External freelance projects.

[Jason Chong]

How many of you guys had to turn down/reject many of these projects?

I had to, didn't have a choice. Projects i've rejected/turned down included:

1. CRM customisation for a client based in Singapore. Rejected project.
2. 3D interior design/rendering (photoreal lighting). Rejected project.
3. Flash actionscripting 3rd project. Rejected project and blacklisted client.


I rejected all of these projects for reasons ranging from unacceptable payment terms (90 days is too long) and due to the fact that they are demanding and pay little. 3rd project was rejected due to non-clearence of payment from previous projects because they wanted 90 days, and I refuse to let them stack up what they owe me. 3D interior design/rendering was turned down due to high requirement of print resolution radiosity rendered interiors and low rates of about 400 per 2 days work and also unclear payment terms, most likely 90 days due to the nature of the creative/media industry in my country.

CRM customisation project was rejected, rates too low to be worth doing any customisation of their crm system. They pay only 1000 dollars for a week's worth of customisation work.

I've had to turn down a lot of external projects because they're more trouble than they're worth and interferes too much with my schedules. Add to the fact that I don't trust the clients enough is another reason I don't take up projects from them because i've experienced quite a few bad paymasters or extremely late payers.

[Leper]

I always aim to pay immediatley after completion, if I cant afford the job I wont waste anyone's time. I think that this the best way to do it. I work for a heating and air conditioning business and we do contract work. We take payment on completion if we do any installs. This way the customer is 100% satisfied when we get our money, and both of us win.

Of course, I dont know how the big leagues do this. Its a shame that some people do this 90 days stuff, you wouldnt see me agree to that either.

[illume]

I also turn down projects from clients who haven't paid up in the past, or have paid up 3 months late.

For clients that pay on time, I often do a much better job, more quickly. It's an extra bit of motivation for me, and knowing that I can rely on them to pay up takes a weight off my mind. Knowing that I'm not likely to get paid for this work for 3 months(even though they say 10 days) doesn't help me.

It is really anoying when people use their late payment to try and get you to do things cheaper, or for free. They know that you are having financial trouble, and that you will do almost anything to get paid.

So I always only do a job for a new client if I can afford to not get paid for it. I also try and avoid stacking up work for non paying clients.

One way to find out about non paying, or slow paying clients is to do a small job with them first. If everything works out nicely after that, then go on to bigger jobs.

Another tip is to only use someone else for work from clients that pay up quickly. Otherwise you will have to cover the other persons work until the slow payer pays up. I have seen massive trouble for people who get others to do ten-twenty projects for them. Then when a number of the clients do not pay up, they get in massive trouble.

When you are not getting paid up front, doing the work is like giving people a loan. You are loaning them say two months of your life, and hope they pay it back afterwards.

Diversify your clients. Pick clients you like working for, and that pay on time. Do good work for your clients, so that they reccommend you, and offer you more work. If you keep doing this, then you will eventually be in a great position.

[Tom Gilleland]

Business Tip# 47: Only do Business with Professional and Honest Clients.

Start out small and build a relationship. For bigger projects ask for a portion of money up front. On really big projects set work/pay milestones. If they don't pay, stop your work immediately and let them know. Don't deal with jerks or overly agressive clients, it will not be worth your time in the long run. One of my business deal making associates has a saying:

"If you sleep with dogs, you end up with fleas." ;)

Tom