Getting Paid Net 30 or 60? Stop the Cruelty
Why paying your contractors early isn't just fair and decent, it's actually good for your business and reputation.
I’m going to share why I pay early and how that helps me grow the trust in my business. And if someone is paying with Net 30 or Net 60, I’ll share how I move around that.
What is Net 30 or Net 60?
In order to know the crime, we must describe the crime. "Net 30" and "Net 60" are payment terms used in business to indicate that the total invoice amount is due within 30 or 60 days, respectively, after the invoice date.
What does Net 30/60 really Mean?
Scenario: Let’s say that you edited a beautiful promo video. The company provided you the essential assets like graphics, logos and even the footage from the company holiday party.
They’re asking you to edit a fun 5 minute video before everyone goes home for the holiday. You’ll need to turn in a first cut within 4 days, a finalized version 2 days after that. In other words, you are rushing and they say laughingly “it’s pretty much due yesterday”
The energy for the project completion is RUSH, RUSH, RUSH!
The energy for payment is YAWN, REST, SNOOZE.
When it’s time to pay everyone takes a siesta. It’s suddenly not urgent, not critical to get it done and the same person responding to emails within a couple of minutes now takes a couple of days. We’ve all been there! They can do that because of a Net 30 or Net 60 which is quickly becoming standard practice in our industry.
OK, I Hate a Net 30/60! Why is it Legal!?
It’s allowed because as a whole, we allowed it. We say “Ok….sigh….I guess that’s fine” and let it pass. Everyone else is doing it. I suppose that I’ll tolerate it too. Or do you?
It’s your fault. It is my fault. It’s the fault of our community. We allow it, we must take credit for the fuckery. When we no longer stand for it, we can take credit for the reversal. Whether I work a small photoshoot or big, I’m looking out for myself and you should too. Here’s how I pay…
How Paying Your Contractors Early is GOOD BUSINESS
A few months ago I was on set for a video by an Italian Singer, Tiziano Ferro. I was directing (and producing) a video for Tiziano’s tour about Raffaella Carrà for this 2024 stage show.
We had a slight delay because of the generator not working, and I was walking by the grip truck when I heard the gaffer say they wanted to get paid at least half of the payment before the work day is done.
This would be my first job with this particular vendor team and so he has no work history to reference. It’s unusual to ask for that on a professional set and while I could let ego take control, I have to factor in the WHY in what he said. Why was he nervous about payment? I’ll tell you shortly…
My DP was Skyler. He was standing next to my gaffer and I heard Skyler reassure him about payment from me. He said “Walid is good for it, trust me, he’s good for it” and that one statement eliminated any anxiety for my gaffer and grip.
Skyler brought both of them to the job, and they have established a working relationship over many years. They trusted Skyler. Skyler and I have many years also, so there is history to reference.
Why was the Gaffer and Grip nervous about getting payment from me? Because in the past they’ve been screwed over by people who either don’t pay, severely stretched out payment, make up excuses for slow payment or just ghost the vendor entirely.
The comment wasn’t about me, it was about their past experiences.
What Skyler responded back with was directly about me. It was my reputation with him that relaxed the other crew members and they retracted their request for early payment.
Why Paying Contractors Early Helps YOU
If I didn’t have the “payroll street cred” with my DP, Skyler then I’d have two upset crew members. They’d probably corner me and ask for payment ahead of time. I would be forced to make a tough decision which would affect the rest of the day. I’d walk around wondering why they don’t trust me and suddenly asking for money ahead of time. Do you think I’m a crook?! The energy would be off and affect the final product.
Luckily the person who recommended them vouched for my business ethics. And all was fine. In the end, I got good work, good energy, and a great set for a wonderful opportunity.
When you pay early, people speak on your behalf. When you pay early, people will defend you in rooms that you’re not in (or walking by). When you pay early, people will pick you over another job. When you pay early, people will accept even lower budget jobs because you won’t make them wait 30 or even 60 days for payment. When you pay early, you get the best of the best talent. When you pay early, you get a beautiful energy on set. When you pay early, people want to be there and they’re happy to go that extra mile. When you pay early there are less hassles and less excuses. When you pay early, you’ve trained your peers to expect better for themselves (and hopefully) do better for others.
What is a Net 2? Stop Making Things up!
My payroll is through Gusto. Paying through Gusto is easy and they send you little messages through their mascot piggy. Seriously, I get emails saying “Hooray, you’re getting paid today!” - and even though I pay myself, I still get happy.
Here’s how I pay, step by step:
Hire the contractor via phone and negotiate the rate we can both agree on
Reiterate the job terms via email for record keeping on both sides
I send them the Gusto link to sign up for free. They link their bank accounts before the job. Then I tell them to prep an invoice early on and hold it until after the job. That’s it friends, Gusto will do the rest.
Once they create the profile, Gusto will send me an email saying "John Smith is ready to be paid!” and they’re in the system for this job and future jobs.
We do great work on set. At the end of the job, I verbally mention to send their invoices asap. If they send the invoice the same day, I’ll push the PAY CONTRACTOR button the next morning. Why? Because you’re not reading the blog of a bastard that holds up people’s money.
Gusto will send them an email saying “payday is on xxxxx” and it’s an automatic deposit into their bank accounts in a few days. I say Net 2, incase I have to wait an extra day to push the pay-button. You know…life happens and we get busy.
Example of Gusto’s Payment Confirmation Screen That’s it. For future jobs they only need to submit an invoice because they’re already in the Gusto Payroll System. Btw, if you want to do the same I highly suggest Gusto.
By the way, if you sign up from the referral link Gusto gives you $100 which is better than zero dollars if you go there on your own.
How I You Avoid Net 30/60?
It’s easier than you think. At the time of “courting” I establish the rules. As the client establishes the deadlines, I counter with deadlines for payment. Imagine the the client asking for a 10 day turnaround but they reply with a “but we pay in 60 days” response. So they often avoid that little bit of information, hoping you do too.
I bring it up. They almost always say “it’s company policy to pay Net 30/60” and I always reply back with “OK, I require payment within 10 days of getting the invoice - can you make any adjustments with your payroll dept?”
Spoiler alert: They can. Whether they choose to do that is on them, but they can. When you bring it up, you’re not just saying you don’t want to delay payment. You’re saying “I’m not new. Pay me on time. I know how this works” and to me, that’s beautiful.