How to Sort Genuine Clients from Time Wasters?

[Rebecca800]

My partner and I do some contract work to supplement our website income - he does web design and I do writing. We've been hit by a lot of time wasters recently and today's one just pushed us over the limit. I'm wondering how to deal with this once and for all.

Just to clarify, time wasters are the ones who....

- pick our brains on the phone for an hour then hang up
- ask for a website design, then take our free mock ups to someone else
- ask for a meeting offering 100 hours work then later reveals their budget is $500
- commission work but then decide they don't have to pay for it

Today I was even asked by a "serious" new client: "How much work / cost would it be to create a money-making machine?"

In the context of our conversation, it was not unlike Richard Branson offering to pay someone $20 an hour to build up an empire for him in an impossibly short timeframe, then hand it over on a silver platter.

Yet another morning wasted We get new leads every week and continue to get exploited and even bullied by these jerks. Unfortunately you can't spot them til they've already wasted your time telling you all about their fantastic, unique, million-dollar business idea, of which they'll graciously let us be a part. (Gosh I have gotten so cynical in business....)

Anyway we are thinking of charging a consultation fee to new clients but I'm worried we'll lose genuine and valuable leads that way.

Any ideas? Aside from quitting ugly freelance work altogether (soon... soon...)

[stewartM]

Have an engagement document that sets out your t&cs and get a deposit, i generally get a 35 - 50% up front deposit from a new client, I can email my document if you'd like?

[escapeplan]

In the book "The Answer" there is a very useful section on finding your ideal client. At first glance it looks like common sense, but if you actually go through the process you can see how your whole business can be structured to only serve these people and become more efficient. Basically it's the 80/20 principle with instructions! I've used this method and it does work. Better still it gives a focus and direction to the business rather than a scattergun approach. Worth a look I'd say.

[ssandra]

set up a consultation fee that they will get as a discount on the final invoice?

Serious clients will pay it and get it as a discount later on, on the total, and non serious clients won't pay and won't waste your time, or will waste your time but will at least pay for it

Also, make a list of questions that YOU ask your client, before consulting with them.

For example: Budget, time estimated, basic idea.

[Mounds]

Hi Rebecca,

I've actually heard that an effective method is increasing your price. Weeds out the crap.

[Savage]

An Australian dentist solved this problem by only allowing new clients that were referrals from existing clients. He also "fired" 80% of his clients -- anyone who was close to deadbeat level -- and kept only the top 20%. Then he made improvements to make the business even better for that top 20%, such as serving them tea and fresh baked muffins when they arrived. As a condition of being their dentist, he also required that they refer him at least 2 quality clients per year. I believe he would even send them a bill for that if they didn't follow through.

As a result, within about 2 years IIRC, his business went from $40K/yr to $400K/yr, and he became much happier too.

Initially he was so fed up that he was suicidal, so he figured he had nothing to lose by making these changes. It was either that or die.

I suspect that if you're attracting so many deadbeats, you're chasing money too much instead of targeting the people you'd love to work with as well as the types of jobs you'd love to do. At least that's the type of energy signature that tends to attract a lot of deadbeat clients. Another question is whether you even want to be doing web work for other people at all. People often get into this situation when they secretly want out.

[LostMyMap]

Originally Posted by Rebecca800

My partner and I do some contract work to supplement our website income - he does web design and I do writing. We've been hit by a lot of time wasters recently and today's one just pushed us over the limit. I'm wondering how to deal with this once and for all.

Just to clarify, time wasters are the ones who....

- pick our brains on the phone for an hour then hang up
- ask for a website design, then take our free mock ups to someone else
- ask for a meeting offering 100 hours work then later reveals their budget is $500
- commission work but then decide they don't have to pay for it

Today I was even asked by a "serious" new client: "How much work / cost would it be to create a money-making machine?"

In the context of our conversation, it was not unlike Richard Branson offering to pay someone $20 an hour to build up an empire for him in an impossibly short timeframe, then hand it over on a silver platter.

Yet another morning wasted We get new leads every week and continue to get exploited and even bullied by these jerks. Unfortunately you can't spot them til they've already wasted your time telling you all about their fantastic, unique, million-dollar business idea, of which they'll graciously let us be a part. (Gosh I have gotten so cynical in business....)

Anyway we are thinking of charging a consultation fee to new clients but I'm worried we'll lose genuine and valuable leads that way.

Any ideas? Aside from quitting ugly freelance work altogether (soon... soon...)

This is all about you qualifying potential clients up front. I've totally been through this, especially the part about they want a large full featured, tested and documented software app for $200.00. You have to burn some time with this, it's all about vetting the client quickly.

Here is what I do. I always have an initial phone and/or in-person meeting with them, for free. I think that is good policy. While they are evaluating me as a consultant, I am evaluating them as a client. I want to find out if they are serious, what their timeframe is, what their budget is, etc. If they sound good, I try to get them under contract. Otherwise, I start asking 'hard' questions. i.e. "well what do you want your money making machine to do? What does it look like? Is it a web app? Have you written out some requirements, or use-cases? Have you thought through each section of the application and every function? How will you test it?"

You get the idea. It puts it back on them. If they can't really tell you what their money making machine is, you can't estimate it. That simple.

If they want to 'pick my brain', I'll give them a little, but always try to re-direct the conversation. i.e. "Can you integrate a widget and a sprocket and create a spindle?" "I'm pretty sure we can do that, but we would need to get some detailed requirements for what you want to really estimate it. When can we meet to go over our contract?"

I know web design quotes are project oriented most of the time, but those mock-ups are your time. If you can't charge hourly rates, then the up-front deposit works. That way it makes the client commit and if they bail, at least you have some pay.

The budget thing? Ask them early on what their budget is. Get used to it.

If you do work and someone doesn't pay, you need to go after them. Don't be a doormat on this one. And to do that, you need some agreement in writing that shows they authorized your work. This is the tough part about being in business, but you have to do it. Again the up-front deposit helps. 50% or whatever.

And there seems to be no end to people that have the next big thing, and no money and want you to do it for equity in their company. Here is my answer to that. "If I were to do this, I would need to see and approve your business plan. I want my equity delivered in the form of preferred stock, and I want a voting seat on your board of directors. You are incorporated, right?" That filters out the blow hards pretty quick.

[mainstreetcm]

I got rid of time wasters by raising my damn price honestly. When I first started designing websites I tried to undercut my competition because I needed the money quick. Six months of dealing with the biggest cheap asses on the planet and I raised my price. Strangely, the phone rang more, because as my new clients put it, they originally thought I was cheap because my price was so slow.

Perception is Reality.

[Rebecca800]

Thanks for all your helpful answers.

The real easy answer as Steve made me realize is that I don't want to be working for other people at all... When I look at the actual content of most of these projects, they really don't interest me and it stresses me out when I accept them. I'd MUCH rather be working on my own websites.

So I've decided I'm going to shake this habit Only pursue projects that interest me. That could of course end my freelance career altogether but to be honest that would be a good thing. I'd be happier, if a little poorer, but at least I could reinvest that time and energy into my own business.

Phew - decision made. This is good!

PS I'll pass on your advice about handling new clients to Pete as this is still important for his web design business. Admittedly he is a lot better at handling people than me...

[Brutha]

Maybe you can say:
Hey, the consultation fee is 10$.
When you get referred by a friend who was a client we will drop the fee.

[danthony]

Just like Steve said above. I really feel that you could learn alot about the post. You can refer alot of the 'tire kicker' clients to those in the same field as you but just want to work with everybody.

I would definitely pre-qualify your leads before they get to you with an appropriate FAQ on your services and pricing structure and maybe even give signed customers a first 1/2 hour consultation on the house. One of the effective traits of a good business person is to be able to 'fire' those leads / clients that just aren't working out to anyone's advantage.