11/29/2022
Let me ask you a question: say you are a middleman and get a contract and you farm it out. Work is going really well and you deliver good work, on time, cause all your subcontractors are top notch guys. Your client’s real happy. And then invoices start coming in from those top notch workers. And then suddenly, your happy client, well, they aren’t so happy anymore cause something happened and they can’t pay you, the middleman.
Question: do you pay your subcontractors?
Here is my story straight from the raw business trenches.
It was 2010 and my translation agency was working with a super duper client. I mean we were getting so much content to translate daily that there were days when I’d have 300 emails download into my inbox in the morning. I was an email processing machine. Emails seeped into every nook and cranny of the day and night. And it was a real rush. It wasn’t a burden cause email translated to $$$. Heck, it was exciting.
Like, each day calendar day, we had up to 60-80 freelancers work on this ONE client alone. This client, the second largest online poker company in the world, just kept spewing out content and getting us to translate it into 20-some languages day in, day out. And they paid like clockwork. These guys had no cash flow issues, let’s say.
This went on for a good couple of years. Everyone made some good money and as the middleman, my company was thriving.
And then one day - it was a Friday, I recall, we were up to our eyeballs in work programmed for the weekend. I had taken a break and was out and about in town and happened to glance at my phone as we tend to do these days. An email popped up which would change everything.
Our super duper client had just been shut down by the FBI….
….But this story is not about an online poker platform getting shut down by the US gov’t, something that merits its own post, really.
This story is about the 5 figures that they owed me at the time of their demise in the US. Yeah, when the FBI pulled the plug on their playing platform, I had an unpaid invoice out of which I, in turn, owed about 80% to the freelance translators who worked day in, day out on poker stuff.
What the hell was I going to do?
A few weeks went by and still, I didn’t see a way to recover my receivables, unless I was going to hire an international lawyer and go after the mess that the company was in. It didn’t make sense to me.
And there, on my desk, glaring at me was that stack of dozens of invoices I needed to pay.
Business colleagues out there… What do you do in a case like this? I talked with friends-entrepreneurs asking for advice and what I heard was that if I, as the middleman, don’t get paid, then the contracted workers are out of luck too. An unfortunate chain reaction.
I was a little taken aback by this reasoning cause it wasn’t the freelancers who had a contractual relationship with the client. They had a relationship with MY company.
Still, the advice I was getting sounded enticing to accept cause it would mean keeping those extra figures in my company’s coffers!
Heck maybe if I just explained the situation to the freelance linguists, they would each just forgive the amount we owed them. And then I could walk away from the debt fair and square.
Really? For those folks the couple grand I owed each one of them meant their monthly budget, their rent, car payment, kids’ school supplies. Each invoice had a name on it that I was somewhat familiar with. Even though our only interacting with most of these people was online exclusively, we had gotten to know each other. I got to know that one of our Danish translators liked to throw temper tantrums, while N###x, one of our Japanese translators never complained about anything even if there was stuff to complain about. I was sometimes driven crazy by some translators, but in any case, each one of them was not just a name with an @ attached to it. Each one of them was a human being. There wasn’t anything fair about not paying them.
And then, I kid you not, I had a dream. In my dream I was in my coffin (but seemingly alive!) and above me, I could see dozens of people, each waving their own country’s flag. These, I understood, were the translators paying their last respects to me, after MY demise.
I woke up, my dear reader, and I felt the universe, my moral compass, or whatever it was, had spoken and dispelled uncertainty, indecision (cause that’s the worst state to be in!) and I marched down into my office that morning, and I took the stack of the damned payables, and I told Gerry, our then Payables guy, to pay them all. I also added that I had no desire to look at those invoices, to be reminded of them, OR to be gazed at by them any longer.
Well, there never was a moment of regretting that decision. Now, I am sure had I walked away with people's money, I would have likely found some way to justify it, but surely some guilt would remain.
Now, in such a situation is it ever justified to not pay "your people"?
And btw, no, I don’t expect the United Nations at my funeral one day!