Want your customers to pay you on time, every time? Do you struggle with clients who pay late, or do you feel too timid to ask for what a payment that you deserve?
We understand you! Most entrepreneurs have been there before. But let us tell you a little secret: Collecting your payment doesn’t have to be uncomfortable, awkward or difficult!
With the right systems and automation, collecting payments can be really, really simple.
Our guest, Micala Quinn, is a wife, mom, podcaster, and creator of online course “Overwhelmed to Overbooked”. We talked about her before in our podcast episode, “Is it time to hire your first team member?”, because her Live Free Hiring Process is amazing; and today, she joined us to talk about her favorite tricks to collect payment in the simplest ways.
So, here we go!
Easy ways to collect payment from clients
Amalie: Once you deliver what you are supposed to the client, you have to collect on it. Otherwise, why are you in business? Let’s talk about your way of making sure that collecting on commitments is a smooth process.
Micala: My big perspective is you want someone to pay you, you need to make it super easy for them. Don’t make it a headache. Don’t make them go and re-enter their credit card every time. I like to tell the students that I work with and even the girls on my team, if you want to be paid on time, you need to set up automatic recurring payments on specific dates. And that is so important. One of the girls on my team just recently had an issue. Some things were just automatically getting filtered out of my inbox and into the trash and she didn’t get paid. I didn’t know because I never saw the invoice, and she was too timid. And she didn’t have her business systems all neat and tiny.
Amalie: You can not be timid about asking for payment, like period. That is why you’re in business. We take payment upfront for a lot of things unless there’s like an added project, we might add that to the next month or whatever. Starting work means there’s some sort of payment. Do you ever recommend your clients having a late fee in their contract?
Micala: Yes, but in most cases, payment is done upfront. Now there are some times where there might be payment plans, and I would suggest that they set those up at specific milestones and you’re paid in advance for the first portion of the project. If it’s a one-time thing or a one time project, you don’t really start working until you’re paid.
And if they don’t pay you, you don’t work. If they are on a recurring payment plan or whatever, and maybe their bank card changes and it gets rejected or something happens, and they don’t pay you on time, you can have that late fee in your contract, but to protect you. Again, you would stop working if you’re not paid.
Should you charge late fees?
Amalie: If you have a late fee, you stick to it. Otherwise, it makes you look kind of flaky.
Micala: That’s my least favorite way to do business. You shouldn’t hand back over that project until you have collected payment because in a lot of cases if someone doesn’t pay you, what are you going to do? Are you going to go to small claims court for this? It could, depending on the size of the project, but is it going to cost you just as much to go through that process? So I strongly advise against collecting at the end.
Janine: So I did mobile app development for a few years. I’ve literally held the code in a USB drive in my hand and not let go of it until the cash was in my hand. You do not give it up until it’s been paid.
Micala: Yeah. Once I get your final payment, we can set up a call to hand over all of your website assets and I’ll walk you through how to manage the backend of your website.
Janine: Has a vendor ever failed to fulfill their commitment to you after you paid?
Micala: I haven’t. I have hired all women from my program pretty much. I’ve been really lucky. I get to see their work ethic, their personality from like a bird’s eye view in the first couple of people that I hired. I didn’t post I was hiring. I went to them and said, “I see what you’re doing. I see what you’ve done. I see your work ethic. Can I hire you for X, Y, Z?”
We have a hiring form at micalaquinn.com/hire. If you put in details of the job description, what you’re looking for, as specific as you can get, and then your ideal budget, it’ll narrow down applications from people who specifically fit what you’re looking for and what your needs are for your business.
Amalie: In the episode where we mentioned your URL, “Is it time to hire your first team member?” we also said it’s important to know what your budget is when you’re hiring someone. So I’m glad you said that.
Micala: Your budget’s gonna determine if you’re looking for an expert, or if you’re looking for a beginner and you’re going to be willing to train them or provide them with some of that education, there’s nothing wrong with either option. Your budget’s going to determine. And I see a lot of people say, “I want an expert in Click Funnels and the best copywriter, and I’m going to pay $20 an hour”, and I just laugh. That’s never gonna happen.
And that’s it for today! We hope this interview has been helpful to you.
To listen to the full episode click here.
If you’d like to connect with Micala, you can reach her at:
If you have any questions or want to reach out to us, message us at Hello@systematicexcellence.com and we’ll get in touch with you.
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