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Share your pricing model.
Posted by on June 30, 2020 at 3:39 pmI am just starting out with new agency. I have read stories about non-paying clients. How do you make clients pay up front?
Do you use your credit card for setting up campaign and then bill clients? Or do you use client’s credit card or fund transfer? If you are new in the industry, how do you make them trust you?
Any help or best practices are appreciated.
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3 Replies
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I use the client’s credit card. They have access to the account (Facebook and Google Ads) so they are secured in the fact that they can see how much we’re spending whenever they check it and can pause the ads at any time if something were to go wrong. I haven’t run into someone questioning me or not trusting me.
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Using your own credit card and then billing clients seems like a hassle and a way for miscommunication to easily happen. I’d stay away from that if possible.
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Do not bill for client ads on your credit card.
Your cash flow will thank you.
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Always have clients pay ad platform costs directly with their own payment method. Paying direct ad costs yourself and then billing them is a huge liability, plus if they pay you by credit card you will need to add a processing fee; this adds no value for anybody.
As for billing them for your services, just bill them in advance at the beginning of each month. We’ve been doing this for 5-years without any issues.
If a client has decided to trust you to manage their money in terms of advertising, the payment terms aren’t much of a sticking point. In any event, they can always do a credit card chargeback if you don’t deliver what’s agreed.
I’d say we only get about 1/50 prospects that challenge our terms. If somebody isn’t willing to work with you on this basis it’s probably because they have cashflow problems or aren’t trustworthy themselves.
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