SEPTEMBER 29, 2023

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Welcome to The Tilt, a twice-weekly newsletter for content entrepreneurs.

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Direct-purchase online content products, such as subscriptions, courses, and merch, make particularly excellent revenue streams for your content business. Your customers pay upfront. You don’t have the hassle of creating invoices and, more importantly, chasing down payments.

But not all your revenue streams can be that simple transactionally. A 2022 study found 87% of businesses say they usually are paid after the invoice due date. How can you make sure to collect what’s owed to you? Here are five things to do:

1. Set better payment terms in your contract: The standard payment schedule is net 30 – the recipient must pay within 30 days after the invoice is submitted. Shorten that time to net 15. That way, you can follow up sooner if they’re late and improve the chances they’ll pay before 30 days.

Add a late fee – a 1% to 2% monthly penalty – into the contract that would be assessed if invoices aren’t paid on time. Even better, offer a small discount for upfront payment.

2. Offer electronic payment options: More and more companies prefer to pay through ACH transactions (direct deposit) or by credit cards rather than sending a paper check. Ensure you can offer those options. Incorporate any related fees into the initial payment structure. You could incorporate the charges into your overall pricing (I prefer this approach) or note the additional cost for those payment vehicles on your invoice.

3. Stay on top of overdue invoices: Set up an accounting system that sends alerts to your inbox or calendar when an invoice is overdue. (You can do this manually when you create the invoice, too.) Resend the original invoice the first day after the due date. It serves as a helpful reminder.

4. Pick up the phone: If resending invoices doesn’t get a response, grab your phone and have the conversation. Call your contact at the company first. If you still don’t get paid, call the accounting department to check its status. Here’s what you might say:

If they have the invoice, you can ask how that payment can be expedited since it’s overdue. If they don’t have the invoice, you can have a more informed conversation with your point of contact.

5. Be patient but not a pushover: Assess the situation. In many cases, the payment delay occurs because of an administrative or communication issue. If you know your client doesn’t have the money to pay you now, consider offering a payment plan. But if you don’t get paid and find they aren’t responding, stop the work. Send a note to inform them you will continue after payment is made.

– Ann Gynn

For more scripts related to payment conversations, scroll down in this article.

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• If you are trying to build a content empire, either as an individual creator or as part of a content marketing team, this episode is for you. (Content Inc.)
• Joe and Robert chat all things marketing in this Content Marketing World special episode. (This Old Marketing)
• ​Tilt Your Business: A Mastermind for Creator Entrepreneurs goes live at 12 p.m. US EDT Tuesday. All are welcome.
• CEX2024 Call for Speakers is now OPEN. We are looking for original talks that will help content creators build audiences, drive revenue, and refine processes. Submit today!
• ICYMI: What is a ‘Cross’ Strategy for a Content-First Business?​

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