One of the interesting things about making money, in the virtual world especially, is that you don’t necessarily get paid right away for the work that you do. There is a sort of nebulous ‘accounts receivable’ category that you often have to deal with, as you clients can also be waiting for money to come to them.
So because of that, making money online, or with a blog, requires a certain kind of patient approach to different financial cycles. Here are five tips to help you deal with that on a practical level.
Use an Invoice Factoring Service
There’s a sort of unique and specialized service out there called invoice factoring. With invoice factoring, you turn your invoices into a company and they essentially turn invoices into cash for you temporarily. This allows you to complete your financial cycles much more quickly, and do business on a more even scale, regardless of when that money finally does come through. It’s a great service to be a part of in the blogging world.
Pay Attention To Your AdSense Cycles
A big part of the income in the blogging world comes from AdSense. This is Google’s payment platform for advertising. There are different types of cycles, and some of them have to do with time, while others have to do with how much money is at a minimum in the account. In order to make sure your cash flow doesn’t get away from you, it’s super important to pay very close attention to when those payments are coming through, and how long they take to process.
Use Contracts with Your Invoices
Using contracts with your invoices will also come in handy. This puts the responsibility for payment toward your client. You can show him or her in black and white what days payment is expected, and what kind of fees are associated with lateness. Clients don’t want to pay late most often, they just don’t always have the sense of urgency that you might.
Keep Money In Side Accounts
Another way to keep your financial cycles flowing is by keeping a fair amount of money in side accounts. This is money that you can get into if you need to pay for things before your other cash comes in, but it is by no means ‘extra’ money that you can use just if you want.
Use PayPal When Possible
Finally, if you set up a business PayPal account, then you know that if people pay you directly, it will immediately be right there. No time for late invoice, no reason to wait for money to go through, just simple, immediate, transfers from one account to another.