I know this probably isn't helpful to hear at this stage, but I'm going to say it anyway for everyone's benefit. We've learned this lesson the hard way, but fortunately didn't have to use all of the following advice.
Always take a part payment up front before starting work. Between 30% and 50% is a fairly standard and safe amount. Always take another part payment after demonstrating your progress. Ideally upon final delivery the balance to be paid for your work should be less than 30%.
If clients are unhappy about paying you up front, you need to ask yourself why they're unwilling to pay anything to start, when they will be paying $10k to you in the very near future.
If they don't trust you, they'll work with someone else. You need to be able to trust them too, and taking a part payment up front is often the quickest way for you to learn that they are trustworthy.
When a client isn't able to pay, you should try and negotiate payment in full over time. Regular, small payments give them a chance to pay off their other creditors and give you regular indication that they're trying to pay you back.
If they refuse to pay, or miss their regular repayments, don't be afraid to go to a debt collector. Make this clear when you are negotiating the payment schedule. At this stage, any money you can get back (less the often expensive debt collection fees) is a bonus.
Even if the amount is paid back in full, we make it a rule not to work for this client again.
For an amount this large, you should definitely talk to a lawyer. Keep a close eye on your cashflow over the next few months.
As I've stated below, I'd lose majority of my clients if I required 30% upfront payment. Truth is when you work with agencies and corporations, they are usually not willing to pay in advance. And yet they provide me with bulk of the work.
This scumbag operates behind a sham agency. He's presented at conferences such as ad:tech giving him te SEO appearance that he is legit. It's when you dig deeper and search the court databases that you learn the truth.
The size of the retainer doesn't matter as much. What matters is that it applied to the final invoice and that <IANAL> nonpayment of an invoice is explicitly listed as a breach of contract and grounds to terminate it </IANAL>.
I typically use language in my contracts (not programming related) which allows a very short window for payment - seven to ten days not 30 days. That way it is much easier to avoid getting upside down with even a fairly small retainer relative to project size. I also set the interest rate to be higher than many credit cards - at least 1.5% per 28 days - because I am not a bank for my clients. Finally, I will often invoice every two weeks or twice a month - again to avoid being upside down.
With established companies, I am more flexible if I feel it is warranted. But anyone who balks over payment terms but not the payment amount tends to be suspect.
Always take a part payment up front before starting work. Between 30% and 50% is a fairly standard and safe amount. Always take another part payment after demonstrating your progress. Ideally upon final delivery the balance to be paid for your work should be less than 30%.
If clients are unhappy about paying you up front, you need to ask yourself why they're unwilling to pay anything to start, when they will be paying $10k to you in the very near future.
If they don't trust you, they'll work with someone else. You need to be able to trust them too, and taking a part payment up front is often the quickest way for you to learn that they are trustworthy.
When a client isn't able to pay, you should try and negotiate payment in full over time. Regular, small payments give them a chance to pay off their other creditors and give you regular indication that they're trying to pay you back.
If they refuse to pay, or miss their regular repayments, don't be afraid to go to a debt collector. Make this clear when you are negotiating the payment schedule. At this stage, any money you can get back (less the often expensive debt collection fees) is a bonus.
Even if the amount is paid back in full, we make it a rule not to work for this client again.
For an amount this large, you should definitely talk to a lawyer. Keep a close eye on your cashflow over the next few months.
Best of luck recovering the payment!