Speakers and Consultants – Get Paid in a Timely Manner – During Up and Down Economic Times

Posted on February 7th, 2009, by Meggin McIntosh, Ph.D.

No matter whether the economy is in great shape…or not so great, businesses need to make sure they are paid in a timely manner. As a solopreneur, you may have wondered, “When making presentations or doing consulting work, what is the best way to assure yourself that you will get paid in a timely manner? Do you make the “time of payment” part of the contract? Do you try to get paid before or after an event?”

Here are some of my answers, based on my experience as a speaker and consultant for MANY years…

First, remember, we are doing work with the idea of making a difference–and making money. And sometimes, the getting paid part is easy and sometimes it’s not.

There is no way to predict who is going to be fast and who is going to be slow to pay. I have had companies, government agencies, universities, and school districts who have taken FOREVER it seemed to pay. I’ve had to resubmit invoices (up to 3 or 4 times) and call and check and follow up, etc. There are times I felt like it was costing me more to get the money than it was if I just let it go. However, I certainly remembered this extra effort because, and if and when that group hired me again, an additional fee was tacked on. I think when we are determining our fees, one of the considerations is ‘ease and timeliness of getting paid.’

That being said…I have had these same types of groups pay me within a month (which is pretty much record speed). Over the years, I’ve learned that is reasonable to expect payment (after the invoice is submitted) in approximately 30 – 60 days. If it falls anywhere under 2 months, I call it “good.” After that, I start following up, and in the cases where it’s someone I’ve worked with and have usually gotten paid promptly, I might even follow up sooner since it’s unusual for that group to take longer than 30 days.

I tried (for awhile) to indicate on my invoice that payment was due within 30 days or 2% would be added to the invoiced amount. It made no impression whatsoever–and mostly that’s because I have no way of enforcing it and mostly I was dealing with schools, universities, and government agencies. So I gave that up. If the groups you work with will go for that, then use that on your invoices.

A great idea that I have used with success (and that has encouraged fast payment and no hassle) was offering a 10% (or thereabouts) discount if it was paid up front. I’ve done that with non-profits who are happy to save some money and I’ve done that with fairly large speaking agreements. Two examples that come to mind: A $1000 keynote was paid prior to the event by a non-profit for $900 and a $12,000+ contract (which involved travel to another country) was discounted and I received early payment. So, consider using this when you are discussing your fees with a client.

Big name speakers/keynoters can demand that at least 50% of their fee be paid up front to hold a date. It’s non-refundable if the client should cancel. I’ve never even considered this because I’ve always been so busy (either as a speaker who also had a full time job or just within my own company when I went full time), that if someone canceled, I was almost relieved to have the time back. The only expectation I would have would be if I had already purchased materials, then I would need to be refunded the money I had spent on those.

With all this said, put into your speaking agreement that payment is preferred on the day of the event and expected within 30 days. And be ever-hopeful.

And, to make sure you are productive in your personal and professional life, you’ll want to access the resources at

**http://www.TopTenProductivityTips.com

Through her company, Emphasis on Excellence, Inc., Meggin McIntosh changes what people know, feel, dream, and do via seminars, workshops, writing, coaching, & consulting.

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