Clients Not Paying Vendors
Out of context: Reply #6
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- shellie0
Sounds like they're mismanaging their cash flow. That's not uncommon considering any agency carrying staff or even a skeleton crew.
You're completely right at that last statement. If it's your client, you route billing through your own company. If you're at the point where you're doing projects on a large enough scale where you feel you should route through legit and insured comany -- you should probably get yourself straight if you haven't yet.
I had a business arrangement implode and I'm still waiting to be paid months upon months of salary -- including all my employees. If you're in the states, you're just an unsecured creditor and if that company you're fuckin with closes, they're not obligated to give you anything -- and you cant sue a company with no money unless you like pain.
And what monospaced said -- you're missing out on your markup. Plus, you should at least be able to mark up 20%. And your vendor should be giving you a better deal for bringing them business to keep the overall client facing budget the same. If you're bringing in the business you should be getting paid for that relationship and yous should probably also have them sign a non-compete or give you your 20% on any other business they do with that client for the following year. If you're a good negotiator, you can add a sunset clause for following years to 10% and 5% decreasing over time. It's fair.
- btw, that impoded biz deal was a middleman situation like yours. Always remove the middle!shellie
- No offense if you asked me to sign a sunset claused contract I would tell you to take a hike, and non-compete are illegalsilentseven