How long is too long?

[Dan]

I have a question about when to invoice a client and how long is appropriate to wait for payment.

I am currently working on a two-part instructional DVD for my client. When we were working on part one, I would record the audio and then send an invoice. However, when the end-client would receive the beta product from my client, they decided to change the script around and add, subtract, re-word, etc., which led to a lot more studio time, and of course, more invoices.

For part two, my client has requested "one invoice" - and they want me to wait until the final product has been through beta and the "gold master" program is published. This is for their convenience so that they don't have to deal with multiple invoices every time their client changes the script at the 11th hour.

My problem: there is a tremendous amount of time and money wrapped up in this project, but the time from the first audio recording until the "gold master" may be close to 6 months!!

Am I crazy to wait that long? Should I have been more insistent about payments? I hate to turn this down because it will be very lucrative in the end.

Thanks for your input.

[PierceVoice]

Dan,

Come up with an estimate of your time. This is difficult, I know, because they seem to be adding time at each turn. Make room for that. Base it on what you know so far and the work load they are asking you to expect.

Bill them for half up front-- a deposit for your time. It isn't unheard of, and a good business practice. If you're worried it might scare them off, I would ask you why it would. If they really want it done right, they want you to be a real pro. A real pro deals the smart way: Half the estimated up front, the remaining upon absolute completion of the project (this is when all the estimate variables get evened out). Such a lengthy project requires good faith on their end-- you're a BUSY guy!

2 Invoices. They should be able to afford that "inconvenience". Revisions down the road would be billed separately, unless they want to sign a month-by-month retainer to cover the necessities.

[jsgilbert]

I work with a number of ongoing projects and I would NEVER agree to anything that your client suggests. It is not an acceptable procedure in any business that I know of. With ingoing projects the general rule of thumb is to bill after completion of agreed upon milestones or once per month, usually on the same designated day of the month.

The only people I know of who have agreed upn terms that your client suggests are the guys doling out advice in between trips to their bankruptcy lawyer. Simply tell them that you are not their father nor a sharehoilder inthe company and it is not your job to finance their work. They pay employees and other vendors on regular terms and you resent being asked to be the exception.

If they do not agree then this is not a customer worth keeping.

[Lee Gordon]

As you say, your client is looking to avoid "inconvenience" through this arrangement, but in reality, they are shifting the inconvenience to you. Therefore I might be inclined to offer your client a couple of options. Either bill the job with as many invoices as are appropriate in the normal course of the project, or if they insist on a single invoice at the conclusion of the project, offer that to them with the understanding that there will be a 20% surcharge to compensate you for your inconvenience. (Keep in mind that if they jump at that second option there is some degree of likelihood that they plan to stiff you on this job.)