Download - Red Flag Client Playbook
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Red Flag ClientPlaybook
Charge What Youre Worth & RemoveClients That Dont Matter
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Red Flag Client Playbook: Charge What Youre Worth & Remove Clients That Dont Matter
Introduction
Problem Client #1: The Price-First Mentality
Problem Client #2: They Expect Free Work
Problem Client #3: They Commoditize You
Problem Client #4: They Use Fiverr.com
Problem Client #5: Discount Seekers & Tire Kickers
Problem Client #6: The Control Freaks
Problem Client #7: They See You As Their Employee
Problem Client #8: The Scope Creeper
Problem Client #9: The Confused / Disorganized Biz Owner
Problem Client #10: They Refuse to Pay Upfront % Fee
Problem Client #11: They Want to Pay In Referrals
Handle problem clients with integrity. Upgrade your perceived
value. Charge premium rates.
Table of Contents
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WHATS INSIDE
Parting Thoughts, Key Takeaways, About the Authors 64
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Page 1
Choose the projects.Choose the clients. Choose
what works for you.
Welcome to the Red Flag Client Playbook! Further investing in yourself as acreative consultant takes a lot of work, creativity and strength. For that, we thankyou for downloading this guide. We know from experience the importance ofestablishing trust, authority and authenticity in the eyes of your clients. Theseattributes, coupled with key triggers well discuss throughout this guide, willdictate the overall success in working with the clients you WANT and oninteresting projects that cause you to grow. We want to not only support youand others to be the best in your eld, but always be the go-to CHOICE in yourconsulting career. Our hope for you, the reader, is that you get to:
Given the vast eld of consultancy, there are a ton of mistakes that new ANDexperienced creative consultants can fall into, due to either a lack of preparation(which were pretty sure is NOT you), or a lack of knowledge of the psychology ofpowerful client/consultant relationships. When the psychology is understood, therelationships will dictate an outcome where both parties come away with what they
want. From our experience, these are the outcomes and client experiences thatallow the top consultants in their eld to charge premium rates.
Introduction
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What this not-so-brief, but easy-to-readguide is:
A document to arm you with the ability to not only identify problemclients, but how to turn SOME of those problem clients into ideal ones.The types of clients that let you do what you do best, all while happilypaying the premium fees that you ask for.
An outline of a few red ags we have encountered throughout ourcombined 25+ year consulting practices, and some solutions / scripts tocombating those red ags.
A way to reach out to other global consultants, share some of the nerpoints from our careers and then listen / gain valuable feedback from allof you to dive into deeper issues. This is only the beginning. We want toget hyper-focused on numerous other issues with Charging What YoureWorth based on starting the conversation with this document.
We do not go into pricing strategies, formulas or guidelines.
We do not include specic frameworks, deliverables or documents. Wedlove to create those for you, so please let us know what youre looking forvia feedback and well be happy to produce it . . . IF IT MAKES SENSE.
What this not-so-brief, but easy-to-read
guide is NOT:
We are not the last word in digital consulting, or consulting in general, forthat matter. Everyone has opinions and ideas on how to interact with clients,and were just recommending some of our own based on our experiences.In life, there are no guarantees, but learning from the experience of othersuccessful people can denitely stack the deck in your favor. There go,we DO NOT make any guarantees for your outcomes, but we hope this washelpful.
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Page 3
We believe the best entrepreneurs
and consultants focus on educatingand informing their clients.
Whether you are a digital strategy consultant, branding expert, or digital
services provider (web design, web developer, UI/UX pro, mobile appdeveloper, marketing copywriter or SEO guru, make no mistake: THIS
GUIDE WAS WRITTEN FOR YOU.
The best consultants also aim to always provide
more than just a commodity service. Rather,
their goal is to help the client gain a clearer
picture of their current business challenges
and the opportunities that lay before them.
As a result, the client can make an informed
decision, based on established trust and
authority, ultimately bringing them the tangible
results they are after. Information is the mostvaluable, sought after product on the market.Knowledge of this alone should give you thecondence to charge what you and yourexpertise are worth.
We consciously wrote this reference playbookto be a one-size-ts all for all digital consultants- these types of red ag client archetypesarent conned to just a single industry. Rather,there are complex psychological and behavioral
aspects at play, dictating the outcomes of nearlyevery client / consultant interaction. The more
you prepare, they better youll be able to handle
these scenarios in the moment, when it counts.
Weve been in your shoes on countless
occasions over many client engagements over
the past 15 years each. Weve learned from
hands-on experience (including epic failures)what consistently works and what doesnt.
Were fortunate to have built up a strong base
of knowledge of the precise psychology and
steps to convince high-end clients of our worth,
in terms that they understand.
Each section will diagnose the frequentlyencountered problem client and provide simple
actions for overcoming each scenario, often
with verbatim scripts we have used with our
clients to more powerfully dictate the terms
of the engagement. These strategies have
consistently led us to the retention of more
sophisticated clients, commanding higher rates,
decreased stress and nearly eortless referrals.
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Ready to start charging what
youre worth as a creativeprofessional?
At the end of this guide there will be a link to a feedback form. Please
take the time to tell us what you think of this document. Were big boysand can handle it. We always tell our clients that we cant eectively help
them unless they tell us what they need more information on or wouldlike to know.
With that, lets jump right into the most commonly experiencedchallenges most have us have seen in our client interactions.
PLEASE NOTE:
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Problem Client #1:
A Price First Mentality
When a clients rst question for you is what areyour rates, this is an opportunity in disguise for youto take control of the situation and steer it towards
where youd like it to go. Of course, an ideal clientwill be asking about the tangible value your
expertise and project execution will add rst, whilediscussions of price would come much later.
Weve both faced numerous experiences where
a clients rst question was xated on price alone.
Yet, with careful maneuvering and a focus on clienteducation, weve achieved upward exibility onprice, once our authority, expertise and explicit
value to their business was communicated.
Price is a uid concept. That is, there shouldntbe any rigid structure to pricing as it adapts to
changing conditions. Conditions you set. Any
business owner or client worth their salt should
want to hear value rst, so they have contexton how your fee ts into the potential Return on
Investment (ROI) your work will deliver them.
Simply put, if a client is focused on cost over any
other factor, they are missing the bigger picture
of what SMART results they could potentially
be achieving. SMART = Specic, Measurable,Attainable, Realistic & Timely.
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SMART results are clearly dened businessoutcomes that might include:
Increased % of closed sales
Increased gross (or net) prot
Improved eciency or time to marketIncreased recurring revenue
Increased net new customers acquired
Higher click through ratios (CTR)
Decreased bounce rate for a website
Decreased attrition
A good client sees payingfor value as a savvy
investment. An investmentthey are willing to make, toensure their desired resultsare achieved (aka a return).
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Any business in need of professional services should have a clearly denedbudget for what they are willing to pay. This topic often sees a lot of back
and forth, especially for those that are less experienced in negotiation - orlow on self-condence.
The client might be hesitant to reveal their budget, in fear that youll bump
your prices to t those numbers. Whereas you, the consultant, dont want toquote a price until you know the full nature of what is needed, such as:
Can you deliver the dened results they are after?
How much time investment from you is required?
Is this a good client t?
We want to show exactlyhow to avoid this kind of
stalemate, so you can get tothe win-win, and close more
ideal clients.
Try this 4-Step Process
How To Overcome
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The 4-Step ProcessAfter getting to know what their business is and which customers they serve, use this 4-step process to
drill down to the precise problem you are there to diagnose and solve:
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Where would you like to be? In other words, whatdoes success look like to your organization usingthe SMART approach?
SMART = Specic, Measurable, Attainable,Realistic, Timely
Ex: By this time next year, wed like to achieve 60%more sales from our digital channels (i.e. website,
social media, mobile apps, etc.) for our 2 primarycustomer segments.
1.
2. 4.
3.
Where are you currently? What problems are youhaving RIGHT NOW?
This is damn important! You must nd out whythey are experiencing these problems and not
achievingthe results they want. This will help younot only benchmark what you need to accomplish
for them, but help you better prepare a laser sharp
scope of work. Clarity equals power.
What you are trying to gure out: Does the clientlack the resources or expertise? Are internalpolitics interfering with the progress and execution
of important projects? Is the client bogged downin putting out existing res, preventing them fromimplementing any long-term initiatives? If you can
diagnose their pain accurately, youre a big stepcloser to closing the sale.
Make sure to ask probing, open-ended questions.Often times, the root cause for the problem isnot the rst thing that they tell you. Root out theirtrue pain. Whats the bigger problem behind the
problem they have presented you with? Think likea detective.
Ask them how much money they areleaving on the table by not solvingtheproblems they are facing.
This is a big one. In most scenarios, if theclient is knowledgeable of their industry
the number they say will be larger than
what youd like to charge them - at yourmaximumvalue. This is the best strategweve employed to stop charging and
quoting hourly rates. Period.
Ask them how much money they are
willing to invest (its key to use the wordINVEST) to solve this specic problem aachieve the results they want.
NOTE: Dont worry if they initially pushback when asked about their budget.
Well explain overcoming this objection
the Key Action Takeaways section.
Psychology of Success
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You are not a commodity.You are an expert that creates
results.Experts get paid premium prices because they create
premium results.
If you have done this step correctly, you have positioned yourself as an investment intosolving their main problems.
You have successfully removed the perception that you are a cost. Rather, you are now seenas an investmentin achieving a specic outcome - with a clearly dened upside for them.
The client now knows they are experiencing X resulting in a loss of Y. As a result, they willnow likely be receptive to making an investment to solve those problems. You are here to
dierentiate them in the market, save them wasted time, and improve their protability.
This is your value-add to them, not your actual technical skills. Now, the client will be laserfocused on the promised business outcome that your overall skills and expertise can
produce and deliver.
If they still see you as a cost, even after making an airtight case for the value you will create,they are likely not a client t.Not for you, as youre now aiming to work with only the best
clients out there those that place a premium on value and results.
Congratulations!!
Psychology of Success
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Key Action TakeawaysIts important to open a candid dialogue about a clients budget from the start. Still, some clients will hesitate to re-veal their budget, fearing you will scope the project to that exact amount.
To resposition this:
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Tell them you use their budget as simply a benchmark. Its to help you determinehow you can either save them money in the process or be more realistic andprepared if the full scope will take more money.
If it will require more money, tell them that knowing the reality of what kind ofbudget is needed will ensure you can prioritize the appropriate revenue generatingactivities rst.
Create immediate results by going after revenue generating activities rst. Whenresults happen, the decision makers who release annual budgets will be happy. Andwhen decision makers are happy with the ROI of a project, theyll likely release morefunds for subsequent phases.
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Problem Client #2:They Expect Free Work
Expecting to work for free is not only an insult, butits also bad business - and the sign of an amateumentality.
A desire for free work signals they simply do
not value quality results. Its one thing to want tomitigate their risk, so they can feel assured you
are going to do a good job. It is a whole other canof worms (and a red ag) if they value everythingbeing cheap and easy instead of creating a
valued outcome.
This is analogous to getting shoddy work done
by a bargain-basement mechanic. It can lead toeven more problems and pain for the client. Then
in order to clean up the mess of the cheap or free
service provider, it will cost them more than had
they invested in quality and value from the start.
If the client doesnt value quality results above all else, they willlikely not value you, or anything you produce for them.
Any potential client that runs a business knows they cannot stayin business if they give away everything for free, period.
Top-tier clients wont expect this from you.
In Other Words
Yeah, Weve Seen It
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Yeah Weve Seen It
Does Any Of This Sound Familiar:
By doing this work, you can put this on your resume or portfolio. (Uh, I didnt justgraduate college!)
Once we have sales from your work, well pay you. (And if you dont get sales??)
We can give you some of our products. (Great, now were both working for freeand will both go out of business)
Weve never worked with you before. (No time like the present. I bet if you payme Ill do even better work.)
Were in startup mode. (We love startups. Are you aliated with Y-Combinator,
500 Startups or Tech Stars? No, okay, then well most likely never be paid forour work.. And if we do, didnt we essentially create your company for you? Can Ihave 51% equity please?)
We dont know about you,but weve both heard all
of the above and about 20
other zingers just like that.They are, yep you guessed it,
RED FLAGS!!!
How to Overcome
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Explain to them the dangers of FREE work:
Here are 4 possible solutions:
PROBLEM: On any given day, you work on X number of projects. Lets say 2 (1 at a time, ofcourse). Those projects are currently paying you Y per hour. Lets say $75/hour.
For every hour you spend doing FREE work, you are losing $75/hour.
SOLUTION:Treat yourself as your own client, and you will have no problem operating from a
standpoint of value consistently. Even if you have no external clients currently, you always haveyour primary client you. The time you invest into your own education, honing of skills, building
your relationships and brand is the most valuable investment of your time you can make.
Additionally, by working on free projects, you are essentially stealing from your paying clients,
because you are not adding value to their projects. You erode value for existing clients byspreading your focus too thin.Your other clients trust you to make the best available use of your
time, as your output is their potential gain and your compensation.
1.
2. PROBLEM: FREE work is dishonest. You have other clients who trust in your work and they payyou what youre worth. By doing FREE work, you are being dishonest to your other clients/projects that pay you for your time.
SOLUTION:Thats not fair. Be honest. Enough said.
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3. PROBLEM: Free work devalues you, the consultant. If you have 2 projects that each pay you $75/hour and you work 8 hour days (4 hours dedicated to Client A and 4 hours dedicated to Client B),thats equal to $600/day. Hence, you receive $300/client each day.
Now, lets say you decide to add a third client, yet still keep 8 hour days. You know you can still
get great work done in a little less time for each client knowing that you are still meeting your
timelines. If you add a third project for free, you lose both hours and revenue.
Lets Do Some Math
SOLUTION (SCRIPT): Tell your potential client that you value yourself and the way you run yourbusiness. If you behaved with the FREE mentality, then the outcomes you produce will be builtunder stressful circumstances, and thats not something any results-oriented client would wantto hire. (Whats in it for the client, you ask? Anything built under extreme tension or stress doesnot produce the kind of output a client is really needing right now to elevate their business. If
they need results, you need to be paid.)
You Spend 2.5 HoursFor Client A
You Spend 2.5 HoursFor Client B
You Spend 3.0 HoursFor Client C
($75 X 2.5 = $187.50) ($75 X 2.5 = $187.50) (FREE X 3 = $0)
Your end result is 3 hours of lost time and a loss of -$225.
4. BONUS SOLUTION: The win/win scenario is to oer an undecided client a test drive of yourservices. This wont be hourly billing, of course, but you can do a much smaller scope (project-based fee) of work for them, to give them an idea of the immediate value and results you arecapable of bringing to the table.
The client is happy because they are mitigating their risk by knowing what they are investing in.You are happy because your professional status remains intact, and you are getting paid what
you are worth.
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Psychology of Success
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Psychology of Success
Congratulations!!
You are positioned as a professional who values their work, time and client resultsabove all else.
Business owners simply cant argue with the logic that working for free is a badbusiness decision. It equates to loss of time and money. No professional wouldagree to that.
Potential clients will see that asking you to work for free takes you away from yourother paid projects, and your integrity will be self evident. Anyone you work with canexpect you to be honest and transparent with him or her, and that you make theirpaid projects your highest priority.
This creates buy-in from the client. If they pay you instead of asking you to work forfree, they will be much more engaged with both the quality of work you deliver and
the outcome thats produced. This will lead to future engagements with this clientas they now trust you are worth every penny.
You are a professional and just
as valuable, as anyone else.Working for free devalues you.
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Key Action TakeawaysBe open and honest about your policy of never working for free. You dont do it because its unethical to existingclients, and will lead to less buy-in and sub-par results.
To alleviate some of their worry, you should consider presenting them with the following:
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An intro sheet on you and your business. This is generally a 1-pager (front and back)that includes what you do, what type of framework you use to achieve results andyour ranges of pricing.
Portfolio of work and the results achieved. This could be a highlight reel, aspreadsheet showing tangible metrics you have achieved, etc. The point is to showROI contrasted against your fee. If youre not comfortable sharing your previouscompensation, you can also share it as a percentage of the ROI in $ terms youprovided for a previous client.
Testimonials & Case Studies You can provide an in-depth look into not only resultsyou can achieve, but also your methodology for the entire engagement. This can
build trust and persuade the client that it is in their best interest to work with you.
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Problem Client #3:They Commoditize You
There is nothing wrong with a client performing due diligence and price shopping. In fact,we encourage our clients to do this from the outset! However, any industry can become acommodity. And, at certain levels, it invariably does.
Why?
Its natural for a prospective client to do research into the market on how much services
cost. However, its vital that they also understand how to compare apples to apples. Theproblem is, with so many levels of engagement and service, industries like digital marketing
and creative services can become a commodity - without the proper education of the clientfrom your end.
Simply put, they must know what they are looking for and how to tell quality amongst theoerings out there. This is your opportunity to shine and dierentiate yourself from the pack.
There is often a true, larger problem behind what they say at
the outset. Thats why were usually hired. Part of what makes
a great consultant so valuable is their ability to educate and
direct the client. Not just on the current problem they are
facing, but about industry trends and potential challenges andopportunities they might have in their blind spots.
PRO TIP
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Below are examples of how diverse digital service providers can occur. While eachlevel contains some form of consultants in Social Media, Web Development, Graphic
Design, Digital Marketing (SEO), Product Marketing, Branding, Copywriters and soforth, we wanted to break them down for you.
Level 1: The Novice
(The Beginner)
Level 2: The Apprentice(The Student)
Level 3: Competent(The Capable & Learned)
They probably have a personal blog, but write just about anything. Not t
much focus or content optimization here.They may have good personal social media, but they post anything.
They dont use more of the expensive tools and software to producequality web design, documents, visuals, etc.
They dont know how to develop a strategy that thinks through businessprocesses, customer segmentation analysis, branding, go-to-market,metrics, KPIs (probably dont know what KPIs are),etc.
Not All Service Providers
Are Created Equal
They are starting to gain more knowledge and experience.
They have probably assisted an experienced professional with marketincampaigns that have boosted page views (to reach the 1st page of Goothe user experience, conversion rates and overall impressions of the digpresence for previous clients.
They have discovered which tools and software to use, often engagingwith them to produce results. (Adobe Suite Products, Ad Platforms, SocMedia Platforms, Heatmapping, Project Management Tools, etc.)
Their work is pretty clean but it is missing the WOW factor. (rock solid,aesthetic deliverables)
They are able to meet deadlines and have access to 1 or 2 people whohelp them, but are still working out some of the work ows and clientcommunication eorts.
Level 4: The Expert
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LEVEL 4: THE EXPERTThe Best, The Experienced,
The Creme de la Creme
These guys have 2-3 resources in every category of digital (i.e. Design,Development, Branding, UI/UX, paid media, PR, and more)
They have big results, substantial experience and a portfolio to boot.
They have helped companies streamline their processes, delivered winningstrategies and executed to market, often gaining the organization higher
conversion rates and more closed sales (Revenue, Gross / Net Prot, etc.)
Their contracts, deadlines, deliverables and communication are on point,professional, awesomeness, etc.
Yeah, Weve Seen It
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Yeah Weve Seen It
Case Study Time:
Most recently, one of us was approached by a startup that appeared to be
well-funded and was looking to scale its current user base in order to get
their next round of funding.
They had a pretty decent-sized budget, but they did not like the rates we
were quoting them. Additionally, they were comparing us to another company
who hasnt had the same track record or results as us, nor all the components
required/necessary to complete the project.
In essence, they were comparing apples to oranges. Hence, we were quoting
them a deal for the complete process they needed, while remaining fair to the
fact that they were a startup.
We did not budge, they went with the other company, and in the end they
did not complete their project to the point where they were eective or
scalable.
Yep, that happens a lot!
How to Overcome
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How To Overcome
Your job is to teach your potential client a little bit about the existing market for your services,as well as what separates the premium providers from the commodity options and exactlyhow they get what they pay for.
Heres exactly how you do it:
Depending on your industry or focus area of services, show them thebreakdown of what options are currently on the market. Similar to the above
options, but maybe a little less shrewd (unless thats what youre going for).Use your experience to determine what happens at each level.
1.
Create a document for this breakdown but keep it fairly visual.2.
Ask them to choose what it is they are most concerned with getting for their
project. Often, they want the expert-level results, but are concerned aboutprice. Remind them of what can happen if they dont do it right the rst time.
3.
Create another document that explains your process, methodology and
the way you ultimately produce results (Be careful not to tell them toomuch. Dont give away your secret sauce here, just the facts). This educatesthem on why your services are needed, and how they can become
knowledgeable when shopping the market.
4.
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Potential clients will leave the meeting with a clear sense of your worth - AND how this willtranslate to a successful outcome for their business goals.
If the client already feels that you have their best interest in mind, and are willing to help
educate them not only about their market, but ALSO your potential competition, you haveovercome a strong barrier to building trust.
When the time comes to make a decision, assuming you have made a strong case for your
value, they will remember that you helped them become more knowledgeable - so theycould make the best decision. At the end of the day, great salespeople know that the best
way to close any deal is via educating the customer, and asking great questions.
Do this well, and youll easily set yourself apart from the majority of your competition!!!
Psychology of Success
Congratulations!!
Anything less will produce undesirable results. If they pay for less, they will get less, andultimately end up coming back to see you. Trust us!! Theyll be back if they go somewhere
else. Then, its up to you if you want to take them on as a client. (PS well discuss this lateras you will often nd people who already spent money to solve their problems and are nowcoming to you, or back to you, and expecting for you to discount.)
The amount of information that needs to be weighed and considered can potentially
overwhelm your prospective client. This is excellent.Your job is to ensure that youll takecare of all of that; not them. You now have the potential to be their hero.
You Become a BenchmarkFor Talent
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Key Action TakeawaysMake sure you are being fairly compared. The bottom line is that there are a lot of people out there that say they cado what you do. You must position yourself according to your skill level.
You should consider presenting them with the following:
A price sheet (where applicable) / How you charge? Keep it visual and straightforward.
Show them the framework you use. Be sure it doesnt spell out how you do it, justwhat you outcomes and benets they can expect.
Ask them what they value more: Quality or cheap results? They should neversay cheap results. If they do, then walk away. If they say quality, ask them if they
understand that they have to pay for quality.
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Problem Client #4:They Use Fiverr.com
Fiverr.com can be a great resource for some one-o digital jobs, such as a short voice overor tiny tweak to an existing graphic you might have. But, if a company is looking to move theneedle, these freelancers just dont have the nancial incentive to bother getting to knowwhat makes the business and its challenges unique. They simply cant aord to.
They have commoditized themselves and their services on purpose. They are looking forthe quick xes to get quick cash. This does not equate to a clients bottom line. A client that
wants to compare and use Fiverr.com is a client that is still focused on price over deliveredvalue.
While the client should avoid quick xes, a service like Fiverr.
com is great for Consultants. Its denitely worth having as a
go-to-resource for quick jobs that youre already managing
eciently. Thats where we see Fiverr.com being a real asset.
PRO TIP
How to Overcome
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How To Overcome
Heres how to get the most out of this situation:
Ask them where they want to be in a year, and if their $5 service providerunderstands that and how they t into that picture.
1.
Ask them if using Fiverr.com solves an initial need within the scope of their
already constructed strategy?
Ex: The client has a strategy they are currently executing which includessome initial changes to their website. A graphic is not optimized for mobileviewing and they need a quick designer to x it while their head designer isworking on other items. Then Fiverr.com might be a good option. They are
simply looking for a quick x thats conducive with keeping them on track forexecuting their current strategy.
2.
This leads to another clarifying question: What is their primary motivationright now? Is it to initiate quick xes or are they trying to pivot to enhancetheir customers experiences and maximize their prot? If its the former,they dont need you. If its the latter, theyll likely be doomed and in troublewithout you.
3.
Psychology of Success
However, if they dont have a strategy,they need to rethink Fiverr.com as a
solution.
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Within minutes youll have established both authority and credibility. Youre
now positioned as a trustworthy individual that has diagnosed their most
immediate needs and what it would take to solve them. You either give themadvice and qualify them to move forward without using Fiverr.com for quickxes or quickly establish them as the wrong t. Nothing more. Be helpful,communicate your focus on premium value and get out of the way. Always
qualify them as a client. Its a win-win.
Psychology of Success
Congratulations!!
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Key Action TakeawaysLets just keep this VERY straight forward:
Fivrr.com is for quick xes.
If you dont have a strategy rst, $5 tactics from Fivrr.com wont do the trick.
You must ask, Where in the project are we? This will help guide you on guiding yourclients.
Some Things Are Just ThatSimple to Understand
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Problem Client #5:Discount Seekers & Tire Kickers
This client archetype can set a negative tone right
out of the gate.
Business people that recognize valued results,and their long-term impact, wont bat an eyelashat paying for it. They know that the return on
investment could easily be 10x or more than whatthey paid - if they do due diligence on value,and
what you can bring to the table. Always keep aneye on educating them as you lead them through
the process of value discovery, and how youre
uniquely positioned to get them where they wantto be.
Heres the deal - Most likely this type of person isnot your client if you are currently trying to raise the
value of your brand, as well as what you charge.
However, its possible that these people can beteachable. If thats the case, then you can and
shoulddemonstrate how pricing should be viewedas an investment and what theyll get in return for
that investment. Not to mention, how their business
benet will from this investment-minded approach.Be warned- this can be a tough sell, but if youreup to the challenge, it can be great for ne-tuningyour negotiation skills.
Most likely this type of person is notyour client if you are currently trying toraise the value of your brand, as well as
what you charge.
Yeah, Weve Seen It
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Yeah Weve Seen It
Case Study Time:
One of us encountered a fairly seasoned entrepreneur who was teamed up
with a highly popular doctor. Essentially, this entrepreneur had never ventured
into web, technology product marketing or product branding, and was looking
for the resources to eectively go-to-market with a novel, yet validated
product.
He was not aware of what it would take to create all the necessary
components, and time was of the essence. Because this was an important,
direct referral, we tried to make the numbers work the best we could. In the
end, he still had unrealistic expectations and was not willing to spend the
money, even at a great bid, to execute the project.
No matter what the case, if you try to discount, youre shooting yourself in
the foot, right out of the gate. You can give a fantastic rate, but still have to be
smart about your time, quality, output and deliverables. What we were going to
create for him would have possibly made a return within a few months. Not too
long ago that same result wouldve taken 3-5 years.
Think about it!
Nothing personal, just business.
How to Overcome
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How To OvercomeExplain to them the exponential value of time.
Heres a SCRIPT that will help solidify your authority status:
Consultant (Speaking):Mr. or Ms. Client, if you constantly look for the discounted prices,
you will nd it harder to execute anything.
Additionally, each time you have someone implement something at a discounted rate,youll most likely be missing important components (i.e. strategy, metrics, tools, design,
features, automation, CRM, tracking, etc. etc. etc.) that would be conducive to makingyour money back. Have you thought about that? You do want to make your money back,right?
Now youve spent some money and have seen no return, so you go back to the drawing
board and look for more discounted services. These individuals take your money and
produce the same outcome. (Remember, Albert Einstein said, Doing the same thingover and over again and expecting a dierent outcome is the denition of insanity.)
Weve seen this a lot, and clients typically repeat this pattern two more times.
At this point, you, the client, will have started to spend closer to the type of budget you
should have allocated in the rst place - by paying for quality. Only now youre missingthe right components and have too many dierent directions you can take with yourproduct or service. How will you know what to do next, or how to integrate this wholeprocess?
Finally, in order to x everything that you, the client, created, you now have to pay anexpert, i.e. me, to clean everything up. Of course, for the amount of money you shouldvespent in the rst place.
So, I ask you, which route would you prefer?
Script
Psychology of Success
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Psychology of Success
Congratulations!!
Youve just successfully tore apartthe entire situation and delivered the
absolute, most honest truth.
If this doesnt get the individualsattention and respect, move on!
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Key Action TakeawaysRemember, these potential clients are lucky if they have you. That means either youre doing them a favor or yousuccessfully convinced them of the true value of your services.
Most of the takeaways are self-evident, but here is a quick summary:
Discount seekers can be trouble because they seldom understand the lasting value ofquality. If they did, they wouldnt constantly ask for discounts.
If you are going to try and convert these types of people, stick to the above script.
If you do convert one, please let us know immediately so we can praise you foryour eorts. You are, in fact, a master negotiator once you do this.
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Problem Client #6:The Control Freaks
These people typically come in the form of Micromanagers, Control Freaks, Large Egotists,Drama Queens & the Manipulative.
Look, these guys are in trouble and they hide it by leading with fear. They dont know whatthey dont know, so they tend to have control issues developed by their egos, overactive
imaginations and the inability to let go and be innovative. If they understood the changinglandscape of work environments and the role technology plays, they likely wouldnt behave
like this.
If the client youre dealing with is such an expert on what they need and how to solve theirproblem, why do they need to hire you? These ego monsters are their own worst enemiesand they dont even realize it. If they were really smart, they would tell you all of theirproblems, let you handle it for them, then take all the credit for getting it done. They were
smart enough to hire someone to get the job done, which in turn makes them look good. Ofcourse, this theory implies that they think. Since they dont, this section is dedicated to how
you grab the bull by the horns.
These individuals inability to admit they dont know everything,
means they are not giving you the role of the expert. While this
section is dedicated on how to be successful when dealing
with these types of individuals, you may nd yourself getting up
from the table early on and passing on these types of people.
The ability to know when to hold em and know when to foldem can save you a ton of wasted time.
PRO TIP
Yeah, Weve Seen It
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Yeah Weve Seen It
Case Study Time:
In one instance, while one of us was contracted to a red-ag client (big
company), one of the decision-making executives actually hired an additional
consultant to counteract our decisions as a consultant further complicating
the situation.
Talk about stubbornness. As mentioned earlier, these particular executives
tend to lead with so much fear, manipulation and distrust that they become
destructive to the very project they want to execute. Whats worse, they
typically do this all while maintaining their innocence. They can be very crafty.
Just remember, its your job to do what they hired you to do to produce
results. You have to complete the job as outlined, push back when necessary,
record and document everything and create an appropriate exit strategy for
yourself. If youre as good as we know you are, the project wont do as well
without you.
For us, the aforementioned project was moving at warp speed and has
since fallen at once gone from the job. In the world of technology and web
platforms, more engagement = more prot. They havent seen either since we
were o the project. Now theyre just spending on something thats not even
converting.
* NDAs say that we cant talk about who the clients are and we wouldnt
want to. However, the specic client is not as important as the lessons we
learned and are sharing with you.
How to Overcome
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How To Overcome
You must learn how to deal with these types of client personalities, because sadly they are alltoo common. Plus, if you want to become a better consultant at the top of your game, youvegot to put in the reps.
Heres what you should do in this situation:
For starters, read How to Win Friends and Inuence People by Dale Carnegie. Carnegiewas prolic and on the money. He understood fundamental truths about humanbehavior and trigger points. While the whole book is necessary to read, please pay
attention to the following:
1.
Continued
Three fundamental techniques in handling people
Six Ways to Make People Like You
Twelve Ways to Win People to Your Way of Thinking
Nine Ways to Change People Without Giving Oense or Arousing Resentment
BONUS
You can nd quick notes on these subjects here:
http://classes.maxwell.syr.edu/paf101/Dale%20Carnegie%20Notes.pdf
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How To Overcome
For purposes of handling red ag clients, lets just focus on the 3 Fundamental Techniques2.
Continued
Continued . . .
Dont criticize, condemn or complain - The best thing you can do with these types of
individuals is to nd out who they are, give them a platform to speak and understandtheir overall feelings. DO NOT criticize them in any way or they might lose it.
Simply say, I understand what you are telling me and I will be sure to see how I canhelp you. Of course, throughout the interaction, always check in by saying, I was ableto do X, Y, and Z according to you telling me thats what you want. Here you go. (deliverit to them each time youre complete.)
Give honest and sincere appreciation- The key word here is honest. Find something
they have done correct or should be complimented for, and then lean on it. That is,praise them for those things and use that as a focal point when things get out of hand.As Carnegie says, if you are not honest, it will just look like insincere attery and theywont trust you.
Arouse the other person with an eager want- Straight up ask them what they want.What are they trying to do here? What makes them comfortable? Just like anything else,when you ask for feedback, theyll give it to you. Its your job to use that information andnd a way to constantly give that to them.
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How To Overcome
REPEAT ALERT: In the initial scope, include a document on communication which covers:3.
Psychology of Success
Continued . . .
How communication will take place and between whom.
What platform you will use to keep open, transparent dialogue - We Recommend:Basecamp, Asana, Trello and/or TeamworkPM
How often communication is expected.
A checklist that shows exactly what equates with client delight and satisfaction. In short,the specic outcomes will make them happy.
Get everything in writing and have them sign o on it. Remember to include any metrics.Metrics build transparency, trust and put the odds in your favor. Keep referring to thisdocument throughout the project.
4.
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You will have penetrated the evil monsters to win their trust and condence in you. Thismeans you will have control the rest of the way so long as you continue to lead in such a
manner. Never forget to lead with authority.
Psychology of Success
There are only 2 possible outcomes here.
Life is full of choices. Choosewisely.
Outcome #1:
They are more trouble than they are worth and you get up from the table and professionally
say no, thank you.
Heres the best part: Youre dealing with an ego maniac. Telling them that you dont wantto work with them, or the project, gives you all the power because their ego (or vanity) willbe hurt and they may suddenly scramble to appease you. Remember - its up to youifyou still want to work with them, and you should be prepared with a strict process for the
engagement. They can become problematic quickly.
Outcome #2:
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Key Action TakeawaysIf clear expectations, denition of scope / deliverables AND timelines were made rock solid and clear before work
began, these micromanagers, control freaks, egotistical, and drama queens shouldnt be an issue.
Remember - Get it ALL in writing and initialed o on.
The Disorganized Drama Kings/Queens:
I need the project yesterday! (Expecting to pay the same rate, or even a discount).The answer is NO. Tell them that Express and urgent delivery comes with an urgent premium price ta
The Im Not Taking Your Initial Advice or Recommendations
Why did they hire you? This is akin to the person in a bad relationship that constantly asks for support,advice, or a shoulder to cry on - and then keeps making bad decisions. In this case, past actions andbehavior tend to predict future trends. This is a perfect opportunity to push back, as the expert, as towhy they didnt implement what you created and oered. If there is a valid reason they can support wit
results- great! You have learned something. If it is unclear, you are dealing with a large ego. Time to hava conversation about what you oer, your unique value and whether or not things are a good t.
Dont be afraid of pushing back - 90% of independent consultants dont have the guts to do this. Theright clients will respect the hell out of you for doing this. Especially, if they are surrounded by mostly men.
The Non-Communicative
This is the client that disappears for weeks at a time, doesnt respond to emails, misses scheduled calls
etc. Yet, when a crisis/emergency pops up, they demand you drop everything and come running to puout their res and hold their hand.
This immediately signals a NO.Build communication styles, methods and frequency into the initialagreement. Make sure to also build in an emergency / urgent matter service clause which willcommand a premium price.
BONUS: Red Flag Client Archetypes to Watch Out For
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Problem Client #7:They See You As Their Employee
Did you quit your soul sucking job in corporate tostart your own business, only to be absorbed as
an employee into someone elses? Do you wantto take orders from them, while remaining at their
beck and call?
Yeah, Weve Seen It
Page 39
You better be answeringHELL NO
Most of us quit working for someone else forsimilar reasons. We craved more autonomy, more
creative control over the projects we work on
and the ability to dictate how best to spend our
precious time.
When you cross paths with a client that starts to treat you as an employee, pay very close attention.This could mean several things:
One, they might be out for a deal, and you seem like the best chance for them tonot only haggle on prices, but skip out on the headaches of employee insuranceand taxes, had they chosen to hire someone full time.
Two, they are still trying to control the situation not taking into consideration that youare an independent, third-party, consultant with an unbiased set of eyes.
Three, they are afraid youll do too good of a job - making them look bad. They havenot gured out yet that hiring more talented people to get the job done is a goodthing. It means the person hiring knows how to spot talent and get things done.
REMEMBER: Ultimately, a client falling into this category might be part of the reason their organizationis struggling with the problems you are there to solve.
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Yeah Weve Seen It
How to Overcome
Case Study Time: You get the idea that weve been through some things
Another client needed an entire brand refresh and global web platform for all of their
subsidiaries. While their budget was decent in size (6-gures), it was not nearly the amount it
would normally take to develop something of this magnitude (roughly 3-5 times this budget).
However, they hired us to take care of it from a third party perspective given that they had
failed in-house 3 previous times with this initaitive, and when you have amazing and ecient
resources, anything is possible.
Now, being that the resources were in a dierent location than client HQ, it was necessary
to spend as much time as possible in the city where the work was produced, while making
occasional trips to the client site. After all, were consultants, not employees. We must
be wherever we need to be to get the job done. And while we were very eective in this
approach, not being physically present caused a bit of a stir with one or two individuals.
Essentially, work was getting done faster than they were used to, that they caused a few
unwarranted emergencies that really stalled time and eciency. Everyone was to stop
what they were doing, in order to focus 100% on this individuals unrelated and non-valuable
emergencies. I dont know about you, but were not their employees. We were contracted
to do a job, a great job.
This is simply unacceptablewhen youre coordinating nearly 20 people on a project.
Mr or Ms. Client, you want to delay the project and take on something completely dierent?
Fine, its going to cost you for the delay and an additional premium to put out your
unwarranted res? I ask you, Are your perceived emergencies still worth it?
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The number one thing you can do here is to re-iterate your status as a relative expert, withinyour specialty focus. Sure, they can nd an employee to handle day to day administrative tasksthat dont require training and a focus on specialization, but thats not what theyre after.
Simply put, most full-time employees are spread too thin and aected by tricky internal politicsto eectively execute a clearly dened project. They came to you for a reason, and that isbecause you can solve their problem, the bigger picture whatever that may be.
Heres how you should break it down to the client:
It is in his or her best interest to see you as a partner in the process, someonethat is invested in the successful outcome of the project. You will have gainedtheir attention and trust.
Show them how you prefer to interact with them (the primary points of contact)and ask them for any input on that process so you can make changes early onin the process. Once you come to a communications understanding, thats howyou will dictate the relationship moving forward.
You are not their employee.You are a hired, 3rd party
professional to:SOLVE THEIR PROBLEMS
How To Overcome
Have them sign o on a document that states how you work with them (thekey stakeholders and decision makers) throughout the process.
Psychology of Success
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Psychology of Success
Congratulations!!
The sooner and stronger you can reinforce your position as a relative expert with theappropriate documents in place, the smoother the whole engagement tends to go.
Remind them of what it is costing them in time, energy and lost market opportunityby not solving their problem and demonstrate yourself as a consummate profes-sional.
The sooner you do this, the sooner theyll see YOUas the answer theyve beensearching for.
What Makes You An Expert?
The fact that you can produce
in 10 hours of work what anemployee can do in 40
Consultants and freelancers that project an air of condence and arent afraid topush back when the client crosses a boundary, command the most respect, as wellas premium rates.
Adopt this mindset and your client communications will become much easier.
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Key Action Takeaways
Page 43
In order to position yourself as the relative expert and increase your value, have the followingdocuments in place:
Dont be afraid to push back if your expertise or advice is called into question.
If they insist on maintaining an employer/employee dynamic, it might be in your best interest topart ways. This will most likely not improve over time. Of course, thats up to you.
CommunicationsWorkow Sheetdescribing key interaction touchpoints, responsibilities and weekly check-ins. Get this signed.
A clearly dened Independent Contractors agreement.
A client expectations document with clearly dened goals andexpected timelines.As each one is completed, all parties shouldsign o.
If the client fails to see the dierence between what you bring to the table, vs. a full timeemployee, this spells trouble. If, after you have clearly dened your value proposition and how
your specialized skills can move the needle for their business, they still want to box you into apseudo-employee role, it is time to cut your losses. Further explanations will most likely fall ondeaf ears.
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Problem Client #8:The Scope Creeper
This one is on you, the consultant.
Did you set crystal clear expectations at the beginning of what would be delivered vs. what would
not?
Scope creep is an easily preventable disease, but requires you laying the groundwork and remaining
condent, pushing back when boundaries are encroached.
Yeah, Weve Seen It
Page 44
Do you remember the last time a client project went sideways?
Ambiguity about timelines, clear expectations and tangible deliverables can ruin a potentially lucrativeclient relationship. Unfortunately, you have to realize that most people will treat you only in themanner that you have trained them to be acceptable.Additionally, if you let them walk all over you during negotiations and denition of the scope of theproject, you can expect more of this throughout the relationship.
Question:
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Yeah Weve Seen It
How to Overcome
Case Study Time: And they just keep on coming . . .
Who hasnt seen this?
One client was given a specic 6-gure budget from their board of directors.
They were instructed to stay very close to its cap. All of the digital resources
(branders, web designers, developers/coders, UI/UX, digital marketing and
more) agreed it could be done and stayed within tight deadlines to achieve it.
However, one of the executives who was not actively participating in the
project until 6 months in, decided to interject his opinions and make general
assumptions on direction that were not based on our primary research and
collected data.
These general assumptions altered part of the direction, caused a 2-month
delay and resulted in the project going nearly $150K over budget.
Insidious scope creepers must be held to their contracts, period. Their actions
can be detrimental to their own organization. Remember that when you need
to push back and keep them within scope.
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Weve already mentioned having a clear scope up front in the previous sections.
When you patiently and politely insist on a crystal clear scope of work document prior tobeginning the engagement, you can mitigate nearly all of this type of behavior.
An added bonus is that you can build in room for you to raise or renegotiate your fee for each
added service the client may request.
Youre the Expert. You usuallyknow exactly whats going to
happen. Do a clear, upfrontscope of work document andbuild in what you anticipate.Thats what makes you an
expert.
How To Overcome
Psychology of Success
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Psychology of Success
Congratulations!!
Not only will you be protecting yourself and your valuable time, you will have rm-ly established yourself as consummate professional that is focused exclusively ondelivering extraordinary results.
Clients are constantly looking for reassurance that they have hired the right personfor the job. The way to communicate this powerfully and eectively is to behave likesaid professional from the rst conversation.
Take a Break.Digest.
By not only establishing clear expectations for the project outcome, but alsostrong professional boundaries, you will put the clients mind at ease and yourprofessionalism will precede you.
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Key Action Takeaways
Explain to the client how having a clear, unambiguous denition of scope is in everyonesbest interest for success.
Deliver the scope, including project timelines, expected deliverables and communicationmethods/frequency prior to beginning the engagement.
Once the document is complete, get the client to sign o on it. This will set you, the clientand the project o on the right foot.
Set frequency of updates in the document so the client is fully aware of whats beenachieved, whats fallen behind and how necessary changes have been made toaccommodate those items that have fallen behind. An updated client will appreciateyour honesty and most likely act as your ambassador to the rest of the organization whenthere are potential hiccups along the way. They will serve as your PR rep to the rest ofthe organization, praising your true value to the success of the project.
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Problem Client #9:The Confused / Disorganized Business Owner
These individuals have found themselves at a point where they dont
understand their own business model or true needs of their clients and
customers. How long have they been in business? Do they know what their keydierentiation is?
Yeah, Weve Seen It
Page 49
Will you be lling a knowledge gap or an ineciency gap?
The ineciency gap is the preferred
scenario. Why? The client alreadyunderstands the tangible value you canprovide. They simply dont have thetime, focus or skills to do it themselves.Now you are positioned strongly as theexpert; the hired gun that can maketheir life easier.
Question:
InefciencyGap
The knowledge gap is a tougher nut to
crack. You might become responsiblefor solving many problems beyondyour scope of work or capabilities forthat matter. Youll nd that when youneed something from one of the otherintegrated departments, it may not bethere and then youll have to create itin order to do your job as well. This canbe very tiring and inecient. Above all,these unsophisticated clients mighthave their current problems due to aresistance of change. Your job is not to
educate them on their business, butadd value and growth to it. If there isa knowledge gap, most likely you willneed to get up and walk.
KnowledgeGap
VS.
Unsophisticated clients often resist change,
and are harder to educate and sell on value.Do they have a xed mindset, or a growth
mindset? Go for growth mindset. Always.
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Yeah Weve Seen It
How to Overcome
Case Study Time: Theres always something to learn from each project.
Another client who not only needed help with their technology, had beenoperating with fragmented processes across their entire organization. While
they were positive cash ow, there was a lot of waste and high costs due to
lack of having the right people in the right places doing the right things.
This became a problem, as they needed to understand how the marketing
value chain, distribution of capital and budgets, and roles and responsibilities all
fed into this new technology project.
Now, instead of us solely implementing new technology, we were being
approached by individual sta members to implement systems for each
department in order to function properly. While this would normally cause
delays in a project, it really just caused a lack of sleep. Take our word for it, this
is truly unhealthy and highly stressful if youre trying to restructure an entire
organization when youre really only supposed to do the contracted tasks.
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You need to do an initial company (situation) audit and heres some of what the audit shouldanswer:
How To Overcome
Psychology of Success
Does the client understand his or her own business, inside and out?
Are they conscious of their company, as well as any industry trends that might be a threat tothe successful execution of this project?
Who is their customer? What can they tell you about their customer segments they target anddo they have any data on them?
Who is their direct competition? Who is their indirect competition and / or alternatives to themarket?
What marketing have they done to date and why?
Are they operating eciently? Are there any gaps?
Who will be the primary points of contact on the project and which departments will beinvolved?
Do they have a set budget in place? What is it?
(We will hammer this point home until you absorb its importance. We are talking aboutmoney. Money invested to produce specic results. That is the crux of business. If theycant or are unwilling to talk about money, then you cant talk business.)
NOTE: These are important questions to ask your clientand get answers to, as a project can only be successful
when the partnership has transparency and a mutualinvestment from both parties. This will further solidify
your position as an expert in their eyes, and they will bevery wary of losing you, for this project and lucrative
future work.
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Psychology of Success
Congratulations!!
If your potential client is smart, they will recognize the value of you inquiring intotheir business. Additionally, this will open up the wounds of whats wrong and getto the heart of what will be expected of you right away. This brings you to a higherlevel of trust with the potential client.
Youve turned the interview
process around.
Youve turned the interview process around. Instead of them interviewing you for theproject, youre interviewing them for t. Are they a client you want to take on? Will yoube successful given the variables you now know? Do they have a budget for hiringyou? Are they committed to their results? See what happens when you treat a CEO, VPor Director as a true business professional, on an equal playing eld.
A technologist friend of ours who, at just 26 years old, successfully reversedthe interview process of a Venture Capitalist in his 40s, and in turn was able todemonstrate why his company was a great t for VC money. He was not only able toanswer every question, but reverse the situation and demonstrate leadership in hisproduct and eld. Authority and inuence go hand-in-hand when you know what youretalking about.
Successful business owners recognize the expertise of others, and are willing to payfor it. Why? They would rather put their attention on the high-level activities that movetheir business and brand forward.
Additionally, you will position yourself as the authoritythat can not only providetangible results,but also teach the client something valuable in the process.This is the biggest secret to retaining the most loyal (and lucrative) clients. Focus oneducating.
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Key Action Takeaways
Strongly position yourself as both an expert and educator by asking the right questionsup front.
Ask probing questions to get to the root of the clients pain. This can often be done withan initial company audit questionnaire.
NOTE:We cant say this enough, so, were repeating it. If you constantly need to educate yourclient on industry trends that can aect their business, it might be time to take a pause
and re-evaluate if this is a client youd like to have in your roster.
If the client is unclear of their business model, industry trends and what the competitionis doing, they will have a hard time understanding why your expertise can have an impacton their goals. This may become more work than you will want to take on. Unless theyare willing to pay you an exorbitant amount of money, this might be a red ag to walkaway.
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Problem Client #10:They Refuse To Pay Upfront % Fee
Yeah, Weve Seen It
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This goes back into wanting you to do a free trialrun at the outset.
And, as always, this should be aHELL NO.
You are welcome to do a PAID, smaller trialrun - to oset the $$ risk to them, but you are aprofessional and your time, services and expertise
are in demand. As such, they will be allocated to
where they are compensated.
There is also an innate dangerhere. What happens ifyou useyour own time and moneyto start a project and then a monthin, your client decides to do something else. He will have cost
you dearly and at no risk to him or her. Clients have to pay to play,
period. If theyve invested their own time and money, now theyremore likely to see things through to the end.
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Yeah Weve Seen It
How to Overcome
Case Study Time: Practice makes perfect, right?
One client of ours had the audacity to say, Since this is our rst time workingtogether, I cannot agree to paying you the 30% down payment. Okay, Mr.
Client, then all of us experts who will be working for you the next 6 months
wont get started until you do so. In the services arena (i.e. Digital, Legal,
Construction, whatever) theres always a down payment to get started. This is
called a retainer fee.
This retainer can cover a multitude of items that the client hasnt even thought
of. Lucky for us, we got up from the table and walked. He didnt understand
why we werent interested, but more importantly, the people who referred him
to us felt so bad that they sent an even better client the next time. When you
operate with the notion of being honest with yourself, good things prevail!
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How To Overcome
Psychology of Success
Heres a small script you can use if you get stuck:
Consultant (Speaking): Mr. or Ms. Client, are you aware that in order for valuableprojects to get started, such as building a home, clearing the land, building yourmobile app or website, etc., that money must be paid up front, correct?
Of course, I have my own money I can use, but this is your investment. Whathappens if I get started using my own money and 1 to 2 months in you decide togo in a dierent direction? Sure, you say you wont. However, dont you think thatif you invested your money into a project, youll be more apt to follow it all theway through?
Furthermore, even if it doesnt require much money of my own up front, Imusually paid (insert a larger number here because you are now charging yourclients more) $175/hour and if you pull out of this job, you will have cost me atminimum $7,000 ($175 X 40 hours). I could have put those hours to use on otherclients.
While I understand this is a big step for you, just as it would be to build a newhome, I need you to have faith in the process and respect my time accordingly.In order to make you feel more at ease about this whole process, I will be layingout the entire scope of work, inclusive of action items, due dates, deliverables,scheduled weekly meetings, etc. This way you will be engaged with the projectthe entire time.
What time this week should I send over the contract to be signed? (Just go for
the close.)
Script
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Congratulations!!
Plain and simple, you are demonstrating to the potential client that you arecondent, process oriented and a true professional. You expect to be treatedhonestly and fairly because that is how you are treating them. Anything less and youget up from the table and walk away. We cant guarantee youll immediately get
another referral or client, but youll feel good about yourself, which is crucial whileyoure out there trying to get more projects. In our case, we did just that, and wegained an even better client.
Value yourself. Have strong
morals and ethics and leave therest to the powers that be.
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Key Action Takeaways
If someone is expecting you to work without an upfront retainer, ask them why he or sheexpects that. Have they been burned before? If you know where they are coming from,you can better inuence them.
Regardless of their answer, be sure to explain the importance of being paid a portionupfront. (i.e. To get some of the resources started or because you only accept payment3 times throughout the project or to block out the time youll be dedicating to the projectfor the next specied time period.)
Make sure you say NO if they refuse to pay an upfront fee. No fee, no service, period.
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Problem Client #11:They Want To Pay In Referrals or Future Work
Yeah, Weve Seen It
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This can be a mineeld, so tread carefully. Thereare a select few cases where this proverbial
carrot is somewhat of a decent idea. There wasone client that was paying good money, but by all
standards, 60% of what the project was actuallyworth. His reasoning for paying less was becausethis project would be exceptional exposure for us.
We did our due diligence, and it became clear tha
he was actually right. The client had an incredible
brand name, and this great street cred would begreat for our future portfolio. Either way, this clientwas already paying fairly, so the carrot was worthit to us.
Remember, your mileage may vary, depending on
your goals. Always think strategically about what
you will get out of the project - money, exposure,introductions and the like.
Most of the time, potential clients that dangle a carrot, do so without thinking
they are starting out on the wrong foot. Why?
They are trying to either get away with not paying or paying very little.
When they refer, what will they say to their network about what they paid? Red Flag! Becareful not to let yourself become a commodity.
If they refer to their network, will their network behave the exact same way? Likeattracts like! Red Flag!
Youre not dealing with the right sphere (center) of inuence. Youe goal is to get accessto high level, inuential decision makers, then you deliver a fantastic outcome and clientexperience. Doing so will then expose you to their network as they will refer you basedon your performance.
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Yeah Weve Seen It
How to Overcome
Case Study Time: With a little help from Joe
Joe had been a designer for 3 years and has put in the time and eort to truly
hone his craft. Now, he is hungry for recurring clients and work, and nearly
makes the mistake of agreeing to do a job on spec, for the promise of
future work or referrals. The problem is that the majority of these promisessimply never bear fruit. They are a manipulation tactic that less condent and
professional freelancers fall victim to every day.
Slow down, Joe!
If you have ever behaved like Joe, take note:
When creative freelancers (web, design, writers) are just starting out, they willoften accept this as payment, as they have a strong desire to build credibility,
expertise and a portfolio. However, for the established consultant with a solid
track record, this is unacceptable.
Sure, referrals are a great thing, and without a doubt the lifeblood to any
creative consultant that has a thriving practice. However, future referrals do
not pay todays bills,and clients that expect you to work for future referrals
simply do not value you, your work, or, you havent eectively communicated
how your delivered work will create a favorable result for THEIR business.
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How To Overcome
Psychology of Success
Here are a few pointers from whats worked for us:
Quote your rm price, no wavering and no explanations.
Explain that your time and attention is reserved for those that pay for your services,as you owe them your best this would be diluted by accepting unpaid work for thepromise of future gigs.
Investment of money creates buy-in, both strategic and emotional, from the client. Doingso lays the groundwork and expectation for your highest quality work and stellar results.
You can still oer satisfaction guarantees or X number of revisions, but payment of cashat the beginning ensures a professional tone.
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Congratulations!!
Human beings only value what we pay for. Its our nature.
We are awash in freebies and information, but once we actually part with moneyfor something, we are now more emotionally invested in the process and its
outcome (see this reiterated throughout the rest of this guide). Think about it, wouldyou ask a restaurant to let you eat for free, or even sample their latest dish bypromising to tell 5 of your friends to eat there? NO. That restaurant would be out ofbusiness. You are also a business, and you must communicate your professionalism.
When theres buy-in theres
commitment.
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Key Action Takeaways
Communicate eectively how investing money creates buy-in from both sides, and thatsin your clients best interest.
Re-communicate the (potential) ROI in monetary terms to the prospective client, and howyour fee is well under this. A win/win
If the client hems and haws, saying they dont have the budget or any other excuse, theyhave shown their true colors as a tire kicker, and its time to move forward, politely andprofessionally. Of course, youll still be happy to take their referrals.
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PARTING THOUGHTS
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Red Flags happen all the time. This guide can help you eliminate them and spend your time on HIGHVALUE tactics and activities instead:
To eliminate stress, clear the decks and boost your income, you should aim only to work with high-valueclients that want to play at the highest level.
Think like a detective. Your primary goal is to get to the pain behind the problem. Often, youll haveto dig. If you can accurately diagnose, youll be able to persuade from a stronger, more clariedposition.
Refresher of Key Takeaways & Next Steps
What is your tangible value to a project? Think in terms of measurable metrics that your clientvalues.
Present documentation / visuals of everything you can. Humans are visual.
Become well versed in the expert (value-focused) mentality vs. a commodity.
Build a strong portfolio / case studies of not just your skills, but tangible results produced. Go backto previous clients if necessary to get these.
Like any negotiation, never be afraid to walk from a bad deal. With this guide, youll be able torecognize and act on these much faster.
Never do free work.
See your role as that of a teacher. If you can teach your client something new about their businessor industry, you have achieved authority status.
Be honest and ethical to yourself and to others. This will ensure you dont take on clients simplybecause you need money. Youd be surprised at how often better deals come along when you turndown bad ones rst.
Be smart and diligent with your time, talent, resources and information. All of them come at apremium because you have what others need.
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If something keeps happening to
you over and over in your businessthat you dont like, theres one
common denominator - you.
You have the power tochange it!
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ABOUT THE AUTHORS
Page 66
Thanks for reading the entire guide to Red Flag Clients!!
Were Mike Harrington and Matt Gottesman, two independent consultants in business and technologywhove seen the good, the bad and the ugly. Everything we just spoke about regarding red ag clients,and client engagements as a whole, comes from a collective 20+ years of experience working with somof the biggest projects and companies on the planet, to the greatest of local startups.
We learned many lessons along the way and are grateful for every opportunity. Regardless of the client
every project had a purpose to help us grow and become more successful. This growth and experience
has helped us command higher rates as well.
We made this guide for you in hopes of imparting some of the lessons we learned in order to save you
time and worry that we endured. This guide serves as a starting point to raising your value, your brand
and your rates.
It is our primary goal to deliver any and all information on this topic, so if you have any questions, input ordesires for more information, please provide it here. RED FLAG CLIENT FEEDBACK FORM
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