Bloggers’ Guide to Invoices

In our recent survey of British Mum and Dad blogs, 90% of you told us that you’d like to make money from blogging – and two thirds of you are already making money from your blogs.

Of course, selling ads and sponsored posts only pays off if you know how to get paid. This post will give you a brief overview of how to create an invoice for an ad, sponsored post or other blogging service. We’ll also offer some tips on how to get paid – and what to do if an advertiser doesn’t cough up.

Step 1: Know the price

Always agree a price for any blogging service – ads, public speaking, sponsored posts – upfront and confirm via email. At the same time, ask your client whether you need a Purchase Order (this is a reference number that lets the client’s finance department know they’re allowed to pay you) or whether you need to fill in any forms to register as a supplier.  This will help to avoid delays later.

Step 2: Write the invoice

There are loads of invoice templates online, but basically an invoice should look something like this:

Your address

Your phone number

Date

Client’s name

Client’s address

Invoice Ref: (each invoice you issue should be numbered, to help you keep track)

Description of the service provided, and the price agreed

Eg: 3 months advertising @ £50 per month, £150

Total Owed  £150

Step 3: Make your invoice work for you

Your invoice should include three more really important things. First, you should state your payment terms: how quickly you expect to be paid. Hopefully, this is something you discussed upfront with the client, but if not then you should say here “Payment Terms: 30 days” or perhaps “Payment Terms: on receipt of invoice”.

Below this, include your BACS details (your bank account name, sort code and account number) so the client can pay you.

There’s one more important line to include at the bottom of ALL your invoices, and it’s this:

I reserve the right to claim interest under the Late Payment Of Commercial Debts (Interest) Act 1998, if not paid according to agreed terms.

What does this mean? Well, in the UK there are laws designed to protect small traders from big companies that don’t pay on time. By including this statement you’re letting clients know if they don’t pay on time, you can charge interest and penalty fees.  There are various late payment calculators online, but as a rule of thumb you are allowed to charge £40 on a late invoice, plus around 8% interest annually.

Step 4: Deal with late payments

So, it’s a month later and you haven’t been paid, despite an agreement that you’d be paid within 30 days – what should you do?

First, a friendly email to check what’s happening is a good idea. Some companies pay on 60 day terms, or it’s possible an invoice has been forgotten, or misplaced. It’s annoying, but it happens. If this doesn’t get results, then call the company directly and ask to speak to accounts payable. Be polite, have your invoice reference to hand, explain it’s overdue and ask when it will be paid.

If this doesn’t get results, then you should issue a ‘statement of account’ – basically an invoice outlining all the cash you’re owed by a company, and requesting settlement in full within 7 days. Don’t forget to add on late payment interest and penalties.

If you’re still having no joy, then you have to decide whether you’re prepared to wait (some companies just are a bit more like savings schemes than paying clients) or get formal.

Waiting means phoning the company with annoying frequency (I recommend daily) to ask for a progress report. Send a new statement of account, with updated interest charges, weekly. REALLY get on people’s nerves – providing you don’t intend to work with them again!

Getting formal means issuing a notice of action (basically a letter saying you’re going to sue if you don’t get paid within X days) and then using moneyclaim.gov.uk to issue a summons against the company that owes you money.

The process is relatively quick and simple, but chances are, if you follow the tips in this post, you’ll never need to find out.