Getting Your Customers To Pay You

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Getting PaidEpisode 8

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www.stretchgoals.fm/ep8

Challenge yourself to create ambitious goals as you start and grow your business.

Episode 8 - Getting Paid

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Robert Dickerson

Robert is the Founder and CEO of Mapout a mobile learning platform that uses video courses to educate customers and train employees. He helps companies develop and launch

products.

Scott Davis

Scott Davis is the Founder and CEO of MobX, a mobile development software agency. He has 20 years of experience developing software for Government, Finance, Sports and the

Telecommunications industry.

@RobDickersonJr @The_Scott_Davis

Episode 8 - Getting PaidEpisode 8 - Getting Paid


https://mapoutlearning.com/

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We all want to get paid● How do you...

○ Keep your business running?○ Deal with clients who pay late?○ Structure contracts?○ Protect yourself?○ Ensure a smooth process?



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How do you balance needing a client, with needing to be paid on time?



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Communication is Key

“Hey, look. I need to know what's going on, because a contract's a contract. You're technically in violation. I've been really flexible. I've been really understanding and I want to know what's gonna

happen from here.”

- Scott Davis



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Don’t let it drag on.

Make it clear that it’s not acceptable.



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“Equity is not a reason to not pay. A contract is a contract, right? A lot of people hold equity

over your head, which is not right.”

- Scott Davis



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“The person you're dealing with is not always the person paying the bills. Sometimes there can be a disconnect.”

- Robert Dickerson

Reduce points of friction. Get it to the people who need it.



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Late Fees● Negotiate into contract● Two to four-week window● Base the agreement on relationships● Don’t deliver if unpaid



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Milestones● Break down payment into specific items● Example: “You will deliver these five features by this date

for this payment.”

“I'm toying around with different mechanisms to see what works for different customers. Every customer is different.”

- Scott Davis



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Negotiating Late Payments

“A lot of [customers] are hesitant to agree to [late stipulations], but the reality is, those are usually the ones

who end up paying you late.”

- Scott Davis



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Structuring Contracts● Two ways:

○ Paid hourly, billed at month-end, due in 30 days○ Fixed price contract divided into milestones

“I think [milestones] help both parties, because it helps you get paid, but it helps them see progress towards their end goal.”

- Robert Dickerson



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“There has to be clear communication of what success means.”

- Robert Dickerson



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Pay Ahead Contracts● Sense of obligation● Must deliver on time because you’ve already been paid



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FreshBooks



Cash Flow and Forecasting Tools

UpWork QuickBooks

Excel

Direct Deposit

Harpoon

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Subscriptions● Monthly subscription services through app stores● More traffic leads to more revenue● Customers tend to forget they’re paying 99 cents each month

“...the recurring subscription model's a little bit better than just individual one-off purchases, but money's money.”

- Scott Davis



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“...after the first year, that 70/30 goes down to 85/15, so Apple is only taking 15 cents on the dollar, instead of 30

cents on the dollar. If you've got a subscription model, that's

a big difference. You've automatically increased your expected revenue outside of

the first year.”

- Scott Davis



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“...they already have the audience for the courses. Once you launch your course, you get paid a percentage based on whether the person watches or signs up. That's been kind of nice, to have that passive income stream,

as well to help boost my other products.

- Robert Dickerson



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What upfront capital do you need to get started?



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“It's hard when you've got salaries to pay. It's hard to accurately forecast that. Every single night I'm thinking about where money is gonna be moved and who's gonna be paid -

when and from what project. It is constantly on my mind.”

- Scott Davis



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These are the difficult things you have to think about.

It’s not just building product, it’s getting the money in.



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Be transparent

early.

“Hey, here's the reality. If you need to step

away, I understand. You will get paid for the work

that you’re due.”

- Scott Davis



What if you can’t pay your team?

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“Transparency is really key and also having the people invested--your team members invested--in what you're trying

to do and understanding what you're dealing with.”

- Robert Dickerson

“If you're honest, man, people understand. If they feel like they're being lied to, they're gonna jump ship.”

- Scott Davis



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Managing the Volatility

“I think it's important to be transparent, but maybe not everyday . . . you need to level it out for them and make sure

that it's transparent, but the picture is also clear.”

- Robert Dickerson



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Be open and communicative about payment expectations.

Set the same expectation for all customers. It’s a business.



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Value good customers who pay on time.

“Thank you for paying on time. We really appreciate it.”



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We all need to get paid.

Show me the money.

stretchgoals.fm



https://stretchgoals.fm

https://stretchgoals.fm

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www.stretchgoals.fm

Business

Getting Your Customers To Pay You