How to deal with Problem Clients – A very tempting solution
12
Jun
Jun
What should you do with problem clients? I keep mine in a jar… Just kidding.
On a serious note, here are some things you can do to avoid problem clients in the first place, no matter what kind of freelance work you do:
- Don’t under-charge. People who are stingy with their money ironically want much more than they paid for. If you charge a fair price, you will attract fair clients. Don’t rip yourself off.
- Set your boundaries at the beginning of the relationship. Clearly define what is included in your quote, and charge extra for anything extra. Know in advance what you’re prepared to do when the client wants revisions or changes to your agreement, and make that clear right up-front.
- Divide the project into small steps, and charge the client step-by-step. You don’t move onto the next stage until the client signs off and pays for the previous stage. You won’t need to offer a money-back guarantee, you won’t have huge debts to collect, and it’s the least risky arrangement for both you and the client.
Kevin Boss wrote an article about what he learned from his early stages of being a freelance web designer. Thanks to him for including the Ashes of Problem Clients jar in his post.
Very good points! And I’m glad you liked the image
@Kevin Boss: Thanks for the inspiration.
Good points to consider. I never really thought about point #1 in that way, but I think you’re right. Unfortunately for beginning freelancers, I think there is a tendency to be so pleasing to everyone and to want to take whatever you can get in order to grow your client list, so there is more likelihood to undercharge.
I also like the idea of breaking up projects in steps. Something I am considering offering to a potential client I have been talking to recently. However he doesn’t seem like he’ll be a ‘problem client’ – it’s still good advice though.
@Eric: Sure, the thing with problem clients, though, is that often they seem fine at first, or you wouldn’t take them on. If you’re desperate and a potential clients does raise some warning bells, you may be tempted to take them on just for the money, but that’s asking for trouble. I think the harder problem is those people who seem normal at first, who gradually start sucking your blood.
I think I will be one who will be benefiting the most from this article. Thanks a ton.
As always the Pareto Principle or the 80/20 rule seems well fit here. I find that 20% of my customers bring 80% of my problems. I also find that 20% of my customers bring 80% of my income but its not usually the same two 20%’s
@Doug aka Nullvariable
I also agree with you that Pareto’s Principle is true.
guess I don’t mind that much trouble from the 20% of my customers who help to keep me up with 80% of my office expenses
yes, i do mind the trouble given by the wanna-be customer who give me a hell lotta trouble.
Thanks Doug and Paradise for your thoughts. I’m not totally convinced that the Pareto Principle is always applicable to every situation, but it is a good way to look at what you’re doing to make sure you’re focusing on the things that bring the best results.
Right, the 80/20 rule isn’t perfect but its a good quick analysis tool. I find that if I am spending too much time on a client that is responsible for too little of my time its time to make some changes =)
http://en.wikipedia.org/wiki/Pareto_principle
@Doug aka Nullvariable: Thanks for the link. Wikipedia provides a good explanation of the uses and abuses of the 80/20 rule.
If the clients you spend the most time working for aren’t bringing in most of your income, you sure do have a problem. When you under-charge for your services, toxic clients can smell you a mile away. They come bounding up to you, claim a large percentage of your time and energy, and then (finally, after nagging) pay very little.
When you charge a fair price, you attract fairer-minded clients who respect your time and energy a lot more.