Charging interest in case of late payment

[Triple7]

Simple question: do you charge interest in case of late payment?

I know many companies are doing this. If you forget for example to pay your television contract, they charge like € 10 for a reminder. I am sick and tired of some programs always paying late. I am not talking about a few days, but in some cases about months and months. Some pay the commission of a month after 17 mails and 5 months. I am thinking of charging them for the reminders.

[hublot]

Simple question: do you charge interest in case of late payment?

I know many companies are doing this. If you forget for example to pay your television contract, they charge like € 10 for a reminder. I am sick and tired of some programs always paying late. I am not talking about a few days, but in some cases about months and months. Some pay the commission of a month after 17 mails and 5 months. I am thinking of charging them for the reminders.

If the are barely paying you what you're owed, what makes you think they will pay you the interest?

[eenzoo]

Pretty interesting idea, but i´m afraid that there will appear (via the hand of a ghost) a point 3.75.7 - "Late payment penalty" in his T&C´s that exclude this possibly by Curacao law

[Triple7]

If the are barely paying you what you're owed, what makes you think they will pay you the interest?

Good point, but if I do nothing, I guess they simply won't pay.

That means: reminders... and reminders are costing time.

I am also thinking of just call in a collector sometimes.

[-Shay-]

This has been my point in the bulk of my posts regarding "on time payments". If I do not pay my phone bill, I get a late charge. If I don't pay the vendors I work with "on time", I get charged. There is no monetary consequences for companies paying late. There needs to be.

[sweetbet]

If the are barely paying you what you're owed, what makes you think they will pay you the interest?

I agree with hublot. As much as I'd love to see these companies coughing up interest for late payments, I just don't see it happening somehow.

[universal4]

I do not see it happening any time soon either.

The best we can do (as we have been doing for years) is to use affiliate payment reputations as one of the ranking factors we use when determining who to give higher positions and better exposure, just like we do for those that have better reputations with players.

Many of the smarter operators are aware of this, and also monitor this thread each month.

Rick
Universal4

[TheGooner]

Simple question: do you charge interest in case of late payment?

Some pay the commission of a month after 17 mails and 5 months. I am thinking of charging them for the reminders.

Sure - IF .... you can get a signed contract with agreement to pay interest if the payment is late - go for it ...
IF ....


Otherwise you don't have a legal leg to stand on - and you are p!ssing into the wind ...

[MichaelCorfman]

In the case of Casino City's parent company, Information Technology Systems, Inc., a number of our contracts do provide for interest on late payments. However, typically that fact is used as a means to help ensure reasonably prompt payment, rather than as an actual source of any revenue. As an affiliate we have never tried to include an interest clause in any of the contracts we have signed with affiliate programs (so I answered no to the poll question), although we do require that all affiliate programs sign our contract before we work with them, so we would have a contractual vehicle for adding such a term if we wanted to try. But we have not tried, generally using prompt payment as a condition for continued promotion.

Separately, a thanks to Triple7 for asking the question. We've added an actual poll to the question and will feature it in today's newsletter as the question of the week.

Michael

[GCG]

So if the program pays early they have the right to deduct the interest. ?

IMO a stupid suggestion and not worth considering, you want 50 percent revenue share sure .... believe in fallen angels and friendly aliens.....

[pinkytoe]

So if the program pays early they have the right to deduct the interest. ?

IMO a stupid suggestion and not worth considering, you want 50 percent revenue share sure .... believe in fallen angels and friendly aliens.....

lol, wtf?

It's a perfectly reasonably suggestion and good basis for a thread. It happens in many other service industries - so why not in iGaming marketing?

To the OP;

As Gooner and Corfman above alluded to - it will depend on the agreement in the contract. If you agree to their affiliate terms, then they likely have a contract bent in every favourable way to them and you will have little chance of deploying or enforcing a late payment charge.

Also - you would likely need to issue an invoice monthly with the late payment terms outlined.

[hublot]

Guys, why not just focus on working with programs that you can trust and that pay on time. Most of the programs that you are chasing are slow paying for a reason, reward the groups that are trustworthy and pay on time, then you don't have to worry about charging interest.

Most of the time, people are complaining about shady groups slow paying or not paying at all, well why even get into bed with them in the first place? You knew it going into the deal, so you can't really complain after.

[Triple7]

So if the program pays early they have the right to deduct the interest. ?

IMO a stupid suggestion and not worth considering, you want 50 percent revenue share sure .... believe in fallen angels and friendly aliens.....

Nope. I do not ask them to pay earlier. They don't to pay too early. It's also difficult to pay the July commission already before the month ended. I just ask them to pay on time. Not too early, not too late and I do not care about a few days or a week too late.

Nope, I never ever ask 50 %, because it is not a realistic commission. I don't see the relevance of this assumption with this topic.

It is a quite normal business practise to charge interest when people are paying too late.

[Triple7]

Guys, why not just focus on working with programs that you can trust and that pay on time. Most of the programs that you are chasing are slow paying for a reason, reward the groups that are trustworthy and pay on time, then you don't have to worry about charging interest.

Most of the time, people are complaining about shady groups slow paying or not paying at all, well why even get into bed with them in the first place? You knew it going into the deal, so you can't really complain after.

I do research before working with a program, but sometimes it happens that programs become rogue or late-payers after I signed up with them. When you got a player base, you will have commission monthly.

I agree that for example if somebody now decides to work with Winner, SkyClowns, Brightshare, etc he's looking for this kind of problems, but some programs were normal at a certain point.

[TheGooner]

Guys, why not just focus on working with programs that you can trust and that pay on time. Most of the programs that you are chasing are slow paying for a reason, reward the groups that are trustworthy and pay on time, then you don't have to worry about charging interest.

Indeed.

I keep record of all clients payment schedules assuming payment is due month following - and have just one or two payments PER YEAR that fail to pay within the month.

Sure, some of that is because I keep them on their toes but querying any delays on the 25th - but most of it is because they are good partners and want to balance their ledgers.

[GCG]

I am not saying the program should get away with late payments but when billing the interest an extra accounting step is needed besides that how do you send an invoice to the program that resides in G knows what islands / countries and last but not least do you really want to charge 10 cents interest for each day that is overdue (e.g. 1000 euro x 3,5 % = 35 euro /365 = 10 cents) you got to be kidding right ?

Why not remove their top performing banner for a month, IMO you accomplish more this way as you new are chasing again : the original + interest ?

You can also charge them for the stamp needed to send the invoice to them LOL.

Why go to this extreme it is not healthy anyways. LOL

[Triple7]

It are not the programs with good performing banners. I won't give of course full exposure to programs that are not paying or facing payment problems. But sometimes after they had exposure or even without a lot of exposure, at some programs I am making commission. There's no discussion that this should be paid, but it's late always and for sure it won't come if I do not remind and remind. If it's a program with exposure, the exposure will be ended ofc.

Neither it is not about days. I really do not care if programs pay the 1st, 10th, 20st or 25th of the month. It is about programs that pay after months and months and a lot of reminders. Once I even had to send an invoice to the director's home.

Usually companies charge costs for invoices, some kind of sum like € 10 if you do not pay your telephone bill on time, etc. I saw some affiliates doing this too, for that my question. Yes, most of them are based at tropical islands, but that's just formal and a post box. Or not even that.

[GCG]

Neither it is not about days. I really do not care if programs pay the 1st, 10th, 20st or 25th of the month. It is about programs that pay after months and months and a lot of reminders. Once I even had to send an invoice to the director's home.

If you encounter these kind of late payments then you definately need to pull their banners once you get paid.