Problem Client: How To Protect Yourself From Clients Who Refuse To Pay

C'mon over to www.marieforleo.com/blog/cust... where the main discussion happens after the episode!
Customer problems, like clients who refuse to pay, can be difficult to deal with. In Wendy's case, some of her customer problems stem from clients who never pay for the services she's providing.
In this video, you'll learn what Wendy can do to put a stop to her customer problems by training her clients to respect her and her company policies.
1. Get over the idea that asking for payment upfront is rude and demanding. To help with customer problems like the one Wendy is having, have your new policy require that clients send payment upon booking a session.
2. Create a policy and a script to go with your new policy. You can eliminate customer problems having to do with getting paid by creating a policy upfront and sticking to it.
Here's an example of a script you could use with a client. Send them your rates, availability, and this message:
"To purchase a consulting session, click the link below. Once you've completed your purchase, we'll schedule your session right away."
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And if you're interested in more videos on next-level business growth like this one, check out our KZbin playlist on that exact topic here: • Build A Meaningful Bus...
Thanks for watching!

[@IamDeanCantave]

GET THAT BREAD FIRST! Your service, your TIME, and everything you offer is valuable!

[@troypalmer3262]

Very true! For me as a Web and Graphic designer with multiple skills. I have the most issues with Family & Friends who I try to give a deal (a.k.a. The Hook-Up). I cut my price by 50% and offer every feature they can use for success. Lord-Hav-Mercy! They still don't want to pay the half price, but they still want those features, all of them.

[@97Mihir]

Troy Palmer same happens with me..

[@ReadyAimShoot]

Same as a videographer. I currently have a client/former co-worker who has only paid half of what we agreed to.

[@thebluewood]

Happened to me too just few weeks ago

[@getexposed9072]

Well then if they are a teacher,coach or whatever professional say can you come teach me for free,can you get off your coaching job then come right over and coach my kids next for free,can you do etc for free for me when your done working for the day???Treat them the way they treat you and see if they keep wanting things for free😂

[@Lesedimalapsdigitalagency1]

I'm also graphic design facing the same problem

[@Miyukicrochet]

I sell handmade crochet items and I used to allow people who were custom orders or in person pick up to pay when the order is completed. Time and time again people would forget or neglect to make the payment. After I had bought the material and made the product. Now what I do is make everyone pay when they order the product. I make them a custom listing so they pay when they place the order! Now I no longer have that problem! It is hard at first but my time and money count too! :) Don't be scared to take the step!

[@pjdexter168]

I’ve had two in the last month. They’re so quick to respond when they need the work doing, but as soon as it’s complete suddenly they’re conveniently MIA, ignoring repeated emails. My aaprouch is to drive them crazy without breaking the law. I’ll locate them personally on Facebook and send them a reminder, phone every day their office. Find out business information and contact their colleagues and generally be annoying. Persistence is key.

[@jaxxgraphix4457]

Dexter this is exactly what I'm going through! When you're doing the work they will messsge you every single hour, ring your phone and not give you a life. When the work is done, absolute silence! I'm sick of it!!!

[@pjdexter168]

@@jaxxgraphix4457 yeah I’d just find them on social media and just make their life hell with repeated phone calls to their business, emails. Let them know you won’t go away.

[@Rassy_]

As a developer creating platforms, it can get very frustrating reminding a client to pay up every month. So if a client doesnt pay the system immediately prevents any usage, gets them calling and paying ASAP.

[@Ninof33]

I learned to ask for my service fees in advance. I sometimes get asked by clients if they can pay my fee a week or two later, after testing my caregivers services. I tell clients I always get paid in advance. I take time to find a caregiver who fits clients care needs and I must get paid for that time. If a client is difficult and has a problem with paying my service fee I sent a polite message to him/her to let know that I am busy and need to use my time to attend to other clients, who need my help. Time is money in business. Only the most loyal clients deserve an extra time from me.

[@samuelyousef6117]

Upfront payment is the best way to encourage the trading relationship

[@monicafields3956]

I quit being an Esthetician because I had friends who thought they could get free services from me and a few of them did. When I was done with the facial and asked for payment she was like um I’m sorry sis I have no money smfh so I went out and got a normal job and cut them all out. I wasn’t making money on my services.

[@AncestryNerd]

As a genealogist, I require a retainer before starting work and the final payment is due before the delivery of the final report. Asking for a retainer as stopped me from getting clients who don’t want to pay. If a client doesn’t pay me after sending the contract and clarification emails, then I know it’s not a good fit because I want to work with people who are committed to the process of discovering their family heritage.

[@timefilm]

In my experience if they refuse to pay a deposit its a good bet they are the ones who will refuse to pay at the end.

[@marieforleo]

Great perspective; thank you for sharing your insight and experience here! - Team Forleo

[@ALZulas]

As a piano teacher on the side, my students always pay for the month ahead of time. They pay month to month, and on the last week of the month I send out an e-mail telling them their next bill total, their current progress and what we plan to do in the coming month.

[@ThePeterDislikeShow]

Can I ask how did you bring up your credibility to the point your client feels comfortable prepaying? I like this idea, because it also gives incentive to show up. I teach computer science and I can't tell you how many times my client doesn't even bother to call, they just don't show. If the session was paid upfront I bet the attitude would change.

[@themetadaemon]

Clients shouldn't get credit until the relationship is established. Until then, it's 50% up front. 50% on completion.

[@TutiFruity7103]

Yesss, Marie PLEASE MAKE A VIDEO ABOUT THIS TOPIC: I have a yoga business: Clients book group classes. The problem is they like to book their classes, then they want to take up my time a few weeks later commuting or asking for a phone conference in order to feel validated or simply extra get time for reallllly random reason....seriously...there are infinitely many unexplained reasons people want to take time, unconnected to me actually providing the class they bought. I don’t have time to pander to people’s needs outside of performing the service they have bought, but if I don’t do this, I have noticed they want to cancel!! I am great at what I do, and they always get the class as long as they don’t cancel and ruin it for themselves. How do I take back my power and maintain that extremely small amount of free time I have worked soooo hard for?!

[@UniquesUnited]

I set up a payment first policy for my sound design services even before I watched this video. :) I don't think it's rude and demanding at all. That way, any client who wishes to hire me knows what they must consider when purchasing my sound effects. :) I think it's also wise to use a no-refunds policy because if you guarantee refunding, spend the money, and then your customer wants their money back, you're in some real trouble. That's why I make it very clear that any money I receive is mine.

[@HomeReworksTV]

Love it! Your script is excellent Marie! After having 2 delinquent accounts last year, I realized we needed to tighten things up. I got a merchant visa account and now make clients sign a contract where we charge a 50% deposit up front and the balance when we have staged their home. Subsequent month rentals are also charged automatically to the card. It means more in merchant cc fees but on the long run that is a lot less than not getting paid for work we've done.

[@watcbd]

My business is a bit tricky because my clients are larger hospitals. Trying to get them to pay up front…..well, it’s just not happening. Kind of have to be picky about clients, and stay with the ones who pay on time. One hard lesson I learned, I purchased an expensive part for a repair with my own money, and they took FOREVER to pay. I was out a huge chunk of money while they dilly dallied with my payment.

[@pixelpuff]

Thank you for everything that you have helped me to help myself with thus far, Marie ! Please to keep up the good work, girl ! Very good quality information as usual, and said in a very comprehensive way, too !

[@FemiKolawole]

You're so on point. Thanks.

[@irinarakovicprivatepractice]

Your advice is gold!

[@spankydoo001]

Im looking into starting my own business up and this is a worry of mine. This video was really helpful, thanks

[@SharonAndreaNembhard]

No, I haven't had that problem and I like your rationale as most service organizations have come to recognize that some services are just non refundable and therefore should be commissioned with a payment - as the story goes, I no give you credit, you vex, I give you credit, you don't pay me, I vex, better you vex.

[@rebeccahempe6699]

I know this quite an old video but I am going through this situation at the moment. We (client and I) messaged each other with ideas and descriptions on things needed, met at her home to get a more in depth idea of what she needed, I went shopping for samples and priced items, talked about doing multiples at wholesale pricing and then made her samples. After giving her a final quote on what it would cost to make these items at wholesale she states that my pricing is too high and my seamstress skills were not her liking and my bill for retail and design work is absurd. I keep being put off that she hasn’t had time to talk to her husband and they are too busy. Sad thing, they are a reputable, established business. Would you suggest I send her an invoice and give her 30 days to pay? Lesson learned: 1. Put everything in writing - quote for wholesale and retail pricing if they decide not to move forward with my services. 2. Don’t let anything out my door without payment.

[@leahweinberger583]

Perhaps a down pynt of 25 or 10% to cover the scoping costs?? That way you're not out if pocket or wasting your time. Plus once ppl pay a % they are moreover to keep paying. Sunk cost, etc. Good Luck!

[@jendu9538]

My client from Australia ask me to refund the payment he already paid for licensing and a logo design. After I delivered the design files twice and worked 40h+, he wants to cancel this deal and ask me for a refund, and also threatened me with the Australian Consumer Refund Law.

[@jasminelaflor9773]

The Bite at the beginning was EPIC!

[@BlissfulTV]

Marie, you are just totally hilarious. I really look forward to your Q & A sessions on Tuesdays, you really crack me up. I especially loved this one because the cat in the hip hop video really had swag...LOL!! Seriously though, you have really inspired and empowered me. You have helped me step out of my comfort zone and do those things i did not want to do like creating a video that i have avoided to do for months. I am taking life by the bull horns and running with it. Thank you.

[@VitoriaFCastro]

So polite yet effective!! Thanks a lot once again marie! Love your scripts!

[@ikrammohomad8783]

You find me

[@AkemiMUA]

YOU ARE AWESOME MARIE!!!

[@christophergaston1846]

so funny, so different, so fresh... love it

[@AkesSamenos11]

wow, I love this video, Marie!

[@ClintBoland]

Right Meow. Super Troopers... I love you Marie.. Great Program. My industry is Video Production and we always get half upfront and remainder before delivery of Final Files. ALWAYS MAKE PEOPLE PAY UPFRONT. Good advice Marie. Have a great day :)

[@charlesg7926]

Good ideas, but incorrect about contractors getting all of the payment up front. We generally get anywhere from 25% to 50% up front... usually 1/3. Also this advice was really rudimentary. Our clients are usually much more complicated. In this girls situation, she can pretty easily just put a lien on the home or send the bill to collections. It’s more complicated when it’s a manipulative client faking and fabricating issues to manipulatively try to avoid paying for a $10,000 project... then claiming you said things which you didn’t say... try dealing with THAT drama. Not fun at all. These are easy issues here

[@remoterish]

Great tips!

[@LauraWallis]

Such a great topic and so important! Think it is always a good idea to ask for payment up front. You can always offer a discount for larger payments at the very beginning of the project. If it is a product, always offer a 90 day guarantee. Thanks so much, Marie, for the great copy ideas to work from. Another uber valuable video!

[@ikrammohomad8783]

You try me i am from srilankan

[@aaronrs2002]

Great. However, my software provides a monthly service. Chasing clients down who don't pay every month gets tiresome. I will try turning off the service after 2 weeks of non payment.

[@BenPalmerWilson]

Marie, you kill me. It's funny how many of us guys follow your advice - then again, biz advice is universal! Keep 'em coming!

[@XCritonX]

I have convinced most of my clients to institute a pay-up-front policy. They were apprehensive at first, however improving collections saved them from imminent bankruptcy. Some clients had 2 year old in-debt accounts they were still servicing and no cash flow.

[@bigmaninasmallbody2085]

its actully very easy. I have my own business and do work for peoples home. When they do not pay i just go over there and take my stuff back once they did not pay for the window so i just removed it. They called the cops i told them the situation. And that was it,

[@Nellychanelle]

Wow you’re funny and smart. I wish I could cast you in one of my comedy sketches lol. Thx for the good laugh and advice

[@RobTheNotary]

Don't be bashful about asking for money YOU earned! You have bills to pay just like everybody else. I once had a client who tried to lie ball me on payment. I told her; Lady, if I go home with less than I told my wife I was being, I ain't getting any tonight. The client laughed and paid me. Receive a credit card/PayPal payment

[@tompeace2621]

You still didn't answer her question how do you get paid if somebody doesn't want to pay you

[@bigjoey1114]

Great information. Think about it. Virtually everything we purchase in life we do so upfront. Large things like homes and education, though we may take out loans or mortgages, we are paying for these things upfront. Every product we buy in a store or online we pay for upfront. Just make sure they know what they are getting, and most people are happy to pay upfront.

[@sterlingsilver5937]

Thank you!

[@dollar4shawn]

Just send 'em to collections, geesh!

[@ColetteSummerland]

Thumbs up! ***** You have great videos and this one knocks them all out of the ball park. I can certainly relate to this one and I hope you get my tweet. That is why I stopped working on the honor system!!! Sometimes you just can't treat people the way you'd like to be treated - - unfortunately!!!

[@annemarielabreche]

I have a client that refused to pay or attend the service but signed a contract. How would you approach this one?

[@annemarielabreche]

And she cancelled the card she gave me, so I can’t charge that card

[@ColetteSummerland]

I agree 1000% (one thousand percent) with you.

[@Betterboundariesnowteensupport]

It's valuing your time. A holding deposit. To hold that meeting slot

[@adiroxstr]

That Wutang clip...just sealed the deal..... this b-girl/hip-hop lover entrepreneur loves you guys even more!

[@UniquesUnited]

That said, you must follow through on your paid services after you receive any payments or else you'll be the jipster (con man). It is my responsibility to honor my commitments.

[@sheem.2450]

love this!!#!

[@bubbie23jw]

How do I creat a contract that states 'tis?

[@johnnavarro7622]

What can I do if one of my clients hires my employees I want to construction company in Chicago

[@ehomeefashionn1234]

How to make customers pay first before delivery goods to them , to avoiding they not satisfying and refuse to pay and return back ,,, finally seller waste time,, and lose for delivery

[@robertovalle655]

I subscribed because of 2 Chain!!! 😎

[@polifonyann]

I have clients pay either one month or two months in advance before I even offer services.

[@angileeravie8046]

How do you push buyers to pay upfront rather than COD especially to online business

[@leahweinberger583]

Make a policy they must pay percentage up front that covers your costs usually 50% and as soon as you receive that deposit work will commence, do it in the contract. I'd also ask for a cc upfront

[@watcbd]

Oh wow, thats actually a really good idea.

[@javierlopez799]

This was very helpful I do onsite Computer consulting I usually don't issues with payment upon completion however some business clients pay me way later. right my client has not paid in the time she normally do due the last visit did not go as planned due her not communicating correct information to me. I still finish what job i was intending to do and deserve time I spent working on the job. I've send 3 reminders by email and now I will be snail mail with late fee.

[@khatelynaspirin110]

What I do if my client not give my salary in one month?

[@alexis_renee]

Yes for the Method Man and Redman plug!

[@samuelring986]

worst client with this ive had was a guy who refused to pay me in full because we damaged his home. He said "ill pay you the rest once I get the money from the insurance claim" . I told him no he must pay in full but he absolutely refuted. So 2 months later my insurance company send me an email stating that the client of mine had been paid an undisclosed amount of money for said damaged. I text him telling him of the fact I was aware the claim payment was made, and he just never got back to me. I have threatened collections, lawsuits. Nothing. Real dead beat prick

[@UniquesUnited]

At the very least, her view counts on each video are consistent. She obviously has a high-quality audience.

[@diamonte18]

What if it's partial payment? My husband has a lawn mowing business and this rude woman wouldn't pay the full amount because of the way he charges for lawn mowing and whipper snipping. It's only about 20% from the total invoice but should it still be chased?

[@leahweinberger583]

Yes. Get your money.

[@christianm.7660]

this is great but what about repeat clients? They pay once to get started but then start dragging their feet... what do you suggest we do about them?

[@leahweinberger583]

Write in the contract your deliverable payday dates and if they do not make them literally make one call and inform them that all will work will stop until payment is received. Of course do this with the 50% upfront payment that should cover your basic costs

[@stephengreer5863]

Yes I do

[@sukanta303]

Perfect

[@catreadsbooks]

Hip Hop Cat!! LOL!! I love it!! Obviously, I am a cat person!!

[@dylanakent]

Get a smartphone or tablet card reader. squareup, even paypal has card readers. You can do it as Marie recommends or on the fly with your smart phone. Get paid first.

[@bryandavis893]

Have you ever used or run across Factoring/ Accounts REceivables and Purchase Order Financing? If you have, did you find it helpful?

[@CarolineGirl81]

Sadly some of the customers you speak of are B-School grads. A lot of scammers in B-School lately.

[@ikrammohomad8783]

You find me i am from srilankan

[@tysonb3568]

Lmao....this was funny. Thumbs up!

[@fp7601]

Video starts at 3:20

[@donnettepink9100]

Great video do you do video 📹 or voice mail for people please let me know thank you

[@Jessakaybits]

I love these videos! Every since I've subscribed there's always a video I need to see at the perfect time! I'm a producer with a up & coming music production company and come across mostly rappers that don't wanna pay for beats or studio time. I always talk to my fellow producer friends that have the same probs. I'm at the point where I'm evaluating what I'm doing wrong and need to do differently...this video helped Thanx Marie!

[@dollar4shawn]

Method Man? Nice! Or... as we cats say, "Mice!"

[@kylielam4559]

now the problem is the former boss changes his mind and says he is going to pay me only one month of salary for the last 45 days of my hard work. he hasn't got any final files yet but i did send him all of the options files in low-res via the phone and emails. when i found out he doesn't want to spilt the profit i asked him to pay me my salary before i send him the next item. He ignores my request and i haven't been paid for all of it yet! should i visit his office or talk to the client?

[@leahweinberger583]

Inform him that you need to communicate with him and give him a second time and if he doesn't Reach Out inform him that you will be contacting his client and do not do a single thing into you have every single penny of your money

[@44yyBBaakk]

great, Marie!) i'v been watching you for a long time but your views don't grow as great as it deserves, why?)

[@TurboMK4]

Pretty and smart where combo girl nice job

[@KerchakArt]

you guys are hilarious

[@kylielam4559]

Help everyone i need advice! My former boss hired me to design corporate identity for one of his clients before i resigned my job. I have being told " we are partners" " we are a team" the power of his lies motivated me to work 10+ hours each day, i just did everything i could to make the organization is happy with my work and finally they signed the contract and paid my former boss upfront fee 300k in full.

[@leahweinberger583]

Harsh lesson.

[@dunnly-collectionssimplifi6545]

What many fail to understand is that there are different kinds of debtors. On the other hand ,there are different kinds of receivables as well.The collection approach differs for each. We have written an indepth article of this subject. Take a look at dunnly.com/the-seven-golden-collection-call-techniques-for-small-business-owners-to-collect-aged-receivables/

[@khatelynaspirin110]

Hi

[@TheGbrie]

Your jokes are so bad that are good :)

[@crmpadvertmedia]

i be wait for you reply 🙂👍

[@Exmuslim_gjgfgbb]

How to start business with no money or little money

[@chantelmorset7176]

You are funny,🤣🤣🤣.

[@less2worryabout]

@1:33

[@hathinischal]

We need to have a sugar coated knife..else emotions have no place in business..:)

[@mellymel9892]

You’re gorgeous 🙂

[@MrJose1322]

Wu Tang…😅😅😅

[@artistformerlyknownas7585]

This sounds like a very strange business strategy to me, especially when you talk about a somewhat unusual service such as cat behaviourist. Are we sure the reason this lady doesn't get paid isn't because she is not good at what she does? For example, my plumber is the best, I am always more than happy with his work and yet he never asks me for payment up front or even on the day but always sends me an invoice a few days later which I am more than happy to pay immediately by bank transfer because I am so grateful for a good job that he does. However, when I've had someone provide a very shoddy service doing garden work, I felt cheated out of the money I had agreed to pay when I agreed to a quote and although I did pay, I can totally understand people who decide the work wasn't good enough and refuse to pay. I am not saying they are right, I am just saying I can understand how they feel.

[@NurseT489]

Ah I cringe 😣

[@maxmillion2393]

I suk “waaa”

[@desertrose0601]

Okay... I love your advice, but I have to say that all the pop-ups and lame jokes are seriously annoying. It comes across as being very insincere and patronizing, like we need to be entertained to listen to you. Trust me, you're interesting enough without resorting to tactics like that.

[@sangramsamrrat2520]

desertrose0601 exactly thats makes annoying ...

[@ashleydodd9145]

Then stop watching. Good grief. You arent entitled to making ppl change their content for your preference.

[@user-bs7qk5tm3o]

​@ashleydodd9145 you're replying to a comment from 2012 lol...and YES they ABSOLUTELY were entitled to express their opinion, just like you expressed yours to them 😂. You're not the opinion police. You don't get to censor things you don't like. Enough fucking censorship. "Entitled to making people change" what on earth does that even mean? It's CRITISISM. I know certain genders believe they're immune from it, but they actually aren't :). You're not entitled to forcing your own positive opinions on other people. They get an opinion, you get an opinion. The person you replied to LIKES THE PERSON IN THE VIDEO. ITS A BIT OF CRITISISM. GOOD GREIF.

[@SuperAnxietyHelp]

Very shallow advise for a real world problem.

[@jeremykooi6215]

my ears are bleeding

[@2000Betelgeuse]

This is a perfect example of a person that looks attractive until they speak......video is annoying to no end

[@FlashManinSpace]

2000Betelgeuse She does sounds like a granny with her cracking voice. Like if you just listen you'd imagine her in her 70s.