Show Me The Money- When Clients Do Not Pay for Web Design Work

April 20
by Media Maven 20. April 2010 01:15

I recently watched a video on Feng Shui for the month of April, and despite being the non-believer that I was, the video was actually pretty spot on about a number of things. For starters, the horrible sweltering weather these days, which the Feng Shui Master predicted would lead to numerous conflicts and misunderstandings. I couldn’t help but wonder whether this onslaught of heat wave had anything to do with the recent spurts in the number of clients who have made my very existence miserable by defaulting on payments. Are they acting this way because of the unbearable sweltering heat?

This brings us to the BIGGEST (or one of the biggest anyway) problems web designers face.

I am quite certain that this happens in many other industries as well, but things may be a little more complicated in the web design industry due to the intangibility of web design services. Don’t get me wrong. We do have clients who respect our efforts and results make excellent pay masters. But do allow me to indulge in a bit of self-wallowing tirade. Web design folks like us often face a lack of respect for the work that we do. This is evident in how clients often go from denying the importance of a well-designed website, to delaying delivery of promised artwork and content, to defaulting on payments and finally degenerating to full-fledged douchebags.

For once the customer is wrong

The most important thing to remember in such cumbersome situations is that you have kept your end of the bargain, and even though the client is the client, it does not mean that he or she can get away with everything and anything. Some clients may simply be withholding payments on purpose, just to test the waters and see whether you will allow them to get away with it. This however, may not be the case all the time, and you must be fully prepared to deal with difficult and unreasonable customers. Below are some strategies you can employ when you do encounter such customers.

Please use a contract

I cannot begin to stress the importance of having a contract for any web design projects you embark on. Trust us- we have made the mistake of assuming and expecting good faith from clients before but ended up paying a high price for it. Learn from our painful experience so that you can be spared from one of your own.

From experience, embarking on a project without a properly thought-out contract is akin to shooting yourself in the foot. Sounds painful, doesn’t it? So avoid landing yourself in a contract-less situation at all costs. Do note that the sentiments shared here are entirely humble opinions of ours, and do not represent the views of any legal establishments or companies whatsoever. At the end of the day, please still consult a lawyer or legal consultant and if finances permit, engage one to draft and vet your business contracts. Trust me, this will save you a lot of heartache, pain and frustration along the way.

Contracts often serve more than merely legal purposes, as they remove some of the ambiguity present in all partnerships by establishing a common understanding between both parties. This is done by laying out important details such as project milestones and payment dates which both parties have agreed upon, and acknowledged with the act of placing their signature on that dotted line. Utilizing a contract in your business practices exudes an air of professionalism about you and your company, which may result in clients being more confident and willing to entrust their websites in your hands. Furthermore, contracts help insure you against sticky situations, such as when clients default on the final payment.

On the flip side, the legal terms and conditions set out in a contract may appear to be intimidating to your client, especially if he or she is unfamiliar with legal contract terms. Stating the payment terms in a contract can often be a double-edged sword, as some clients may be uncomfortable with paying an initial deposit, for fear of web design companies disappearing with their money. Let’s face it, there is a certain degree of risk associated with most things in life. Just as you are afraid of us disappearing with your money, similarly, we are afraid of you cancelling the project halfway through, leaving us with a half-completed website, without any form of payment, on our hands. As it is often said, trust is a two way street, and in any form of partnership, it takes two hands to clap. Placing an initial deposit signifies your willingness, as a client, to commit to the terms and conditions of the project.

At the end of the day, contracts may not necessarily be 100% foolproof or watertight, and may differ from company to company. Each company operates on a unique business model and it would only be wise to consult a legal consultant or lawyer for any of your contract needs.

Holding back the launch of website

One other means of protecting yourself against clients who may default on payments, is to withhold the launch of their completed website till you have received full payment for your hard work. The ability to withhold launch rests entirely in your hands, but do note that such terms must be laid out at the beginning of a project, so that the client knows exactly what to expect if he or she defaults on payment.

This tactic is effective because clients will be less likely to play punk and delay payments when they are aware that the website will not be delivered till they have made the full payment. It is also hassle-free and places the ball in your court. However, just like how an initial deposit may act as a disincentive, stating at the onset of the partnership that you may withhold a client’s completed website till you have received full payment may act as a deterrent against you. Some clients may be uncomfortable about paying for something which they do not fully own, and you may end up losing a few clients because of this.

Despite employing such tactics, it must be noted that they are not entirely foolproof, as some clients may come round and point the finger at you at the end of the day, claiming that your web design was not worth the money which they had invested.

This clash of artistic opinions is unavoidable and is inherently present in all design work, as design is difficult to define in advance and is highly subjective. Take it from any of the renowned artists, such as Andy Warhol or Vincent Van Gogh, whose work only became famous after they have passed on. This can, however, be preempted by showing the client mock-ups of the final product, and taking time to thoroughly discuss what the client deems aesthetically pleasing and wants for his or her website. Moreover, is it really fair of the client to unreasonable withhold acceptance of or payment if, prior to the completion of the project, the client observes any nonconformance with the originally agreed design plan? This writer certainly does not think so.

Scope Creep

One of the biggest perils on the web designer’s job is the slippery scope creep. Scoop creep is often used to refer to the degeneration of a project into one that lacks a sturdy foundation and is fluid, due to a change or expansion in the job scope. From our personal experience (and I am sure most web designers would agree), most clients do not have a clear idea of what they truly want for their websites when they first approach companies for web design services. This typically leads to the addition of more changes, resulting in the project deviating from its original timeline and delaying its completion. We have heard enough horror stories illustrating how scope creep can spiral out of control without the proper planning and management, to allow ourselves to land in a situation like that ever.

In such scenarios, clients often neglect the issue of incremental costs, which result from the increase in the number of man days needed to implement the extra changes. Most of the time, out of goodwill, web design companies implement the changes as per requested, absorbing the extra cost in the process of doing so. It is therefore important, as a client, to thoroughly consider what features you require for your website before approaching a web design company. Stating the terms and conditions clearly at the onset of the partnership definitely helps expedite the completion of the project. It also makes it easier for us web design folks to quote you with a reasonable fee and timeline.

Modifications and changes

Another common peril is the number of amendments and changes demanded by clients. In my opinion, the biggest hurdle web designers face is the lack of understanding regarding the amount of work that goes into the backend. Most clients do not recognize the additional amount of work and time that goes into changes they want implemented for their websites, which they deem as being “simple” or “minor or simply a “cut and paste” job. These additional changes usually incur more time, resulting in an increase in the cost of the project. A minor change on the Home Page may actually take up to half a day or more. As such, stipulating on the contract the number of revisions clients are entitled to help establish a common understanding, and forces clients to sit up and thoroughly consider the changes they want implemented to their website.

Delays of artwork and content

Another perennial problem plaguing web designers is the delay in artwork, content, or any aspect of the project that requires client action. Such delays will inevitably result in the delay of the entire project, and create friction and frustration in the process. The irony of the entire situation is that more often than not, clients do not realise that they are the ones who are causing the delay, by not handing us the necessary artwork and content that we require to complete their websites. Dear clients, we need you to help us help you. To prevent such delays from hindering the completion of your project, it is only wise to stipulate penalties in the contract, which function as deterrence against client delays.  

Project milestones and delivery

I cannot begin to stress how important it is to implement a timeline detailing the various stages of project completion. A timeline not only gives clients an idea of what to expect, but also generates a sense of awareness of deadlines for web designers. Having detailed milestones also aid both parties in keeping track of the project’s progress.

A web design project can typically be broken down into 3 main stages. The first stage involves getting to know your clients and their expectations better. On their end, clients are also becoming acquainted with your style of working at this stage. The second stage is where the real work begins. Initial mock-ups of the website will be created, amended and finalized multiple times, along with whatever backend coding and programming that needs to be changed. The final stage involves tying up of loose ends and making any final client changes to the website. In all 3 stages, it is necessary to stress that all amendments have to be implemented in the corresponding stages, as clients are generally unaware how changes to a previous phase can affect the current one.

Post-maintenance of website

As mentioned earlier, it is important to detail the scope of work clearly. Bear in mind that what appears to be common sense to you may not necessarily be obvious to your clients. As such, some clients may feel that it is reasonable for you to make certain changes on their websites whenever they need it, or for you to fix components of the website which may have malfunctioned. Clients often make the mistake of assuming that the price which they are paying includes post maintenance of the website. Therefore, it is important to state clearly in your contract which services are included, as well as which are not, so as to avoid any disagreements or disputes later on.

Wrapping up

Honestly, web design folks are not litigious people, and at the end of the day, we simply want to receive payment for the hard work we have put in. After all, we are running a business here, and it is only fair and just that clients stick to their end of the bargain, after we have kept to ours. Even though we may employ the use of contracts, it is impossible to put every little detail in. If we did exactly that, the contract would end up as a thick booklet, which is bound to scare anybody off (and honestly, who has time to vet through every single term and condition). Instead, we are relying on an unspoken code of conduct and trusting you to keep your end of the bargain. Trust me, I am not going on and on about the technicalities of a contract here in order to bore you. I am hoping that you, as a client, will be able to see how the things we do require a fair bit of time, which is why it's really painful on our end when clients default on payment at the end of the day.

As the saying goes, “do unto others as you would have them do unto you”. I’m sure this would make the world a far better place, wouldn’t you agree?

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Comments

4/20/2010 1:26:35 AM #

Rosalyn Tan

Wow- such blatant honesty but guess what, I love it. Your article has highlighted a very stark point in the web design industry. I'm a freelance web designer and I've encountered such nasty incidents so many times... trust me, it's always painful when clients don't pay you for the hard work you've put in... Thanks for the article. Finally someone who understands how I feel.

Rosalyn Tan Singapore

4/20/2010 2:42:29 AM #

 Affordable Web Design

It is very nice information i really like this blog pos.

Affordable Web Design United States

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