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Third Party Payments and 2022 Taxes

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The Internal Revenue Service announced in December that it will delay by one year implementation of a new policy that will tax funds you receive by way of third-party payment processors. All entities using third-party payers to transfer funds derived from business activity must, at the close of the calendar year, report said payments on the appropriate IRS Form 1099 and send the documents to recipients of the payments, who will then include the amount of funds reported as part of annual income. The annual taxation threshold has been lowered to $600 for all types of 1099 income.

This new IRS policy was originally scheduled to take effect in 2023 and impact 2022 income, however, many who regularly receive funds through Venmo, Apple Pay, Samsung Pay and other peer2peer digital wallets apparently only recently learned that payments received would not only be reported on Form 1099-K but, alarmingly, will be taxed in the same fashion as 1099-NEC income.

Furthermore, because a significant number of personal financial transactions are also conducted on peer2peer platforms, users are concerned about both an unexpected tax bill and its accuracy. Can your electronic payment processor be trusted to recognize the difference between side hustle income and monies you received from friends to reimburse you for laying down your credit card when you all went out for drinks one night? Will the promised line of demarcation between business and personal fund transactions be consistently respected? Inquiring minds want to know.

Before the rule change, peer2peer payment services reported recipient income on Form 1099-K only when payments reached $20,000 and the number of transactions reached 200. If those conditions were met, the1099-K was required to be submitted to the IRS along with the tax return. The new policy has lowered 1099-K taxable income to $600 per year, aligned with 1099-NEC and 1099-MISC reporting income requirements. The number of payment transactions made will be irrelevant.

You’ve figured out by now that the tax law change will significantly increase the number of folks who will face a higher tax bill. Another loophole closes for the little guy! Still, the IRS has decided that the peer2 peer payments tax rule scheduled to expire on December 31, 2022 will instead remain in place until December 31, 2023 and the new ruling will apply to 2023 income.

Regardless of when the new IRS reporting rule takes effect, Freelancers and small business owners are not liking it. There is resentment that the tax change is specifically intended to crack down on suspected tax evasion within this cohort and others who toil in the gig economy, saddling you with more paperwork and headaches. The population that will be most affected often cannot afford to hire a tax attorney to defend themselves against suspected IRS or payment processor inaccuracies.

Venmo, which was bought out by PayPal in 2012, has been trying to prepare its customers for tax changes that could affect them. The company has emphasized that payments not specifically designated as being for goods or services will not be included on the 1099-K and that the company will not list individual transactions.

FYI, Venmo customers will be wise to familiarize yourselves with the differences between its business and personal accounts. Business users may be better off quittng that service, to avoid the additional fees charged, and instead track business transactions manually from the “friends” setting.

Finally, there is an intriguing twist to the story and a possible loophole has been revealed. Payment processor Zelle insists that the new IRS rule doesn’t apply to its bank2bank payment service, since its network doesn’t hold funds. The company is run by Early Warning Services LLC, which is jointly owned by seven banks (Bank of America, Truist, PNC, US Bancorp, JPMorgan Chase, Wells Fargo and Capital One). In fact, Zelle is included on users’ bank dashboards.

While Zelle offers a service similar to Cash App, Google Pay, PayPal and other peer2peer digital payment platforms, it was built as clearXchange, a peer2peer payment service created by and for its member banks. Zelle is an electronic network that manages automated clearinghouse (ACH) transactions.

According to Wendy Walker, chair of the Information Reporting Subgroup of the IRS Advisory Council, “ACH networks are not subject to 1099-K reporting.” She went on to say, in an email, that payments sent through its network “are not subject to this law” and that small business banking customers choose Zelle “because it makes it easier to complete digital payments where they bank, enabling easier bookkeeping and accounting by having the banking data at one source.” Ms. Walker seemed to infer that bank customers see a benefit in having money in their bank accounts that is not held by third parties.

OK. Of course, Congress could extend the law to include Zelle and similar “by banks, for banks” platforms. Stay tuned for updates.

Thanks for reading,

Kim

Image: © The New Yorker June 13, 2022. The End of the Year, Liana Finck, illustrator

Marketing Leave a comment

Outshine the Competition

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Believe it or not, if your business has competitors, you can consider yourself lucky. Think about it—- the presence of competitors means that there are customers who have money and motive to buy what you sell. Competitors bring you another gift in that they encourage you to get better at doing business. Competitive forces of the marketplace push you to deliver the value that customers and prospects demand so that your organization will survive (or fail).

Incidentally, your most formidable competitor is not another Freelancer who offers products or services similar to your own, nor is it a bigger, better known and better-funded entity that comes along to eat your lunch. Your primary compeititor is inertia—doing nothing.

When the customer you expected to sign suddenly tells you, “we’ve decided to hold off and reassess our priorities,” inertia is probably a factor. As we discussed in a post a couple of weeks ago, rounding up the decision-makers can be time-consuming in a hybrid work environment. Add to the mix the headache of budgeting for inflation-impacted costs and a fear of recession and shifting projects to the back-burner can seem so much easier. There goes your contract, unfortunately.

Still, there are time-tested actions known to improve a company’s competitive postion. Let’s take a look at some things you can do.

Competitive intelligence

First up, identify your two or three principle competitors. Visit their websites and social media platforms and study their messages. How do they articulate and promote their products and services to prospects? Make it a point to read blog posts, newsletters and case studies as well. If a competitor gives a talk, make sure you attend and if s/he participates in a webinar and/or podcast, listen in. Figure out what motivates their customers to work with them. What do your competitors say and do that may apply to you?

SWOT Analysis

The Strengths, Weaknesses, Opportunities and Threats strategic planning matrix that dates from the 1960s remains useful in the 21st century. Savvy Freelancers and small business owners know that to maintain your competitive position, it is wise to take every opportunity to portray your company as the best alternative within your product or service category. To achieve that aim, promote the reasons that customers should choose you and continually reinforce those attributes.

Use the SWOT template to catalogue your company’s strengths and weaknesses (internal factors) and anticipate opportunities and/or threats (external factors) that may be on the horizon. Obviously, you want to capitalize on your company’s strengths to position yourself to capture opportunities. You also need to acknowledge and correct as many fixable weaknesses as possible, to minimize or avoid threats.

Focus on expert and dependable delivery of your services and functioning of your products. Don’t expect to be all things to all people. Survey your customers and research your marketplace to stay abreast re: industry developments (or the developments in the industries of your largest customers) and updates in customer priorities to give yourself advance knowledge of both potential business opportunities or threats.

Understand your value

It’s crucial that you clearly understand what your unique selling proposition, your value proposition, to know what motivates customers to do business with you instead of a competitor. What makes your business unique and desirable to a select group? From there, work on promotional actions to take and how to most effectively communicate talking points that resonate with your select target audience.

In other words, learn how to best position yourself against the primary competitors and explain to prospective customers why they should choose you over another entity?

Known in your niche

If you conclude that your marketplace is too competitive for you to combat, or you realize that you don’t have the resources, bandwidth, or inclination to offer a product or service line broad enough to satisfy marketplace demands, establish yourself within a niche. In other words, specialize and pivot into narrow and deep.

Again, check out your principle competitors and note the products and/or services that they offer and what don’t they offer. Are they targeting certain areas? How does that match up with what sells well in your organization? Can you specialize in areas that competitors overlook?

Broadcast your brand

Establish a great first impression. Refer again to your competitors’ websites and social media sites-– how do they present themselves? Does their style seem corporate or does it feel personalized?

In your research, be sure to seek out not only what could be appropriate for your brand but also note what doesn’t seem right. Your goal is to articulate your brand while taking your unique selling proposition into consideration. You want to express what your company stands for. Aim to incorporate the visual identity, tone, persona and language that your customers and prospects gravitate to and identify with.

Bring the good news about your brand to every platform that your customers and prospects encounter and trust. What print publications do (or might) they read and trust? When you have something to announce, send that outlet a press release and follow-up with a call to the editor. What philanthropy (that you support) would you like to publicly associate with your brand and do they hold an annual event that your brand can support with not only your presence but also branded giveaways like notepads or similar items?

Multi channel marketing

The coronavirus shutdown hastened a shift to doing business online that was already taking place since at least 2018. Make sure that your website and social media accounts are earning there keep. Establish a presence on platforms that your current and potential customers trust and follow. Design a solid sales/marketing funnel for online appeals that can beckon to prospective customers who are searching your product or service category.

Hint—-if you haven’t done so already, start a newsletter and announce its launch and post it on your website social media platforms. Cover topics that will be of interest of your customers and remember that content marketing is about educating and winning the confidence of your readers.

Customize the experience

Several large studies have indicated that current and potential customers prefer email and other direct communications to be personalized. Direct subscribers to your newsletter or blog should receive a personally addressed post. Announcements of special offers should incorporate info of prior sales history or inquiries whenever possible.

Furthermore, attach a short customer survey and send it out with your next invoice. Ask how you can improve your company’s products or services to ensure tht customers are satisfied with the results of the solutions they purchase.

Price right

Communicate the value of your products and services and justify the premium—but fair—prices that you charge. It’s usually not possible to know what B2B service competitors charge but avoid offering your services at bargain basement rates, Low prices tend to bring in the wrong kind of clients. You also don’t want to set too high of prices since you’ll be more expensive than the competition with a similar skillet as them. If you’re just starting out, do some price testing. As you establish yourself, you can adjust your rates with future clients.

Thanks for reading,

Kim

Image: Evonne Goolagong, winner of 14 Grand Slam singles and doubles titles, including four consecutive Australian Open singles championships between 1974 and 1977, former Number One female tennis player in the world (1976), inducted into the International Tennis Hall of Fame (1988) and native Wiradjuri Australian.

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Marketing Automation—Give It A Try

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Can you afford to invest $50 or so each month in marketing for your business? Can you afford not to? Marketing is a hugely important business function—how else can your future customers know what you do and know where to find you? You may struggle to keep up with your marketing aspirations—it’s a common problem. Small businesses owners and Freelancers are often too busy to fully implement the marketing campaigns that they devise. Today, let’s talk about how marketing automation can create a great leap forward for your LeadGen strategy and deliver a nice increase to your sales revenue.

The most successful marketers know that automating routine marketing functions will enhance your ability to provide the most effective marketing campaign outreach and as well the best possible buyer’s journey experience for prospective customers. When marketing automation software is in place, all prospect requests for information about your products or services will receive timely follow-up. You, your team and your company will look good as a result —professional, responsive, trustworthy and reliable, all brand enhancing qualities.

As you know, marketing automation is the process of using technology and software to automate your company’s marketing activities across all of your digital channels—website and social media platforms. By using automation, you can target prospective customers easily and efficiently and launch special outreach campaigns by using automated email messaging that is peronalized to reflect the customer’s buying history or interest. BTW, according to a recent survey, 80% of prospects reported that they were more likely to do business with companies that offer a personalized buyer’s journey experience. Data from consulting giant McKinsey revealed that personalized emails sent to prospects can reduce customer acquisition costs by as much as 50 % and increase sales revenues by 5–15 %.

Consider trying these four digital marketing automation strategies. Doing so can potentially free up 10 hours/week of your valuable time and allow you to focus on other aspects of your business. Marketing automation service packages and pricing vary widely, but a basic plan offered by most companies is unlikely to take a big bite from an inflation impacted budget. Plugs, there is reason to be optimistic about adding to top line sales revenue. Spend a little money, make more back.

Build targeted email campaign lists

Despite the obituaries that have been written over the years, email marketing has shown us all that like a cat, it has nine lives. Email marketing automation is very useful for LeadGen, helping to generate sales from prospects in your sales funnel. Marketing is all about providing the right information at the right time in the buyer’s journey. Automating email outreach enables you to send that correct message to the right person at the right time and simultaneously save time and increase efficiency as you communicate with prospects.

Nurture warm leads

Encourage the process of converting prospects into clients by personalization—from correct names to accurate buying history data — and enhance prospect engagement. Help yourself and your team to respond quickly to contact forms that prospects submit when they’d like to schedule a call or meeting with you or someone from your team. Follow-up fast on calls-to-action from prospects who’d like to receive your newsletters or attend a talk that you’ll give. Marketing automation will guarantee that you’ll avoid the embarrassing occurrence of leads that get lost in the shuffle and drop off your radar screen.

Your goal is to move prospective customers through the buyer’s journey, AKA the sales funnel, to become a paying customer, Your marketing automation system can monitor consumer activity and assist you in determining where in the sales funnel your prospects are. You can select the info that your leads will receive and the frequency of emailing at each step of the buyer’s journey to help you execute an effective lead-generating strategy.

Automate social media posting

At the beginning of each month, help yourself and create a calendar by planning 30 days worth of social media content ideas. For example, every week, vary your content by type (i.e., educational, entertaining, inspiring, tips and tricks, behind-the-scenes, etc.). This will help keep your social media audiences engaged and interested in your posts while making it easier for you and your team to create the content.

Furthermore, when filming videos or taking photos for social media accounts, aim to capture a variety of content that can be reused and repurposed for various posts. This will cut down on the content creation time, as you’ll utilize one shoot for multiple pieces of content.

Analyze campaign performance

Measuring the success (or not-so-much) of marketing campaigns is often guess work. Especially for Freelancers, following the rate of client acquisition, that is, the bottom line represented by the clients you bring in or bring back, is what many of you do. More ambitious types, or those responsible for marketing in larger organizations, most likely work with spreadsheets to monitor the performance of marketing initiatives. I’ve done it before and I find spreadsheets to be very time-consuming. Plus, not everyone on the team who should regularly post updates will do that without prompting fom the team leader, which takes time.

The beauty of marketing automation is that when you program the software to perform certain functions, the results will always be accurately reported. Once you’ve categorized your leads and customers according to where they are in the buyer’s journey, you can email targeted content that’s specific to each lead, increasing your marketing and sales effectiveness. Next, the lead tracking function will automatically update the system if that lead becomes a customer or makes an important action that might signal a movement toward becoming a customer, such as downloading a price sheet or requesting a copy of a case study.

Once you customize your system, all you’ll have to do is log in, view the results and evaluate what the information tells you. Appropriate follow-up and other trust-building actions can take place every time. Potential customers do not get lost in the shuffle. You make more money!

See the best marketing automation options for 2023 here: https://www.g2.com/categories/marketing-automation

Thanks for reading,

Kim

Image: © Walter Nurnberg/Getty Images. 1960s computer technology

Sales Leave a comment

Navigating the New Normal Buyer’s Journey

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Aftershocks from the 2020 coronavirus shutdown continue to shake the ground beneath our feet, causing us to re-examine and adjust the way we live and work. Maybe your spouse began to work from home in March 2020 and has negotiated a deal with the higher-ups to work in the office just three days/week. That’s a change you probabaly like. But the hybrid office has disadvantages that present real challenges to the workplace. Getting the job done can be an uphill climb.

In addition to building relationships with team members and other co-workers who were hired after WFH began and nurturing a healthy company culture in an unusual environment, hybrid teams must also create and implement decision-making processes that function in a hybrid office. The logistics of corralling now-you-see-them, now-you-don’t WFH decision-makers and stakeholders whose presence is needed to discuss and either move forward or kill important proposals requires lots more planning and more time.

Long accepted practices that became routine and familiar when leadership teams evaluated strategic business decisions have changed and may continue to change. If decisions involve spending money, you already know that factor will further complicate matters. Unfortunately for Freelancers, the decisions on which your livelihood depends are increasingly more difficult to even schedule for a fair hearing, let alone obtaining an approved.

The WFH revolution is just one change that your current and potential clients are facing. Disappointing economic and political conditions, glaringly demonstrated by the Ukraine-Russia war and big lay-offs at blue chip tech companies like Facebook/Meta, Amazon, Google, Salesforce and Cisco amplify whispers of a coming recession. Inflation has already arrived, shrinking spending power in its wake. Global and national realities incline business owners and leaders to pull back spending and carefully assess the ROI of all big-ticket expenditures.

A recent survey of small businesses found that 57% of owners cut spending as a result of the COVID-19 crisis and they continue to spend cautiously in the current period of economic uncertainty. Those that maintained their spending tended to revise budget allocation, often choosing to fund salary increases (34%), marketing (28%), or operations management (27%).

So what’s the best way for Freelancers and others whose client roster consists mostly of small businesses? Let’s think about devising a buyer’s journey GPS system that will help you succeed in the new normal business climate.

Get used to it

For best results, the attitude adjustment starts now. Your clients are in the midst of a sea change and if you expect to make money over the next few years , you’ll have to change along with them. Pay attention to actions that indicate your clients are changing things and let them know you and your team are willing and able to meet their updated priorities and needs.

You already know that the coronavirus shutdown and WFH phenomenon speeded up the use of online tools, leading your prospects to browse your website and your competitor’s to research potential product and service solutions, hold videoconference meetings with you (and your competitors) to discuss those products and services and when a final decision is made, prospects are comfortable buying the chosen product or service online, as if it were lunch. To provide the best response to the new way of doing business, getting specific aspects of the B2B buying journey right can ensure your organization is well positioned to handle whatever the future holds.

On the same page

If you’re not on the same page with your clients you won’t be able to implement strategies for clients and make sales. Salesforce found that 86% of business executives believe ineffective collaboration and communication are the two major causes of failure in business.

Don’t limit your focus to the tools and systems that facilitate collaboration and communication. Remember the B2B pain points your company exists to resolve.

Streamline and clarify communications

Because the decision-making process has become more complicated in the WFH era, smart Freelancers know that it pays to clarify and simplify all communications connected to the buyers journey. Your B2B customer experience most likely needs re-examining. Meet your prospects where they are and provide them with relevant information that drives the decision-making process.

Incorporate videoconference meetings, telephone calls, emails, SMS (text) communication and, yes, face2face meetings to inform and bond with prospective clients. Keep your company website and social media platforms updated and calls-to-action compelling and obvious. Your goal is to continually encourage customer engagement throughout the new normal B2B buyer’s journey. It is the key to your sustainable success.

Thanks for reading,

Kim

Image: © francescoch/ Getty Images

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Social Media for the B2B Freelancer

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As you do your best to navigate through the COVID era, one obvious change has been that life and business are largely conducted on the internet, Step-by-step, especially since Y2K arrived (were you afraid to ride in an elevator on 12/31/1999?), so much of life started moving over to the internet. The coronavirus shutdown of March 2020 acted like a rocket booster and pushed millions of businesses—supermarkets to pharmacies, restaurants to home furnishings stores, classroom instruction from grade school to college level, luxury apparel boutiques to plant stores—to prioritize their online presence. You may have begun to work from home, plunging into video meetings and Slack and other workflow communication tools. This is a permanent inflection point and there can be no going back.

It’s fairly certain that you participated in social media in your personal and/or professional life prior to the COVID era but if you are a Freelancer or other business owner or leader, you recognize that the need for creating a sophisticated social media strategy has been ratcheted up. Officially, your social media presence can no longer be treated as an afterthought. Your chosen platfroms now own a pivotal role in your organization’s sales/marketing funnel, a critical client recruitment tool. Social media is now integral to supporting your brand, often by telling your brand story and building a community of loyal client cheerleaders who enthusiastically sing your praises. Make optimizing sthe use of social media in your organization your first business strategy decision of 2023.

Enhance brand awareness

LinkedIn remains the most popuar platform for those searching for B2B solutions. Complete your regualrly update your profile. When you receive new certificatons, upload them. If becoming (or remaining) a thought leader in your industry is a goal for you, social media provides a path and LinkedIn is considered a trusted source by most. You’ll find this blog post on my LinkedIn profile. If you’ve been a podcast guest or host, post the link, ditto for a webinar.

If you’ll teach a class, deliver a talk, moderate or participate on a panel, post the invitation on your profile. Participate in the still-relevant LinkedIn Groups feature and chat and exchange information with your professional peers. LinkedIn’s new Creator Accelerator Program a 6-week program that shows you engage your audience and grow your target audience. There is an application process involved, Contact the Creator weekly newsletter for more info. Stay up-to-date with your Notifications and receive feedback from followers and those who’ve responded to your content.

Sales/marketing funnel

The benefit of sharing informative content is that you may soon be seen as a trusted surce and expert in your space, making it easier to be seen as a credible resource and not just another salesperson. Social media browsers are known to use their preferred platforms to research products and services. This is a huge opportunity for you to use social media as a platform to add value by sharing informative content. As such, you’ll spend much less effort trying to “convince” target audience members to do business with you once familiarity and trust have been established.

Improve your understanding of what motivates potential buyers in your target audience to turn to social media before posting your content, to ensure that your information aligns with what potential buyers want, and need, to know. In general, a case study or two, your newsletters and your blog posts will answer most questions and demonstrate your organization’s ability to meet client needs.

Leverage the power of client testimonials and give yourself additional credibility by way of a real-time description of the capabilities of your organization. Your approach to delivering the solution, handling of the inevitable obstacles that challenge along the way and your team’s customer service and after-sale support will go a long way in showcasing your venture and building trust.

  • What are aspiring buyers in your category looking for and what do they hope to achieve?
  • What drives potential buyers to use certain keywords, hashtags, or phrases when searching in your category?
  • What products or services are they using now, or previously, to achieve the goal, or attain the solution to resolve the problem now?

Feed your sales/marketing funnel by demonstrating that you and your team can get the job done. Potential buyers will seek for more information and may eventually schedule a video or telephone call to talk things over and get a better sense of you and what it might be like to partner with you and work on the project.

Building community

How does one encourage the engagemet of your customers? Maybe start with a couple of polls and then get a discussion going? Those thriving the most in today’s evolving engagement landscape are able to use their social following and allow users to contribute and interact rather than simply judge and scroll. This can be accomplished in a multitude of ways, including inexpensive swag gift giveaways polls, posting LinkedIn story video or audio testimonials or reviews. If you’re participating in a charity event, video some portion of the proceedings and make that a LinkedIn story, too (you will have already posted it as an event, am I right?)

The key is to execute thoroughly and listen to your community: Simply having a giveaway may create interest, but communicating the rules, perks and actually following through by showing the community how their involvement moves the needle toward something positive is the ideal. This could happen any number of ways, and requires considerable thought from those close to the brand who understand how to best engage its community.

Happy New Year and thanks for joining me,

Kim

Image: Kim Clark. The groom in a wedding party approaches The Park Plaza Hotel in Boston, MA (2019)

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How to Thrive in the New Year

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Whether your venture is a recent start-up or a mature entity, it is a given that business owners and leaders must continually take steps to spur business health and vitality—in other words, growth = life. Many small businesses don’t make it past their first few years so to increase your chances of success, you have to be strategic from the very beginning. It’s important to direct your energy and resources toward actions known to work. Without a rationable straight-forward plan for growth, your business could struggle to take off and become sustainable. Presented here are five basic growth strategies, one or more which will likely work for your enterprise.

  1. Increase market penetration
  2. Indentify new channels
  3. Introduce market segmentation
  4. Develop partnerships
  5. Prioritize exising customers

Market penetration

This is a fancy way of telling yourself to cultivate a thriving client roster that is populated by a mix of new, lapsed clients who’ve been enticed to return and, best of all, legacy clients you’ve worked hard to keep within the fold. Market penetration is arguably the most critical business strategy of all; Freelancers and small businesses owners and leaders would be wise to employ ongoing tactics to take aim at long-term success with the use of a good market penetration strategy.

The goal is to increase sales within your current market. This can be difficult, as it requires you to beat your competition, but appealing to your current client list is an often successful path to growing sales revenue and profits. Clients do business with those they know and like and they do more business with those they know and trust.

New selling channels

Finding new opportunities to sell your products can be an excellent way for your small business to grow, especially if your current market is highly competitive. The internet has opened up alternative selling opportunities, giving you unexpected and innovative ways to reach out to not only your existing clients but to other markets, too. For example, if your business is online-only, consider opening a pop-up shop, maybe to capture Valentine’s Day or Mother’s Day shoppers. If the strategy is promising, consider devising a way to become a permanent fixture at the pop-up location. See the partnership heading below and consider the possibility of a consignment arragement with a vendor colleague whose products complement yours.

If your small business operates from a physical store, then do the reverse and consider selling certain of your products online to broaden your reach (work with a skilled product photographer who will make your products look their best). B2B service providers can perhaps bring certain of your services online—maybe coaching sessions conducted by way of videoconferencing?

Market segmentation

Here, we have another fancy term for a simple tactic. Freelancers and small business owners often struggle to get traction in large markets because it’s nearly impossible to compete with bigger and better-financed companies. They’ll out-flank you on every metric, from breadth and depth of their product line to the advertising budget. For this reason, you might need to reevaluate your brand’s place within your market and hyper-focus your preferred playing field.

Think niche. Market segmentation involves dividing a broader market into smaller groups based on demographic information or buying habits. Then, you can choose one of these segments for your niche target audience. Marketing to a highly specific group of potential customers is easier than trying to appeal broadly to a massive group.

If you offer more than one product or service, market segmentation also helps you promote different products or services to different consumer groups. Taking this marketing approach will require careful research to discover which market segments are the most likely to buy each of your products or services, so be prepared for a time-intensive process. You can use email surveys, website analytics and purchase histories to find trends in your existing customers’ demographic or behavioral traits. Once you identify the most appropriate market segments for each of your product categories, create more targeted content for potential clients.

Partnerships

Partnering with another small business gives all parties involved access to a wider audience and if all works according to plan, everyone generates more sales and makes more money. However,

You’ve gotta know who you plan to dance with because a disappointing partnership deal can get ugly and steps must be taken to avoid misunderstandings and confusion. Due diligence is imperative when proposing a partnership of some sort. It is critical that you discuss the agreement—- responsibilities of the partners and expectations for outcomes—-in advance and, ideally, in face2face meetings. Then, follow up the agreement with unambiguously written emails. Due diligence is a must- do when proposing a partnership of some sort.

The partner’s products and services should be complementary, never a competitor, to your line, to ensure their client base will have an interest in your products or services. Ideally, a partnership should significantly benefit both business ventures. A partnership can take any form, from selling items on consignment to co-hosting a full or half-day professional development conferenceto sub-contracting a portion of a project where your own expertise would fall short—providing graphic arts or videography services at an event where you are he principle player. services could be an opportunity to tackle a big project by combining your resources, and it can be a chance to connect with another professional who may be able to offer their wisdom or skills. You could work with a partner to develop a new product, or you could host an event that promotes both brands. A consignment sales arrangement is usually low-stress and can be tested quickly and easily to illustrate how partners can work together.

Current clients

One of the most ill-advised yet common strategic missteps that business owners routinely make is prioritizing new client acquisition over developing client retention protocols. Clients with whom you have a history have demonstrated their confidence in your organization and need only a little love from you and your team to secure their loyalty and future business. While there is no doubt that recruiting new customers is an essential business goal, it is in fact customer retention that is the key to business success, as we discussed above in market penetration. Convincing a client to remain (or return) to your business is far easier than convincing a new client to give you a chance. Client retention is the engine that drives sales revenue and profit. Moreover, current and returning clients are your cheerleaders and are a good source of word-of-mouth advertising.

BTW, an email marketing strategy is probably the easiest way to stay in touch with the roster of clients you regularly work with. The right call-to-action will help you persuade clients and other website or social media visitors to surrender an email address in exchange for receiving something (free) that they value, such as an interesting report, informative e-book, revealing case study, or link to a podcast or webinar in which you participated (always provide an opt-out feature).

To your curated list, you may promote your brand and yourself by sending updates about new products or services, talks you’ll give, classes you’ll teach, charity events you’ll join, special pricing deals and other relevant news. Finally, you can as well demonstrate your respect for your clients by periodially conducting (short) surveys to guage their opinions on how you address their needs and what you can do to improve the client experience.

Thanks for reading and Happy New Year. I appreciate your presence and support!

Kim

Image: This is how we do it. Window washers from a family-owned small business in Gresham, OR working for a local small business colleague. © The Oregonian March 21, 2013.

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A New Year’s Resolution for 2023—Be Visible

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A New Year will soon welcome us and with its arrival you will reach a naturally occurring turning point, or inflection point, as thought leaders like to say. A New Year is one way that the universe gives you a nudge that can inspire a beneficial reset personally or professionally.

It may be your custom fo create a short list of resolutions, goals to set you on a path that leads to a successful and rewarding year. Maybe you prefer to think of the process as giving yourself a fresh start at the top of the year—whatever! This year, I respectfully recommend that you plan to rev up your PR strategies. It’s crucial that you establish yourself at top of mind amongst those who are likely to become customers for your services or products by showcasing your EAT qualities—Expertise, Authoritativeness and Trustworthiness, still prized by Google. As well, aim to promote your dependability, authenticity and relability, all in service of building loyalty to our brand and stimulating customer retention and referrals. Here are five good promotional ideas for you in 2023.

Attend conferences

One of the best ways to meet professional colleagues and also grow your skill set and perhaps even find a client or a referral partner is to attend conferences. They can be quite energizing and inspiring and leave you buzzing with good ideas on how to do business with more intention and finesse. Conferences allow you to network with other business owners, Freelancer colleagues and traditionally employed executives and can open the door to lucrative new business.

Join, or at least occasionally visit, your local Chamber of Commerce or other professional organizations in your town. Find out, then get involved. One of the best ways to become known in the community is to be actively involved with the people and the commerce that make the town run.

Give talks

Freelancers market the skill set(s) that define their business and for that reason, you’re naturally positioned to take on public speaking. Along with teaching, there is no better way to showcase your expertise than to get yourself in front of an audience of colleagues and peers. As you attend conferences, make inquiries about speaking opportunities. Organizers routinely seek out those who can deliver a topic that will interest their members. When you join a neighborhood business or professional association, you’ll improve your chance to receive an invitation to speak. Furthermore, seek out webinar and podcast organizers are also in search of guest speakers.

BTW, speaking opportunities are more than delivering a keynote address. Introducing a speaking, moderating a panel, or appearing on a panel are also great opportunities for public speaking. Regarding potential venues, contact local libraries and other nonprofit organizations about talking to their members. Libraries, especially, have added career development information to their programming. What business topic can you address? Start outlining a 30-45 minute talk now and then go to work on the Power Points.

Community involvement

Your current and prospective customers will find you more relatable and authentic when you demonstrate your corporate social responsibility through your involvement in local philanthropy. Potential causes can be as varied as a Christmas tree lighting in early December to a 10K road race that raises money for math tutoring services for financially disadvantaged children.

PR campaigns

If you’re going to teach and give talks, then you’ll need to build an audience. News of your upcoming appearance is the perfect excuse to send a press release to your neighborhood paper. Read a few issues and familiarize yourself with the names of reporters, especially the business reporters. Find out how often the paper is published— neighborhood papers are usually free and published weekly. Once you get the particulars worked out, call the editor or business reporter and introduce yourself. Confirm who should receive your press release.

Furthermore, make it your business to learn all the free online listings services. The Patch is a great free listing service that’s available in many communities in America, both small towns and big cities. Finally, if you can muster an advertising budget, buy a business card size ad to run for two (or more) weeks simultaneously with the story featured in your press release and/or online listing, to amplify the impact of your story. Talk to the paper’s ad rep to see what types of deals you can get for advertising (within your budget) to stay in the public’s eye.

The above strategy also applies when you participate in a community charity event, or should you nominated for a business award. Kick your PR campaign into gear and savor the flattering publicity that flows to you and your business.

Promotional items

One of the best ways to get people interested in what you have to offer is to give something away. It doesn’t necessarily have to be your product, though it certainly can be. Giveaways can be an effective way to get people through the door of a physical store or to visit your website.

Consider giving away inexpensive but useful items that feature your company logo —-note pads, pens, magnets, tote bags and mugs, for example. Those items are popular and will keep your name visible. Whatever you give away, know that consumers recognize your goodwill and may reward you with more business. Are there local fundraisers that are looking for sponsors or door prizes? Find out how to get involved with these functions and get your products and your name in front of a prospective customers.

Merry Christmas and thanks for reading,

Kim

Image: © Kyodo News June 1, 2019. Yumi Ishikawa, writer, actress and founder of Japan’s #KuToo movement. The social media hashtag references the Japanese words for shoes, “kutsu,” and pain, “kutsuu,” with a nod to the #MeToo movement.

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Back to Basics: Content Marketing 2023

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The inbound marketing strategy known as content marketing has the power to bring paying customers into your business. The results you see might happen quickly or over a somewhat longer period of time but if you put a content marketing strategy in motion, it’s close to a guarantee that customers will arrive, checkbooks in hand.

What will it do for you?

As you must do for all business initiatives, you need goals, tangible or intangible—your wish list!—and a recipe to make them happen. If you’re like many Freelancers and small business owners, however, you may be a little flummoxed by how to get content marketing going, of deciding what it makes sense to do. so FYI, the focus of a content marketing strategy is simple and straight forward:

  • Encouraging brand awareness, trust and loyalty
  • Generating leads within your target market
  • Converting leads into customers (sales)
  • Inspiring good word of mouth, repeat business (customer retention) and referrals

A content marketing plan is a journey. You’ll want to keep your destination in mind (goals) as you map the easiest and most effective path (strategies and actions) to get you there. Think of a 12-18 month campaign time frame. Develop the content narrative , perhaps quickly summarized by bullet points, to persuade the target audience. Moreover, choose relevant Key Performance Indicators (KPIs) that will document your progress—or give a red flag to let you know that a course correction is needed. B2B marketers primarily use website traffic to measure success (60%).

Demand Metric, a content marketing firm headquartered in Ontario, Canada, recently reported that 91% of B2B companies engage in content marketing, spending 25+ % of marketing budget on the format. Demand Metric research also found that 68% of people read about brands that interest them and 60% will follow-up on a product or service after reading content marketing info. 70% of potential buyers prefer to read an article about your product or service than see an advertisement. 82% feel more positive about a company after reading content and 90% feel that such content is useful. High quality, interesting content inspires potential buyers to follow your content on social media and makes them more likely to do business–become a customer.

So what do potential buyers consider appealing content? Demand Metric research points to blogs, finding that 59% of B2B marketers produce more leads with blog posts. FYI, I don’t want to ruin your day, but Demand Metric research also found that 91% of email marketing recipients opt-out (hint—develop a good list and keep in mind that a small yet robust list still has value).

Remember your audience

Your content is for your target buyers. Therefore, you have to know who your target buyers are so you can decide the best way to sell your content to them. tailor your content marketing strategy to accommodate your ideal buyer’s content preferences and behavior. Your content is meant to push your brand as a trustworthy expert in your industry. This means you have to set yourself apart from competitors in the industry. To do this, you have to let your audience know what makes you unique through your content while showing them you are trustworthy by solving their problems. Most users look at the content to find solutions. Therefore, your content should indicate that you understand their pain point and you are able to solve it because you have the solution. Content that portrays such confidence is instrumental to generating conversions for your products.

Depending on your target audience, your content format can come as infographics, videos, podcasts or more. This also goes for the platforms you choose to deliver your content. For example, TikTok is predominantly used by young people, which means it could be the ideal delivery channel for your content if your audience falls within that demographic of users. In addition, it means your content has to be predominantly videos.

Monitor and fine-tune

Finally, you’ll want to make decisions about what success or missing the mark looks like. You can choose to follow whatever metrics are available to you but I suggest you keep in mind the most common goals of content marketing campaigns and choose metrics that reveal their performance. Depending on what you learn each month about your campaign’s ability to deliver, or not, gives you the flexibility to make adjustments along the way.

You can track the progress of your content marketing campaign by using your website and social media platform traffic data, as well as making note of the leads you’ve received and deals closed by way of leads generated.

If budget allows, do yourself a favor and invest in marketing services company such as HubSpot or Buzz Sumo. Among the metrics you’ll follow will be:

  • Social media shares
  • Website traffic
  • Click-through rate
  • Content engagement—- comments , shares, likes of your content
  • Backlinks— which high- traffic sites link to yours and increase the activity and credibility of your website and social platforms? Google E.A.T. (expertise, authority, trust) remains an influential
  • Time spent on time, another demonstration of engagement with your content. Pay attention to the topics that readers prefer, based on the time spent reading certain posts.
  • Bounce rate (tidy up your email list)

Thanks for reading,

Kim

Image: Jane Wyman (L) 1917 – 2007 won the 1948 Academy Award for Best Actress in the title role of Johnny Belinda. Wyman was married to Ronald Reagan 1940-1949, they are the parents of Maureen and Michael. Superstar Hollywood costume designer Edith Head and Wyman review designs for Lucy Gallant (1955). Head (1897-1981) was the recipient of eight Academy Awards for Best Costume Design, including All About Eve (1950) and The Sting (1973).

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Fight Back Against Recession

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Economists and other thought leaders predict that 2023 will be a recession year and if the prediction holds, many Freelancers will see a decrease in sales revenues. Diminished revenue has the potential to bring on many unpleasant outcomes, among them the imperative to reconfigure how you can best allocate your shrinking funds. Belt-tightening isn’t fun, but do it right and you might survive or even, eventually, thrive. Take these three actions:

  1. Defend cash reserves
  2. Identify most profitable business activities
  3. Guarantee the optimal delivery of products and services

Conserve cash

You may not have a large amount of cash on hand in your business, but make a point to locate where you might find revenue that hasn’t been tapped. The first place Freelancers should investigate is the Accounts Receivable file. Rethink your strategy to collect unpaid AR and better still, start planning for AR when discussing the agreement with clients you’re about to work with. Request up-front money before you start project work on jobs that bill for less than $100—10% – 20% in advance is reasonable. Second, tie interim payments to project milestones where possible. Institute policies to avoid leaving more than 50% of the fee payable when project deliverables are handed over. The best defense is a good offense.

In the present tense, identify outstanding invoices and tactfully, persistently, pursue payment. Follow-up with clients who might be struggling to pay invoices and negotiate a payment plan if possible. Do whatever you can to ensure that all money owed to you will be paid as soon as possible (FYI, I’m negotiating right now with a client who should have no problem paying, but is 60 days late). Bring in the money and hold on to it—spend only on activities with demonstrated potential to increase revenue.

Double down on money makers

Going into a recession is a great time to do an audit and verify the most profitable parts of your business. When the economy becomes favorable again, you’ll be even better set up for success. Once you’re sure of the money-makers, do what you can to expand billable hours of those assignments. If you can scrape together a marketing budget, here is where you spend.

Marketing sometimes seems counterintuitive when you have less available revenue but in most cases, you can’t make money unless you spend money. What you must do is limit spending to activities that positively impact revenue generation. It could be that you buy a software program that makes it faster to generate and send client invoices. You might also invest in making credit card payments available and thereby make it easier for clients who can’t afford to write you a check can nevertheless use credit to pay your outstanding invoice.

There are also the more immediately recognizable marketing activities, among them selectively attending meetings and conferences where you might encounter prospects who may become clients and advertising, print or on-line, in publications that are read and respected by your target audience for your rainmaking projects.

All about deliverables, client retention, referrals

Happy customers create more business. Repeat and referral business is extremely important in a recession. Ensuring that your clients are happy is vital in any economy but especially in a recession. Creating glowing online reviews, testimonials and good word-of-mouth are essential to growing your revenue when times are tough (and even when there’s lots of money rolling around).

Sometimes when the economy changes, so do your client’s needs. Extract this opportunity, hidden in adversity, to learn more about your clients and what they feel they need now to ensure the survival of their organizations. Now is the time to talk to your clients and discover any changes in what they consider the pain points and priorities. Once again, it will be demonstrated that when you are attuned to the needs of your clients that knowledge can lead to more more active clients, more referrals and more revenue and profit.

Thanks for reading,

Kim

Image: © Keystone/Hulton Archive/Getty Images. Protesting the rise of food prices in 1973.

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10 Under $35: Client Gift Ideas 2022

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Your final marketing tactic of the year will be the December holiday card and gift you give to all clients whom you billed at least $500 in this calendar year. It’s also smart to send a holiday card to those you’ve worked with over the past four or five years.

Your client outreach at holiday time goes a long way toward enhancing your brand, playing a part in your client retention/ repeat business strategy. Find the time and money to show appreciation to those who trust you enough to pay for your expertise. At this time of year, take the readily available opportunity to contact current and lapsed clients and demonstrate less visible aspects of you and your brand—thoughtfulnesses, generosity, happiness, authenticity.

  1. Yucca Cane Plant $24.99

Studies show that plants at home or in the office can reduce stress and stimulate creativity. The Yucca Cane is a long time favorite that will make a dramatic conversation piece. Its upright spineless hard leaves sit atop a thick wood cane in multiple clusters which creates an exotic tropical look. In addition to its bold look, the Yucca Cane is an easy care plant that requires low watering and enjoys high to medium light spaces. The spineless yucca loves sunlight and watering about once a week. Make sure the soil dry’s out before watering again. To beautify your plant use containers with drain holes to drain excess water and keep your plant healthy.

https://www.homedepot.com/p/United-Nursery-Yucca-Cane-Plant-in-9-25-in-Grower-Pot-21955/307739456

2. Tunisian Tile Snack Tray. $30.00

Whisk yourself away to the Mediterranean for a midday tea or coffee break. This handmade serving tray is part elegant decor, part transportation device. Tunisian artisans carve the base from olive wood and add two hand-painted ceramic tiles. No matter what you serve–coffee and pastries or wine and cheese–you’ll enjoy your pick-me-up snack that much more. Handmade in Tunisia.

https://www.uncommongoods.com/product/tunisian-tiled-snack-tray

3. Sari Patchwork Apron $30.00

Your clients who got into coking during the pandemic will appreciate a lovely and practical apron. The item began its life as a sari and has now been repurposed into a double-sided apron featuring a blend of patterns and colors to inspire the cook who wears it. Handmade by artisans in Bangladesh who stitch repurposed sari swatches together, then decorate the aprons with traditional kantha stitches in contrasting colors. Each stunning patchwork is a one-of-a-kind work of art and no two are identical. Machine wash cold, line dry.

https://www.uncommongoods.com/product/repurposed-sari-patchwork-apron

4. Sound Machine $26.00

The Yogasleep Travel Mini Sound Machine combines robust white noise options and a night light in one sleek and lightweight pocket-sized device, ready for travel anywhere. The travel mini offers six lush soundtracks created to promote relaxation and improve your sleep environment, including white noise, brown noise, and three nature-inspired sounds.

https://www.ongoody.com/business/browse/brands/yogasleep/travel-mini-sound-machine-with-night-light

5. Picture Frame $19.99

Classically attractive photo frame is crafted with a sun ray style design and ribbed texture that complements the decor of any office, corporate or home. It’s hand made of sustainably sourced bone and features an easel back and will brighten a desk, book case, or table top. Holds one 5”x7” photograph.

https://www.worldmarket.com/product/white+sunray+bone+frame.do?sortby=ourPicks&from=Search

6. Cherry Pit Muscle Therapy $18.95

Did you know this is a thing? I certainly didn’t but while I was sleeping, millions of people have been using hot or cold compresses filled with cherry pits to relieve muscle aches. Chill pits the freezer or warm in the microwave and they’ll hold and slowly release therapeutic cold or heat that’s good for what ails you.

http://cherrypitstore.com/index_files/Page796.htm

7. Key Chain $18.00

Why not give a simple and practical gift? This compact, durable and stylish key chain has a 100 % genuine leather exterior, silver in color and tastefully accessorized with solid brass hardware.

https://www.primecutbags.com/keychains/silver-leather-keychain

8. Mobile Device Ring Light $24.99

Maximize the benefits of mobile with a great little accessory that makes you look good when you Zoom on the go, sun up or sun down. FYI, read a review. https://freelancetheconsultantsdiary.wordpress.com/wp-admin/post.php?post=24120&action=edit

https://getolumiring.io/offer-01/?lpid=0621&utm_source=11335&utm_medium=&utm_term=621&utm_content=&utm_campaign=0&aff_id=11335&camp_id=0&sub_id=&req_id=5d503ba5990b4080899e5dd885958a82&contract_id=0&oid=621&device_type=PC&country_name=United+States

9. Skin Moisturizing/ Winter Therapy $28.05

  • SKIN CARE PRODUCTS: Pamper from head to toe with this giftable set including Lemon Butter Cuticle Cream Hand Salve Original Beeswax Lip Balm Res-Q Ointment Shea Butter Hand Repair Cream and Coconut Foot Cream.
  • HANDS & FEET: Pamper and soothe dry rough cracked skin with moisturizing hand salve cuticle cream hand cream and rich foot cream.
  • LIP MOISTURIZER: Made with Beeswax Vitamin E and a hint of peppermint oil hydrate and nourish dry lips with the original favorite lip balm.
  • MULTIPURPOSE OITNMENT: This gentle Res-Q Ointment is made with a blend of herbal ingredients to create an everyday salve that soothes and comfort dry skin and minor cuts.
  • BURTS BEES GIFT SET: These natural, moisturizing skin care products gifted in a Burts Bees tin nourish skin throughout the winter months and make the perfect holiday stocking stuffer.

https://www.walmart.com/ip/Burt-s-Bees-Classics-Gift-Set-Open-Box/920571603?irgwc=1&sourceid=imp_XB0zf034fxyNTw0wVCwYvw4MUkA0LJS8eSbIzo0&veh=aff&wmlspartner=imp_3006986&clickid=XB0zf034fxyNTw0wVCwYvw4MUkA0LJS8eSbIzo0&sharedid=&affiliates_ad_id=565706&campaign_id=9383

10. Designer Coffee Mug $22.00

If you must give a coffee mug, make it this one! The innovative design and sturdy durability of Cloud Mugs bring a smile with every sip. The mugs are also microwave safe. Hand wash and avoid submerging the mug in water to keep them looking and feeling their best.

Cloud Mug

Hope the list helps your relationship and brand building strategy. Happy Holidays and thanks for reading.

Kim