Hello Fellow VA's!

I apologize in advance if this is not the right area for this post.

At the end of July, I landed my first VA client. I was thrilled! After he decided to use our services, I had the hardest time getting him to sign/return my contract. He eventually did. That, I believe, should have been my first clue something was not quite right.

I explained in our initial meeting that as a retainer client, he would be responsible to pay in advance for services rendered. But because he signed the contract later in the month, I conceded and allowed him to pay for August and September together.

Well, dear VA's, it is the 11th of September and I have not received ANY payment from him. I have called him and he says he will get to it shortly. I informed him his services would be "on hold" until I receive full payment.

I am fearful that if we continue to work with him, I will have to chase money every month.

Any advice?

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Tammy Chapman, Office Solutions
http://officesolutions.vpweb.com/

Hi Tammy. I'm a bit unclear. He's already paid for August and September, right? So do you mean you're billing him for October already? I also ask clients to prepay a retainer upfront. They are billed the first of the month for that month, not for the following month.

You did the right thing in putting the services on hold if he owes you the money.

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Sue L Canfield
AwesomeAssistant.info
My Blog

My best advice is to realize that when you make allowances once, you will invariably be 'expected' to make them again, and again... and that you are a business owner, with policies in place for a reason. BUT the client only respects them to the point that you do so yourself. So be insistent and don't do any work until you get your retainer payment. I don't work on retainer so I'm not sure how best to finesse the necessary conversation about: 'we're aiming for an ongoing partnership, hence a retainer must be paid by X day each month' but in the meantime, concession is not a word that should be in your vocabulary, at least not this early on in the client relationship.

Check the language in your contracts and intake process to better stipulate on which day each month payment should be made for the coming month's work, and then send reminders to clients giving them enough time to get the funds to you in advance.

I am very curious to know how VAs who do work on retainer handle situations like this?

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Wow! If I were you, I would stick to your policy and follow through. I understand that this was your first client and we tend to get very excited. I am so sorry that this has happened. The best thing to do is follow through with what ever policy you have in place when something like this should happen. Also, make sure you keep a RED BEWARE file on hand to document any other companies, NOT to do business with them in the future.

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Virtuous

Hi Tammy,

I am so sorry to hear you are going through this. It is unfortunately what happens to VA's who do not collect at least 50% up front.

Keep calling and followup with an email every time you call. Get all of your documents together, this should be your hours worked, what you worked on and the contract with his signature.

Do not give up on getting your payment.

For new VA's this happens a lot. We get so excited about getting the client, we trust that the client will pay and we do not collect anything up front because the client has made us feel they can be trusted.

My recommendation is as follows:
Continue calling and follow each call up with an email with what the client has agreed to.
Send the client your very detailed invoice that includes the hours you have worked for them and what you did.
Remind the client of the contract they signed.
Start charging the 10% interest for the past due payments.
Stop all work until you have been paid. Then get Octobers payment up front if you decide you will continue working for them.

Andrea~

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Action Jackson Virtual Assistant|

Originally Posted by Tess

I am very curious to know how VAs who do work on retainer handle situations like this?

Tess, I would collect all retainer packages up front. Any extra hours worked will be charged hourly in addition to the retainer. Hourly bills will be sent out early enough to give clients time to pay at least 10 days prior. After that 10th day on day #11 all services are suspended until full payment has been rec'd...with no extra charges of course.

We must keep in mind that we are still running a business, which is supporting us all and our lifestyles. So it is very important to act on all written promises or contracts.

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Virtuous

Originally Posted by Action Jackson VA

My recommendation is as follows: Continue calling and follow each call up with an email with what the client has agreed to. Send the client your very detailed invoice that includes the hours you have worked for them and what you did. Remind the client of the contract they signed. Start charging the 10% interest for the past due payments. Stop all work until you have been paid. Then get Octobers payment up front if you decide you will continue working for them. Andrea~

Andrea, this is wonderful advice. I don't charge extra for past due accounts, but after reading this today...I am in the process of changing my policy.

Thanks!

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Virtuous

I don't work on retainer but we do have some clients who have had 'trouble' with past invoices who now must pay in advance - this has saved a lot of headache and keeps them from having to pay the late fees we stipulate and DO implement when necessary.

One of the best policies I ever put in place in my own practice was late payment penalties. Second to that, would be requiring advance payment from those clients who made late payments regularly.

Keep us posted on what happens with this - and good luck sorting it out

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Originally Posted by Tess

I am very curious to know how VAs who do work on retainer handle situations like this?

When this happened to me I did exactly as I stated:
Called everyday
Followed up with an email
Reminded them about the legally binding contract they signed
And received my payment after my 3rd email.

I know of another VA that went through the same thing. Now, she is having to take her x-client to civil court. Which is so sad because she worked so hard for this person and gave this person 100%.

I am always saddened when I hear about this type of thing.

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Action Jackson Virtual Assistant|

Sorry to hear of your deliquent client! However, take heart, I have had my business for many years and, about once a year, I have a delinquent client too. Take heart, mine have always paid. Although, sometimes it has been slow. I do have a late payment penalty and I would encourage you to implement that.

Be encouraged that you landed the client and know that this is not a "new VA" mistake but rather something we all have to deal with as business owners.

Don't give up on collecting. However, focus your time, energy and efforts on landing the next client....as this first client may not be "ideal".

Best wishes for your continued success!

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Cathryn Jones
Assistants For Agents, LLC