and I would imaging the accountant is still getting paid.) Whew ... So -- in light of all your messages, and my ranting, I think it's best to tread lightly ... not go out on a limb to support them, but do what I can, and begin to tighten things up a bit insofar as collecting on payment due. I do have a contract by the way. It was written up and signed a year or two ago, and all subsequent support beyond the build of this particular web app was to be billed monthly, Net 15 Terms. One thing to note is ... I have some leverage since I'm the one hosting their site. At this point, they sort-of need me, but had the site been delivered and hosted on one of their servers, I'd have zero leverage aside from potentially getting a collector or lawyer look at my case if non-payment and no-communication were to continue. Lastly ... (this might be the subject for a new thread), I am going 100% "self employed" next month, and am working hard to get contracts signed. Thus far I have enough contract work to pay approximately 90% of my bills in 2009 (including taxes, though that might change in light of current situation in government), so -- I actually do need the $4k detailed above -- and health insurance is covered by spouse (thank god ... that could be a deal-breaker, even though this country will eventually see socialized healthcare for all). My billing terms for IT support, and programming support for my web apps are to "pre-bill" for determined amount of time. If client wants long term contract, then rather than work two weeks as most FTEs do then get paid, I bill two weeks up front and get paid twice a month (there's room for issue there, so wish me luck). Thus far, a few of my clients couldn't afford the large block of hours I've attempted to sell at "cut rate", so -- I've gotten them to agree on 10 hour blocks at my standard rate, which -- currently is $80/hr for commercial, and $70/hr for non-profits. My rates might seem low, or high, depending on your experience level, location, etc., but -- they're a baseline to build out my business as a 1-member LLC with subcontractors. Flexibility is key, and I'd generally list the flexibility with longer hour agreements versus compromising my rate for an hour here, hour there, etc. Wish me luck, and best wishes to you all! Dakota On Thu, Feb 12, 2009 at 10:23 AM, Bill Wheatley <[email protected]> wrote: > > Yea i feel ya dakota. One of my bigger customers a couple months back had > to > slash their hosting with me to cut costs. Since they have been a customer > of > mine going on 10 years now i bent over backwards to help them. I think you > made the right call by working with them. > > On Wed, Feb 11, 2009 at 11:49 AM, Dakota Burns <[email protected] > >wrote: > > > > > Excellent feedback -- thank you all for sharing your thoughts! I want to > > give notice and take the site down if they don't pay hosting, but -- > after > > talking with them today, feel they really are in financial trouble, and > > "Mr. > > Nice Guy" here ... (or is "Gullable" a more accurate description), is > > considering treating them with a little compassion. Supposedly the > > third-party developer was just a consultant to advise me on some updates > -- > > who knows -- some people are whacked and you don't realize it until > you've > > been taken. Someone on this thread referenced "treat 'em with honey" ... > > and I know I'll be less likely to be a successful businessman long term > if > > I > > don't stand firm and tough, though in this case -- if the client rebounds > > financially, I'd like to keep them in my portfolio, but ... am just going > > on > > a rant now. I can't support them long term re: hosting, and am expecting > a > > callback from their accountant, so -- wish me luck ;o) > > Feel free to continue sharing. As someone that owns a small consulting > > business (CF/SQL/VoIP programming and IT support) from home office, I > don't > > mingle with like-minded CF/Consultant ppl in person much. CF Community > > seems like a cool place to mingle and share consultant experiences. > > > > Dakota > > > > > > > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:288397 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
