Read a single invoice tip in a freelancer forum that totally flipped my payment policy

I used to just send invoices with net-30 terms (like I was a real business or something) and then wonder why half my clients would drag their feet. Then I saw someone post that they add a 5% late fee after 10 days but also offer a 3% early payment discount if paid within 5 days. I thought it was gimmicky. But I tried it on a $2,400 web design project last month in Nashville. Got paid in 4 days. The psychology of a small carrot vs a stick really surprised me. Has anyone else had luck with early payment discounts?

3 comments

3 Comments

keith1644d ago

That little carrot and stick combo works better than most people expect.

bell.jessica4d ago

Right? It's wild how well that actually works once you find what clicks.

perry.jesse4d ago

Yeah the combo is solid once you figure out the right ratio for each person.