Bob wrote:
>
>I don't understand this point. If you go to a doctor or dentist
>(one of the old-fashioned non-HMO kind), would you expect to pay
>while you're still in the waiting room? They are just as
>"freelance" as you are.
>
>If by "this business" you mean web/internet development, maybe
>the business just isn't old enough to have developed mature
>business practices.
Well, actually around here the dentists DO make you pay while you're still
in the waiting room. Our veterinarian and nurse practitioner, too--no credit
with either unless it goes on plastic.
Incremental payments are a long-established tradition in the graphic design
field, not just some new-fangled high tech innovation. If in doubt, check
the "Graphic Design Guild Handbook of Pricing and Ethical Guidelines." Since
a lot of graphic designers also do Web development, then it's natural that
the incremental payment practice would carry over into our Web business
too.
The last year I extended credit to a client was in 1987, which happens to be
the year that one client, a division of American Express, and another, a
Hilton Hotel, both went belly-up within weeks of each other. Between the two
of them, they left our tiny ad agency holding the bag for some $200,000 in
media, printing, service bureau and graphic design bills. Even though we
were incorporated, I poured tens of thousands of my own and family money
into keeping the business going without that income, and still ended up
filing bankruptcy. Now, we only work without advance payment for well
established clients, and even then, if they are slow in paying, we suspend
work until they catch up. I hate having to be so hard-assed about it, but my
personal finances have never recovered from that episode in '87, so now I'm
overly cautious.
Another reason I've found it's worthwhile to get money up front is that
sometimes prospective clients will talk and talk and talk about projects
they want you to do, then when you ask them for a deposit, they suddenly
decide not to do it after all. I've suffered several instances where I
mistakenly started work on a project without a deposit, then tried to bill
it later, only to discover that the client never really intended to
undertake the project anyway. I've learned from experience that putting
money on a project makes it "real" and gives the client more incentive to
see it through to the end.
Suzanne Stephens; partner, Dave Stephens Design
Ashland, Oregon http://www.kickassdesign.com
E-mail: [EMAIL PROTECTED]
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