When my husband and his friend decided to turn partners in a freelance writing venture 2 years ago, I was less than enthusiastic at first. Everyone knows that a freelance writer, however good, has to constantly act as his own secretary and bill collector when it comes to payments! So even though I had complete faith in their abilities, I sat down with them to discuss the pros and cons of being one’s own boss and bill collector. Today, 2 years down the line, they have a renowned outfit and are recognized by almost everyone in their field of work; and except for a couple of incidents where they have not recovered money till date, their system of chasing clients to get their cheque on time seems to be working fine.
So instead of getting disheartened by the disorganized freelance writing sector in India, all you need to do is devise a step-by-step system for taking up projects and following up on payments.
Research the job
Every freelancer knows the importance of good research. The way a well-researched write up makes a client happy, a well-researched client can keep you happy in the long run! So as soon as you get an offer of a project, dig up information on the client or company that wishes to hire you. How renowned is the company? Are they a legitimate concern? Who exactly are you dealing with? What has their past record been like?
The best way of course, is to get in touch with people who have worked with this client before and ask them their opinion. Get as much information as possible before you accept the offer. It’s always better to work with established people, but that doesn’t mean you say no to all the offers from a new company. If a fledgling outfit wishes to hire you, go and meet them at their office. If they have a decent office with good infrastructure, it invariably means they will have enough money to pay you. On the other hand, someone operating from a cubby hole is unlikely to have the funds to pay you on time.
The all-important ‘Contract’
The next thing you must do is draft a water-tight contract mentioning all your payment terms. Remember that an email will not stand in any court of law if it comes to that. So make sure the company signs a contract with you with details of the project, date of commencement, nature of your work, deadlines, who you are reporting to, and payment terms. The terms of payment should be clear with respect to the credit period, rejection fee (if any), late payment charges, and mode of payment.
When you sign your contract, take down the name and contact details of the relevant person in the finance or accounts department. Ultimately this is the person who will hand you your cheque, so it is imperative that if the person who has hired you goes incognito or says the cheque is stuck in accounts (it happens more often that you would like to believe) you have the number of the person in charge
Do not forget to hand in a signed copy of the contract to the client and keep a copy with you. Once the job is done and delivered from your end, send in an invoice to the client. Make sure you get a signed receipt for it and also send in a copy by email to be on the safe side.
Following up
This has to be the most painful part of a freelancer’s job. What do you do when your payment hasn’t reached you by the due date? Here are some steps you could follow:
Step 1: Payment delayed by a couple of days
- Call up the person you were interacting with and speak to them politely about the delay. Make sure you get some sort of a confirmation on which date you can expect the money by.
- In most cases this is sufficient and a couple of gentle reminders should do the trick.
Step 2: Payment delayed by a couple of weeks
- Fix an appointment with the client and pay them a visit at their office.
- It is now time to be polite, yet firm. Insist on getting a date in writing from them either on the contract or by email.
- Try to find out why they are delaying the payment. Was there any delivery from your side that wasn’t done on time? Was the project delayed or shelved for any reason?
- Remember that even if the project has fallen through, you have done your work and need to be paid for the services rendered.
Step 3: Payment delayed by a couple of months
- If you have finished the project more than a couple of months ago and are yet to get paid, it’s time to take more drastic measures.
- Write a ‘stinker’ mail marking all the relevant people in the organization you were dealing with. Do not make personal comments or use foul language at any point, but the tone needs to be stern and professional. Bring the matter to their notice and attach copies of your dated invoices. Let them know that there has been an inordinate delay in payment from their end and this in turn has affected your work and finances.
- Do not make threats of any nature, but if you have a legally binding contract, you can mention that in case the payment is not made within a couple of weeks, you will be forced to take legal recourse.
- This usually works and even the most slippery of clients will relent and make the payment soon.
The last penny
Once in a while you come across the really bad cases. As a freelancer you are prone to run into projects and clients that you will eventually write off. What do you do when there seems to be no hope? Here are a couple of extreme scenarios that may help you.
There are often mergers and acquisitions, and companies are dissolved in a matter of days. All previous employees are let go or have no clue about the new set up. In such a case, make sure you visit the new finance department and get a low-down on the status of your cheque. Such companies will usually settle your bill at a lower amount and practically speaking, you should accept it. Unless what they are offering you is really peanuts, you are better off with some money in your pocket than spending a lot more time and money on following up with a new bunch of people.
If for some reason you get into a dispute or a situation where a company is refusing to release your money, do remember that the legal system in India is a slow and painful one. So weigh the money against the effort you will be putting into retrieving it. Go ahead and seek legal advice only if the amount is large or you are confident you can get your payment through a little legal arm-twisting.
Precautions
Just a word of caution… if you are unwilling to give up a project offer from a company known to delay payments, work with at least a 50-100% advance. Work this into your contract and do not start your work till you receive the advance.
If a relatively small amount is stuck and there seems to be no sign of the client paying you, write it off as a bad debt. Do not spend precious time and money on innumerable phone calls, messages, meeting, emails, etc. This will just add to your frustration and eat away at your productivity. Just blacklist the client in your notebook and make it a point to never work with them again.
Remember, there is no point being penny wise and pound foolish
- Swati Sapna
About the author:
Swati has been working the field of media for the past 7 years and has experience in advertising, film making, television & news production and script writing. Her passion lies in reading anything she can lay her hands on, watching world cinema, cooking and writing.
Please Note: Chillibreeze does not endorse techniques or views mentioned in the articles here. The articles listed here are provided as reference material for writers as a support service.
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