What if advertisers want their money immediately?
Industry best practice is to schedule payment over 30-60 days. This helps ensure that advertisers will honor deals. If you receive pushback, remind the advertiser that you are covering all upfront costs and promotion and they incur neither cash or inventory charges until someone comes in and uses a voucher, nor does traditional advertising offer a shorter payment schedule. For companies selling hard goods from inventory it may be prudent to contract the payment cycle to address their actual cost of goods sold. Companies that provide services can usually tolerate longer payment cycles as it generally takes longer to provide services sold.
