| Re: Anyone Know About Intellectual Property Laws? -
11-04-2003, 07:43 AM
Jazzmine,
I've had some trouble with clients myself - for example one guy got me to do a load of work and research and then cancelled the project, refusing to pay. Another company went off the radar when I told them that they had to pay for ALL time spent on their project, including meetings and phone calls (because I was charging a very modest hourly rate).
What I learnt was that they were not really committed to their projects, and because I didn't ask for any money up front, they didn't value what I did.
Since then I've had clients who pay up, but who want a lot more than what they've paid for. So I have been going along the learning curve (just like everyone else!), of figuring out how to make sure I get my needs met without frightening off all my clients in the process.
On both this and another discussion forum, the issue of "quality of clients" and what they value has come up.
What seems to have come out in the wash is that as consultants we have the choice to either take all-comers and aim for quantity of business, or we can choose to be more selective and go for quality of business. If we go for quantity, then we might offer cheap prices, discounts and freebies. If we go for quality, we might stipulate how committed the client must be, ask for an advance and charge more money.
What I have learnt is that if you give people things cheap or free, then they always want it to be cheap or free. Cheap-skate clients are more work than clients willing to pay a proper fee. My conclusion is to only work with clients who have the mindset of "this is a valuable investment" and are willing to pay for superior results. This may mean turning some business away, but I've decided that that isn't necessarily a bad thing. Most of the independent professionals I know are either overworked (because they have enough business, but don't charge enough), or are still struggling to get business even with their knock-down prices.
Here is something I learnt recently which sums it all up beautifully:
"90% of everything is crap".
This includes potential clients! I have learnt to my cost that people don't value my time or the effort I make to help them unless I create an air of exclusivity. The trick is to find the 10% worth dealing with.
Your client does not appear to value the effort and hard work that you've put in on his behalf. This, of course, is very short-sighted because he has destroyed the relationship between you and left himself open to criticism and legal action. He will be the worse for it in the end.
I don't entirely agree with Alan's advice, although it certainly has merit. I've had various situations where I've been ripped off and just let it go because I felt I didn't want to be weighed down or held back by it. However, 2 negative consequences of this are that it might get known around the industry that you don't pursue your debtors, and worse still is the knock to your confidence and the feeling of powerlessness when someone just basically decides that they don't feel they should pay you.
With my first client I tried the softly, softly approach which was met with all the usual crap "oh, I didn't get your invoice - please send it again". In the end I wrote him a letter which was sent registered post explaining that he had 14 days to pay or else he would be hearing from my solicitor. I fully intended to take him to small claims, so that energy was probably transmitted! In the end he offered to pay just under half, which I accepted.
Whether it is worth pursuing or not is a balancing act between the amount of money you're likely to get if the court rules in your favour balanced against the cost in time, money and energy of going that route. If he's not making any money, then it's probably not worth pursuing, and that's why he's running the gauntlet with you - he hasn't got any money to pay!
I would also weigh the emotional consequences either way - will it affect your self-value and confidence if he gets away without paying, or are you able to let the whole thing go and move on.
But either way, as Alan says, you have learnt a valuable lesson at an early stage (like myself). Rather now, than on a huge deal later on (assuming this wasn't a huge deal, of course).
HTH
Jane |