Re: Client hemming and hawing over payment

Subject: Re: Client hemming and hawing over payment
From: "Brad Jensen" <brad -at- elstore -dot- com>
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Sun, 6 Jan 2002 00:30:02 -0600

>"Bruce Byfield" <bbyfield -at- axionet -dot- com>

>> Brian Hooper wrote:

> >Has anybody else experienced how potential clients can talk you
to death
> >about a project and then get quiet or evasive when it comes to
> >discussing your compensation.
> >
> As several other people have pointed out, this is a danger in
> contracting. Some clients who act this way may be dishonest, or
sharp
> operators, but some may be simply exploring the idea of hiring a
writer
> and not actually ready to hire one. Not that the motivation
matters -
> all these types of clients are frustrating in their own way.

The thing to do is be very up front and matter of fact about your
rates and payment terms.

> >I just had a meeting with a potential
> >client who took 2 hours and 2 lattes to defly explain her
business. Then
> >when I broached the topic of compensation for all of the
fabulous work
> >I'd be doing for them, she hesitated. And then informed me
about 30-day
> >payment terms, etc., which I specifically indicated I did not
want, but
> >that I wanted 7-day payment terms.

Speaking from the other side of the table, I would say it sounds
like this person wants to be an employee, not a contractor.

> Some companies have well-established accounting practices that
they
> won't deviate from, and thirty day terms are standard. Seven day
terms?
> Well, you can ask, but I don't think you'll get them too often.
>
> However, if regular payment is important to you, you might be
able to
> persuade clients to pay you on the same schedule that they pay
full-time
> employees. Since they are cutting cheques anyway, one more isn't
much of
> a burden. That way, you can get paid every two weeks, anyway.
I've done
> that a few times, and it's worked out well.

I think this is an excellent suggestion. The other thing you can
do here is give them a choice: I can take 30 day payment terms
with a a retainer of $x (x being what you think the first month's
charges will be)

or

you can pay me twice a month or every two weeks with no retainer,
with seven days terms

Remember that a new customer is looking for reasons to trust you,
and remembering people they have trusted (and paid) who have not
worked out well.

To the contractor, it seems that the contractor is doing all the
trusting, doing work before payment. But to the person that is
hiring you in to the company, it seems that they as
representatives of the company are taking the greatest risk. If
they bring you in and your work is not wonderful, they will hear
about it internally. Even if your work is wonderful, there will be
people within the company who will use you as a cause to complain
and play politics.

So you always give them a portfolio of work (removing names as
necessary) , even when they don't ask. You always give them
similar sized customers, similar business (but better not direct
competitors) references, even if they don't ask. Give them local
references, even if they are in different businesses. A Tulsan
will be most comfortable with Tulsan references, somewhat less
comfortable with Oklahoman references, even less but passibly
comfortable with Baja Oklahoman References (you outsiders call the
place Texas) , and somewhat aghast at Washington DC references.

If you can work up even a couple of paragraphs about their product
(or whatever it is you might be writing about) , you may do a lot
to further your cause.

And do it all by email, even if you give them paper copies.

They will tell you "I make this decision myself", and they may
even mean it, but it isn't true. I own a company with 25
employees, I own all the stock, my word is law, and yet before I
do anything major I talk to my department heads and even lower
down in the corporation about it. I "run it by them". It doesn't
do me any good to bring things in to the company that no one else
will support.

Even more so, someone midway up the corporate ladder will consult
peers, trusted employees, and their boss before bringing in
outside services of any kind.

Giving them your documents and such by email makes it easy for
them to pass around.

To you as the contractor it seems you are convincing one person,
but what you are really doing is trying to build a consensus about
the wisdom of hiring you. That consensus generally gets built
outside of your awareness, but that is what happens.

The buyer's fear is that it will not work out, that you will be
hard to get rid of, that it could be an expensive mistake, and
that the stench of it all will follow them thru their entire
career at their company.

If you have a big project to talk about, even if they seem gung
ho, chop off a little piece as a starting point, put a distinct
price on it (even by the hour, just make it definite) and you will
find yourself converting some of those blue skyers.

Try these ideas, they may work for you.

Brad Jensen
Uruguru
www.eufrates.com
www.elstore.com
www.actasif.com



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Follow-Ups:

References:
Client hemming and hawing over payment: From: Brian Hooper
Re: Client hemming and hawing over payment: From: Bruce Byfield

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