I used to chase payments over the phone now I do it by contract only

Back in 2018 I was taking on web design jobs with just a handshake and a text message agreement. One guy in Austin owed me $2,400 for three months and kept giving me excuses like my check is in the mail. I finally switched to a written contract with a clear payment schedule and a 10% late fee. The difference is night and day because the signed paper makes them treat it like a real business deal. Has anyone else found that a simple contract stops the runaround better than any phone call ever did?

3 comments

3 Comments

danielowens8d agoOG Member

Did you catch that piece on NPR a while back about how written agreements change the psychology of a deal? It basically said that signing a contract flips a switch in people's brains from "this is casual" to "this is serious." That matches my experience exactly. I still remember when I added a late fee clause to my standard contract, one client actually paid three weeks early just to avoid it. The paper itself does more work than any follow up call ever could.

flores.mark8d ago

Had a client once who straight up framed the contract and hung it in his office before the work even started. Made me wonder if he thought it was a trophy or a warning to himself.

the_riley7d ago

Set a firm early payment discount. Makes that framed contract work for you.