Originally Posted by The Perfect Word

I require a deposit of new clients OR if there will be a lot of transcripts related to one project, instead of a deposit I offer the option of e-mailing an invoice with each transcript and not starting the next one until that invoice is paid. For regular clients I either invoice with each transcript or once a month with payment due within 30 days, whichever the client prefers. I work with a lot of larger companies and this has worked well for me.

Have you gotten any grumblings about wanting to wait and pay all invoices together at a certain time of the month?

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Terri
Legal and General Transcriptionist to the stars (well not really but a girl can dream, can't she?)

Do you charge a deposit for hourly first time clients as well? What about long term clients..do you charge a deposit for hourly plans?

I feel like taking a deposit is acceptable. I don't know how I'd feel about commencing work with any payment up front. Glad to hear I am not the only one who likes to work this way.

Does anyone charge a set-up fee? I have temporarily set $250 for a setup but I didn't know perhaps a deposit would take its place?

This is a great discussion because I wanted to know if anyone charges a deposit for consultations. I have a "potential client" that has been a No-call/No-show twice so far and I have decided that I want to start charging for consultation, a non-refundable fee that can be applied to services and wanted to know if others are doing the same.

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Nikki Johnson
The Millionaire's Assistant™

For project work, I require a 50% deposit of the cost estimate to schedule the work. I then complete the work, and send the client a draft (PDF copy that has a DRAFT watermark stamp on it) for them to review/approve. Once approved, I send the client the final invoice with the balance due. After payment is received, I finalize the document (i.e., remove watermark, save it in Word, Excel, etc. format), and deliver it to them.

For project work that is task-based (i.e., no document to send), I request a 100% deposit of the estimated total cost of the project (advance payment); if the final cost exceeds the estimate, then I bill them for the overage.

For ongoing clients, I only work on a prepaid hours basis (a/k/a retainer). They purchase blocks of hours in advance for the amount of hours we determine they would need my services in a month -- 20 hours (5 hrs/week; 1 hr/day); 40 hours (10/hrs/week; 2 hrs/day); 60 hours (15 hrs/week; 3 hrs/day). I submit the invoice with the Service Agreement and start work once I receive the signed service agreement and first month's block payment. When their account balance reaches a low point of 2 hours or less, I bill them for another block of hours. Sometimes they use up the hours before the end of the month, but if they don't, I automatically bill them on the 29th of each month for another block. They can downgrade or upgrade their block purchases anytime according to their needs, but they are always billed at least once a month.

Hope that helps!

Lisa

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Lisa Salem
Monarch Virtual Assistance LLC

I would generally not charge a consultation fee, but if they were a no show/no call twice before, I would charge a consult fee or not even bother with them. If you do meet them and decide to do work for them, charge them up front, if they are that inconsiderate from the start, can you imagine their paying schedule?

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Christina
CyberScribe Virtual Assistants, Inc.

I believe Lisa has the right idea with sending the client a draft for them to review/approve. It protects you in the long run.

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Shelley

Exactly Shelley. I've been burned in the past by giving the client their final project and then having them either disappear and not pay me or I had to chase them for the final payment for months. At least I got paid for the deposit (1/2 the fee), but it's the principal.

You need to find a way to protect yourself but also be willing to be fair to the client. My current practice is what I came up with and I believe it is fair for both sides.

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Lisa Salem
Monarch Virtual Assistance LLC

Terri, no, I really haven't. But after I've worked with a new client long enough to know "they're good for it," I give them the option of going to once a month if they want (or anything less than once a month). Some project-only clients like to stay with having one invoice per transcript, some have gone to once a week. All but one of my regular clients are on once-a-month billing; the other one wants an invoice with each transcript. I try to be as flexible as I can but still protect myself as well.

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Pam Deyerle - Transcriptionist in Richmond, Virginia (18 years)
The Perfect Word Transcription Service