Thank you everyone who replied! I'm sorry to say I DID NOT get paid for August or September.

I agree I should have asked for a deposit. Being my first client, I was really intimidated about requiring a deposit to start. Well, no more! From now on, I will request a deposit or else.

But thank you again. Starting Monday, I will call and email everyday until this situation is resolved.

This is not my first business, so I really should have known better. But, we live and learn and I AM learning!

Incredible feedback fellow VA's...I'm not going to let one bad apple spoil this for me.

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

Hi Tammy,

Sorry to hear about your client troubles, it is always frustrating to work and then not get paid. I am happy to hear that you're not letting this bad apple spoil it for you, great attitude!

One point I'd like to make is that you should give yourself credit for getting this client to finally sign a contract, which is a really important point when protecting you and your business. As for it being intimidating asking for a retainer upfront, remember that as long as the client has signed the contract stipulating that as a term, you shouldn't feel bad about enforcing that clause. They have agreed to those terms, don't let them wheedle you down!

Best of luck with your business, I hope your next client is an amazing and ideal one!

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Kate V. Kerans
Kerans Virtual Assistance

Hi Tammy,

So sorry you're having this problem but it seems to be a frequent occurrence in this business. As others have said, insist on a signed contract, 50% up front and never release the finished work until paid in full so you have leverage.

I once had an aggressive telemarketer, whose pitch I declined, ask "If I turned up at your place of business every day, would you like that better?"

I work out of my home and, uninvited, you'd be met with 100lb of teeth and fury dog and I'd call the cops ... suit yourself

Sadly, not only in business but in life itself, you will meet many individuals who have no class and even fewer ethics.

We professionals have an abundance of both class and ethics, so hang in there and don't let one rotten apple rain on your parade - you're worth so much more!

Lynne

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The Wordpro Wizard
www.wordprowizard.com

I agree with the advice offered here. I'm sorry you have to deal with this. After this situation and HOPEFULLY, after you get your money, I'm curious to know if you'll even continue to do business with this client again!?

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Kathya Kalinine
http://www.emeraldvirtual.com

How frustrating for you Tammy. I'm sorry you have to deal with a deadbeat client so early in your practice.

For me, I've been pretty lucky. I send an email invoice on the 15th of each month and payment is due on the 1st. Any hours after the 15th get billed the following month.

On the rare occasion that payment isn't received by the 1st, I send an email reminder to the client and/or mention it during our weekly call. If payment isn't received by the 5th, I stop work. Period. I call the client and let them know that all work is suspended until payment is received. I'm happy to say that this works very well!

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Blessings,
Carol

Just to get a clear indication of how to handle the beginning of a retainer relationship, what is/are the best practice(s)?

For example, should it go something like this... (I'm all about process flow )

• You meet with a client and they decide to work with you
• You decide on a "start" date
• The client signs the contract and any other forms
• Initial payment policy
  • If it's before the 10th (let's say) and work is to begin immediately, the client pays at least 50% of the monthly retainer fee for that month at the time of signing and then the rest of the month by the 15th
  • If it's the 15th of the month or later, the monthly rate for that month is prorated and the total amount is due at the time of signing before work comenses
  • If work isn't to begin until the 1st of the following month, 100% of the retainer fee is due by the 1st at which time work comenses
• Once work comenses, weekly client calls are scheduled and/or weekly reports are emailed to let the client know that you are working, what you've been doing and how many hours have been used so far
• Ongoing, all payments are due by the first of every month and the client is aware of all late payment policies (additional fees, collection policies, "stop work" dates etc.)

So, is this how it's done or should be done? If you do it differently, can you outline, as I have, how you do it?

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Stephanie
New VA in the research phase :daisy:

Stephanie, great example. I am really glad that I found this thread because I have been wondering how to go about the whole retainer route. I have only had project clients so far and have not had issues with payments. There is one client that was originally going to be a retainer type client (a couple of hours a week organizing her office) but she is going through "personal issues" and has postponed our partnership. She still owes me for our first organization work and I can not get a hold of her. It is not a lot of money owed, but it is money that I could use.

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Erika Glem
www.advadminsol.com Let my administrative solutions be to your advantage.

Hi Stephanie,

I do it like you but, I do not prorate a month. If the client signs on the 18th of the month, then they pay for the 18th - 18th of the following month.

I do not accept partial payment, 50% upfront and 50% later, once they have made full payment for the month then I begin working.

I have been bitten in the past with the 50/50, not receiving the last payment which is why I no longer offer that option.

I have weekly client calls and then send a monthly report that states what we did, how many hours worked and includes other information such as the details of the work that was outlined from the client call.

Andrea~

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Action Jackson Virtual Assistant|

I too am chasing the rest of a 50% client. He paid me half, up front as he was supposed to then the rest is due upon completion. We both agree the job is complete but he keeps saying "I'm going to send it Monday" The sad part is he only owes me a couple hundred dollars. But i have an advantage. I am hosting his site and I own his domain name technically until I get my money. So I'm giving him time, but unfortunately I may have to disable his entire site if I don't get the money.

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Stephanie L Watson - VA

Stephanie:

I'm sorry to hear you are experiencing this. I started the thread with my story; and the ending was a bit worse than the beginning! I had to drive 45 minutes to get to his office to pick up a check with NO SIGNATURE. Of course, I was fuming mad. But, I waiting until he arrived at the office to sign it and after another thirty minutes of waiting, I got the check signed. But not before I had to threaten to bring the police to his office. I have learned so much and clearly from your story; even a retainer cannot always protect you.

I am glad you have the leverage of owning his domain name. As the VA's suggested to me, call, email and write EVERY day without fail. It was effective in getting my former client's attention.

Best to you.

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