Archive for the ‘Rants’ Category

Here Is What Constitutes a Bad Client

For a while now, I’ve been observing the results of someone working with someone I would deem a bad client.

The situation has gone from bad, to very bad, to really, REALLY bad.

For the life of me, I have never understood what they see in this client, what could be worth all the hair-pulling problems and extra work this bad client causes.

Now the chickens are coming home to roost, and it emphasizes the cold hard truths I and others have always expounded on when it comes to taking on unideal clients: DON’T DO IT!

  1. You may see the prospect of big financial returns, but I guarantee you, it is nearly never worth all the time, trouble, and energy it costs you in the end (IF you ever do see the kind of money you thought they represented).
  2. Bad clients are FAR more work than they are ever worth.
  3. Bad clients like to make grandiose claims and big promises that almost never come to fruition.
  4. IF they do hit it big (that’s a big IF), bad clients easily/conveniently forget the promises they made to you when they needed you to help them and go along for the ride.
  5. Bad clients are hopelessly, endlessly disorganized. They resist and make difficult any and all attempts by you to create some semblance of order, making it impossible to work with them.
  6. Bad clients live in a constant state of chaos, and their chaos becomes your chaos.
  7. Bad clients like to keep everything in their head. They don’t listen when you remind them that they are no longer working alone and thus, there simply MUST be systems put in place for working together.
  8. Bad clients are always late. They do everything at the very last minute, leaving you little to no time to do a proper/thorough job. They expect you to then drop everything and deal with the consequences.
  9. Bad clients create 10 more problems for every one that you solve. Instead of getting more efficient and organized, they only get worse. They make everything more difficult than it has to be.
  10. Bad clients are arrogant. They always think they are smarter and know more than everyone else. They brush off your advice, recommendations, and suggestions (even when they have solicited you for them!). When they do take a suggestion you have offered, they act like they thought of it themselves.
  11. Bad clients are constantly cutting corners and playing stupid games, thinking they can outwit the system. This nearly always ends in disaster and just causes more work and headaches for everyone involved. (TIP: It is FAR more work and difficulty trying to cut corners and game things than it is to simply do thing correctly in the first place. As Judge Marilyn Milan says, “The cheap comes out expensive.)
  12. Bad clients are sloppy and pig-headed. They will cut their nose to spite their face, spend $10 to save a penny. They’re always trying to take shortcuts and think properly dotting their i’s and crossing their t’s is for sissies. This creates a house of cards that ends up biting them in the ass one way or another. There is a reason there are commonly accepted standards of business practice and anyone who shrugs them off as unimportant is a huckster, not a proper businessperson.
  13. Bad clients are selfish. They are always devaluing others and looking to take advantage whenever possible. The only person they value is themselves.
  14. Bad clients are greedy. They think the ends always justify the means. Ethics and integrity are afterthoughts (if they are considered at all). They want ALL the credit and will steal it even when it’s not theirs to be taken or given.
  15. The problems that bad clients cause spill over into your other client relationships.
  16. Bad clients cause your work quality to suffer all the way around. They are so needy and demanding and their work, in turn, so arduous and time-consuming, it unfairly deprives your other, more ideal (and easier to work with) clients from your equal time and attention and best efforts.
  17. Bad clients want everything for nothing. They will gladly pay you tomorrow for a hamburger today (and tomorrow never comes soon). You can’t pay your bills with IOU’s.
  18. Bad clients think everything they do is worth millions and everything you do is worth pennies. That is to say, they devalue, demoralize, degrade (in turn, eroding your confidence) and don’t appreciate all that you do for them.
  19. Bad clients constantly pay late, if at all. They’re always trying to string you along. (Of course, you have some culpability here. It’s up to you to put your foot down the first time this happens and to fire the ass of anyone who continues to disrespect you in this way.)
  20. Bad clients ruin all the good work you have done for them on their behalf. For every gain you make, they do something that causes twenty steps back.
  21. Their poor integrity can besmirch YOUR reputation and integrity. God forbid you should rely on them for referrals; you’ll just get more of the same type of bad client.
  22. Bad clients never take responsibility for their poor habits and practices and are the first to blame YOU for the problems they caused/brought on themselves.
  23. Bad clients are also the first to report you to the BBB or the bar or whatever governing/overseeing agencies you are accountable to. They are incapable of taking responsibility for the problems and conditions they themselves create.
  24. Bad clients cannot be saved from themselves and will bring you down with them.
  25. Bad clients who don’t run their businesses properly or ethically can be and often are sued. And guess who can get dragged into that mess whether they like it or not? Yeah, you and everyone else who has worked with them.
  26. Bad clients are the quickest path to poor health, stress, overwhelm, and burnout.

Never taken on any client just for the money. I can’t emphasize this enough!

There must be a fit. You have to genuinely like them and what they do.

They must be honest and ethical and do things in a way you can respect.

They must treat you with dignity, honor, and respect.

They have to be willing to let you do what you do without making it more difficult. If not, you have nothing to discuss and there can be no relationship.

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.

Something for Nothing

This kind of thing makes me cringe…

I popped into LinkedIn today and immediately came across a colleague’s post where she was sharing some client praise. Her client wrote:

“I’ve had 10 times more response from your social media design than I have from the one a graphic designer did for me and charged me 3 x the price.”

From the apparent value this client got, this colleague should have charged 3 x what she did. 😉

This is what I mean about people using our industry as cheap substitutes.

It’s so insulting for clients to rave about how little they paid, particularly when they know good and well what properly professional fees cost.

What this client said was the equivalent of shouting to everyone:

Hey, everybody, we’ve got a sucker over here! She practically gave away something that’s making me money and growing my business that I would have paid anyone else 3 times more for.

I have no doubt this colleague will eventually realize the value of her talents and start charging a more commensurate rate for the value that clients receive from her work… particularly if she keeps hearing “praise” like this.

With devaluing clients like that, who needs to earn a living from their work? 😉

You Are NOT a Remote Worker

I find it annoying when articles written about people in the administrative support business refer to them as “remote workers.”

People who are running businesses are not “remote workers.”

“Remote worker” is a term of employment meaning “telecommuter” (i.e., an employee who works from home).

Attorneys are not remote workers. Accountants are not remote workers. Web designers are not remote workers. Bookkeepers are not remote workers. Coaches are not remote workers. And neither are people who provide administrative support as a business remote workers.

These are professionals who are in business providing a service and expertise.

This stuff is so important to your mindset in business because how you think of yourself, how you understand your role, directly affects how potential clients see and understand your business as well, and it affects how your relationship rolls out from there.

Discussions like this are good reminders to always keep in mind that how you think about yourself and the service you’re in business to provide and the words and terms you use impacts how you portray your business and how would-be clients see it, and the kind of clients you attract.

If you don’t want clients who treat you like their employee, you need to portray your service in a more business-like (not employee-like) manner.

That includes not using employment terminology in any way — including the word “assistant” or “remote worker.”

***

How about you? Did you realize that “remote worker” is a term of employment? Is there content on your website that can be improved so clients are better informed about the nature of your
business-to-business relationship?

This Is the Most UNhelpful Phrase on the Planet

This Is the Most UNhelpful Phrase on the Planet

It’s up to you. You can do whatever what you want.”

No sh*t, Sherlock. OF COURSE, I can do whatever I want.

What I was looking for were your opinions, advice, ideas and feedback… or I wouldn’t have bothered asking.

Duh.

When someone (particularly a client) asks for your input, they are looking for your personal thoughts, guidance and experience.

Why do you think they should (or shouldn’t) do something a certain way? What will they gain? What are the ramifications of going another route? What might be the hidden costs, issues or benefits?

Step up. You’re the expert. They’re looking for you to lead them, to help them.

It’s up to you” is a lazy cop-out.

***

It’s easy to sit back and wait to be told what to do. But those aren’t the people who create value, turn clients into raving fans — and make the big bucks.

Can you think of an example where you stepped up for a client when it would have been easier to just let them wander in circles by themselves?

Rant: I Have Never Seen Bigger Crybabies

RANT: I Have Never Seen Bigger Crybabies

Rant warning here. This has been brewing for a couple months now, and I just have to get it out of my system, lol.

There is this crybaby series of articles that Freelancers Union puts out that have been driving me a bit nuts.

Every ezine issue, they feature some sob story from a freelancer about how a mean, evil client stiffed them hundreds or thousands of dollars.

Omg, I’ve never seen a bigger bunch of professional victims.

And now they’ve got this ridiculous “Freelancing Isn’t Free” campaign to get some new laws on the books to protect freelancers from deadbeat clients, as if they themselves play no role in why they aren’t getting paid.

The one thing, the ONE SINGLE PROBLEM at the root of all of this is that these people can’t seem to grasp or get it through their thick skulls that as freelancers they are in business for themselves.

And business owners decide how things work in their relationships with clients. Business owners choose who they work with and who they don’t. Business owners determine what they are paid, when they are paid and how they are paid.

Business owners can either run their business like a business, or they can be morons. The choice is theirs.

What contributes to this mindset of idiocy and victimhood is the word “freelancer.” That word needs to be abolished.

In society at large, people don’t understand that freelancer is merely another word for business owner.

It doesn’t matter if you have a day job and do a little work on the side. When you are doing that side work, you are being in business for yourself and wearing the hat of business owner. There is no in-between classification. It’s either/or. One or the other. That’s it.

So when you’re working your day job, you’re wearing your employee hat and all the rules, laws and taxes that apply to employment are in play.

And when you work for yourself and hire yourself out to people, you are wearing the hat of business owner. Doesn’t matter if it’s part-time, full-time or just a little here and there; doesn’t matter if you use the term freelancer, independent contractor, self-employed or whatever—these are all terms for the same thing: BUSINESS OPERATOR.

The sooner you get that through your head, the better off you will be because THEN you can start running your business like a business the way you should be.

Let Me Demonstrate

There are some common themes running through all of these stories. Here’s an example from the most recent victim article. This “freelancer” says:

“In 2015, I agreed to do some editorial work for a client. The agreement was verbal and, because I trusted her to some extent, we did not have a contract. Shortly after I completed the agreed-upon work, she slightly altered the work I produced, claimed everything as her own intellectual property, and failed to pay the $500 she owes me.”

Her first mistake was not formalizing the agreement in writing with a proper business contract. Whose mistake is that? It’s not the client’s job to do that, it’s hers. And she made the choice not to use one.

While a verbal agreement is still a legally binding agreement, it does make it more difficult should you have to take things to court. So, when you are a freelancer, you are in business, and that means conducting business properly and using proper legal business contracts — upfront, every time, with every client, no ifs ands or buts.

The other problem here is that this freelancer’s client seems to assume that their business arrangement was a work-for-hire one.

This is another reason you always, always use a proper business contract. It’s why I always rail against work-for-hire agreements as well, which is different from a business contract.

When you blindly and ignorantly enter into a work-for-hire agreement you can be giving away all your intellectual property, which you may or may not have bargained for.

The work you do and the ownership of a creative work are two separate legal values. This is why they are stipulated and charged for separately. And ownership of a work cannot be given away without express legal written permission.

If you don’t know what you are doing, are using the wrong kind of contract, or haven’t had an attorney draft or approve your business contacts, you could be signing away all rights to the creative works and proprietary intellectual property that you created!

Because of these critical distinctions in the law, it’s imperative as a business owner for you to get yourself some basic intellectual property education.

For example, let’s say as a business, I have a client with a particular need. I end up developing a tool for that need that ends up being useful for any number of my current and future clients. I realize that I could license use of this tool to others and add a lucrative additional revenue stream for myself, and decide to put it out to market.

However, if I entered into a work-for-hire agreement with a client, that tool could actually be owned by them automatically. Meaning, they could be free to sell it or do anything they want with it, including telling you that you may not sell it or use it with anyone else, and that it belongs to them because you were in a work-for-hire agreement and anything you create in the course of working with them belongs to them.

How would that sit with you?

As a business, I am damn sure not going to hand over ownership of my creative works, inventions and intellectual property or proprietary processes lock, stock and barrel. That would mean I couldn’t continue to profit from them, use them with others, or in any other way adapt them for other uses.

Even if I was a mind to do that, I wouldn’t be giving away that ownership for free. Oh, hell no!

But there would be nothing you could do because you were the fool who entered into a work-for-hire agreement instead of a proper business contract and didn’t set the terms properly.

This is why it’s so important to NEVER blindly enter into any blanket work-for-hire agreement, or ANY kind of work-for-hire agreement in my opinion, and to use proper business-to-business legal contracts that contain the proper languaging and terms when it comes defining the relationship and who owns intellectual property.

Here’s another excerpt:

“Although $500 may not sound like much, I’ve put together many small deals for less than a thousand dollars. If all my clients were to behave this way, my life would be a constant nightmare of living in fear of being shortchanged. Though it may seem disadvantageous to go through the stress of chasing down a couple hundred dollars, that couple hundred dollars could cover my electricity bill, or even groceries for a couple weeks.”

Wahwahwah. Then don’t do things that way. You act like you were prevented from doing things any other way.

Wrong. You made a choice.

On top of running your business like a business and using proper business contracts, upfront, every time, as a business you also have the CHOICE about who you work with.

Vet your clients properly. Put them through a consultation process so you have at least some idea of who you are doing business with and what they may or may not be like. You get to screen and prequalify clients as a business owner.

A proper consultation can help alert you to red flags that indicate someone may not be worth working with.

Stop rushing or bypassing these vital and important business protocols which also, by the way, help clients understand the CORRECT nature of the relationship and give it proper professional respect. These steps play a big role in setting the stage to make sure you get paid, in full and on time, every time. HUGE!

Likewise, who says you have to wait until work is done to be paid? You can charge the full fee upfront if that’s what you want to do. It’s a perfectly usual, legal, established standard business practice and option.

You can also split a project into phases with the payment for each phase due upfront before beginning work on any next phase. Or, you can charge a deposit or a percentage upfront.

Mitigate your losses if you are taking a chance on a client you don’t know and have never worked with before by getting some kind of payment upfront. Likewise, they’re going to take the business more seriously when they have skin in the game.

There Don’t Need to Be Any New Laws

There are already laws on the books to protect you in these matters and you’ve always had the choice to avail yourself of those recourses.

The problem is being a business moron and not conducting business according to how business is conducted.

It’s that YOU don’t understand that as a freelancer you are a business, and that YOU define these things in your contract that you should have been requiring clients to sign upfront.

You’re not a temp, you’re not a “contract worker.” (Tip: A contract worker is an employee, not an independent self-employed business owner.)

Stop letting clients tell you how things work in your business.

And stop accepting “positions” with companies that should be paying you like an employee but instead are stealing from you by illegally classifying you as an independent contractor. (Hint: Business owners don’t work in positions; that’s an EMPLOYEE.)

If that’s what they are doing, turn their asses in to the IRS and your state Department of Revenue and Employment Security Department.

Because if you really are an employee (which is determined according to the federal laws that define these two distinctions and which employers don’t get to just decide arbitrarily), then they are stealing from you your rightful wages and employer-paid share of taxes and benefits.

By not understanding these distinctions, by not educating yourself, by willfully disregarding these things, YOU are equally guilty of perpetuating the problem of deadbeat clients.

Stop being a bunch of wishy-washy, crybaby pushovers who whine about being victimized all the time. You have the power and the choice to do things differently!

Sure deadbeat clients are shitty people; there’s a special place in hell for them. But guess what? You allowed them to treat you that way by all the choices you made.

No one can take advantage of you without your permission. Stop acting like a victim and like you had nothing to do with it, and start running your business like a business.

Take responsibility for the choices YOU made to not run your business like a business, rushing processes, not conducting proper consultations and due diligence, choosing crappy clients, not using contracts, and not getting at least some money upfront. It’s really simple.

Until you take responsibility for that, nothing in your business and life will change.

And listen, I don’t mean to be picking on anyone personally.

It’s one thing to be new in business and learning the ropes and making newbie mistakes. There’s a learning curve. We’ve ALL been there.

Beyond that, though, there is just too much information out there any direction you look to remain ignorant long. These aren’t people who are new making these dumb choices; these are people who knew better and what they should have done and chose not to do it.

I’m equally annoyed with organizations like Freelancers Union that don’t do their job as a professional organization which should be to properly educate their members and the marketplace, so the stupidity continues.

Because 99% of these problems wouldn’t exist if these people understood how business works, how it is properly conducted between two businesses, and that as freelancers they are business owners (not “contract workers” or employees).

I’m sick to death of all these whiny articles collectively because they don’t empower anyone, they just keep them acting like victims who blame others for their problems and many of whom are going to keep doing the same bone-headed things over and over.

Want More Dissections?

Here’s another example:

“Because I knew and trust my contact in NYC, I went ahead and started work without a contract, though I did send my salary requirements and scope of work via email for their records. I was told the contract was in the works.”

Same ol’ song and dance. You don’t do business without a contract and you don’t start work until that contract is signed and everything is agreed upon.

The other problem here is this freelancer uses the phrase “salary requirements.” Um, business owners – which again, is what freelancers are — are not paid a salary. EMPLOYEES are paid a salary. Someone who is in business for themselves charges a fee or rate and tells the client what, how and when they are required to pay, not the other way around.

And another:

“I proceeded to organize vendors, source supplies, find caterers, etc. There was some drama around whether to have the launch party in the office or at a venue nearby. They changed their minds about 6 or 7 times. The indecisiveness was alarming, but I rolled with it and did my work. The entire time I kept asking for the contract.”

You should haven’t kept asking. You should have stopped working and told them that the contract was required before any work was to begin or continue. Period.

This also hints that there was either no consultation conducted or it was a sloppy, not very thorough one. Otherwise, you could have established all the specifications about how the work and decisions were going to be made, who the ONE contact person was that you would be dealing with, etc., and avoided all their internal drama. There is no reason you needed to be part of that.

Moreover:

“Finally, the week of September 21, the majority of the folks from Europe came to town. I had a few meetings and eventually received the contract. The rate was correct, but the terms and conditions were way out of line. I wasn’t about to agree to a six-month non-compete and 90-day payment terms. It just didn’t make sense for the scope of my work! So I redlined the contract and sent it back.”

So let me get this straight, you let them write your contract for you? Ridiculous!

You’re the business owner; your contract is YOUR job. You don’t abdicate that responsibility to clients. Your business requires YOU to set the terms. Clients have only to agree and sign or suggest changes. Or you don’t do business together, simple as that.

Instead, you let the client treat you as if they were your employer and it was their role to call the shots here. WRONG. And stupid. NOTHING should have moved forward until the terms were finalized and YOUR contract signed by the client.

And:

“At this point, I was told that I was only hired for the month of September and not October. They hired an office manager and I was to give her a download on everything I had set up, which I did without complaint. I was now a week out of the job and still hadn’t received payment. When I followed up, I was told there was an issue with my invoice and that the company wanted a work log. I had never been asked to submit my hourly tasks and my rate was a day rate. Furthermore, I had clearly stated overtime fee after an 8-hour day.”

This person clearly doesn’t understand that she is not an employee. She uses employment terminology, lets the client operate as if they were her employer and isn’t understanding how she herself is allowing the lines of employment and business to be blurred.

You aren’t “hired” by clients, you are “engaged” by them. And you don’t get “overtime” as a business owner. Overtime is something employees are entitled to, not business owners.

Instead, business owners stipulate IN THE TERMS OF THEIR BUSINESS CONTRACT BETWEEN THEMSELVES AND THE CLIENT when late, rush or after-hours fees and charges will be incurred.

If you don’t want to be in business for yourself, and you are working with a client as if you are an employee, then you ARE an employee, and they legally need to be putting you on payroll and adhering to employment laws.

On the other hand, if you do want to be in business (which you are, automatically, if you work for yourself at any time), then you have to run your business like a business. There just isn’t any way around this.

But here again, this is yet another freelancer who doesn’t understand that they are a business owner and is letting a client operate with the mentality that they are some kind of employer and dictating things to her, which they have absolutely no legal right to do. She abdicated her own business responsibilities and now that she’s having problems with them is her own damn fault.

I know YOU are going to be smarter in your business, right?

PS: If you want to save yourself these problems and learn how to conduct business properly, be sure to also read my article How to Avoid Getting Stiffed on Payment

Dealing with Dummies

Dealing with Dummies

What frustrates me about the Internet is that you have to wade through a lot of idiots to get to the smart people.

It’s frustrating and disheartening to constantly be faced with the disappointing evidence of the dumbing down of America.

So, a fairly well-known software service contacted me the other day:

Hi Danielle, My name is ___. I work at ____. I noticed your post about if you want to win, focus and I love how you emphasize the importance of having your eyes wide open during start-up. Given your experience with/in business and technology, would you be interested in writing a post on your blog to share how incorporating technology has helped you run your business more efficiently? From specific platforms you’ve had success with or certain apps you would like to further explore, we’d love to see what tools you’ve discovered to make managing your business that much easier. Please let me know if you are interested in this post idea, and I look forward to hearing your thoughts!

While having your eyes wide open in business (and not just in the start-up phase) is a constant theme in my writing and mentoring, it had nothing to do with that particular blog post, which was about focusing and getting clear about what business you’re in.

So already I’m questioning this person’s reading comprehension skills.

My second thought was, “Um, okay. Thanks for the suggestion, I guess, but been there, done that.” Writing about the various tools, tech and systems I use in my business is something I’ve written about extensively on my blog over the years.

So I’m thinking, given this person doesn’t seem to be the brightest crayon in the box, maybe what they are trying to ask for in the most unclear way possible is a guest post for their blog. So I bite, and send this reply:

Hi X, I’ve written on that topic on my blog lots before. Are you looking for a guest post for the X blog?

This is what I get back this morning:

Hi Danielle, Thanks for getting back to me and I appreciate the quick response. That’s awesome you have written about us before! For this post we are looking for you to share in a post on your blog how you use technology to make your blog/business successful.

Oy vey.

Um, where in any of that dialogue did I say that I have written about them before? (Answer: I didn’t.)

And I just got done telling you that I’ve already written about that topic. Do you want me to point you to one of those posts?

Or is this some inane strategy of obliquely trying to get people to write about your product? No one has time for games like that and I’m not a shill.

How on earth can any kind of communication occur when this is the level of intelligence and comprehension you’re dealing with?

I give up.

PS: A thought did just occur to me. Maybe this person isn’t American at all. Maybe this company outsourced its important PR outreach to some cheap offshore company, and this is the level of quality they got. Ooo, smart thinking, company X. Way to invest your money…. not. Either way, this level of ineptitude is not a good reflection on you or your product.

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.)

Rant: We All Have to Pay Our Way in this World

Rant: We All Have to Pay for Our Own Way in this World

A colleague forwarded a comment to me from some listserv where apparently people had recommended me/my products to someone and her comment back was, “Lot’s of great ideas. Push seems to be to join/purchase.”

WTF?

What a ridiculous thing to say.

This is a business community and professional association. Of course there are things that you (gasp) have to actually purchase. What, do you walk through life holding out a tin cup to everyone you meet like some kind of panhandler on a street corner?

First of all, we don’t charge a membership fee to join, so I don’t know what she’s talking about there.

But more importantly, what on earth does that even mean? That I should give away everything for free? That she shouldn’t expect to pay for knowledge and training that was earned through experience and paid for with my own blood, sweat, tears… and money?

What a fricking freeloader/welfare/loser mentality.

And it’s exactly why so many in our industry struggle financially, never get ahead and close their businesses left and right: they expect everyone else to give everything away to them for free.

I would ask her: Do YOU work for free?

Do you go to the grocery store and say, “Well, all this food looks delicious, but the push seems to be to PURCHASE it.”

How would you feel if a client said to you, “Seems really great and highly skilled. But push seems to be she actually wants to be paid… in money…”

(You know, because food and clothes and utilities and rent/mortgages aren’t free and don’t pay themselves.)

I have my own practice to run. And all the free stuff that I do give away (which is a LOT) cost something… they cost me time, energy, attention and real money.

The sales of my business products, coaching and occasional classes are what fund all that so that I can continue helping the hundreds of people who turn to me in this industry.

I charge for those things also because I honor and respect my own value. And because it’s a proper business example. I wouldn’t be worth my salt as a mentor if I modeled anything else.

She’s obviously not my target market, whoever this was (because I work with success-minded women). I post this more as an example of what not to be like in business.

Her kind of attitude—the poverty/welfare mentality—is what will hold you back and keep you poor.

It’s one thing if you don’t have the money. There’s no shame in that. We all start somewhere and maybe you just have to save up and work extra hard to get the things that will bring you success.

But don’t devalue others and criticize them because they charge for the value of their time and expertise and the knowledge and guidance that will help you get somewhere in your business.

Pay for your way in this world. Everyone else has to.

And when you are given something for free—which is a gift, not a self-entitled right—have the good breeding to say thank you and show some manners and appreciation.