More money exchanges hands in December than at any other time of year, but if you don’t sell products, how can a savvy business person get in on the holiday shopping frenzy? Many professional organizers get on board by selling gift certificates for their services, but is it really a good idea?

There are several ways to look at it. Let’s start by looking at the benefits of selling gift certificates:

• Selling gift certificates can be an effective way to generate income at a time of year when clients are too busy with festivities to focus on getting organized.
• If you accept PayPal, you can receive payment and deliver the gift certificate by email, saving both you and the purchaser the time and hassle of going out.
• The recipient of the gift certificate may be someone who would not normally do business with you. In this way, the gift certificate also becomes a form of advertising.
• If the recipient requires services over and above the value of the gift certificate, you have the opportunity for additional sales.

So far, so good. But that’s not the whole picture!

As a normal rule, you probably don’t agree to work with a client until you’ve conducted an initial consultation over the phone, if not in person. Although the consultation is an opportunity to sell your services to your potential client, it’s also a chance to determine whether it’s appropriate for you to take on the job. How can you commit to working with someone without that direct contact? What if you show up for the first meeting and determine that you’re incompatible or that you don’t have the specialized skills needed for that particular client or situation? Will you be prepared to offer the purchaser a refund?

A similar dilemma may arise if the recipient of the gift certificate has no interest or desire to use your services. You may not be obligated to return the money, but is it ethical not to?

When I was a professional organizer, people frequently asked me about buying a gift certificate for a friend or family member. I generally discouraged them, pointing out that the disorganized person has to want to change for the service to have any lasting impact. I made exceptions on three occasions:

1. The gift-giver discussed the idea with the recipient before buying the gift certificate. We had met previously so I knew I would be comfortable working with the client, and vice versa.
2. Two daughters purchased a gift certificate for their mother for an in-depth consultation. It would then be up to their mother to decide if she wanted to follow through with follow-up services. It took her nearly a year to book her consultation, and I never heard from her again after that.
3. An executive wanted to buy the services for his son, who was also his business partner. I met with the father on a day when the son was out of the office to get a good understanding of what would be required. We agreed that I would provide a “blank” gift certificate which he would present to his son, who would make all arrangements with me, and that the father would pay the bill. That was the last I heard from either of them. (I can only assume that the son was not on board with the idea; I only hope his father gave him something else instead!)

I hope this information will help you decide whether offering gift certificates is right for you and your business. If you’ve already made that decision, please let us know what you decided, and what led you to that decision.

Please visit Your Organizing Business to read and comment on The Pros and Cons of Offering Gift Certificates for Organizing Services.

A reader sent me the following question: There are a decent number of people in my town with good income, but the majority are low income, and I am concerned with getting paid. How do you go about getting a deposit up front? Is there some way to ensure that you get paid for your services?

These are some really important issues! Let’s start with the question of the deposit.

I highly recommend that you obtain a deposit at the time you book an appointment. When your clients pay a deposit up front, it shows that they are committed to working with you. If the organizing session is booked during an in-person consultation, they can pay you by cash or check. If it is booked by telephone, email, or online, they can pay you by PayPal (see my earlier post, Accepting Credit Cards, for more details).

It is not unheard of for clients to cancel on short notice; I’ve even shown up for appointments only to find that the person who scheduled it was not there. When that happens, it’s not likely you’ll be able to fill that time slot with other paid work, so it’s not unreasonable to expect to be paid for at least part of your time. Whether or not you will reimburse part of the deposit in the event of a cancellation, or apply it to rescheduled appointments, should be clearly outlined in your written agreement with the client. Your agreement should also address when subsequent payments are due – ideally you will be paid at the end of each organizing session – as well as any penalties that will be incurred for late payments.

There are a number of sources for sample agreements, including Debra Milne’s Become A Professional Organizer Manuals, Alice Winner’s Tool Kit For Organizers, The FabJob Guide to Become a Professional Organizer, and Anne Blumer’s new book, Get Rich Organizing: The Professional Organizer Survival Guide To Launch, Manage, and Grow a Profitable Business. Whether you use one of their templates or write an agreement of your own, it is best to have it reviewed by a legal professional who knows the laws in your area. Some cities have a small business center where you can meet with a lawyer at a lower cost than if you went directly to a law firm.

You should carry a supply of blank agreements with you so that the agreement can be signed at the same time that the deposit is paid. This can also be done online, using EchoSign. This service allows you to upload your prepared agreement and email it to your client, who then signs it electronically. I’ve been using EchoSign in my virtual assistant business for several months, and I’m quite impressed with how quick and easy it is to use. It is free for up to five agreements per month.

The other issue identified by my reader is the fact that many of the people in her area have a low income. This situation can make it tempting to lower your rates, but the harsh reality is that not everyone will be able to afford your services, no matter where you live. If you’re not comfortable turning away those who cannot, you may wish to consider offering a limited number of hours per month at a reduced rate, or occasionally volunteering your services to someone in need. Just remember that you are operating a business, not a social service agency, and although you want to help others, if you don’t generate a sustainable income, you won’t be in business for very long.

Established organizers are often approached by newbies looking for a job shadowing or training opportunity. Bringing in such trainees as your assistants at no extra charge to your client can keep the total cost of the organizing project down and make it more affordable for lower income clients.

Another option is to offer alternatives to individuals who need organizing help but cannot afford to pay for a professional organizer. This could be in the form of customized organizing plans that your clients can implement on their own, organizing workshops or teleclasses, or information products (your own or someone else’s). The benefit of offering teleclasses and/or information products is that it expands your market to people outside your geographic area and provides you with the potential to earn passive income.

I’m sure that some of you will have some other suggestions and I welcome your comments. If you have a question of your own, please feel free to submit it at any time.

Please visit Your Organizing Business to read and comment on Getting Paid for Your Services.

I have previously blogged about using PayPal for receiving payments online, and E-Junkie and Practice Pay Solutions for selling and delivering digital products. A reader has requested clarification of these various services, asking “As far as Practice Pay Solutions, why would I want to use that over PayPal?”

Let me start by explaining that PayPal is merely a way to accept payments online and that it does not automatically process your orders. When someone orders a product by clicking on a Buy Now button on your website, you receive an email notification of the payment, and it’s then up to you to email the digital product to your purchaser. If you don’t sell very many products and you check your email frequently, this may be a satisfactory solution, but as your sales increase, you may find that it’s taking up time you could be putting to better use. In addition, some digital products, such as audio files, may be too large to forward by email.

It is possible to create a “thank you” page from which your customers can download the product, and to configure PayPal to automatically redirect them to that page after their payment is processed. Unfortunately, it only redirects them to the thank you page if they click on Return to Merchant after completing their payment, and people often miss this step, even if you provide instructions on your website. You will then have to respond to emails from customers saying they didn’t receive the product they paid for, some of which may be quite nasty in tone.

That is where shopping carts come in. Shopping cart software not only captures payment information, but allows you to enter your product information into a database which automatically sends the purchaser an email containing either your digital product or a link from which they can download it. This saves you the time and effort of processing orders manually, and means that your customers receive their purchases immediately, which they are sure to appreciate.

E-Junkie is a very affordable service, starting at only $5.00 per month, which includes a wide range of features, including an affiliate management system. Practice Pay Solutions includes even more options, but comes with a higher price tag. Both services offer a free trial, so you can check them out and see which one works best for you.

Please note that even with a shopping cart system, you will still need PayPal or a merchant account in order to receive online payments.

Please visit Your Organizing Business to read and comment on Doing Business Online.

I received some excellent questions and comments on my last post, Accepting Credit Cards, including several questions submitted via the Ask a Question form. Today I will answer those questions.

I’ve used PayPal as a consumer infrequently, so I have an account. Can that same account be used as vendor?

You can receive funds in a personal PayPal account, but there are restrictions that do not apply to business accounts. In addition, since the transaction fee that’s deducted when someone pays you by credit card or debit card are much higher on a personal account, it’s worth it to upgrade to a Premier or Business account.

Another reason to open a PayPal Business account is the fact that funds can only be transferred from a personal PayPal account to a personal bank account, or from a business PayPal account to a business bank account. For bookkeeping purposes, and in case of a tax audit, it’s recommended that you always keep your personal and business accounts separate.

How have you found cross-border sales?

I have a number of clients in the US, and I find that PayPal is the fastest and easiest way to receive payment. Instead of waiting for a check to arrive in the mail, lining up at the bank, waiting for the customer service rep to work out the exchange rate, and hoping the payment clears, I am paid within minutes and can transfer the funds to my bank account whenever I want, without having to leave my office. They recommend allowing 5 to 7 days for a transfer to go through, but in my experience, it usually only takes a couple of days.

Are the fees for Canada the same as the US?

Essentially, yes. The fee on an incoming payment of $3000 or less is 2.9% of the transaction amount, plus 30 cents. The percentage is reduced on larger transactions, but the 30 cents remains constant.

Please note that the above information is current at the time of writing, but you should check the PayPal website for changes that may be implemented at any time. Of course, once you have an account, you’ll be notified by email of any changes that may affect you.

Thanks again to those of you who submitted questions. If you have any other questions about PayPal or any other topic related to your organizing business, I’d love to hear from you!

Please visit Your Organizing Business to read and comment on PayPal Q&A.

Let’s face it; organizing services are not inexpensive, and there will be many occasions when someone would just love to hire you, but they don’t have the cash on hand. Maybe you’ve thought about signing up for a credit card merchant account, but were put off by the expensive monthly fees which you’re required to pay, even during months you have no credit card activity.

I was so happy to learn that there is an affordable alternative. You can sign up for an account with PayPal in just a few minutes, and there’s no application fee, nor are there any monthly fees. In fact, your only expense is a small percentage of any payments you receive.

With PayPal, your clients can use their VISA, MasterCard, American Express, or debit card to pay you online, and they don’t even have to sign up for a PayPal account themselves. As long as they have Internet access, they can make the payment while you’re at their home or office, and you can leave with peace of mind, knowing that you won’t have to worry whether their check will clear. With this system, you never have access to your client’s credit card information, which provides them with an additional level of security.

For a slightly higher fee, PayPal also offers a Virtual Terminal, which lets you enter your client’s credit card number online, which can be especially useful if he or she doesn’t have Internet access.

If you’re planning to sell physical or digital products through your website, PayPal is the ideal solution. Even the FlyLady is a big fan!

I know that some people are nervous about using PayPal, but I’ve been using it in my business for over five years and have always been 100% satisfied. Most of the horror stories you hear are related to emails from scammers pretending to be PayPal, trying to gain access to your account. This is called phishing, and although it’s unfortunately quite common, it has nothing to do with PayPal itself. I’ve received similar emails appearing to be from dozens of different banking institutions, and as long as you never click on links but only access your account by going directly to the website, you should be just fine.

If you have any questions about PayPal, or would like some help getting started, drop me a line.

Please visit Your Organizing Business to read and comment on Accepting Credit Cards.