Business question - WWYD?

[Plaid Dad]

I'm in an awkward position and need some advice from people who work as independent contractors. I am seeing some red flags in a business relationship with a particular company, and I would like some outside perspective.

I have been working from home as an independent contractor with Company X for about 2.5 years. At first they were good about keeping in touch on projects, and they paid on time. In the last nine months or so, though, I have often been left waiting for weeks to get a simple question answered by email; payments are late with no explanation; projects are left hanging for months; work I've completed and submitted is not acknowledged for weeks or months, despite repeated emails; contracts that should be forthcoming (based on verbal agreements) have not arrived, even many months later. In the last two weeks, I have phoned and emailed repeatedly to ask about the late payments, missing contracts, and other issues, and am not getting my calls returned.

They are currently holding two completed projects. I do not have written contracts for either of them, only verbal agreements. Would you:

(A) Inform them that you were withdrawing the projects immediately.
(B) Send a formal statement saying that unless payments and contracts are forthcoming by a particular date, the projects will be withdrawn.
(C) Be patient and expect them to follow through on the verbal agreements.

I really, really like the people at this company, and I don't have the impression that they are deliberately trying to string me along or take advantage of me. They are a small company that is growing rapidly, and I suspect they are just overwhelmed. The fact that they are growing means that my relationship with them could be even more profitable for both of us over time. But I'm also worried about continuing a relationship with a company that doesn't pay on time and doesn't communicate efficiently with its contractors.

So WWYD?

[Kris]

The fact that you like the people at this company doesn't have anything to do with the professional relationship -- or lack thereof. If they are so busy that they can't answer emails, telephone calls, or pay you on time, I wouldn't work for them anymore.

I wouldn't make a grand exit -- I would just not accept any more work from them. If you send an ultimatum, they might use that as personal justification to hold payment even longer.

If you're working for the fun of it, the fact that you like these people might be important. If you're working for the money, and it is not forthcoming, there's your answer right there.

Good luck.

[RoughCollie]

To me, it doesn't sound like they can pay you, or they would. I think that is why they are not communicating with you.

I would let them know I am not going to work for them any more. If you could withdraw the projects successfully (without the company using them anyway), you ought to do that.

Play hardball.

They are not acting with integrity, no matter how nice they are.

If you have a lot of money or proprietary material at stake, get a lawyer to write a letter for you. Sometimes that approach is successful. Do not threaten a lawsuit in the letter.

That's my advice. YMMV.

[Rhondabee]

none of which might have anything to do with you.

It might be financial trouble.

It might be unexpected or drastic turn-over that you aren't aware of, and things might have just fallen through the cracks, and no one there has yet realized it. (This happened a lot when I was working at home as an independent contractor.)

It might be that your client has "double-booked" your projects?

It might be that you're working for someone who makes verbal agreements and then just doesn't remember them (a great people person, but not a detail person)?

If you've been working for this company a while, I *really* understand wanting to keep things open and on good terms. Good clients are much harder to come by than they are to keep. I would call and chat with the "secretary" - being as nonconfrontation as possible - starting with LOTS of small talk. You might find out what the "real deal" is. (I would just keep calling and NOT leave a message - or, if they're close enough, I might just stop by.) I would inquire about the money that is owed me first. ("I'm just wondering if you need anything more from me before you can cut a check for that.")

Then, I would stop doing work on verbal agreements. Most of the attorneys I worked with were used to verbal agreements, which meant most of the time they could wriggle out of payment for some loophole or another. It took losing almost $5,000 of our savings to get the guts to say, "If you won't sign, that's okay. But, we won't even start the work without it." (We included a clause that said we would get paid x amount, due in 30 days; and that payment was not contingent upon y.)

For the verbals that you have already started working on, I would suggest figuring out a contract first. Then, once you're ready to fax your contract, call the person who made the agreement. If you can talk to them, great. If not, then just type up a cover letter stating: "Dear xxxx, This is to confirm the agreement we made re: yyyyy Please look this over, and if you have any questions or concerns, please call me at 123-467-7890. I am looking forward to starting as soon you can fax back a signed copy." (I would add in some personal touches to that, but that basic idea.)

But, really, I would try to get the low-down on what's going on first. Best of luck to you!
Rhonda

[Julie in CA]

I worked as an independent contractor (pastry chef, but that's beside the point!) for a local restaurant. The situation degenerated slowly, and although I liked the people I was working for/with, eventually it just couldn't go on. Eventually I had a face-to-face conference with the manager/owner of the restaurant, and basically said the following:
I've loved my time working with you and have found the work extremely rewarding, but I'm finding that somehow we are just not on the same track right now. I'd like to continue creating specialty desserts for you, but I'd like to have a clearer idea of what your needs are, and how I can meet those needs more effectively. If you'd like to have me continue working with you, I'd like to propose that we (and then I filled in the things that would make the job work for me).
This way, I was expressing how much I really liked the work, but I was still giving them an out in case they just really wanted to discontinue the work relationship. It is probably just time for you both to assess moving from a less-formal way of doing business to a model more befitting the growing business they appear to be. If (by some slim chance) the problem is that they've been less satisfied by your work, or are finding that they no longer really need your services, it gives them an opening to just say so.
Hope it all works out,
Julie

[Beth in Central TX]

I would go with option B. Give them a date, and let them follow through or not. I think you have some great project ideas out there, and many people waiting to buy them. If this company doesn't meet your deadline, it's time to find someone else that will because there's a chance they may never publish your items. You've been patient far longer than I would have been. In addition, with no written contracts there should be no hurt feelings on either side. I don't think you'd be burning any bridges; they're just not as excited about your projects as they led you to believe. So it's time to move on.

[Athena]

You need to try to find out what is going on in the office but I would be heading towards a gentle version of option B. You can't continue to work for a company that doesn't return calls and does not follow up on contracts.

If you decide to give them a firm date to respond but they don't seem to answer e-mail or calls/voicemail send a certified letter, or something they have to sign for. It gets more attention in the office.

Oh, and we have worked for ourselves for the last 10 yrs. and my parents were always self employed. I know how hard it is when you like the clients.

Prayers & positive thoughts for your family!
Christy

[Mamagistra]

I think you have some great project ideas out there, and many people waiting to buy them.

Some of us are chomping at the bit. ;)

[Plaid Dad]

:) Just for the record, I do freelance work for several different companies. But I'm always happy to know that people are as excited as I am about my homeschooling stuff.

[Beth in Central TX]

Oh, that's good to know. Of course, you have several projects going at one time. But my advice, for what it's worth, is still the same. I'm still in awe of all that you do on top of homeschooling.

Take care,

[Crissy]

I don't know that I'd just wait them out, but if they have been a solid client in the past, and the relationship has the potential to be even better, I wouldn't go with A or B.

My feeling is that you should send a letter letting the president know that communications are not as open as they once were, and that you are concerned. Concerned, perhaps, that there may be financial difficulties and would he or she be available to discuss how you might be able to help by extending a payment date, or re-working a verbal contract so that it benefits both of you.
I suspect that your client will be much more open and honest if they know you can be a bit flexible. And they will be more likely to send work your way when they get their ducks in a row.
At least that has been my experience with clients.

[Jill, OK]

...and I'm going to put my $.02 on the side of a modified "C".

Now, a lot depends on how badly you need work, and how big you envision these folks getting, but if it were a similar situation in my world, I'd set a time limit, keep waiting until it passed, and then ask about payment.

Once paid, if they came to me with any more offers...I'd offer a formal bid, and then a contract for them to sign, before I started work, that stipulated when payment was absolutely due by. (I have 30 days on my contracts...but I'd be willing to let a good cash cow--er, respected client--slide a little.)

Sometimes, otherwise good clients are simply flakes. If you have many other prospects, then my advice might not apply...but I'm kinda desperate, lol. It all depends on what you're willing to put up with. I'd set a limit in my mind, and then bail only if that time comes. Sorta like when I invite my brother to come to dinner at 5:00, and then make sure everything's ready by 6:00. :o)

Let us know what happens! (I'm always curious about other freelancers' struggles, lol.)