We were about to drop a $15k retainer client over slow payments

Our agency was chasing invoices for months with this client, and it was eating up hours. I read about switching to a milestone-based system tied to project phases instead of monthly billing. We set it up so they paid 30% to start, 40% after the strategy deck, and 30% on final delivery. They approved payments instantly because they saw the work was done. Has anyone else found a better way to get clients to pay on time without the awkward calls?

2 comments

2 Comments

nathang671mo ago

Milestone billing is the only way we work now. We also add a late fee clause, a flat 10% on any invoice over 30 days. It's in the contract from day one, so it's not personal when you have to enforce it. That stops the slow payers real fast.

robinmason1mo ago

Totally agree on the milestone billing... it changed everything for me. I started adding a clear late fee too, but I found a flat 10% on the whole invoice could sometimes cause a bigger fight. I switched to a smaller daily fee that adds up... it feels more fair and still gets them to pay fast. Just seeing that daily charge ticking up in the terms makes them move.