March 2007

Question:

I have a couple of clients who are consistently late on paying me. How should I handle them?

Answer:

First decide why they are late. Do they have a cash flow problem? Are they late with everyone as a matter of practice? Are you are getting your invoices to them late? Or is it something else? Also think about how long this has been occurring. This information may lead you to the root cause of the lateness.

Now for a possible strategy. Deliver your invoice to them as early as possible. I like to have the invoice ready on the same day that I complete a project so it can be placed in the mail the very next morning. Some consultants bill in advance of the end of each month so that the invoice arrives on the last day of the month. Be sure that you state the terms of payment, including date. If a late payment has occurred in the past, I may submit invoices directly to the client for whom I am working and ask that he/she gets the invoice to accounts payable. Recognize that some large profitable organizations and the government are often slow in paying and you may just have to live with that.

If the debt has gone on for a long period of time and it does not appear that the client intends to pay you, you may use a collection agency. In some cases, you may choose to take the matter to your local small claims court. They are generally well informed and very helpful.

As a preventive measure, discuss billing procedures up front with each of your clients. Unfortunately, once it becomes a "habit" it's difficult to change.

Question:

How do you price the development of a training session where I will own the session and can use it with other organizations?

Answer:

Ed. Note: From time to time we invite guest experts to respond to questions. Dave Arch has authored 12 books currently in use within the training community including the Tricks for Trainers series of books and monthly column in the Creative Training Techniques Newsletter. Here’s his response.

My experience has been that the client should not be charged development time for the project when you are going to own the material. However, the client should pay the same material costs (e.g., workbooks, handouts, job aids) that other clients will pay when you use the content in subsequent trainings. Of course your presentation fees should be the same as for any other client. The obvious benefit to the client is that they will not have to pay development costs. The downside is that they will not own the material and must obtain the material as well as the training through you.

Dave Arch President
Dave Arch and Associates, Inc.
Authorized Licensee of the Sandler Sales System™
http://davearch.sandler.com