Dear Danielle: Client Thinks He Shouldn’t Be Billed for Time on the Phone

Dear Danielle: Client Thinks He Shouldn’t Be Billed for Time on the Phone

Dear Danielle:

Do you bill your clients for time that you speak with them on the phone? I have a client who wants to have phone meetings twice a week. A phone meeting with him can run from 15 minutes to an hour. Yet, he feels that I should not bill for that time. Instead, I should only bill for the time that I am “actually doing work.” (His words…not mine.) —Anonymous by request

Warning, this may be a little ranty, lol

And just to be clear, it’s no way directed toward the person asking the question. I give them all the props in the world for having the courage to ask. That’s how we get help, by asking.

What gets my dander up is more about the ridiculous, ignorant information that continues to be spouted out by business morons that create this kind of thinking in clients and colleagues in the first place.

The idea that in this day and age people in our industry are still asking questions like this as if they need permission from anybody about what they’re allowed to do in their business tells me there’s still an insane amount of employee-mindset going on.

NEWSFLASH: Talking with clients IS part of the work.

When you talk with clients on the phone, that’s part of the service you’re providing to them. And you’re in business to be PAID for the service you provide.

You are expending business resources (your time) and that time comes at a cost to your business.

You are being a brainstorming partner and sounding board. You’re also presumably offering your own input, ideas, opinions, feedback and expertise in those conversations, which are aspects of the service and value your client is benefiting from.

So, um, yeah, you should be charging for that. And it’s not up to ANY client to dictate what you do or don’t charge for or how you charge. If he doesn’t want to pay for it, then he shouldn’t be given it. And if he doesn’t like that, he can go somewhere else.

Now, all that said, this question points out a few things that are going on in this person’s business that need to be addressed.

  1. This client sounds like he thinks you’re some kind of employee. That means YOU haven’t done a proper job of educating him before ever working together about the fact that you are an independent professional—ahem, a BUSINESS—providing a service and expertise, no different than if he were to hire an attorney or an accountant or a coach, etc. You have GOT to set your prospects and clients STRAIGHT about this right from the get-go (which means you have to get this straight first yourself). You are not an employee. Period. End of story. That’s not how business works. There is no such thing as a 1099 employee. When clients are operating under no delusions about this, they approach the relationship with a more appropriate professional demeanor and respect, and they expect to pay for services they are provided.
  2. You haven’t defined your policies and procedures and your boundaries and parameters thoroughly. This is really business planning 101, which makes me wonder if you’ve done any of that. If you haven’t, go back now and do that. It’s important if you want happy clients and a happy, profitable and long-lived business! How you bill; what you bill for; what is included in the service and what is not; how many phone calls a client is allowed each week; what time limit they get per call; whether or not phone calls are by appointment only and need to be scheduled or not; how regular communication is to be conducted (e.g., email only)… these are just some of the things you need to clarify in your business. And then put all that information in a Client Guide to be given to every new client at the start of the relationship. (By the way: Set-01 The Administrative Consultant Business Set-Up Success Kit in the ACA Success Store includes a New Client Welcome Kit guide and Client Guide template to help you get this sorted in your business.)
  3. The fact that this client is complaining about being charged for phone calls now tells me you did not properly inform him upfront, before working together, how things work in your business. Of course, when you haven’t set your policies and procedures in the first place, how can you inform them upfront, right? Which is why you have to get clear about them first (see #2). You want to eliminate any misunderstandings and surprises as much as possible because those all too frequently become relationship killers.

And while it’s not any client’s business to tell you how to run yours, this does point to several of the reasons I don’t advocate selling hours as a billing methodology:

  1. It puts your interests at odds with each other. You only make more money the more hours you charge, and clients don’t like what they view as being nickeled and dimed.
  2. If you work fast, you are penalized financially while clients are getting the value and benefit of that speed without paying for it.
  3. Everything becomes a transaction which becomes the focus instead of the results, goals and objectives that together you wish to achieve.

Learning how to price, package your support, and talk about fees with clients is an area of business education in and of itself—part art, part science. There is a way to make sure you are paid for the time and value of the service you provide to clients without using time as the measurement and without clients feeling like they are being nickeled and dimed.

I teach a methodology called Value-Based Pricing that unties your earning ability from the hands of the ticking clock, and brings you and the client’s interests back into alignment so you can begin working more truly together with the same goals, intentions and motivations.

The fantastic byproduct of this methodology is that clients never again complain about being charged for this or that because it’s all part of the package.

You can learn more about all that and get my Value-Based Pricing and Packaging self-study guide here >>. (Be sure and watch the video!)

If you have any questions about any of this, please post in the comments and I’m happy to keep the conversation going there.

Hope this helps! (And if you have your own question on a different topic for me, please feel free to submit it here.)

One Response

  1. Dashya says:

    Fantastic response Danielle!

    Clients just do not “get it” (or pretend they don’t understand)-
    I am an independent company not an employee that has set hours etc. As a virtual paralegal I do not get push back on billing for phone time as much as I get from retainer clients trying to manipulate add on’s to their agreed upon services.
    Usually when I ask them to send the request via email (everything work related must be via email or fax in writing) and they receive back a response with an estimated rate to perform the request, they snap out of it real quick!

    Bravo for being here and giving us your insight & support!

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