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what are your payment terms for direct advertising?
new client wants net 30

 5:56 am on Sep 16, 2010 (gmt 0)

I have set up an ad campaign for a new client and sent them in invoice. They would like a 30 day credit.

What is the normally accepted practice for payments terms of direct advertising sales? What are your payment terms?




 6:38 am on Sep 16, 2010 (gmt 0)

Payment in advance for the first few months and we go back to talks later.


 6:43 am on Sep 16, 2010 (gmt 0)

Prepayment. Warning lights on - This should not be an issue.


 10:34 am on Sep 16, 2010 (gmt 0)

I edit a print magazine and this would be a value judgement based on the individual advertiser and the amount involved. I can absorb the occasional bad debt as long as I don't let things get out of hand.

Luckily in a niche area most prospective advertisers are either known to me or are known to people that I know. That sort of peer pressure makes a big difference.


 3:29 pm on Sep 16, 2010 (gmt 0)

A 30-day credit means a 30-day delay in starting their advertising. In almost all cases, we require pre-payment, at least initially. If it's a client we've been working with for a while, we may setup different terms.


 2:30 pm on Sep 17, 2010 (gmt 0)

We require pre-payment as well before the campaign goes live. If they become a regular, you can of course become more flexible down the road if they require it.


 2:20 pm on Sep 21, 2010 (gmt 0)

Big-time ad agencies balk at prepayment, and may stretch your net 30 terms. Smaller agencies may tell you that they won't pay until they get paid by their client. Sometimes, even big, brand-name companies will milk their payables and pay their agencies and other vendors very slowly.

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