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Wednesday, September 15, 2010

Client Payment Problems?

Client Payment Problems? Try These 3 Simple Tips

Signing up new clients is a joy…unless their payment bounces. If that happens to you, you’re likely to feel guilty, uncomfortable and wonder what you did wrong. To top it off, a client whose payment bounces is likely to avoid contacting you, leaving you to wonder what to do next.

If this happens to you, the first thing to realize is it’s NOT PERSONAL. Yes, you’re the one temporarily getting the short end of the deal, but keep in mind it isn’t because you didn’t do enough, aren’t good enough or don’t deserve to be paid.

As a woman entrepreneur, you must learn how to navigate these kinds of sticky situations with grace, compassion and leadership. The good news is that if handled correctly, most client payment situations can be quickly resolved and can even help you deepen your relationship with your client.

Let me give you my 3 “best practices” tips for resolving client payment situations and eliminating any feelings of guilt, discomfort or self-blame in the process.


Tip #1 Don’t Let Your Feelings Hijack You From Standing In Your Power

Seeing that “sorry - payment declined” message appear in your inbox can trigger a whole host of feelings: from anger and righteousness to guilt or self-blame. Before you let these feelings hijack you from standing in your power, take a deep breathe… and another. This is not something that was done “to” you. It’s just something that happens when you’re in business.

What will help is if you think about your client for a moment. Are they likely feeling embarrassed, guilty or even humiliated? Probably. And if they are, they’ll typically avoid wanting to talk with you. Instead of letting them shut you out, simply email or better yet, call, and in a confident and compassionate tone of voice, tell them:

“I see that your payment didn’t go through and I’d like to talk with you about how we can get this taken care of.”

If you sound relaxed and confident they’ll feel reassured and you’re much more likely to create a positive outcome (hint: that means YOU getting paid!).

Tip #2 Know In Advance What Your Limits Are

When you discuss the situation with your client you’ll want to know in advance how far you’re willing to flex, how long you’re willing to wait and whether or not you’re willing to continue working with them until their payments are caught up.

At the beginning of your conversation, clearly indicate that you HAVE limits. Doing so will help you feel that you are standing in your power and are not helpless or a victim of someone else’s money drama.

For example, start your conversation by asking them what happened and what their plan is for correcting the situation. Suggest that they make a payment today, with you on the phone, even if it’s for a fraction of what they owe. At this delicate point, intention and consistency is more important than the actual dollar amount.

If your client is feeling like a victim of circumstances and isn’t able to make a commitment, then it’s time to let them know that while you understand they are in a tough spot, asking you to wait compromises your relationship and ability to create the results they want. Stand firm and ask them to creatively brainstorm ways they can create some ready cash. Trust me, if their LIFE depended on it, they would find the money!

Tip #3 Stand Strong — Your Client Is Looking To YOU As The Leader In This Situation

Always assume that this situation is temporary and that your client has every intention of paying. Usually this is the truth, and they just need a little support, a few extra days or some creative ways to get back on track. If you’re there as their advocate and collaborating together, their embarrassment will turn into relief and they’ll thank and appreciate you for your help and support. Just remember, THEIR payment dilemma is not YOURS to take on. By you standing in your power as leader, you’ll help your client stand in their power too, even when they initially didn’t feel they could.

While Client Payment Issues Aren’t Personal, They ARE An Opportunity For Personal Growth…

Experiencing the occasional client payment issue is a fact of doing business. If you’re experiencing this situation more than occasionally then it’s time to take a look at why you’re attracting these situations into your life. Whether they happen to you rarely or more frequently, each time is an opportunity for you to stand in your power — with compassion — and gracefully negotiate an outcome that’s a win-win for both of you.

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