Possible Reasons a Client Refuses to Pay<\/h2>\n\n\n\n
People default on paying for coaching services<\/a> for a multitude of reasons. But here are the most common reasons you\u2019ll come across.<\/p>\n\n\n\n One of the possible reasons clients refuse to pay is if they feel they’re not getting enough value from your coaching sessions. <\/p>\n\n\n\n It could be because there was a misunderstanding about what they expected from your session, or if they were dissatisfied with the results achieved.<\/p>\n\n\n\n Even if this is the case, let\u2019s make things clear: as long as you held up your end of the deal, your client still needs to pay, even if they feel like the value wasn\u2019t there. Of course, a good coach will try to rectify the situation to understand what\u2019s missing or how they can improve.<\/p>\n\n\n\n Clients who face cash flow<\/a> issues often struggle with payments despite their desire to keep working with you. <\/p>\n\n\n\n Your empathy is key here while also ensuring you have strategies in place to collect payment effectively without causing undue strain on your business finances.<\/p>\n\n\n\n Sometimes clients end up not paying just because they don’t fully understand when and how they should do it based on the agreed terms<\/a>!\u00a0<\/p>\n\n\n\n To avoid late fees and hassles with missed deadlines, communicate clearly about billing procedures and add your terms to your coaching contract.<\/a><\/p>\n\n\n\n Pro Tip:<\/strong> Skip the back-and-forth payment confusion entirely with Paperbell’s all-in-one client management system<\/a>. When you set up your coaching packages, clients automatically see clear payment terms, sign contracts digitally, and choose from flexible payment options – all before they book their first session!<\/em><\/p>\n<\/blockquote>\n\n\n\n Disputes will typically happen when coaches work without any service agreements or contracts.\u00a0A client may claim they didn\u2019t get a specific deliverable or session. Or they\u2019ll claim you didn\u2019t fulfill your end of the agreement.<\/p>\n\n\n\n So you just got a notification from your invoicing app: Client A is late to pay their invoice. Now what?\u00a0Don\u2019t panic just yet. Here\u2019s how to collect money from clients who won’t pay. Start at step 1 and continue down the list as needed.<\/p>\n\n\n\n The first step in how to get a client to pay an invoice is simply to remind them about it.\u00a0Quick follow-ups can be a gentle way to send reminders to those who might have missed their dues<\/a> in their busy schedules. Also, sometimes, payment delays happen because clients are unsure about invoice details or payment terms.\u00a0<\/p>\n\n\n\n Or it can be as silly as an expired credit card. I\u2019ve embarrassingly missed payments by accident because I\u2019d forgotten to update my card on file.\u00a0Your timely follow-up gives clients a chance to rectify their mistake before you escalate things further.\u00a0<\/p>\n\n\n\n Wondering how to remind a client to pay you? It\u2019s up to you which medium you use to follow up. But I suggest using the method you use most often to communicate with that client, whether that\u2019s email, social media, text, or something else.<\/p>\n\n\n\n If you get a reply from a client who specifies they\u2019re struggling, knowing and understanding where your client stands financially is the next logical step. You can\u2019t help them – and can\u2019t get paid – if you don\u2019t have this information. <\/p>\n\n\n\n Once you understand what they\u2019re going through, you\u2019ll be in a better position to offer solutions.<\/p>\n\n\n\n When clients express cash flow issues and find it difficult to make full upfront payments, consider offering them structured payment plans<\/a>. After all, it\u2019s better to get paid in installments than never at all.\u00a0<\/p>\n\n\n\n By breaking down the total cost of your services into smaller, manageable payments over an agreed period, you ease their immediate financial burden while ensuring you collect what you’re owed.<\/p>\n\n\n\n The next step in how to get a client to pay an overdue invoice sounds a bit counterintuitive. But in some cases, you may not have completed every single coaching session in a package before a client defaults.\u00a0If this is the case, you can negotiate a lower price for fewer coaching sessions.<\/p>\n\n\n\n For instance, let\u2019s say your client signed a contract to hire you for 12 one-on-one coaching sessions<\/a>. You both agree to a payment plan split into four equal parts, each equal to 25% of the total.<\/p>\n\n\n\n Your client starts by paying the first 25% of your fee. After going through six sessions with your client, they suddenly default on the second 25% payment. <\/p>\n\n\n\n At this point, if the client is struggling to pay, you\u2019d have the option to split this second payment into smaller payments as well as cancel the rest of the sessions. This way, your client would be able to pay you for the three unpaid sessions, and you wouldn\u2019t keep doing unpaid work.<\/p>\n\n\n\n If your clients can’t afford full one-on-one sessions, get creative! You can design custom packages that suit different budgets. Offer group coaching<\/a> or shorter individual sessions at reduced rates instead of continuing to support them 1:1. You can let them know you\u2019re open to 1:1 coaching again when their financial situation changes.<\/p>\n\n\n\n This way, clients have options and won’t feel pressured to pay more than they’re comfortable with, helping you handle cash flow issues from unpaid invoices or late payments more effectively.<\/p>\n\n\n\n All of the above solutions will work if a client is willing to discuss with you.\u00a0But what happens if you get ghosted by a client whom you\u2019ve already coached and now refuses to pay at all?<\/p>\n\n\n\n Consider hiring a collections agency or a receivables management services<\/a> company if the owed amount could seriously harm your finances or operations. They’re pros at chasing down unpaid debts, but keep in mind they take a cut of the recovered funds as payment. <\/p>\n\n\n\n In short, you\u2019ll never get the full amount back – but there\u2019s a chance the collection agency will be able to recoup some of your losses. Make sure the agency you hire follows Federal Trade Commission (FTC)<\/a> guidelines to avoid any issues. It could be a helpful solution to recover what’s owed to you.<\/p>\n\n\n\n However, if your client only owes you a small amount, it may not be worth hiring a collections agency at all. <\/p>\n\n\n\n If you\u2019ve decided not to hire a collection agency and don\u2019t want to undertake any other legal action, you should still let the client know what will happen if they do not work with you to get the debt sorted out. There\u2019s no such thing as too many follow-ups here. But in your final email (or call), be clear on what your course of action will be.<\/p>\n\n\n\n For example, you may remove all access to previous content you\u2019d shared with your client. You\u2019ll also likely cancel all future coaching sessions with them.<\/p>\n\n\n\n Just make sure that whatever action you take is in line with your coaching agreement. For example, if you state that any digital content you share with clients is theirs to keep forever, no matter what, you won\u2019t have much legal footing to revoke access if they decide to keep a personal copy.<\/p>\n\n\n\n So now that you know what to do when a client doesn\u2019t pay\u2026 let\u2019s talk about how to be proactive so it doesn\u2019t happen again!<\/p>\n\n\n\n The first step in preventing cash flow issues due to non-payment is to establish clear contracts with all of your clients before starting any work together.<\/p>\n\n\n\n Your contract should clearly outline what each session entails, when payment is expected, and what happens if a client doesn’t pay or pays their invoices late.<\/p>\n\n\n\n That way, if someone has a dispute, the language in your contract clarifies what to do.<\/p>\n\n\n\n With Paperbell, you can add a contract directly to your coaching package. All you need to do is upload a PDF, and Paperbell inserts a legally binding signature at the bottom!<\/p>\n\n\n\n When you set up a contract this way, your client will automatically get a prompt to sign it before they can schedule their first session with you.<\/p>\n\n\n\n You know communication is key in coaching relationships – it’s just as crucial when it comes to financial matters too.<\/p>\n\n\n\n Sending out regular reminders about upcoming payments or invoice emails <\/a>and addressing any concerns promptly can go a long way toward avoiding outstanding invoices. <\/a><\/p>\n\n\n\n If you keep the communication gates open, your clients will also be more likely to speak to you if they know financial hardship is coming up.<\/p>\n\n\n\n Your clients can\u2019t forget to pay if their payments are set up to process automatically.<\/p>\n\n\n\n Automated payments are especially helpful for clients who have a monthly subscription or monthly payment plans with you.<\/p>\n\n\n\n There are several tools you can use to set up automatic payments, including Paperbell!<\/p>\n\n\n\n When creating a new coaching package in Paperbell, you can choose between a one-time payment or payment plan or a subscription model. Subscription models will automatically charge a card regularly, but you can do the same with a payment plan.<\/p>\n\n\n\n You can choose how many payments you\u2019ll have and how often they happen. You can charge a one-time setup fee as a bonus if that makes sense with your offer.<\/p>\n\n\n\n Then, once clients put in their credit card information to pay the first installment, they\u2019ll get automatically charged for the next installments. <\/p>\n\n\n\n Of course, this won\u2019t magically mean you\u2019ll always get paid. Credit cards can fail, for instance. But it\u2019ll help in cases where clients just \u201cforget\u201d.<\/p>\n\n\n\n Finally, the big one:<\/p>\n\n\n\n1. Lack of value perception<\/h3>\n\n\n\n
2. Financial constraints<\/h3>\n\n\n\n
3. Misunderstanding about payment terms<\/h3>\n\n\n\n
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4. Disputes over services rendered<\/h3>\n\n\n\n
What to Do When a Client Doesn’t Pay<\/h2>\n\n\n\n
![\"what](\"https:\/\/paperbell.com\/wp-content\/uploads\/2023\/08\/what-to-do-when-clients-dont-want-to-pay.png\")
<\/figure>\n\n\n\n1. Start with a prompt follow-up<\/h3>\n\n\n\n
2. Grasp your client’s financial picture<\/h3>\n\n\n\n
3. Offer payment plans<\/h3>\n\n\n\n
4. Negotiate a lower price<\/h3>\n\n\n\n
6. Tailor custom packages<\/h3>\n\n\n\n
7. Hire a collections agency<\/h3>\n\n\n\n
8. Provide a final warning and follow up<\/h3>\n\n\n\n
How to Prevent Clients from Not Paying for Your Coaching Services<\/h2>\n\n\n\n
1. Implement a robust contract system and payment terms<\/h3>\n\n\n\n
![\"what](\"https:\/\/paperbell.com\/wp-content\/uploads\/2023\/08\/image2-2-1024x485.png\")
<\/figure>\n\n\n\n2. Maintain regular communication with clients<\/h3>\n\n\n\n
3. Set up automated payments<\/h3>\n\n\n\n
![\"what](\"https:\/\/paperbell.com\/wp-content\/uploads\/2023\/08\/image3-3-1024x482.png\")
<\/figure>\n\n\n\n4. Get paid upfront<\/h3>\n\n\n\n
![\"what](\"https:\/\/paperbell.com\/wp-content\/uploads\/2023\/08\/image1-4.png\")
<\/figure>\n\n\n\n![\"what](\"https:\/\/paperbell.com\/wp-content\/uploads\/2023\/08\/what-to-do-when-clients-dont-want-to-pay-pin.png\")
<\/figure>\n","protected":false},"excerpt":{"rendered":"