web design | development | marketing | strategy inQbation University Best Practices: Web Lesson: Where does money come from? By Blake Newman CEO, inQbation
How to manager customer relationships and expectations to get paid on time
Jun 24, 2015
Nobody likes invoice shock. When we do get higher than expected invoices, our first response is typically to hold off on payment, scrutinize, and dispute. So, if you are a vendor, web developer, project manager, or service provider - it is important to manage client expectations and be as transparent with them as possible so as to avoid invoice shock and increase the chances of getting paid on time.
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web design | development | marketing | strategy inQbation University
Best Practices: Web
Lesson: Where does money come
from?
By Blake Newman
CEO, inQbationIntegrated digital marketing agency
Washington DC
Show me the moneyContrary to popular belief…
Show me the money
Money does not grow on trees
Show me the moneyThere is no Bank of Blake
Value = Happy Clients
Money comes from happy clients who feel they received good value
Time is money
Everything starts with how you track time…
because time is money, and…
you cannot manage what you do not measure
The money cycleTrack time accurately
Work efficiently
Invoice accurately
Clients pay on time
Get paid
Estimate better
How not to get paid• Don’t pay attention to detail• Don’t follow directions• Don’t stick to the task order or scope of work• Don’t catch mistakes before showing to client• Don’t record time properly• Don’t deliver good value to client• Spend too much time, dwelling on task• Gold-plate the task, over-engineer solution
Invoice Shock
Higher than
expected invoice
Shock and
disbelief
Dispute invoice
Refuse to pay
Demand discount
Honeymoon is over
Clients don’t pay if• They are shocked at the invoice• Actual work grossly exceeds estimate• Work is not inline with task order• Cost seems excessive for the task• There are mistakes in the invoice• There are mistakes in the work• They catch mistakes before us• We seem to have misunderstood the task
Clients don’t like …Typically, clients don’t like to pay for:• Learning on the job• Research• Diagnostics and estimation• Mistakes• Fixing mistakes• Things outside scope of work• Misunderstandings
How to get paid
Analyze
Understand
Plan
Execute
Record
Report
How to get paid
Analyze
Understand
Plan
Execute
Record
Report
Don’t research …
analyze!
Pay attention to detail and
scope
Engineer efficient and
cost-effective solution
Work with sense of purpose
Record time accurately
and completely
Keep client informed, use proper labels and
descriptions
Keeping clients happy• Provide accurate estimates• Manage expectations• Keep clients informed of burn rate• Log time accurately• Use acceptable labels when recording time• Speak in plain (non-technical) language• Don’t over engineer the solution• Practice quality assurance, be competent
Happy clients pay• Estimate accurately• Work efficiently• Record time• Manage expectations• Be transparent• Satisfy expectations• Deliver good value… then clients will pay
BizPulse can helpThe reason we built BizPulse.com in the first place was to become more transparent with our clients, manage expectations, and avoid invoice shock. If you are having problems managing expectations, we invite you to try BizPulse.com.
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