A-grade clients, such as government agencies always pay. They have no incentive not to. There’s no need to get a deposit, and they typically can’t give you one if you ask because of internal fiscal rules. However, always get a purchase order number from them.
Dealing with B-grade clients, such as big and long-established companies, requires a meticulous approach. While they always pay, it’s important to remember that they can be sloppy and neglectful. To avoid any potential misunderstandings, always ensure that everything is in writing and save all emails.
C-grade clients, such as start-ups and small businesses, are risky. They have limited cash on hand and are looking for deals. The dishonest ones look for ways to avoid paying. Always get 50% in advance, then don’t proceed any further until they approve the work and pay in full for the remainder.
When it comes to D-grade clients, such as individuals working on a hobby or vanity project or who seem a bit flakey, the risk is high, and the pay is poor. Always get paid before doing any work. As often as not, they’re cheapskates, and this ensures you will get paid for the work done.
Always turn down F-grade clients. For example, those for whom an internet search turns up nothing or a bunch of iffy stuff. Always turn down those with a record of past problems or those who give off the wrong vibes or display signs of dishonesty, manipulative tendencies, or personality disorders.
Keep in mind that these rankings are flexible. If you work with a lower-ranking client and they turn out great, a C-grade client can become an A-grade client or vice versa.
A few other things to consider
Remember that new clients also have good reason to be suspicious since they don’t know you. Build confidence with them. Go the extra mile, always be honest with them, and keep their best interests in mind. If you do that, and if they’re like you, you’ll have a good client who will recommend you to others.
Underpromise and overdeliver. For example, if you think it will take five days to finish a project, tell them it will take six. If you get it done in five, the client will be pleased. If you take longer than expected and it takes an extra day, no harm is done.
Cut your ties with clients who see you as a pair of hands to implement their ideas unless, of course, you don’t mind working on those sorts of projects.
Cut your ties with clients who can’t bother to return calls or adequately respond to emailed questions in a timely manner. Even if they pay you, they’ve wasted your time and money by making you wait and repeatedly ask for information. If you don’t want to cut ties, increase your rates in anticipation of them wasting your time through their lack of respect.
There are lots of tire kickers — those who waste your time corresponding about things that they never commit to doing. Once you identify a possible tire kicker, tell them they need to make a decision and then politely cut ties with them when they don’t commit.
Do what’s necessary to avoid legal hassles. Nobody wins in court. Even when you win, you’ll lose in terms of wasted time and stress. If you win, professional deadbeats are experts at finding ways not to pay you, and they usually have no money anyway. U.S. small claims courts, for example, are a nearly complete waste of time.
When you’re not enjoying the project or don’t feel respected, you accepted a project you never should have agreed to do unless, of course, you need the money.
You can’t change a client’s personality. If they’re jerks, cheapskates, procrastinators, manipulators, or have some other negative trait, increase your rates to compensate or drop them entirely. If they turn out to be great people, hold on to them and treat them the same way.
Never do business with family or friends unless you’re OK with doing it for free. Family and friends are too important to risk spoiling your relationship with them over a business deal.
I could probably write three times this much and still not mention all the rules of thumb I’ve learned over the years. This is enough for now, though.
. From now on, I would definitely save some percent of the amount which I paid, just for this circumstances which might occur in future.