Live data from Hacker News

Developer open-sources 200+ hr project after client refuses to pay

github.com

131–136 of 136 posts

Re: Developer open-sources 200+ hr project after client refuses to pay

#131
post #128
post #40

Earlier quoted context omitted.

I've run my own marketing firm for the last few years and have dealt with similar issues as the OP. How you structure up front payment is always up to you. We've always had a setup fee, typically a few thousand dollars, which is due before any work starts. However, there has been one single thing which has kept our revenue flowing month after month for years: Freshbooks.com I seriously love that site. We use it for:…

Nice. I've started using freshbooks recently but haven't looked at the estimate side yet. Side question, what (in percentage terms) do you call a 'nasty fee'?

We charge anywhere from 5-10% each month, stipulated in our contract. This takes care of 90% of late payments as no one ever wants to pay that much in a late fee...and they are unwilling to say it is too high because the immediate reply is "why would you worry it is too high? You aren't planning on being late when paying, right?" :D

Re: Developer open-sources 200+ hr project after client refuses to pay

#132
post #82

Earlier quoted context omitted.

This is a great thing to keep in mind before any of you think of writing an outraged blog post when a client doesn't honor Net+30 on your first invoice cycle. Clients usually don't.

What do you think of putting less than +30? I've only ever done any large work with long standing clients that pay quickly. Would the majority of clients not agree to it? Could be a way to ensure that it ends up being +30 even with the client dragging their feet.

I did business with a department which was in the process of spinning off from a big Fortune 100 company. They had plenty of funds, but there was a lot of bureaucracy during the transition. As such, they told me they 'required' net-60

I asked for clarification, and they were apologetic about it. They could only run payments on a 60 day schedule. Solution: I billed net-30, 15% monthly surcharge for late payments, which they happily paid.

The lesson was that sometimes a client has no choice but to drag their feet, so be sure to give them that option (for a fee).

Re: Developer open-sources 200+ hr project after client refuses to pay

#133
post #132

Earlier quoted context omitted.

What do you think of putting less than +30? I've only ever done any large work with long standing clients that pay quickly. Would the majority of clients not agree to it? Could be a way to ensure that it ends up being +30 even with the client dragging their feet.

I did business with a department which was in the process of spinning off from a big Fortune 100 company. They had plenty of funds, but there was a lot of bureaucracy during the transition. As such, they told me they 'required' net-60 I asked for clarification, and they were apologetic about it. They could only run payments on a 60 day schedule. Solution: I billed net-30, 15% monthly surcharge for late payments, whic…

Chances are, anybody new to consulting with BigCo's can build that "surcharge" in without any negotiation at all: just jack your rates. You are almost certainly wildly undercharging as it stands.

Re: Developer open-sources 200+ hr project after client refuses to pay

#134

Earlier quoted context omitted.

Awesome video. Not safe for work, but if you're freelancing, I'd HIGHLY recommend watching it.

How is it not work safe? If you can't say fuck at work it's time to find a new job.

If you were in a day care center or school, it might not be a good idea ;-)

Re: Developer open-sources 200+ hr project after client refuses to pay

#135
post #12

Earlier quoted context omitted.

Why would the nonpaying client, or future potential clients, care what the developer does with his property? If they wanted it, they could have bought it from him. (I'm assuming that the developer didn't sign any IP assignments upfront, or is violating any NDAs or similar agreements about this code.) If I was a sculptor and a client commissioned me to create a work of art, then didn't want it, surely nobody would fau…

I disagree that the commissioned art analogy applies directly. My argument is that this was not a work of art, but a business tool, designed to provide the client with a competitive advantage. Donated art doesn't harm the commissioner, but publicizing this code CAN harm the client. A competitor can take this code and use it against the client now. It does sound like there was no proper contract between the coder and…

Quite frankly, a client who pays is a client. A "client" who don't pay is not a client in my book, hence are not entitled the privilege that a client-contractor normally has.

Considering he release something that he created on his own from SCRATCH, he can release it all he wants since all the code belongs to him. In this case, he is doing something within his rights.

If his work is derived from the "client" codebase, then its an entirely different case.

Re: Developer open-sources 200+ hr project after client refuses to pay

#136
post #128

Earlier quoted context omitted.

Nice. I've started using freshbooks recently but haven't looked at the estimate side yet. Side question, what (in percentage terms) do you call a 'nasty fee'?

We charge anywhere from 5-10% each month, stipulated in our contract. This takes care of 90% of late payments as no one ever wants to pay that much in a late fee...and they are unwilling to say it is too high because the immediate reply is "why would you worry it is too high? You aren't planning on being late when paying, right?" :D

Very nice. Thanks.
Post reply on HN