Archive for the ‘How to Say It’ Category

Dear Danielle: Client Wants Me to Cut My Fees By $200 a Month

Dear Danielle: Client Wants Me to Cut My Fees by $200 a Month

Dear Danielle:

I recently had a contract client who could no longer afford to pay me the regular contracted amount because of a slowdown in her business so she asked that I drop my price about $200 until she was back on her feet. How should I deal with that? She’s been my client for 3 years and she’s always paid on time and every penny. I agreed to the cut but not sure for how long. Any words of advice? —KP

It sounds like this is a good client with whom you’ve had a happy, healthy business relationship thus far.

It also sounds like this client is paying some sort of monthly fee, if I am surmising things correctly.

And there’s no reason to throw all that away.

BUT there’s also no reason why this client’s financial woes should be your problem. Especially since you aren’t sure how long it will continue.

There IS a compassionate, client-centric way you can offer to help this client out during what I assume is only a temporary predicament without sacrificing your own business needs and well-being.

And it starts with this handy phrase: You don’t get what you don’t pay for.

That’s obviously not very client-centric the way it’s phrased, but the solution in its meaning is, very simply, to take something off the table.

What that means is, if you are selling hours, take $200 worth of hours away from their retainer. Only work up to the number of hours they have paid for.

If they can only pay for 15 hours instead of the usual 20, then they should only get 15 hours of support, not 20.

Alternatively, if you are using my value-based pricing methodology (which is a faster, more effective way to make an impact and give clients more readily apparent, targeted results), take a $200 task/function/role away from the monthly support plan.

Have a conversation with the client, identify what the most important functions are to their operations during this financial lean-time, and then offer to remove/temporarily suspend a $200 value task/function/role that is least necessary and will have the least impact on their continued smooth functioning and profits.

Give them two or three options of what could be removed for $200 less a month, and let them decide which one to sacrifice.

It’s also possible during this discussion that the client realizes even more the value of what you do for their business and decides to find the money to keep paying your full fee for full services to continue.

If this were me, I would also be curious about the reasons for this client’s financial down-turn.

If they were open to sharing, it’s possible I would have some ideas and insights on what we could do and where we could focus our work to create some new/fresh revenue.

Perhaps you even saw this coming, but the client had previously been resistant to exploring your ideas, trying something new, or doing things a little differently than they were used to that might have helped them improve financially. They might now be a bit more receptive to hearing you out.

I would, however, certainly expect to be paid for any additional work/consulting I provided. It’s up to them to decide where their priorities are.

No reasonable client would expect you to work for free.

And despite any client’s best (or unrealistic) intentions, they don’t have a crystal ball no matter what grand promises they make.

So the best policy is to go about things in a way that serves your business interests.

Keep in mind that you have an obligation to safeguard your financial well-being and business profitability not only for yourself, but for your other clients as well.

It doesn’t serve them for you to be giving away time, energy, and work for free to someone who isn’t paying fully for it.

And don’t even think about letting this client pay on credit (a la “I will gladly pay you tomorrow for a hamburger today”).

You won’t be doing them, yourself, or your other clients any favors by letting them go into debt to you.

If they are already in financial straights, owing you or anybody else more money is only going to bury them further.

Remember, you teach people how to treat, value, and respect you.

Lower your fee for this client if you want to help and keep them on your roster; just make sure you also take away an equal amount of work from what you provide them with.

And have another conversation with this client to reset the expectations around what they will and won’t get for the reduced monthly fee.

I also suggest giving the client a definite time limit on this special arrangement.

Give it a month or two and inform the client that you will need to review and discuss things again at that time to determine whether or not it’s still feasible/profitable/in your business interests to continue the arrangement.

If there’s no improvement in sight, you may even decide that, while you wish this client well, keeping them on your roster is no longer profitable for you.

If any of this is helpful, one way you could return the favor is by letting me know in the comments. I would truly value that.

And if you or anyone else has more questions on this, please feel free to ask in the comments, and I’ll be happy to continue the conversation and share my further insights and advice.

How to Converse with a Ninny

How to Converse with a Ninny

Recently, something reminded me of a conversation I had a while back with a colleague.

She was frustrated by an interaction she’d had with someone in a networking group and wasn’t sure what to do about.

The person had asked what she did. She answered that she was an Administrative Consultant and attempted to relate some of the tasks she helped clients with.

The person’s response was “Oh, so you’re a virtual assistant?”

She wasn’t quite sure how to respond to that because she most vehemently did not want to be associated with that term whatsoever.

In all honesty, some people aren’t worth your time. And the person she was talking to was obviously an uncouth ninny.

On what planet does anyone dictate to you what your title or term is, especially after you have just told them?

(That was a rhetorical question. The answer is it is never anyone’s place to call you anything except what you have instructed/informed them to call you.)

However, a big part of the problem was in how she was describing what she did.

At the time, this colleague was resistant to pinning down a target market, and the kinds of things she said she did were so broad, vague, and generalized that it’s no wonder people were confused and wanted to lump her in as a VA.

That term has become a garbage dump for “anyone doing anything.” It’s basically branded itself to mean “cheap gopher.”

She got caught up in reciting lists of tasks instead of having the more abstract conversation about how she helps clients through the expertise of administrative support.

If you’ve found yourself in a similar conversation, and you deign to indulge in it with someone, here’s how you could respond in order to better educate said ninnies:

THEM: “Oh, so you’re a VA?”

YOU: “No, as I mentioned, I am what is known as an Administrative Consultant. That is something different and more specific.”

THEM: “But aren’t you basically an assistant?”

YOU: “No, that’s not an accurate way to understand the business-to-business relationship I have with my clients. Let me ask you this: As a coach/attorney/accountant/designer/(insert their profession here), are you an assistant to your clients?”

THEM: “No, I’m their coach/attorney/accountant/designer/(whatever their business/profession is).”

YOU: “Exactly! That’s how to understand my relationship with clients as well. You and I both run businesses that offer a specific service and expertise. We both assist clients, but that doesn’t make us assistants, right? What each of us does doesn’t matter. The fact that we run independent businesses, each delivering a specific service and expertise is the important thing. For me, I happen to be in the business of providing administrative support. But I’m not an assistant because 1) assistant is a term of employment and I am not an employee to my clients in any way, shape or form, and 2) I don’t act as an assistant to clients. I am a business owner and professional who provides a specific service and expertise to my clients; they turn to me for my expertise in providing ongoing administrative support and guidance. And the term we use for someone in that specific business is Administrative Consultant.”

This is how I have had similar conversations in the past. But what I’ve found is that once you a) stop calling yourself an assistant, and b) stop describing your business and the service you provide and how you work with clients in assistant-like terms, people get it, and you aren’t going to have to deal with too many ninnies after that.

Have you ever found yourself in a similar conversation as this colleague? How did you navigate it?

Freelancing IS Running Your Own Business

See, it’s phrasing like this that is troublesome:

“If you have previous experience freelancing or running your own business…”

Freelancing IS running your own business. It’s not an or; it’s the same thing.

Phrasing like that makes people think it’s something different and separate, which is incorrect.

That’s why we have so many people in the industry who don’t realize that they are not employees, that they are running their own business, that it IS up to them to set the contracts and dictate the rules, etc.

It’s also why you should never use the term “freelancer.” Because it gives everyone the wrong idea all the way around.

How Can They Have It So Wrong?

It’s astounding to me that there is an entire organization based wholly on a misunderstanding of the law.

While Freelancer’s Union has its heart in the right place, they are utterly wrong about its most basic premise.

Freelancers are not part of the workforce. Freelancers are not “workers.” Freelancers, by definition of law, are self-employed BUSINESS OWNERS.

With articles like this, Freelancers Union is actually perpetuating the idea to employers to continue to disregard and abuse employment laws.

People who are “self-employed” are just that: self-employed. They are not employees or “workers” nor part of the “workforce.” (Those are terms of employment, not business, and have no place in a business-to-business context.)

They are running their own business providing a service. And when you are running your own business, it is up to you — and only you — to provide your own agreements and determine and dictate when, where and how you work, what you charge and everything else that goes along with being self-employed.

If you’re going to combat the problem, THIS is the education you need to be having with the self-employed who don’t understand these legal distinctions.

Freelancers Union could do more good by abolishing the idiotic word “freelancer” because it does nothing to educate the self-employed about their role as a business owner and how to run their business like a business and not work with clients like an employee.

That right there is responsible for nearly 100% of their nonpayment problems. As it is, all they are doing is creating more victims.

Bargaining for Your Value Is Doing Nothing for Your Business

Bargaining for Your Value Is Doing Nothing for Your Business

You aren’t going to convince clients to pay your fees because you have taxes and bills to pay.

And telling them you are more affordable because they don’t have to pay for breaks and lunches is not compelling either.

(When is the last time you heard any other business professional use that kind of bargaining to market their expertise?)

All that does is put them even more in cheapskate mentality.

Calling yourself an assistant results in the same.

Your value also has no relation to what you or they charge per hour (and by the way, it’s high time you stopped charging by the hour anyway).

Your value isn’t in how little they pay (stop making that argument or you’ll forever be stuck with cheapskate clients who want everything for little to nothing).

Your value is in what they gain by working with you:

How many more clients are they able to work with? How much more marketing and networking are they able to engage in? How much more are they able to get done in a day, a week, a month? How much more free time do they have to brainstorm, develop their business, or plain live life?

Are they able to get those projects done that have been on the back-burner for forever? Are they finally able to write that book, complete that training program, or write that signature talk they’ve been dreaming of? How much have their revenues increased or have the potential to increase as a result? How many more dollars per year does that represent?

How do they profit in their life from working with you beyond money? How much easier and stress-free are their life and business?

How much are those results and accomplishments worth to them?

THESE are the things to be talking about, not “you only pay for time on task and don’t pay for office equipment, lunches, breaks or vacations.”

Do you see how silly and pedestrian the latter is in comparison?

Which do you think will excite potential clients more and fill them with the sense of abundance and possibility?

Use This Phrase Instead of “General”

Some folks use the term general when they talk about administrative support as a business.

But administrative support is not “general.”

Administrative support is a skillset, expertise and profession in and of itself. It’s the very backbone of every business in the world.

That is anything but “general.” That is something very specific.

Administrative support is also an ongoing relationship with a client; it’s not a one-off project here and there sporadically.

It’s about being an active right-hand in the client’s business and taking on specific areas of work and support for them.

Using the word general to describe your business relegates it to something menial, unimportant, homogeneous (as in same basic humdrum as everybody else), and of not much value.

That’s because general is code for menial which is code for cheap and mundane.

And when clients think of something as menial, they expect to pay paltry fees for it as well.

If you are struggling to get clients who recognize the work you do as valuable, important and beneficial to them, it could be because you are using language that is attracting un-ideal clients and/or putting potential clients in the wrong (i.e., cheapskate) mindset.

When marketing your business, you want to use words that position your business and portray it as something invaluable, not general.

Here’s an alternative to better articulate your value:

If you’re trying to get across the idea that you support clients across the board, instead of using the word general (and I advise anyone who wants to get more well-paying clients to banish that word entirely from your business vocabulary), use the phrase full service.

It has much better connotations about your value proposition and will have a much better impact on your marketing and the client perceptions it sets.

Take a look at your website today. Examine the conversation you are having with clients and the words you’re using.

Will you be making some changes?

Delete “Self-Employed Worker” from Your Business Vocabulary

Delete "Self-Employed Worker" from Your Business Vocabulary

Do you want clients who treat you like their beck-and-call employee or as a trusted business professional delivering a valuable expertise?

If it’s the latter, then delete the words “self-employed worker” from your business vocabulary.

When you are self-employed, you’re not a worker, you are a business, period. (That’s a legal distinction, not an opinion.)

This all goes back to properly educating clients about the correct nature of the relationship.

If you set the perception that you are some kind of little worker bee, that’s exactly how they are going to think of and treat the relationship.

The first place you nip that in the bud — so that you can get more ideal clients who properly treat and understand the relationship as a business-to-business one — is through the language and
terminology you use.

Dear Danielle: Client Won’t Stop Calling Me Her Assistant

Dear Danielle: Client Won't Stop Calling Me Her Assistant

Dear Danielle:

Hi there! I am looking for your advice on a matter. I quite often will attend meetings or business functions with my clients. They tend to introduce me as their “assistant,” even though I have brought it to their attention that I am not an “assistant.” What would you suggest I have them introduce me as? Or how to go about ensuring it doesn’t continue to happen? —KP

Hi KP 🙂

Good question. It’s one I get a lot from people who are trying to transition away from the “assistant” model to administrative business owner.

The first thing you can do immediately is add a component to your Client Guide and new client orientations that instructs clients on exactly what to call you and how to introduce you to others.

In my own practice, I tell clients to refer to me as their administrator (for short) or Administrative Consultant (for more formal situations).

Next, put together a form letter/email and send it out to all your current clients so everyone is equally informed and updated at the same time and no one is singled out.

The side benefit to this kind of communication is that seeing it come from your business as a general communication helps underscore the fact that they are working with a business, not an employee.

Which leads us back to the original question: what to do about a client who continues to call you this when you have repeatedly asked them not to.

On the one hand, it could be an innocent mistake.

It is sometimes difficult to rid clients of old habits when they’ve been with us awhile. In which case, a heart-to-heart conversation with the client would be in order.

You could start the discussion, for example, with something like this:

“We’ve talked a few times about what I prefer to be called and how I ask my clients to refer to me when introducing me to others. This is something that’s important to me and my business. I’ve noticed that you still call me your assistant in those situations. Is there a reason why? What can I do to help you remember how to introduce me?”

I would very intentionally incorporate use of the words “client” and “business” to help this client understand the nature of the relationship. Because it’s also often the case that they simply haven’t been properly educated about that (which is on us, not them) and so they very innocently, but still mistakenly, may think you are an assistant.

And then listen to what they have to say and work toward a solution.

Of course, if you have a client who doesn’t give a good darn about your feelings and wishes, you have to ask yourself, “Is this a client who respects me? If there’s no mutual respect, is this someone I should be working with?”

Here are some blog posts that expand on this topic further that I think you’ll find helpful:

Dear Danielle: How to You Introduce Yourself to Clients and Prospects?

How to Have Clients Help Promote Your Business

Dear Danielle: This Client Is About to Ask Me to Pose as His Employee

Thanks for the question, KP. Let me know if this was useful to you. 🙂

***

Have you ever been in this situation? How did you handle it? Do you think my tips will help you better educate your clients and navigate this in the future?

Shaping the Relationship with Your Words

Shaping the Relationship with Your Words

I never use the word “outsource” or “delegate,” and I don’t let clients use that kind of terminology with me either.

They aren’t delegating or outsourcing to me any more than they “delegate or “outsource” to their attorney or accountant or designer, etc.

I’m not their lackey. I’m a professional they engage so that they can benefit from my valuable expertise (in our case as Administrative Consultants, that is the expertise of administrative support).

We work together collaboratively (together being the operative word here) on administrative work and goals they have entrusted to me.

This kind of languaging changes the flavor of the relationship in the way I need for clients to see and understand it: as their business peer, administrative expert and trusted advisor.

Clients come to you with varying degrees of understanding about what you do, how you work together, and what the nature of your relationship will be.

Many may not have the faintest idea about what we do.

Others might have some vague notion that it’s like having an employee only you work from home for them (which would be wrong).

Others may have read an article filled with all kinds of misinformation and come to the table with the wrong preconceived ideas and expectations entirely.

This is why it’s always your job to educate and inform clients when they come to your website in the way you need them to be, so they have an accurate understanding about these things and approach you with the appropriate mindset and manner.

This makes for far more ideal client candidates and getting and working with those clients much easier.

The words you use are setting perceptions and expectations in clients, painting a picture for them of how to understand the relationship.

How are you educating yours?

Using Terminology Correctly

Using Terminology Correctly

It’s important to use correct terminology in business.

Communication, and ensuring there is understanding, hinges upon using language and terms correctly.

For example, a lot of people use the term “outsourcing” incorrectly.

Outsourcing is when a business (typically a large company) offloads specific functions, or even a whole department, to a contractor to perform that service independently.

Like when you call a company and they have outsourced their customer service to an offshore call center. That is both outsourcing and offshoring. There is little or no personal, collaborative relationship.

Or when a service subcontracts their client work out to a third party provider… that is also outsourcing. 

Administrative Consulting is the opposite of that.

Administrative Consulting is a one-on-one, direct and personal, collaborative partnership with the client providing a right-hand relationship of administrative support across-the-board. The client and Administrative Consultant work together closely and personally.

That’s not to say that someone can’t or shouldn’t be in an outsourcing business if that’s what they choose to do. However, that is not an Administrative Consulting business.

If you’re in the outsourcing business, you are not in the Administrative Consulting business.