Getting Paid for your Freelance Writing

I think we can all agree that we’re not in the freelance writing business for purely noble purposes. The fact of the matter is you want to make money with your writing. In fact, you should make money with your writing. It’s what puts food on the table, clothes on your back and a roof over your head.

One of the essential parts to being successful in a freelance writing business (or any small business) is getting paid. With most of your clients, that’s not a problem. The vast majority of clients I’ve worked with pay, and they pay fast.

Still, it happens. Sometimes, you don’t get paid. A client goes under, or just disappears. You’re stuck, sometimes with days or weeks worth of work completed, with no dough to show for it.

So, how do you get your clients to fork over the cash? Here are a few tips that should increase your successful collection rates:

• Understand that not all clients are created equal. You need to focus on high-risk clients in your payment and collection processes.
• Use a contract. If you don’t have a standard freelance writing contract, you should. The contract will set your terms for payment, and is your best legal recourse if the client should refuse to pay.
• Recognize that small businesses sometimes just fail. Less than half of all small businesses make it to five years. Less than a third make it to ten years.
• If you’re doing a sizable project, consider getting a business credit report. The Dunn & Bradstreet report is pretty standard, and will run you around $60 for the basic report. If the client doesn’t have a business credit report (pretty common for small businesses) ask for upfront payment.
• Consider offering a discount for upfront payment.
• Use an escrow service for high-risk clients who aren’t willing to pay up front.
• Watch out for signs of trouble. If you can’t get ahold of a client during a project, flags should go up. Radio silence often indicates business trouble. (On the other hand, it could just mean your client has gone camping for the weekend without her cell phone. Don’t make too many assumptions here.)
• Create a watch list for clients that pay slow. Take quicker action with them. Call them within a couple days of invoicing.
• Follow the law. The Fair Debt Collection Practices Act sets limits on what you can do in the process of trying to collect money owed to you. Find out what those rules are and follow them.
• Consider a collection agency. If you’re frequently hitting the no-pay wall, hire someone to handle these accounts for you.