How to get clients to pay upfront

How to get clients to pay upfront


How to get paid up front. It is wonderful when you’re constantly getting your money before you do the work. in this video I’m going to go over the three simple steps that will help you get paid up front every time. Now, the first step is getting things in writing the second step is using payment links and auto billing and then the third step is using
the right software. So we’re going to dig in and get a little bit deeper so that you
completely understand how to use all three steps.
Now, the first step getting everything in writing. I know, if you’ve started your business you’ve been
really busy maybe you’ve kind of stayed away from
using contracts but if you want to level up your business and you want to
consistently get paid upfront you need to use contracts and proposals. You need
to be able to put these contracts into a software we recommend Dubsado and e-mail them to your client and in those proposals and those contracts you need
to be crystal clear about what you bill and how you bill and that includes
billing upfront. Different industries do this a little bit differently, so for
example, as business coaches or life coaches or fitness training coaches we
often get paid monthly. We have our clients sign a one-year contract with
auto-billing, so every month we’re paid before we do our coaching sessions. Our
interior designers work off something called a retainer.
This means they sit down and tell you what the value of the project is going to
be and then they take a retainer for that it may be five thousand or twenty
five thousand dollars and it doesn’t matter if the designer works hourly or
they actually quote the job completely they can still work off of a retainer
you just need to be clear what it is that the retainer is covering. Is it covering just
items that you’re purchasing or is it covering labor and the items that
you’re purchasing? Your customers are fine with it they just want to know how
it works. Now the other thing are deposits. So for
example, our graphic designers often take a seventy-five to eighty percent upfront
and they bill the last twenty or twenty-five percent at the end of the
project so they’re not being paid completely
upfront but they are getting the majority of their money and we know from experience and from talking to our clients the hardest part about getting a website done is often getting the client to give you
the information so you may wait weeks for them to give you everything you need
to finish the website and that’s a lot easier to deal with if you’ve already
got 75 percent or 80 percent of your money. So I’m going to dig a little bit
deeper into step number 2 which is using links and auto-billing to get paid. In Dubsado which is a software I’m going to talk a little bit more in step
number three this software allows you to send out contracts proposals and in
those contracts and proposals you can take payments.
Those payments are usually processed through Stripe or PayPal. We use PayPal
for some things and we actually use Stripe for other things so you do have
to set up accounts with payment software. Now, I know what some of you are thinking I don’t want to spend the 2 to 3% to take credit cards and I’m going to
tell you that is a huge mistake. People consistently spend more money when you
accept credit cards. Think about it. If you go to Starbucks and you’re paying
cash you’re most likely just going to get a cup of coffee but if you’re
whipping out your credit card and you see all those delightful little things
the scones and the cookies right there at the end there’s a very good chance
you’re going to grab one because again, when we pay with a credit card it doesn’t always
feel like we’re using real money. So if you want your clients to spend more
money with you make sure you make it easy for them to pay you and don’t fret
about that 2 to 3% you’re going to spend in credit card processing. Trust me, you’ll
make way more money. We see it time and time again with our clients. Now, the
third thing is software. So I’ve already talked to you about the Dubsado. Dubsado is a software that a lot of our clients use because it’s really user
friendly. You can do landing pages in it you can do your proposals your contracts,
there’s a CRM in it, and they do project management within it, so
this one tool has quite a few features and it does allow you to link with a
PayPal and with Stripe but there’s tons of different software out there you can
use and it’s just a matter of preference. For us, we don’t use Dubsado because we
use a software called Clickfunnels to manage our landing pages so we just
simply insert a PayPal link or a Stripe link and that’s something you can do as
well. If you are able to do your own contract in Excel or in a Word
document and you’re comfortable sending them that way and just attaching the
payment link you may not need an additional software but again if you
need it invest the money in it. Remember, you’re trying to get your clients to pay
you upfront and you need to level up your clients need to feel comfortable
working with you. You need to be professional. Your contracts and
your proposals need to be branded and your terms and conditions need to be
clear and you need to be comfortable getting that payment right away. The
time and energy that you spend collecting payments or chasing clients
for payments generally will offset the money you spend on software and credit
card processing. The last thing I think you really have to have and it’s
not really a step it’s a personal thing. You have to feel like you deserve to
earn this money. You have to feel like you do a great job and your clients
should be comfortable paying you upfront. You also need to be able to overcome
objections and you need to be able to clearly explain your terms and
conditions and this just takes a little bit of time. What we recommend is
that you write out your contract and have a couple friends read it over and ask them
is this clear to you? Then also ask them if they have any
questions? Most likely they will give you, “well, what happens if this,” “what
happens if I give you a retainer of $2,500 and we only use $2,200?” You should
be able to point to your contract and say, “right here it says, ‘if we do not use
the entire retainer we will refund you within 15 days of ending the project.'” So
you want to make sure, again, everything is clear and within your contract you have
tried to handle every question and every objection that
may come up. For example, with us clients may say, “what if
I’m in a monthly contract for coaching and something occurs and I need to end my coaching contract?” In our contract it clearly says that you can
cancel your contract with a 30 day notice. It also says we can cancel your
contract with a 30 day notice, and the reason we do this is because for us we
want our clients to commit to a year because coaching doesn’t happen
overnight. We can’t help you improve your business of the magic wand. We have to
work with you and help you evolve and help your business evolve in order for
you to get where you want to go. I also know I do not want to be locked in a
contract with a client who can’t afford us so they’re so stressed. I want them to
have it ‘out’ if they need it, but I also want to have an ‘out’ if I don’t enjoy
working with a client you know they’re just not taking steps they’re not making
progress, maybe coaching is just not right for
them at this time, so I put in our contract that is easy to cancel. We have
very few clients cancel our contracts but again, you want to be clear and you
want to be ok with the terms. I also really recommend that you do not make
exceptions. I can tell you right now from experience of our own and with all of
our clients when you make exceptions you tend to end up, I don’t know, it tends to
come back and bite you in the butt somehow! I think if the client ends up, in
the very beginning, getting you to change how you run your business they’re more
in control than you are and so then they don’t want to get you things in a timely
fashion or they’re constantly asking for things to be done differently, so
remember you know you have to run your business the best way you can and you
need to communicate to your clients, ‘I do this because this is the most efficient
way for me to work and this is the best way for me to serve you.’ I really
believe that taking payments upfront does that because I know I’ve been paid.
I know I don’t have to chase the client. I know that the terms and conditions are
very clear and we are all on the same page from day one. If you like this
video please SUBSCRIBE. If you have any other information you would
like to have leave a comment below it and we will answer it or we’ll do a video about it!

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7 Replies to “How to get clients to pay upfront”

  1. If you have a question about how to start or run a business please leave a comment and we will do a video about it, we are here to help.

  2. Thank you Kirsten Graham for helping me reach the next level with my interior design business! This video has great advice for me and my business as well as a healthy and productive mind-set.

  3. Yes, I want the money NOW. Taking credit cards is HUGE. You're missing out on a lot of business if you don't accept them. Really good info here.

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