World’s Longest Invoice: Dealing With Clients Who Don’t Pay Up
Have you ever been stiffed by a client? Many freelancers have—and it sucks. More often than not, the cost to take the client to court is frequently much more expensive than the unpaid invoice. So what’s a freelancer to do?
One thing they can do is join forces in a new civic action campaign created and sponsored by the Freelancers Union.
On April 26, the Union launched a web-based tool called The World’s Longest Invoice, where freelancers can come together and share their horror stories. You can add your unpaid invoices to the list at worldslongestinvoice.com.
Some of the unpaid invoices already listed include:
- $200 for violin performance on Busta Rhymes 2008 album, “Back on My B.S.”, submitted by Andrew.
- $7,000 for published children’s book illustration, submitted by Linda.
- $1,300 for marketing strategy, brand development, event planning, and copy writing, submitted by Allison B.
- $1,500 for environmental graphic design concepts for Rascal Flatt’s Tour, submitted by Adam J.
- $2,700 for WordPress development. Client cancelled the job two days before deadline and refused to pay for it because they didn’t use it, submitted by Sarah.
- $2,800 for iPhone application development, submitted by Charles G.
- $15,000 for 8 videos, filmed and edited, 5 minutes in length each, submitted by Ross F.
There are invoices listed for everything from pet sitting to web-related services, and everything in between.
“Right now, freelancers have to sue, or walk away,” said [the Union’s Jaclyn] Kessel. “They don’t have the same Department of Labor Protections that traditional employees enjoy — that’s why we sponsored first of its kind legislation in New York State giving freelancers equal protection from deadbeat companies.” —VentureBeat
So what is the site for…besides a public place to complain? The Freelancers Union will be delivering the invoice—which currently totals over $13.5 million—to lawmakers in Albany, New York on May 22. The Union is pushing a law, called the Freelancer Payment Protection Act, to protect independent workers from deadbeat clients in hopes that it will be a model for the rest of the country. The World’s Longest Invoice is helping bring awareness to the plight of thousands upon thousands of frustrated freelancers.
Sara Horowitz, director of The Freelancers Union, told The Washington Post that 77% of respondents to an email survey of the Union’s members said they had been stiffed at some point in their freelance careers.
“Over the years, it’s always one of the top three problems our members have reported,” Horowitz said. “Lawmakers need to see the real-life impact that deadbeat clients are having on independent workers and entrepreneurs.” —The Washington Post
It’s highly unlikely that anyone who posts their complaints on worldslongestinvoice.com will be paid. Heck, most of them probably can’t even be verified. But the number is staggering.
Red Flags
There are warning signs from a client that should raise some red flags. Signs that a client may not follow the project through to completion (and payment) usually starts with a lack of communication—they stop emailing and calling you back in a timely manner. Eventually, they stop communicating all together. This is when freelancers start to panic—and for good reason! Even if a contract is agreed upon and signed, going to court to enforce it can be expensive for a freelancer.
One of my event planner friends is currently going through this very situation with one of her clients. My friend and her business partner are planning a wedding for an out-of-state bride, and the price tag for their work is $8,000. While the bride paid the $2,000 deposit, she hasn’t followed through on the rest of her payments—and the wedding is in just six weeks away.
Because their client is located 16 states away, the business owners can’t just go knock on her door. They have to resort to phone calls and emails, which they say never get answered. I suggested, given the short time period before the event, that they send their client a certified letter in the mail, which allows the sender proof of mailing and proof of delivery. It’s just too easy for someone to say, “Oh, well, I never got any emails from you!” But if you send them something in the mail that requires their signature, it’s impossible to ignore.
I hope it works out for my friend in the end. Dealing with individuals and dealing with companies are very different beasts. I have been on both ends of the spectrum—working for a company that struggles to pay their bills on time, and being a freelancer who has to hound their client and keep my fingers crossed that they’ll pay up.
Hopefully The Freelancers Union have success in the legislature with their Freelancer Protection Payment Act. We’ll keep you updated on the progress.
Do you have a client who refused to pay? Add it to the list! You can also use the hashtag #GetPaidNotPlayed on Twitter.
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So, the Freelancers Union is actually acting like a union instead of just being a front for selling health insurance? It’s about time!
Great article and topic. I can’t wait to see what the response to the invoice is!
I also wrote an article which a more personal twist:
http://clurradonald.com/archives/2747
Good read. I am currently trying to collect $2200 owed to me from a client.
Wow, Martha. I don’t know what experiences you’ve had with the Freelancers Union, but they’ve hardly been inactive in their support of all things freelance.
I’ve never purchased insurance from them, nor have I ever felt pressured to do so. And nothing about them remotely qualifies as a “front,” but clearly you think otherwise.
The union has limited powers outside of NYC, but I don’t have any complaints about the service and sense of community they offer.
What we need are real, nationwide unions that fight for us. As in, unions like the United Auto Workers, the United Steelworkers, and the National Education Association. Or, for the creative types, how about something like SAG AFTRA? Or the Writers Guild?
And for health insurance, enough of this private insurance company garbage. Medicare for ALL!
First, all freelancers should watch this video by Mike Montiero about getting piad (some F words in the audio, so…) http://www.youtube.com/watch?v=vZGra65Nob4
Second, build deliverable milestones into the contract and insist on payment at each milestone. They don’t pay? Stop work. “No, we can’t do phase 3, you’ve not paid the phase 2 invoice…” Sound harsh? Well, if you worked for a regular company how long would you come to work if they stopped paying you? Right. Same thing here. Do this legally, define how breaches are dealt with in the contract, etc… but the bottom line has to be that people need to get paid as work hits certain milestones and if a milestone payment is missed, you need to stop being the nice freelancer who’s going to just keep working anyway gosh darn it. It’s a business relationship. Treat it as such. Be polite, be professional, but don’t be a doormat.
I think putting milestones in a contract is an excellent idea.
As far as i think there are very few cases happens in the freelancing to claim about the service by client nevertheless such freelancers union is really very important to have like other unions. Such freelancers union can make a big difference and protects freelancer from any type of red flags. Thank you for notifying helpful union…..
This is a troll comment.
Not a troll, but word salad link spam. I can’t even tell what this person is babbling about. They just wanted to get their URL up here.
Sorry Guys….If i told something wrong, please forgive me. Actually my intention was not to hurt you all. Next time i will take care about what i write and trust you will not repeat mistake again. Hope you forgive me.
QUALIFY YOUR CLIENT, KIDS!
Have two things in hand with a new client:
1) A signed contract or a letter of agreement + a deposit prior to commencing work. (Mainly the deposit, though. Money talks, BS walks.)
2) Engagement – does the “client” seem like a real person, or are they vague, plastic, and/or impossible to pin down? Can you have a real conversation with the responsible individuals?
If #1 or #2 are not present, run. Don’t be a desperate n00b and accept their “business.”
Chronically poor risks include big talking, yet condescending “entrepreneurs” who operate out of a spare bedroom. As well as prospects who stage cattle calls and make it unabashedly clear that you are 1 out of 1,372 starving, look alike drones that lined up for the chance, and you’re lucky they even deigned to talk to you.
Look for buy-in by the client’s management, reciprocity, and respect. Absence of one or more of these things means, at very best, that the relationship will suck. At worst, you probably won’t get paid.
It never changes, though. You always hear these horror stories from people who don’t get it and then get ripped off, like we’re supposed to care. (I admit that there are probably lots of freelancers who received a deposit but never got paid the final amount due. In 21 years it has happened to me a couple of times. I’m saying that the chance of non payment is far less when the client has money on the table up front.)
The reason that clients use freelancers is because freelancer-client relationships are “cheap and cheerful” and are not burdened with things like employment laws. Strong pro-freelancer laws will probably make freelancers as burdensome as employees to the clients, which will dampen demand considerably. I could be wrong here, but that’s my guess what would happen.
The World’s Longest Invoice is a brilliant idea. Even if it doesn’t result in any payments, it makes an important point.
I have a few issues a year. There are some good points made above, but the key to success for me has been finally learning to..
-Researching my potential clients a little bit more.
-Gathering as much contact info as possible.
-Have a terms agreement for scope of work, and fee agreement, signed and dated. (Include interest, collection costs, attrny fees–all crucial to success)
-Do great work
-Send invoices on time and follow up.
Doing that cuts down the amount of non payers I’ve had. When they go past 90 days past due I give them To Cambridge Receivable Solutions, who were the ones who helped me set up my process in the first place, for collections.
If they can’t get them to pay, they will recommends your next best course of action and charge you nothing. Great deal really to relieve me of the time, headache and bad taste some people leave me with.
Anyways just my two cents as I came across this wondering if TWLI was still going..