Nobody likes invoice shock. When we do get higher than expected invoices, our first response is typically to hold off on payment, scrutinize, and dispute. So, if you are a vendor, web developer, project manager, or service provider - it is important to manage client expectations and be as transparent with them as possible so as to avoid invoice shock and increase the chances of getting paid on time.

1. web design | development | marketing | strategy
inQbation University
Best Practices: Web
Lesson: Where does
money come from?
By Blake Newman
CEO, inQbation
Integrated digital marketing agency
Washington DC

2. Show me the money
Contrary to popular belief…

3. Show me the money
Money does not
grow on trees

4. Show me the money
There is no
Bank of Blake

5. Value = Happy Clients
Money comes from happy clients who
feel they received good value

6. Time is money
Everything starts with how you track time…
because time is money, and…
you cannot manage what you do not measure

7. The money cycle
Track time
accurately
Work
efficiently
Invoice
accurately
Clients pay
on time
Get paid
Estimate
better

8. How not to get paid
• Don’t pay attention to detail
• Don’t follow directions
• Don’t stick to the task order or scope of work
• Don’t catch mistakes before showing to client
• Don’t record time properly
• Don’t deliver good value to client
• Spend too much time, dwelling on task
• Gold-plate the task, over-engineer solution

9. Invoice Shock
Higher than
expected
invoice
Shock and
disbelief
Dispute
invoice
Refuse to
pay
Demand
discount
Honeymoon
is over

10. Clients don’t pay if
• They are shocked at the invoice
• Actual work grossly exceeds estimate
• Work is not inline with task order
• Cost seems excessive for the task
• There are mistakes in the invoice
• There are mistakes in the work
• They catch mistakes before us
• We seem to have misunderstood the task

11. Clients don’t like …
Typically, clients don’t like to pay for:
• Learning on the job
• Research
• Diagnostics and estimation
• Mistakes
• Fixing mistakes
• Things outside scope of work
• Misunderstandings

12. How to get paid
Analyze
Understand
Plan
Execute
Record
Report

13. How to get paid
Analyze
Understand
Plan
Execute
Record
Report
Don’t
research …
analyze!
Pay attention
to detail and
scope
Engineer
efficient and
cost-
effective
solution
Work with
sense of
purpose
Record time
accurately
and
completely
Keep client
informed, us
e proper
labels and
descriptions

14. Keeping clients happy
• Provide accurate estimates
• Manage expectations
• Keep clients informed of burn rate
• Log time accurately
• Use acceptable labels when recording time
• Speak in plain (non-technical) language
• Don’t over engineer the solution
• Practice quality assurance, be competent

15. Happy clients pay
• Estimate accurately
• Work efficiently
• Record time
• Manage expectations
• Be transparent
• Satisfy expectations
• Deliver good value
… then clients will pay

16. BizPulse can help
The reason we built
BizPulse.com in the first place
was to become more
transparent with our
clients, manage
expectations, and avoid invoice
shock. If you are having
problems managing
expectations, we invite you to
try BizPulse.com.

17. Blake.Newman@inQbation.com
web design | development | marketing | strategy