HOW MUCH WORK DO YOU GIVE AWAY?
Since the collapse of our economy and job losses at an all time high, people are starting side businesses to make ends meet. Now that they have a small business, they have to conduct business as usual. But, what is business as usual?
It use to be that a client would court an agency or freelancer for a meeting or two, then decide if they wanted to work with them based on those meetings, their work and whether or not the client was serious and ready to get started. All are important factors to consider as a small business owner or independent contractor when you are being courted by a potential client.
What happens if the client needs to meet with you three or four times before they make a decision to work with you? Then what? You're not getting paid to meet with the potential client and there are no guarantees that a client will sign on. As an independent contractor, how do you gage the amount of work you give away?
GO WITH YOUR GUT
There are certain tell-tale signs that a potential new client is not serious about starting a project. For example, I always ask for a deposit before I give too much time and effort away. If the client is serious about working with me and starting their project, they pay me the deposit and we get started. If the client is not serious about starting a project or not sure about working with you, this is there moment to say 'thanks, but no thanks.' In either case, this is the time to put up or shut up.
Sometimes, a client will need a little more caressing than a meeting or two with you, alone. If this is a big client working on a potentially big project, you will meet with more than one person from the beginning and have many bridges to cross before approval. As an independent professional, you must gage whether or not this potential new client is worth the time and effort it may take to win them over versus the amount they will be willing to pay for your services. Either way, there are many things you must take into consideration before you give away too much of your time or ideas.
A CLEAR UNDERSTANDING
One thing is for sure, a 'real' client will rarely waste too much of your time deciding whether or not to work with you. Ninety-percent of the time, a 'real' client will have already made up their minds to work with you before they meet you and meeting you is just to seal the deal. Unless you show up late or not at all, this client will have a clear understanding that time equals money. They will sign your contract or estimate and have no problem getting you a deposit check to get started.
However, you must be clear in your contract or estimate about how much time it takes to do the work you are being asked to do. I always break down my estimates by the number of hours and cost per hour. If the client needs to cut the budget, it is clear they will be losing something in the process (unless you agree to a lower rate). It is important to have a clear understanding of how much work you are willing to
give away in order to
get a project. But keep in mind: no one is in business to give away business.
BREAK IT DOWN
When an artist gives a client an estimate for work, it should detail the amount of time it takes to create the artwork, in phases. Nothing is 'zippity, dippity, do' and done. If you working on an important project, creating artwork is always a process. Especially, to do it right.
The client does not know how much time it takes to brainstorm or to scan in some sketches and convert to digital format, so everything you can think of should be included in your estimate.
KNOW YOUR LIMITS
The bottom line is you have to know your limits and your business well enough to know if a potential new client is going to add to your business in any way, shape or form. Once this is determined, you will know how much time to give away, as well as when to walk away, from a potential new client.
Some clients want a year's worth of free work before they throw you a project. If your business can afford it and that is the type of client you want to serve, then you are doing something right and you should be writing your own blog. Otherwise, you have to know when it's time to cut your losses and move on. You're not in business to lose money, are you?
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Red Flags: Listen to your gut – ProjectDesignLA
Beware of bad clients: Red Flags II – JRey