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Should You Collect Payment Information From New Clients When They Sign The Contract, with Erik J. Olson


Episode #1243

Listen to Erik as he shares the pros and cons of collecting payment information from brand new clients as they sign the contract in this episode.

June 11, 2022

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Episode Transcript

Erik J. Olson (00:01):

Should you collect payment information from brand new clients when they sign the contract.

What is happening? This is Erik J. Olson. So, you know, we have gone back and forth about whether we should collect payment information from brand new clients as they sign the contract. And I want to just discuss some pros and cons here, because you may be thinking the same thing. If you’re a small business owner, like I am now on the one side. If you collect everything up front, it’s just less work to do later. You don’t have to like hunt people down after they sign a contract and get their credit card number. You don’t have to hunt them down and get their bank account information or wait for a check. If you collect payment all at the same time as when they sign the contract, great, that’s less work for you to do.

Erik J. Olson (00:47):

Now. The downside is that as a client, as a prospective client, it’s more work for them because not only do they just sign and agree to the scope of work and the price and move on to the next thing they have to get out, you know, like their bank account information. If you insist on getting paid by ACH, they have to figure out what credit card is gonna go on. They have to arrange for payments on the spot, the moment that they commit. And that’s what I’m talking about here is committing the moment that they want to commit. They have to also figure out payment. That is a barrier. So here at Array Digital, we do not do that. And I’m bringing this up because we still debate about it in the admin channel. On, in slack here, we were talking about whether we should add that or not.

Erik J. Olson (01:32):

And my opinion is do not do that. Now it does create a little more work for you. Or if you have an admin staff for your admin staff, because all like here, we’ll sign a contract and then we’ll kick it over to the admin staff. And then they’ve gotta like track this person, then be like, Hey, how would you like to pay for this and get their credit card information or their bank account number. It’s more work for them, but we’ve secured a commitment in writing. And that is the most important thing. Like we have to get that commitment before we even worry about payment. And if we couple those two things together for our benefit, then we could lose out on deals, right? The harder you make it for people to buy the less you’re gonna sell. Now, maybe there’s a nice little like compromise here where I’d get someone to sign and then immediately be like, oh, by the way, how you gonna pay for it? So maybe something like that is actually a decent compromise, which I just kind of thought of as I was talking through this, but we don’t do that. So first and foremost, get the commitment to you, your company, your product, your service, get the commitment in writing. Second is figure out how they’re gonna pay you.

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About The Hosts


  • Erik J. Olson is an award-winning digital marketer & entrepreneur. The Founder & CEO of Array Digital, he is also the host of the Journey to $100 Million Flash Briefing and daily podcast, and the organizer of the Marketers Anonymous monthly meetups.

  • Kevin Daisey is an award-winning digital marketer & entrepreneur. He started his first company when he was just 23, and is the Founder & CMO of Array Digital. Kevin is the also the co-host of the Journey to $100 Million Flash Briefing and daily podcast, and the co-organizer of the Marketers Anonymous monthly meetups.

Website Design, Search Engine Optimization (SEO), Online Advertising, Social Media & Digital Marketing.
© Array Digital LLC

Website Design, Online Advertising, SEO, Social Media & Digital Marketing.
© Array Digital LLC