I Fell Victim to Unpaid Web Design Work

You’ve Faced Unpaid Web Design Work. What to Do?

One of the most frustrating things any designer may face is a customer just vanishing after the job is done, without paying for the work.

There`s no doubt every designer has ever got into such a situation as it`is unfortunately not a rare one. After you`ve done your best and completed the work, presented it to the customer, this very customer just stops answering mails, texts, calls and what not.

I`ve recently read a story that is just an exact copy of this one.

A designer has worked with a customer several times and everything was fine, but right after one project this customer just disappeared. The designer and his team hadn't asked for a deposit as they trusted their previous work experience. Thus, it turned out to be free work.

This story is just one of a legion.

Such things keep on happening all the time, people share these stories everywhere and I believe it's high time to work out some steps to avoid getting in them.

Why Clients Disappear and How to Avoid It

First of all, let's try to find some reasons – why customers are doing it.

Surely, there are several of them. And the primary one is that they don`t get the idea of the payment terms. So, it's a matter of great importance that we should make it absolutely clear for the customers how we work, what the conditions of our work are and what terms we follow.

The best solution is signing an agreement.

The contract specifies all the details of your cooperation with clear terms of work, its scope and the sums to be paid during a set period of time. The agreement will clarify all the tiniest details and both the designer and the customer will have a roadmap to track.

And one more thing to this point: always stay in touch with your customer, it will show that you are trustworthy and ready for communication on any issue. 

Strategies for Ensuring Payment

In fact, there exist a number of efficient strategies that you can follow to ensure you will get paid when the work is completed. Here are the ones I`d recommend:

• Requiring a deposit. It's one of the basic points. On the one hand, it ensures you will get some money before the work on design is started. On the other hand, it is good motivation for the customer to be interested in the project process and making the final payment.

• Making a discount on the full payment made at once. This will sort the problem out at once. Only make sure you add 15% to your usual payment option and then make a discount.
• Dividing the project into several stages. State that you get payment after each stage and only after you proceed with the work. This is a great variant when the customer is highly motivated to follow the payment plan.

Besides the above, some visual aids could also be beneficial – just make a clear payment schedule so that the customer has it on their mail at all times. This way, they will have a payment commitment to follow with the dates and amounts all set in one place.

How to Handle When a Client Disappears

But bad things do happen.

Let's discuss what can still be done in case a customer vanishes into thin air and there`s no sign or money transfer from them.

Find the customer`s competitors.

You could offer them the original website you`ve designed at a significantly lower price. Thus, you will get at least some money for all the work you have done. So, it's a win-win solution for both you and the customer`s competitor.

You can always take legal action.

However, this option has certain drawbacks and should be the final step in the extreme situation. Your effort should better be put into finding new more responsible customers and creating new better projects.

And, finally, if you do already have an agreement check if it has the clause on the termination of the agreement. The terms and conditions of termination should be clearly stated. That`s a way to protect you legally if the customer vanishes.

Tips for Finding Reliable Clients

The first trait of a customer is that they should be reliable.

But how can a designer find such customers?
And how to make it out if they are reliable or not?

Here come several tips:

• Doing research: if you are considering whether to take on a project or not, do research on who your customer is and what kind of reputation they have in their sphere.
• Making the onboarding process clear: as has already been mentioned, make sure that all the payment terms and certain dates are stated in your agreement.
• Maintaining regular communication: keep in touch with your customers and always answer any questions they may have and try to deal with any concerns they may have.

And, remember that your client acquisition strategy should be comprehensive and clear – it's a good way to ensure you target the right customers and those who are inclined not to pay miss your way.

Conclusion & Some Stats on Unpaid Web Design Work

Taking proactive steps is essential nowadays.

Shocking statistics shows that 71% of web designers have experienced non-payment or late payment from clients (by A List Apart). So, your payment schedule will help you significantly decrease the number of non-paying customers.

Another piece of statistics that proves the point is that 60% of small businesses, including web design firms, have experienced cash flow problems due to late or non-payment from clients (by Clutch). This number is just unbelievable as that many businesses may face various problems from the profit loss to even a close-down.

This risk can be minimized by a certain financial discipline and self-organization.

Both you as a designer and tour customers should have certain expectations as of what the conditions and deadlines are. It's one of the ways to protect and grow your web design business, especially one like a design agency.

There exist various online invoicing tools that will help you to achieve this protection goal.

It's also vital to contact customers to enquire if they understand everything and get the right documents. This series of advice will help you ensure your business in web design is successful and efficient for you.