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I think you made the wise decision and should continue to stick by your guns. These kinds of business choices are tough, but essential. It's very difficult to grow a business without established operating procedures in place, including billing practices.
You work to get paid, right?
I've had to turn away business because it didn't abide to my operations. At first, you wonder if you're shorting yourself. But then the next client comes around who's happy to see you're a professional who demands professional interaction (because they do too). And you realize the minor sacrifice was worth it.
That's not to say you should forgo favors in the future. They can be cheaper, more effective marketing than, say, media advertising. But it's best to perform them on your terms.
Hang in there, man.
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