I was a Licensed Residential Builder for 13 years, it don't work that way at all ; If the customer doesn't pay or their funds are bad -- we all (the contractors and subs) go to the courthouse together and place our mechanics liens against the title to the property. Then we have a year to file a suit in the Circuit Court for a foreclosure to satisfy all construction liens (the money owed for the work). Usually they pay off under threat of foreclosure.

I was once owed for a completed stone entryway for a new subdivision. Since the improvement was to the subdivision in common I liened $3.5 million of the unsold lots -- the developer could not sell any of his lots as the bank would not release his 'take-outs' of the blanket mortgages of $millions until I was paid and discharged my lein -- they paid me off in a week 'the shit hit the fans :1orglaugh'.

The construction business is unique as the improvements are 'fixed and a part of real property'. Commercial payments such as on affiliate contracts are 'personal property assets' usually without any collateral security.

I paid all my hourly employees even when I was not paid but some subcontractors had to sweat it out with me -- that is the risk of doing business.

More specifically with regard to chargebacks in our current endeavours ( webcam broadcasts); When there is a chargeback everyone eats their share -- we all lost money together. Chargebacks are a part of contracting. Independent Contractors are what Affiliates, Models and Studios are. None are paid hourly as an employee and all assume business risk. Rev share means revenue sharing -- losses should be shared when they are a direct result to ones revenue. No one likes losing money that is understandable.


A subcontracted truck is subject to different rules; it is paid by the tariff rate, agreed price per mile, or haul -- completion of delivery is the only prerequisite to payment. The truck owner operator does not agree to a certain portion of the revenue.

Bottom line; When a customer refuses to pay for services rendered -- you're fucked -- you cannot repossess the services. A sale is not complete until it is paid for -- always. Sometimes, you can sue to recover the loss but most of the time it is a write off and you just move on and learn from it.