Get paid WAY faster. Here's how.

If you’re running an agency and waiting weeks or longer to get paid then face it—you’re running a charity and financing your clients’ businesses for free.

You're also taking a huge risk.

In a recent weekly Business of Agency Mastermind session, I walked mastermind members through the biggest cash flow traps marketing agency owners fall into—and how to fix them.

TIP #1: Net Terms

Most agencies default to Net 30 or Net 45 because it’s “industry standard.” But standard doesn’t mean smart. One mastermind member shared:

“I used to invoice monthly with Net 30, but payments dragged to 45 days, 60 days, or longer. Now, I require prepayment—and cash flow has never been better.”

If you’re waiting on payments while covering payroll, COGS, and other expenses, then you’re putting your agency at risk of running out of money.

Do this instead:

• Move to Net Zero or Negative Net Terms (get paid before you start work).
• Offer ACH discounts.
• Charge credit card fees (why should you eat processing costs?).
• Still stuck doing hourly or project work? First off, I’m sorry—that’s a rough life. But if you’re doing it, at least bill bi-weekly instead of monthly. Faster invoicing means faster cash in the bank.

TIP #2: Automate Payment Collection & Late Fees

How often are you chasing clients for payments?

You're not a collection agency. Stop wasting your time.

We build a Zapier automation that:

• Sends payment reminders starting on the due date.
• Sends "nag" emails weekly until it's paid in full.
• Adds a $49 late fee + 18% annual interest if overdue by 14 days.
• Escalates the issue to senior leadership for final adjudication if unpaid after 30 days.

The result? Faster payments with zero awkward conversations.

TIP #3: Use Payment Terms as a Negotiation Tool

Clients love to push for Net 30, but you don’t have to roll over.

Instead, make it expensive for them. Try this script next time...

“I gave you my best price based on my payment terms. But sure, I can do Net 30. I just need to add 10% to the invoice to cover the cost of capital. Cool?”

Suddenly, Net 7 doesn’t sound so bad to them!

TIP #4: Secure Your Revenue Before the Work Begins

Recurring revenue is a game-changer. The best agencies charge clients at the start of the billing period, not at the end.

One mastermind member nailed it:

“We invoice for the next month’s work on the 20th. If they don’t pay by the 1st of the next month then we won't work on their project. Only paying clients get our bandwidth!”

It’s that simple.

If your agency is still chasing invoices, you’re playing defense.

Shift your mindset, set better terms, and protect your bottom line.

Want to be part of conversations like this?

Join the Business of Agency Mastermind at businessofagency.com.

~ Erik