Client Red Flags: When To Steer Clear Or Move On

I guess it’s a sign of the times, but more than a few freelance friends of mine are having problems collecting payment for stories they’ve already written and assignments they’ve already turned in to clients.

I belong to a few online writers’ groups and there are a disturbing number of threads these days talking about how people are having to wait longer and longer for payment—sometimes for months. Other writers have turned in assignments, only to find out that the magazines or publications they’ve written for are folding or are experiencing mass layoffs. So in addition to those waiting for late payments, a few of my freelance friends are wondering whether they’ll get paid at all.

I don’t mean to press anyone’s panic button here. Regardless of how bad the economy is right now, I do think there still is a demand (and always will be) for people who know how to communicate and write well. On the other hand, I don’t think I’d be doing anyone any favors by sugarcoating what’s happening in this industry right now.

If you’re not doing so already, start conducting your business dealings with clients more carefully. There’s no surefire way to sniff out problem clients before you take on assignments or projects, but I do believe there are red flags that can help you decide whether to accept work in the first place or continue your business relationships with certain clients or publications.

This list is by no means exhaustive, but here are a few signs to watch out for with potential and existing clients. And if you notice a pattern of these behaviors individually or in aggregate, you might want to consider moving on and looking for other more reliable clients.

1) Lack of response. Most editors I know are completely swamped these days. That said, if you’ve turned in an assignment and you have a question about payment, how prompt is the client or editor in getting back to you? If they’re only contacting you when they need something, but taking their sweet old time getting back to you about your questions and late payment issues, it may very well be time to cut the cord.

2) Excuses, excuses, excuses. “The check was sent out, but it must have gotten lost—we’ll reissue another one.” “We having a new invoicing procedure we forgot to tell you about. We’ll need you to submit another invoice. But it’ll mean another two weeks before you see your check.”  “We never received your invoice. Can you resend it?” Okay, I completely understand that mistakes happen, that there are occasional oversights, and that editors and clients are human too. But again, what I pay attention to is the pattern of behavior. Does your client always seem to have an excuse why your payment is late or why you didn’t receive the right amount? If so, something’s wrong—move on. At minimum, they’re disorganized. Worst-case scenario, they’re taking advantage of you. Absolute worst-case scenario, they’re lying. Trust your gut—if your internal BS detector is going off, pay attention.

3) Regular payment schedules are later and later. Did your client go from a 30-day to a 60-day payment period after invoices are turned in? It may mean that they’re just holding onto their money longer and conducting their business more conservatively. But it also could indicate financial difficulties. A couple of my clients have done this, and I’m still working with them. But I also can’t afford to wait 45 days or longer for the bulk of my income to show up. So I have spread out my risk and am working with a larger number of clients who pay more promptly to minimize the effect this change has had on my business.

4) Lack of respect. Does your client keep his or her word? Do they send payment when they say they’re going to? Do they communicate with you in a way that conveys respect? Is your client willing to negotiate with you when it comes to your schedule and other aspects of your business arrangement with them? Certainly everyone has “off” days—and even weeks. But once again, the overall pattern is the most important thing to watch for. Clients who expect you to rejigger your entire schedule (other obligations and clients be damned)  to accommodate their needs are probably not clients you can afford to keep. Just because you’re providing a service, doesn’t mean you’re “on call” either. If a client keeps walking all over the boundaries you’re setting around your time and other obligations, it’s probably time to encourage them to look elsewhere for assistance.

5) More work, less money. Is your client trying to get more work for less money? Of course, there’s nothing wrong with economizing—all businesses are having to something right now to stay afloat. And certainly, there’s nothing wrong with doing a little extra now and then for longtime, good clients—that’s just good business. Providing great, timely, quality service—and a little extra sometimes—is a smart business strategy and a great way to maintain the business relationships you want to keep. But if a client is asking you to do the same amount of work for less pay, take a hard look at what they’re asking you to do and accept. In this climate, many places are having to cut back on the amount of work they’re assigning to freelancers and independent contractors. That’s just the reality right now. So don’t automatically write a client off if they’re having to do that in your case. There is something to be said for being a team player—even if you aren’t a part of the full-time office staff. On the other hand, I wouldn’t advise doing the same amount of work at a lower rate. If a client is asking you to accept a lower rate, renegotiate the amount of work you’re doing for them so that you have time to pursue other clients and assignments.

Having said all this, there’s also no substitute for your gut instinct either. If you don’t have a good feeling about a client, or there’s a looming question in your mind about how they’re conducting their business, pay attention.

I’m sure I’ve left some red flags off the list. Help your fellow freelancers and weigh in below on red flags you’ve learned to pay attention to in your business dealings with clients.

Photo credit: Peter Kaminski (Flickr)