Author : Nick Krym

What to do when your client doesn’t pay

Many of the posts in my blog are written from clients’ / buyers’ standpoint, this one is different – I am switching sides to take a look at one of the most painful issues of working with small business clients (and sometimes large clients as well) – not being paid for your services. A few weeks ago I talked with an old friend of mine who is an owner of small software development firm based in Russia. He told me that his business would’ve been extremely profitable and vastly successful if he was always paid for his services. I was shocked to hear that typically he gets paid for not more than 70% of the services he delivers. Alex’s company sells to a variety of clients in Western Europe, United States, and locally in Russia. He told me that his local clients are the worst with government clients refusing to pay being a most common scenario.

Well, there is nothing I can offer in terms of advice in dealing with Russian government clients. But they are not the only ones, many “legitimate

2 thoughts on “What to do when your client doesn’t pay”

  1. I’m awed that you were able to share you and your friend’s tough experiences in the outsourcing world. It’s actually great to undergo such occurrences because people will eventually learn from it. Being careful, for me, is the key. Be careful at the beginning until the end! It must be really an awful experience to not get paid after you’ve done everything for the client. I hope our fellow companies don’t usually experience this… Outsourcing is supposed to outcome a win-win situation between parties, right?

  2. This post was very helpful, I’m kinda new to blogging right now, and I’m trying to look for job in the outsourcing world, and it didn’t come to my mind that their are instances that you don’t get paid for your efforts. Also I agree with the idea that having to experience this problem isn’t bad at all, because you may be able to learn from it, charge to experience.

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