MMS #15 - Some Clients are Timesucks

April 18th, 2007	Meg Moneymaker

It was a huge relief to get away from the comedy duo of Pinhead and Rich Kid, but I was also nervous about providing for my family.

Could I do it? Sure, I had contracts with clients already but there were also more expenses. Thanks to our screwy healthcare system, medical insurance now came completely out of pocket and it was several hundred dollars a month.

The tax man also took a good percentage of my paycheck. And I still don’t know what the tax man does with our money. Do you?

Another concern was that client companies are fickle. Just because you have contracts for a few months and do a spectacular job doesn’t mean that the contracts will be renewed.

So out of fears real and imagined, I did what most of you would probably do in the beginning. Every project – big, small, regardless of profit margin, I accepted. In retrospect, this wasn’t the smartest of moves.

Some clients were great. They paid well. They paid on time. They were easy to work with. Other clients, however, were timesuckers. At first, it looked like good money because they paid $5k, but their projects consumed 1,000 hours. So I was making $5/an hour. Saying, “Do you want fries with that?” would have been more profitable. Worse than making bumpkus per hour was the time it sucked away. Those 1,000 hours could have been spent finding clients that paid real money.

After making this mistake repeatedly for a few months, I finally learned. Now, when clients offer projects, I try to define the work more clearly and then calculate a projected hourly rate. When their projects don’t meet my hourly rate goal, they’re diplomatically declined.

In fact, my very first client – the one that helped me break free – pays so little that I rarely accept projects from them. Although it’s important to still maintain a amiable business relationship with them – just in case I need some fill-in work. It hasn’t happened yet though.

The point is try to be selective. It can be a balancing act.

Tags: break free, paycheck, profit margin

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Your Success Channel

March 28th, 2007	David Liberty

Have you chosen the kind of business you want to start?

For some work nakeders that’s the biggest question. They want to break free, but how and with what venture?

One of the first questions you need to answer is – who do I think I’ll be more successful selling to?

Are you more comfortable selling to consumers or businesses? Some people relate well to the Average Joe – consumers. And, others have an ability to understand and address business’ needs.

Your decision will be partly based on how you expect to conduct your marketing. Marketing to businesses may consist of establishing relationships through networking or professional organizations. Marketing to consumers may involve less direct contact with your customers and could consist of direct mail, paper flyers, or classified ads.

For both types of customers, a simple yet professional website makes your business look legitimate and provides an online marketing brochure.

If you’ve read the success stories, some businesses market consumer items through retail stores. In this case, you’ll need to appeal to both types of customers. First, Average Jolene must have a need for your product, and then you must make a persuasive case for the retailer to stock your item.

What we’ve addressed above, the method you use to appeal to your customers, is called your marketing channel. In selecting a business venture, it’s very important that you understand which marketing channel you’re going to use.

The marketing channel you select will drive the types of marketing activities that you’ll need to pursue to make your venture successful.

Tags: break free, marketing channel, success stories

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