Author Archives: Kim Clark

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Rip Off the Band-Aid: Why Prospects Refuse to Be Customers

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You’ll never preside over a thriving business enterprise, be it large, small, or somewhere in-between, unless you consistently recruit new customers—as you simultaneously encourage repeat business, that is! Maintaining a healthy customer list is a balancing act that requires constant attention. When creating marketing strategies and campaigns for your entity, I think it’s safe to say you create content expected to interest current and prospective customers who have at least a back-burner need for your service or product categories.

But as you brainstorm potential marketing messages to fuel your next inbound or outbound marketing campaign, your thoughts could eventually land on a cohort of elusive and reluctant prospects—- noncustomers, who buy little or nothing from either you or your competitors. Who are those outliers lurking at the fringes of your marketplace, you may wonder? Admittedly, Freelancers and owners of small or medium size businesses will (correctly) assume that it’s a smarter bet to direct your time and money to prospects who’ve shown a need for products and services offered in your marketplace. Nevertheless, you may not be able to ignore the silent awareness of noncustomers who may have a latent, unacknowledged need for what you sell. Could they exist in sufficient numbers and hold revenue potential to constitute a niche market for you? Maybe.

The answers you seek can most efficiently be revealed with comprehensive market research, data-driven and available in software like Qualtrics and other SaaS companies to get trustworthy customer intel that helps you make informed decisions. Once you’ve discovered the identities of your noncustomers, guided by the industries they occupy, you can then verify the business case for how your services and/or products could be worthwhile for them.

As you research your noncustomers, you may quickly see that they’re not all alike and that each subgroup has idiosyncratic biases, doubts, concerns, even misperceptions that explain why they’re noncustomers. Research may reveal that for some of them, the decision to decline to buy from either you or your competitors could make sense. That said, your noncustomers, while perhaps operating in different industries and maintaining different perspectives, might share certain similarities—goals, challenges, or concerns, for example, that could give them something to talk about if they all show up at the same holiday party. Subject to an analysis of relevant data that’s interpreted well, you may be able to build on what your noncustomers have in common and discover a potential niche market that you might convert into a few good customers.

Noncustomers categories

The challenge of noncustomers was researched by W. Chan Kim and Renee Mauborgne, who sought to help companies more effectively understand and, where possible, convert the untapped demand of these inaccessible prospects and in so doing create the genuine demand for a company’s products and services that they named blue ocean. Kim and Mauborgne are professors of business strategy at INSEAD (Institut Europeen d’Administration des Affaires) and coauthors of Blue Ocean Strategy (2005), the book and the marketing theory. The developed an analytic framework used to study the phenomenon of noncustomers and they sorted the cohort into three tiers.

  • First Tier: Soon-to-be

First Tier noncustomers are on the fringe of your market and waiting for an opportunity to leave your industry. They’re not precisely noncustomers; when they must, they’ll buy certain products or services offered by companies in your category but know that they have no love for any company operating in your industry.

What drives First Tier noncustomers? They may be dissatisfied with the available products or services in your industry and hoping for a solution that better satisfies their needs.

  • Second Tier: Refuseniks

Second Tier noncustomers make a conscious choice against your market and deliberately decline to buy your industry’s product or service offerings. These noncustomers have seen the available solutions that might fulfill their needs but have decided against them.

What drives Second Tier Noncustomers? They may find the available products or services unaffordable or somehow inappropriate for their needs.

  • Third Tier: Unexplored

Third Tier noncustomers are psychologically farthest away from your marketplace. These noncustomers have never considered products or services sold in your industry to be an option and so they’ve made no purchases. It’s assumed that the needs of third tier noncustomers are addressed by another industry.

What drives Third Tier Noncustomers? They never viewed your industry’s products or services as a viable option and therefore never considered exploring what you sell.

Marketing messages for noncustomers

Prospects who erect barriers and refuse to be considered are not easy to overcome, as you know. Kim and Mauburgne recommend that those looking to appeal to noncustomers to first, search for similarities that link your various noncustomer subgroups and second, focus on low hanging fruit. In other words, figure out which noncustomer groups you can expect to most easily, quickly and inexpensively communicate with and then create strategies and campaigns to win them over, if that is possible. Spotlighting benefits they stand to receive when using your products or services may be persuasive.

Identifying those similarities shared by your different noncustomers will be a good job for your data analytics software. Once you’ve figured out the landscape, you can then decide which problem or priority to address. After that, you create a marketing message you expect will resonate with your chosen cohort and distribute through channels they can be expected to trust and follow.

  • Neuromarketing: emotional appeal

Some behavioral experts believe that 95% of customers’ buying decisions are made subconsciously and this strategy seems to me like a potentially successful one for reeling in noncustomers. It’s entirely possible that even your toughest B2B customers aren’t using as much logic as they’d like you to believe when they evaluate (or ignore) the possibility of buying your product or service. Moreover, the biggest urge that’s attached to unconscious decision making is emotion. What all this means is if you effectively appeal to your noncustomers’ feelings, you’ll have a better chance of influencing their buying decisions.

Research also shows that marketing campaigns that have purely emotional content perform twice as well when compared to content that only uses logic. Furthermore, for some unexplainable reason, content that includes both emotion and logic doesn’t connect as well as exclusively emotional marketing content, whether the content features positive or negative emotions. Emphasize emotions in your marketing content when reaching out to customers or noncustomers by including storytelling, humor, music, or other behaviors that resonate with their emotions. Instead of focusing solely on product features or benefits, create emotional content that strives to encourage a personal connection with your viewers.

Thanks for reading,

Kim

Image: © Getty Images/Ingram Publishing (2014)

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How to Choose the Right PR Expert

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When the goal is to promote your business, to spotlight a product or service or nurture your brand, for instance, it has been convincingly demonstrated that your marketing content is king. Promotional content, packaged as relevant information, has become a highly effective vehicle for businesses looking to build reputations and engage with audiences. When appropriately developed and presented on platforms trusted by the target market segments, good PR/marketing content can convey the story that a brand needs to publicize. If you have at least a modest talent for promotional marketing, you may be able to perform reasonably well as your own in-house PR/marketing specialist. However, should you have a big project in front of you—like maybe the launch of a new service or product? An objective assessment of the task may tell you that the talent of a marketing expert who is also a public relations savant, who knows how to wordsmith an old-school press release and send it to the right media outlets and also stir up tempting social media posts for placement on platforms that your target market follows. Your ideal PR/marketing expert will no doubt get you featured on a podcast (or webinar) or two as well, to let your audience see or hear you in action.

It could be that you’ve never worked with a PR expert, whether Freelance or employed by a promotional marketing firm. You may have had conversations with one or two such individuals and they may have promised you the moon as they enthusiastically made it sound as if you would be featured in a well-known newspaper or magazine (could that be the New York Times business section, above the fold?) and maybe a television spot, too (OMG, maybe The Today Show?).

However, you may have come back to planet Earth and concluded that it’s better to refrain from diving into the deep end of the swimming pool, as you recognize that the best-told story that some PR “experts” tell is the one used to sign gullible prospects. So, when searching for an expert to develop and guide your PR/marketing content and roll-out, choose carefully. It’s imperative that the person or firm you work with understands where your business is now, “gets” the logic of your big picture goals and is able to construct and communicate a narrative that will advance your mission. Here are six qualities to inform your search for PR/marketing talent that can drive your business goals.

1. Displays trustworthy behavior.

Ultimately, you must be able to trust the PR expert, just like you trust your bookkeeper, accountant, or attorney. Whether you prefer to work with a Freelance or agency expert, you must trust that this individual understands how to shape, present and distribute your story in a way that supports your overall business goals. As you interview potential candidates, ask questions that shed light on client retention rate—has your potential PR expert worked with at least a few clients for a number of years? Repeat business is an excellent barometer of performance and trustworthy behavior. A Freelance or agency PR expert who has long-lasting client relationships—partnerships, really—demonstrates the essential qualities you seek.

2. Understands your big picture business goals.

The most highly valued skill in the PR industry is strategic planning, according to a report published in 2023 by the global data and business intelligence platform Statista. In other words, you should be able to regard your PR expert as a strategic partner and more than someone who gets you a guest spot in a webinar. Your PR expert, whether agency employee or Freelancer, should be prepared to serve as a trusted adviser who is able to seamlessly merge PR initiatives with your business goals. Stories must do more than promote products or services or announce your presence at a prestigious event. Effective PR is about engaging audiences and building lasting relationships, along with a noteworthy brand.

3. Recognizes your potential best stories.

Before a PR/marketing professional can create effective campaign content, the story determined to be best suited to achieving publicity goals must be identified. Your PR sherpa must have a feel for asking the client (you) questions that surface stories capable of building a compelling narrative. The most valuable PR experts are story finding geniuses. A content-savvy PR expert will have a time-tested script that s/he follows to tease out the most newsworthy hook that will allow your company’s story to stand out from the rest. Real PR experts have always been storytellers and the most successful stories are those that are authentic. They are the stories that cut through the ongoing roar of the crowded marketplace because they go beyond merely promoting products or services. These stories skillfully engage audiences in ways that build lasting relationships. When interviewing a prospective PR expert, ask for information on performance metrics that reveal not only audience reach and impressions, but also viewer engagement.

4. Knows the right content distribution platforms.

In the 21st century communication environment, it has become obvious that creating desirable content is just the beginning of a successful campaign. Your target audience must also notice your content and drawn to view it—and placing your content where your audience will see it demonstrates the importance of content distribution. In order to reach your target audience, be aware that there is no one-size-fits-all content distribution formula. In your interview with prospective PR Freelancers and agencies, you’ll be wise to ask for verification of strategic choices made for the client’s best distribution platform for each story. The channels utilized should be selected based on your target audience and goal.

One of the challenges—and opportunities—is the multichannel maze. PR and marketing campaigns can no longer rely on one channel or strategy. It is now required to focus on multiple platforms that each play a part in the overall story. For instance, content that works well on LinkedIn may fall flat on TikTok, even when there’s value to be found in posting on both platforms. Effective content distribution demands a deep understanding of audience behavior and content trends; it requires PR professionals to be agile and creative in their approach.

It is also necessary to plan for the impact of the metaverse, the constant recycling of content that typically includes comments made by influencers and those who consider themselves stakeholders (for reasons that perhaps only they themselves understand). Again, your PR expert must learn what content works for your brand and your big picture goals.

5. Uses relevant metrics to drive campaigns.

The best PR Freelancers and agencies understand the importance of campaign performance analytics. Before any project begins, forward-thinking PR experts will focus on the client’s business goals and design content to achieve a brand’s desired results. Your PR expert should be able to seamlessly blend analytical knowledge with your business goals. PR professionals now need to have the strategy and skills to tie their work to bottom-line business results such as increases in sales, web traffic, or sales numbers.

6. Beware the digital PR campaign pitch

Finally, in the rush to embrace advanced technology, digital PR campaigns are increasingly offered as an attractive method to enhance brand visibility, build authority and boost Search Engine Optimization results. Digital campaigns are being sold as the most cutting-edge way to get a company and/or product into the highly coveted search list Top 10. However, clients may not realize that the promised outcomes may be an illusion. When evaluating digital PR, it’s imperative to recognize and fully understand the risks.

Recommendation of press release syndication is a red flag. Press release syndication typically results in low-value media placements that are seldom noticed by your target market; following this strategy most likely will not benefit your SEO or communicate your story. Misrepresenting paid media placements as organic PR is unfortunately another digital PR practice that can cost your business a 4-figure fee but without delivering the value you thought you were paying for. Some PR independents or agencies may claim to provide real digital PR services, but in reality, they just use third-party press release syndication services.

Disappointingly, even properly executed digital PR campaigns frequently do not succeed because the distribution is patently ineffective. A client may spend $5,000 to $15,000 on a campaign, but if relevant media outlets don’t pick it up the hoped-for backlinks, for example, will not materialize. This is especially frustrating for clients, as they have no certainty about what they’re getting for their money. It’s a risky investment, and unfortunately, the outcome can sometimes be nothing but lost money.

Thanks for reading,

Kim

Image: © PictureLux/ The Hollywood Archive. Swedish actress Anita Ekburg (September 1931 – January 2015) creates brand-defining content in Rome’s Trevi Fountain on December 31, 1959, while filming La Dolce Vita (1960, directed by Federico Fellini).

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8 Year-End Checklist Tasks To Keep You Organized

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The sun is setting on 2024 and telling Freelancers and all business owners that it’s time to close out the waning year and prepare to welcome the New Year. To make sure that no important matter gets lost in the shuffle during what may be a rush to tie up loose ends, you may appreciate the practicality of a year-end checklist. The checklist is simply a to-do list that keeps you organized as you attend to the many tasks and responsibilities, business and personal, that arise at this time of year. Taxes and other financial responsibilities rank high on the checklist; identifying business (and personal) goals for the New Year run a close second. As you work your way through your checklist, you’ll discover a perhaps unexpected bonus—the checklist also provides an objective assessment of where your business stands as of December 31 and can indicate useful goals and benchmarks for 2025.

Before you become immersed in holiday preparations and celebrations, block out four to eight hours to devote to getting your entity’s house in order. That’s your strategy to eliminate holiday spoilers, like anxiety resulting from uncompleted responsibilities. Call on your discipline and power through the administrative tasks listed below, so you can truly enjoy dropping into parties and celebrating the season with friends, family and colleagues.

  1. Make business purchases. The end of the calendar year is your cue to buy equipment, services, or other necessities for your business on or before December 31, to add to your 2024 tax deductions and lower business taxable income. What expenditures are on your wish list and what does your budget allow? If you’ve had business goals on your mind (and I know that you have!), certain software-as-a-service subscriptions could be on your must-have list. Or maybe you’ve thought of updating business equipment, or items to make your workspace more favorable? Do you need to pay an insurance premium, or upgrade a policy? Maybe you can make an early payment and let the expense be recorded as an asset on your 2025 Balance Sheet. Think also about initiating professional services, for example, a business attorney, or even bringing in a Freelancer to help with projects such as bookkeeping or social media management? Now is a great time to make those purchases, which will result in lowering your taxable income.
  2. Send Form 1099 to your Freelance workers. First, verify that Freelance team members you’ve hired have completed IRS Form W9, so that you will be ready to send to those who provided services of $600 or more an IRS Form 1099NEC . Tax statements must arrive, by USPS or email, no later than January 31, 2025, as required by IRS regulations.
  3. Get your bookkeeping up to date and schedule tax appointments. Before the holidays dominate your focus, bring your books up to date. If you maintain the business financial records yourself, get busy now and review the year’s financial records, receipts and accounting so that documents are organized and closed out for the end of the year and ready for tax preparation time. If you’ll hire a bookkeeper or a tax accountant to handle business taxes, schedule an appointment today to ensure that you’ll 1.) get on the calendar of whom you want to see and 2.) improve your chances of getting an appointment date that’s good for you.
  4. Consider your business legal entity and tax election changes. As a business grows and evolves, it may be beneficial to change your business entity classification or change the tax category. In many cases, forming an LLC or corporation, both of which change the entity’s tax status, can be more complicated when the change occurs mid-year and is sure to complicate that year’s tax returns. Furthermore, changing your tax status (e.g., converting your entity to an S-Corp) is time-sensitive and must be completed before the May 15th due date in most cases. Year-end is a good time to assess whether or not your current business entity type and tax status election are the best choice for your business. Incidentally, making this decision is ample motivation to upgrade your professional services by bringing on a business attorney and/or business accountant (or a very savvy bookkeeper) because you’ll want the guidance of a certified professional such as a CPA, financial planner, or attorney and to help you plan any major changes to have them effective for the start of the new year.
  5. Add dates for taxes, registrations and important filings to your new calendar. What with quarterly taxes, business registration or certificate renewals and other important records filings required of a business, you absolutely want to be ready and not caught unawares by any due dates. Record in your new year calendar all important filing, payment and renewal dates so you can keep your business compliant and in legal operation without incurring costly penalties and fees.
    • Business license renewal
    • Estimated income tax payments
    • Sales tax return filings and payments
    • LLC tax payment
    • LLC Statement of Information filing
    • Business insurance premium payments
  6. Contribute to your self-employed retirement account Investing money in a self-employed retirement account, such as a solo 401k or SEP-IRA, is 100% tax-free and lets you save on three tax categories that would otherwise pay. Instead, money invested in your self-employed retirement account enables you to avoid the federal and state self-employment tax – and book significant savings! Self-employed professionals can contribute up to 25% of annual net earnings, up to $66,000, to a self-employed retirement account tax-free (for 2023). Make your payment on or before December 31to lower your 2024 taxable income.
  7. Cancel any unused memberships and subscriptions. Oh, the best of intentions! You may have signed up for subscriptions, memberships, or other services that renew monthly or annually, which may have been helpful at one point in your business but are no longer useful—or IRT, you found that can’t find a role for them. The end of the year is a great time to review automatic payments charged to your business checking account and verify what is worthwhile and is actively being used.
  8. Plan your goals for the New Year. What next big steps to promote business growth do you see? What might be the next strategies you’ll implement to create a sustainable, profitable business? The possibilities are exciting and yours to pursue, guided by a good plan. In the October 15 post, we explored how you might scale your operation—maybe the new year is when you take actionable steps to do that? To avoid feeling overwhelmed, consider dividing your goals into short-term and long-term projects, breaking your larger goals into smaller, actionable steps you will need to plan ahead. Consider also tasks that can possibly be outsourced by hiring a Freelance professional like yourself? Start your new year goal setting by examining the current state of your business and then think about where you would like to be at the end of next year. What actions appear to be needed to get to that point? Next, break those goals into smaller projects and create a plan of smaller goals for each month of next year. When you start the year with smaller, actionable goals that seem easier to reach, it will seem easier to consistently take those smaller steps that can add up to big changes over time. Setting micro goals in advance can motivate you to develop strategies and implement action items that drive achievement.

Happy Thanksgiving to my American readers! To everyone, thanks for reading.

Kim

Image: © ProHow

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10 Under $40: Holiday Client Gifts in 2024

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The December holidays are the Number One relationship-building bonanza of the year for the B2B sector. Whether you lead a multi-national enterprise company, operate a small business, or maintain a Freelance consultancy, December is the time to show appreciation for the opportunity to do business with your clients. Nurturing relationships is a crucial element of your strategy to cultivate repeat business by staying on the radar screens of those who can offer still more billable hours.

If you’ve been lax about reaching out to current and lapsed clients, now is the time to redeem yourself. Start by sending a (secular) holiday card to all clients you’ve worked with over the past five years. Current clients, in particular those you’ve billed $1000 or more, deserve a business-appropriate gift. FYI, Christmas falls on the fourth Wednesday of December this year and Hanukkah begins at sunset on the same day and will be observed until sunset on January 2, 2025.

In acknowledgement of inflation, I’ve raised the price threshold this year from $35 to $40, to maintain the quality of gift selections. My goal is to identify modestly priced, business-appropriate gifts that reflect well on your brand. To ensure that your card and/or gift arrives on time, I recommend that you mail or ship no later than December 10. Also, be aware that some offices, particularly in the not-for-profit sector, may close on the Friday before Christmas, to reopen on January 2, while Work From Home employees could be Missing in Action after December 13 until January 2. In no particular order, my list of gift choices is respectfully submitted.

  1. Clippable Card Pouch (Lulu Lemon) Zip, clip, go. Just clip to attach this stylish and durable little pouch onto your key chain, belt loop, or bag to have a hands-free and convenient way to keep IDs, cards and cash handy and secure. The zippered main compartment has interior slots that make it easy to organize and access what you need to carry. $34.00 USD
https://shop.lululemon.com/p/bags/Clippable-Card-Pouch/_/prod11130364?color=64803&sz=ONESIZE

2. Winter Bloom Wreath (Uncommon Goods) Graceful grapevine 6″ diameter mini-wreath will brighten a desk, window, or door. The wreath is hand made and decorated with colorful live succulents, redwood and cedar foliage, sphagnum moss and fresh botanicals. This lovely wreath will stay vibrant throughout the holiday season and well beyond, with no misting needed. $35.00 USD

https://www.uncommongoods.com/product/winter-bloom-live-succulent-cedar-wreath/606280000001

3. ChargeCard (Aquavault Inc.) Featured on Shark Tank (ABC-TV) and backed by Daymond John, ChargeCard’s innovative design includes durable stainless steel construction and fast charging technology, making it a reliable source of power for your devices. ChargeCard comes with built-in cables for both iPhones and Android devices, including USB-C, Lightning and Micro USB. Visit the official website link to obtain more information and click here to order. ChargeCard | Order $39.99 USD

https://theaquavault.com/pages/pre-v1

4. Travel Mug (Zojirushi) Advanced engineering and superior materials result in a streamlined design and superior performance for this 20-ounce stainless steel, easy-to-carry container. Vacuum insulation makes sure that the hot soup or cold beverage you pour in and carry will stay that way. Microwavable inner bowl design ensures convenient use. The mug is crafted from quality 18/8 stainless steel and BPA free plastics and are designed for easy use and cleanup. $34.74 USD

https://www.homedepot.com/p/Zojirushi-SM-SHE60BZ-Matte-Black-Stainless-Steel-20-oz-Steel-Mug-SM-SHE60BZ/315359230


5. Winter Forest Guest Essentials Gift Set (Williams Sonoma) Includes 8-oz. bottles of hand soap and hand lotion, plus a votive candle in a reusable glass holder that features a festive winter fragrance that combines the uplifting aroma of freshly cut pine with subtle notes of cedar wood, citrus and sweet spice. The hand soap contains soothing olive oil, aloe vera and glycerin; the hand lotion nourishes skin with natural shea butter and vitamin-rich botanical oils. The eco-friendly candle is a beeswax and vegetable wax blend and is scented with natural essential oils. All products made without parabens and have not been tested on animals. $34.95 USD

Williams Sonoma Winter Forest Guest Essentials Gift Set | Williams Sonoma

6. Travel Bag/ Personals & Toiletries (L.L. Bean) A lightweight and sturdy hanging travel organizer is designed to hold all of your basic trip essentials. All travel organizers are not equal—this one is made with extra-tough fabric and technical details and has been extensively tested by L.L. Bean to prove it can hold up for the long haul. With over 9,000 5-star reviews, it’s no wonder customers rave about its unmatched quality. $34.95 USD

https://www.llbean.com/llb/shop/130057?csp=f&feat=509870-GNqv&imgt=41&page=ultralight-personal-organizer&bc=509870&itemId=523701&attrValue_1=46399&gnrefine=1Price30%20TO%2050%5E1DEPARTMENTBags%20%26%20Travel&pos=1

7. Dark Chocolate Sea Salt Caramels Gift Box (Crate & Barrel) Bite-size couture caramel candies are dipped in dark chocolate and sprinkled with sea salt. Ready for gift giving, the tin is tied with a festive bow. Sea salt caramels are a Crate & Barrel exclusive and made by Long Grove Confectionery since 1977. $29.95 USD

Dark Chocolate Sea Salt Caramels with Gift Box + Reviews | Crate & Barrel

8. Silver Chrome Rollerball Pen (Scriveiner) Beautifully crafted of brass and a silver chrome finish, with 24 karat gold appointments. The quality of craftsmanship and materials is usually found only in pens costing many times more. Scriveiner pens use the Schmidt liquid ink system that is superior to gel ink pens and combines the convenience of a ballpoint with the ink feel of a fountain pen. The client who receives this elegant gift will appreciate its smooth writing style. $32.99 USD

Scriveiner Classic Silver Chrome Rollerball Pen

9. Oh Mega Earband (The North Face) Practical and stylish, this cozy ear band makes a gift that runners, bike riders and anyone who doesn’t love wearing hats during the winter will appreciate. Available in six colors, the earband has a soft fleece lining that keeps those who wear it toasty, plus a recycled polyester body. $35.00 USD

https://www.publiclands.com/p/the-north-face-womens-oh-mega-headband-24tnowwmnshmghdbnacc/24tnowwmnshmghdbnacc?sku=26051887&camp=CSE:PBL_92700079948537142_PLA_pla-297072075353&gad_source=1&gclid=EAIaIQobChMImPmilYTYiQMVfG9HAR1E8DTgEAQYBiABEgI2WfD_BwE&gclsrc=aw.ds

10. Burt’s Bees Essentials Kit Give your clients a cold weather skin survival solution with this collection of natural essentials. These five travel-size products are designed to gently and thoroughly cleanse, moisturize, soothe and smooth face, lips, body, hands or feet. The Burt’s Bees self-care set is a perfect go-to holiday, birthday, or other special occasion gift.

https://www.burtsbees.com/product/essential-burts-bees-kit/ $9.99 USD

Happy shopping and thanks for reading,

Kim

Image: © Aberdeen Art Gallery & Museums Collections, Scotland. Penelope and the Suitors, John William Waterhouse, 1912. 

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Is Your Content Shareable?

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Whatever format you use to create content intended to promote your business, your mission is to communicate the essence of your brand: the solution, purpose, value and benefits that persuade clients and prospects to trust your product or service and motivate them to take a positive action in response—give a like, comment, share or make a purchase. When content viewers demonstrate their approval by taking one or more positive actions, they become brand cheerleaders who amplify its power and influence. Needless to say, instilling a deep connection to your brand is highly desirable and it’s very much in your interest to produce marketing content that generates strong positive responses in your target audience viewers.

Effective marketing content is a carefully calibrated mix of text, still images and/or video, often presented in digital format but occasionally appearing in print, that collectively tell a story about your service or product. Your number one goal is to make the story compelling, memorable and also shareable—you want content that builds enthusiasm for your brand and the story and persuades viewers to become cheerleaders. When viewers feel that the story told in your content is so compelling and memorable that they feel they must send it to others, you’ll know that you’ve done your job. The content might even go viral, or at least greatly exceed the usual number of viewers, likes, comments, or shares. The question is, how can you hit a home run like this a lot more often? Well, like becoming a reliable home run hitter, good results are produced by discovering the right technique and getting lots of practice.

The best marketing and branding campaigns have as their foundation an essential human quality that inspires a connection with viewers. That behavior is familiar and relatable; it can be comforting or exciting. Its effect promotes engagement that can lead viewers to take an affirming action, such as responding with a like, share, or comment, and/ or purchasing the service or product. Producing content that contains text and images that reflect your brand promise and perceived value is foundational to motivating viewers to take one or more of those positive actions.

“How do I love thee, let me count the ways”

As poet Elizabeth Barrett Browning (1806-1861) wrote in Sonnet 43, it helps to understand the emotion that fuels your action. When building marketing content, it’s imperative that text and images used work hand in hand to address the client’s point of view—pain point or goal, possible solutions and outcomes. It’s also important to acknowledge the feelings that clients can expect to experience when doing business with you, such as relief and satisfaction, in contrast to doing business with a competitor.

This analysis supports development of a highly persuasive story that references the right behaviors and emotions and ensures that your content convincingly resonates with target viewers. By understanding the brand position occupied by your services and products, you can effectively differentiate from primary competitors by highlighting the strengths and other advantages that are highly valued by your audience. Your story is certain to stand out thanks to its emotional connection with viewers. Effective marketing is all about communicating unique differentiators that leave a meaningful, lasting impression that rises above the noise of a crowded market. Addressing the questions below should give a good start to your content creation:

  • What emotions do prospects experience before they use your product or service? What pain point drives them to consider your service or product?
  • How do clients feel after they’ve used your service or product?
  • How do you want prospects or referrers to feel after experiencing your marketing content?
  • Which values and behaviors most closely correspond with your brand promise and unique selling proposition?
  • How do behaviors associated with your brand compare with competitors’ brand positioning? (expressing differentiation is essential).

End with positive emotions

The final impressions expressed in the text and images of your content must leave viewers with a positive feeling toward your services, products and company.  That your product or service delivers an excellent solution can be considered a given; it’s the human connection that leads viewers to perceive your content as a compelling and memorable experience. When content resonates with the audience on a human level, it taps into feelings, values, or aspirations that often surpass the functional aspects of products and services.  

A truly successful branding campaign needs more than clever text and eye-candy images. Effective marketing is about presenting messages and a story that resonates with viewers and generates an emotional connection with them. While many brands obsess about going viral, sustainable success comes from creating stories that are worth sharing because they tap into human behavior and stir viewer emotions. The best content becomes memorable and inspires the viewer to take action. When you present content that accurately represents human behavior, viewers cannot help but identify with your story. Then, you go beyond merely selling a product or service; you create an experience and a valuable, long-lasting connection.

Thanks for reading,

Kim

Image: © Philadelphia Museum of Art. Mary Cassatt Maternal Caress (1896)

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Freelancers and SMBs Find Flexible Funding

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The year is drawing to a close and signaling forward-thinking Freelancers and small business owners that it’s time to consider goals and strategies that have the potential to advance your entity in 2025 and beyond. Your business goals will be shaped by the plans implemented earlier this year, and previously, but topics that may capture your attention could include workflow automation tools to optimize operational efficiency and a Customer Relations Management platform, to upgrade the performance of your inbound marketing funnel and also improve the customer experience and relationship-building activities your company presents.

Face2Face networking may also become a renewed priority in 2025, prompting you to pay attention to notices of local business association meetings and industry conferences. Creating and nurturing relationships, obtaining actionable information and continually honing your skill set make all the difference for B2B professionals.

It won’t take long to realize that the business building actions you’d like to take come with a price tag; the prospect of financing your SMART goals may be worrisome. If your budget estimate indicates that you could come up short of cash, you’re certain to feel discouraged. You may feel too uncomfortable to ask family or friends to lend money that will allow you to proceed with plans you are so excited to carry out. You may likewise feel uncomfortable, maybe even frightened, by the prospect of using credit cards to finance your business upgrades. Applying for a business loan is an obvious possible solution to a cash-crunch, but you’ve read depressing articles in business publications during the year and the message was clear—banks have pulled back on business lending and tightened eligibility requirements. It takes money to make money and being stuck in financial quicksand is not a condition you care to accept. So, what can you do to move forward?

It takes money to make money

Freelance professionals, SMB owners and start-up entrepreneurs are susceptible to challenges when in need of business capital; unfortunately, many lack the credit rating and other requirements that lending institutions demand, or they cannot rely on family, friends, or personal savings to become their funding source. More than half of SMBs in the US do not have a readily available source of funding to survive a cash flow crisis. A shortage of cash, whether the problem is an unexpected cash-flow glitch or an insufficient financial reserve fund, is a serious impediment to building and sustaining a successful business venture. In fact, almost 62% of businesses with annual revenues below $150,000 lack ready access to financing; a UK study found that 31% of SMBs have had to stop or pause an area of their business due to lack of financing.

Banks, the traditional source of loans for several centuries, continue their control of business funding decisions, when ever they approve or decline a loan application. In 2023, Forbes Magazine Advisor confirmed that banks remain a go-to source of funding, with 27 % of entrepreneurs surveyed citing that business loans are their primary source of financing. Still, it will come as no surprise to even casual observers of the start-up world that financial privilege—affluence—is another enabler of funding access. The 2023 Forbes Magazine Advisor survey also found that 20% of new businesses are funded by borrowing from family and/or friends and 17% are backed by the founder’s personal savings.

So how can modestly funded aspiring entrepreneurs pull themselves up by their bootstraps, as is so often recommended in America, and finance their entrepreneurial plan? As it turns out, exciting new options have arrived by way of fintech start-ups whose mission is to provide business funding solutions. These fintech entities are called neobanks and they proclaim to have greater lending capacities than traditional banks; several have been set up specifically with SMB loans in mind.

Rise of the neobank

A disruptive new presence in the banking and financial services sector is the neobank, a fintech company that provides financial services through a mobile app or website, including checking and savings accounts, budgeting tools and cash advances. Because neobanks don’t carry the costs associated with maintaining branch offices, they can offer lower fees and higher interest rates on savings accounts.

Those looking to do business with neobanks must realize is that fintech lenders are not actually banks and they are not chartered by the Office of the Comptroller of the Currency. In order to provide certain of their products and services, perhaps most importantly guaranteeing that customer deposits are insured by the Federal Deposit Insurance Corporation (FDIC), the neobanks must partner with chartered banks.

Found, a U.S neobank launched in 2019, partners with Piermont Bank to offer FDIC-insured business checking accounts that provide services that are attractive to Freelancers, including automatic expense categorization, built-in invoicing and tax calculation, plus the ability to auto-save and set aside money to pay taxes. When Freelancers hire subcontractors, Found enables you to manage their tax forms and pay them with no fees. Chime is the leading fintech neobank and partners with The Bancorp Bank and Stride Bank to provide bank and credit accounts. Chime markets itself as a (mostly) no-fee option for customers—no minimum balance requirement or monthly maintenance fees, no overdraft fees and there’s free ATM access – customers can access over 60,000 in-network ATMs for no fee, which you can locate through the Chime app.

As neo-banks expand their penetration in the under-served and hungry SMB market, their success has encouraged other, much larger, players to enter the fray and now, some of the largest online marketplaces in the world have begun to offer financing to their merchants. Shopify Capital, Shopify’s financing service for its merchants, has lent more than $5 billion to small businesses. Loans have ranged from the low hundreds to $5 million. The Amazon Lending platform for sellers invites US sellers can apply for a loan up to $750,000, while UK merchants can apply for anywhere up to £2 million (around $2.6 million). While Amazon stopped underwriting its own loans in the US and UK earlier this year, it’s outsourced the process to third parties.

Overall, new ways of financing are increasing accessible, with neobanks and other fintech creative financing leading the way to support SMB owners, Freelancers and other small players who need an alternative financing approach to business lending. It is expected that as more Freelancers and other business owners become increasingly comfortable with emerging technologies, spurred on by the need for business capital whose access requirements are less stringent, will be willing to consider and eventually trust start the alternative neobank solutions as their primary business funding source.

Thanks for reading,

Kim

Image: © courtneyk | Credit: Getty Images/iStockphoto

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Freelance or Fractional?

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What’s the newest growth niche on the horizon for professionals who work independently? Voices in the echoverse are buzzing about an innovative hiring model that has the potential to offer exciting work opportunities to highly skilled Freelancers and other self-employed professionals. This undeniably practical, and revolutionary, hiring model is called fractional.

You may have heard the term a couple of times over the past year or so, but never checked out the backstory? Know that talk of recruiting fractional, that is, interim, talent to guide (often start-up) companies in need of specialized expertise is capturing the attention of more decision-makers every month and urging Freelancers, et al. to consider the fractional work sector. For those with the required skill set, there may be interesting and challenging, possibly high-profile, and lucrative assignments for which you would make a good candidate.

What drives fractional?

Fractional work has joined the gig economy, enabling businesses to access C-Suite level talent on a short-term basis when urgent projects require a complex or sophisticated solution. That business leaders are able to eliminate the considerable costs associated with hiring a full-time senior level employee, a process that typically involves a lengthy candidate search and several interviews, followed by salary and benefits package negotiations, aligns with business practices that start-up funders and business lenders prefer.

Business leaders like keeping payrolls lean, a solution that became fashionable in the late 1980s (and shows no signs of abating). Turning to temporary talent sources, i.e., Freelance professionals and fractional executives, allows CEOs to strategically hire for specific projects without incurring burdensome expenses. Fractional employee expert Abby Sugar sums up the prevailing opinion, “You get to have a high-level strategic executive thinker that you might not need on a daily basis.” She continues, “You don’t need to be paying a super-high monthly salary for somebody if you’re not that large yet and so you need a higher-level person to help you strategically execute and bring on a fractional COO (Chief Operating Officer) instead of a lower-level person at a low hourly rate.”

Ms. Sugar’s observation is further demonstrated by the appearance of fractional Chief Marketing Officers who are now an increasing presence in start-up havens like Austin, TX and Silicon Valley, CA. According to Chief Outsiders, a leading company that places fractional CMOs into well-funded start-ups, there’s been a 38% jump in demand for fractional CMOs in the past year; the Association of Professional Executives in Marketing and Sales predicts the demand for fractional CMOs will grow by another 20% in the next five years. Below are comparisons between working as a fractional executive and a Freelance professional.

Typical work projects

  • Fractional: Fractional executives fill a specific business need on an ongoing basis, e,g., six months or more, but as a part-time commitment. Fractional execs are known to take on strategic roles, mission-critical tasks and projects that require working closely with the hiring company team. For example, a fractional CMO may be hired to develop and execute marketing strategy and contracted to work a certain number of hours per week. Unlike Freelancers, fractional workers often become a de-facto part of organization staff and integrated into company culture. 
  • Freelance: Freelancers are hired to complete specific, project-based tasks that are sometimes ongoing, e.g., producing a monthly newsletter or managing social media accounts, and at other times short-term, e.g., designing a website or planning a company meeting or other event. Freelance projects generally top out at mid-level complexity and unlike fractional execs, Freelancers generally do not become immersed in the company’s functioning, culture, or values.

Typical expertise level

  • Fractional: Fractional hires are C-Suite level executives, experienced professionals with a proven track record in their field. They bring considerable knowledge and expertise to the table and can be expected to produce the desired outcomes. In fact, they can be a game-changer for start-ups and companies executing a turn-around. Services like Upwork, the previously mentioned Chief Outsiders and others connect companies, often start-ups or those involved in a scale or turn-around, with seasoned executives who provide specialized skills and leadership experience on a part-time or per-project basis. Fractional execs can be a cost-effective way to access the expertise a CEO needs to achieve specific goals while avoiding the costs of hiring a full-time employee.
  • Freelance: Freelance professionals also may have been C-Suite executives, or they may have reached manager level, and own the skills needed to successfully take on complex work assignments. Others are highly skilled and results-oriented as well, but more suited to less complex, but nevertheless strategic, mission-critical assignments. Freelance professionals may have gained experience in a particular niche, or they may be generalists who expertly perform any number of tasks.

The emergence of companies that welcome Freelance and fractional workers demonstrates the resilience of the gig economy. Now, talented professionals who’ve developed specialized skills at either a senior or junior level, and are hungry to experience working in different industries or environments, can work on a per-project basis and monetize their expertise as they take on important assignments that challenge and excite.

Thanks for reading,

Kim

Image: ©HGTV. Jonathan (L) and Drew Scott, The Property Brothers on season 7 (2020) Brother v. Brother

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What’s Your LinkedIn SSI Score?

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Since its launch in 2003, LinkedIn has become the go-to social media platform for professionals, hosting 900 million members worldwide as of 2024, about half of whom log on at least once a month. Joining and being active on LinkedIn is now a commonplace strategy, used by Freelance and traditionally employed professionals to enhance personal brand and advance business or career ambitions. Establishing connections with peers, potential mentors, prospective clients, or possible employers whom you’ve had the savvy and good fortune to meet and interact with, is the primary benefit of the LinkedIn experience.

Connections are not the only factor that pay dividends to those who actively participate on the platform. Nearly as powerful is the content posted, that usually consists of articles or blog posts you’ve written, announcement of awards you’ve won or professional development seminars you’ve attended, and/or insights you’ve shared when commenting on content posted by others. Content posted on LinkedIn contributes to establishing, and often enhancing, your professional and personal brand and expands your credibility beyond the orbit of first degree and other connections and into the broader LinkedIn community.

So, if you’re not active on LinkedIn, you may risk leaving brand-building and business or career growth opportunities on the table. But beyond receiving likes, the social media equivalent of air kisses, how do you know if your target audience feels your posts and comments are meaningful? Moreover, how do you stack up against industry peers and other connections in your network? Those questions can be answered in a LinkedIn user metric you may not know exists—the Social Selling Index (SSI) Score.

The SSI Score defined

The LinkedIn Social Selling Index Score was developed in 2014, after LinkedIn honchos decided to identify members who seemed to be killing it on the platform and figuring out how they did it. In 2015, SSI became part of LinkedIn Sales Navigator, a paid feature, but SSI is now available to all with a LinkedIn account. The SSI is a formula that evaluates social selling performance and measures mastery of what LinkedIn considers the core competencies of social selling on the platform.

The SSI gauges member success in demonstrating four social selling core competencies: establishing a professional brand, initiating communication with prospective connections and collaborators, engaging in valuable conversations and building high-quality relationships. For each competency, members are awarded between 0 and 25 points; the SSI Score is the sum of the individual scores from each core competency. The sum total of the core competency scores is also compared to the scores of others in your industry—and LinkedIn always assumes you’re in sales. That said, the higher your SSI Score, the more influential your LinkedIn profile becomes.

  • Establishing professional brand. This competency consists of two elements—the completeness of your LinkedIn profile and the quality of your posted content. The more detailed your profile and the more valuable your content, the higher your SSI Score.
    • LinkedIn confirms the presence of a profile photo, detailed job history and educational background, plus the number of recommendations you’ve made and received.
    • LinkedIn calculates the number of posts you publish and how many likes and comments your posts receive.
  • Connecting with the right people. This metric is connected to Sales Navigator and it may be challenging for members of free LinkedIn to obtain a good score in this component. It’s no surprise that LinkedIn prefers members to use the paid tools when searching for new connections.
    • When members connect with or contact the right person—for example, someone with a C-Suite job title that usually indicates a decision-maker—it is assumed that the member is now better positioned to make a sale, win a client, or otherwise make a tangible improvement to one’s business or career.
  • Engaging by sharing insights. Sharing valuable content increases the SSI Score awarded in this category. The more valuable content that’s posted and the more comments and likes that shared content receives, the better the score awarded and the closer a member becomes to earning Thought Leader status.
  • Building relationships. This metric evaluates a member’s motivation to stay in touch with connections. It reflects how often members reach out to connections and other contacts and measures how effective that outreach is—meaning, if the message does not receive a reply, the LinkedIn SSI Score will be negatively impacted.

Benefits of a high SSI Score

The SSI Score is considered to be a comprehensive measure of social selling prowess, meaning that a high score is considered demonstration of a member’s understanding and optimal utilization of the platform. LinkedIn views a high SSI Score in the way airlines view frequent flier miles, as a gateway to desirable perks. A high SSI Score can enhance your online reputation with the gift of increased visibility, a powerful benefit that drives name recognition and brand awareness as it promotes trust and credibility. The halo of credibility can lead to more positive responses to your networking inquiries and, theoretically, result in more and higher-quality opportunities for collaborations or exploring business ventures.

But does the SSI Score actually translate into tangible business results? Maybe—you’d expect LinkedIn to claim that a high SSI Score correlates with business success. LinkedIn reports that the higher your SSI Score, the more likely you are to achieve your sales targets, for example. LinkedIn says that an analysis of platform members who’ve received a high SSI Score will on average receive 45% more sales opportunities than those with lower scores and they’ll win 78% more sales deals than peers who are not active on social media. According to a joint study by LinkedIn and Richard Edelman, CEO of the global communications firm Edelman, 58% of business leaders are willing to buy from an industry expert and/or thought leader and they are willing to pay more, as they feel they’ll receive premium service.

  1. Lead generation. Allegedly, those who’ve earned a high SSI Score are 45% more likely to exceed their sales quota because they are adept at identifying and engaging with, the right contacts. The strategy is known to result in more productive leadgen.
  2. Sales. According to LinkedIn, those with an SSI Score above 70 outperform their peers and achieve 45% more sales opportunities than those with low scores.
  3. Brand awareness. A high SSI Score typically results in the reward of increased visibility for your content, leading to increased brand awareness and recognition in your industry.
  4. Trust-building. A high SSI Score enhances credibility, a trust-building factor that can make a difference for B2B professionals, where relationships and reputations play a significant role in decision-making.
  5. Optimized visibility. LinkedIn’s algorithm favors those who utilize its platform effectively. A higher SSI Score usually results in enhanced visibility for your posted content, opening the door to increased engagement with your connections and other contacts.

Monitoring your SSI Score is likely to motivate you to make the most of platform benefits—seeking strategically savvy connection requests as a way to maximize leadgen or business collaborations, positioning yourself as an industry Thought Leader and building your brand and credibility and working to increase your exposure by verifying that your content is relevant to your target audience. To learn your SSI Score, log onto LinkedIn and then click on this link. If you’re part of Sales Navigator, go to “Admin“ and click “User Report.”

While you’re logged onto LinkedIn, review your profile and consider what you might add—do you have a profile picture? Have you earned a professional certificate, or taken a skills-building course, that you never acknowledged in your profile? If so, add that accomplishment to the Licenses & Certifications section of your profile; if you received a certificate, scan and upload. Oh, and if you serve on a board or participate in other volunteer work, include your philanthropic and social responsibility commitments as well. Whether or not boosting your SSI Score is meaningful to you, remember that the purpose of joining LinkedIn is to display your professional bona fides.

Also, when’s the last time you made or received a recommendation? You can get the ball rolling by making a recommendation for a colleague and asking for the favor to be returned with a recommendation for yourself. While we’re on the subject of colleagues, take a tour through the extensive list of LinkedIn groups and figure out if there’s a new one you might join; if you’re already listed in a group or two, scroll through the content to get an update on the threads and see where you might be able to make a relevant comment, or ask a question. Giving a boost to your SSI Score is not labor intensive, but it does require some strategic thinking. It’s time to get busy!

Thanks for reading,

Kim

Image: © Susan Walsh/Associated Press. The co-champions of the 2019 Scripps National Spelling Bee.

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How to Scale Your B2B Services Company

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Independent and ambitious Freelancers, like other business owners, are inclined to brainstorm strategies and tactics that may have the potential to increase their company’s revenue and profit. Central to the entrepreneurial dream is building an entity that attains success as you define it and that often entails making money. But as with all business decisions, it’s necessary to determine which strategy and tactics have the greatest likelihood to reach the pot of gold. As always, the most reliable way to answer that question is to conduct comprehensive marketplace research and examine your company’s key performance indicators.

Grow, scale, or expand?

It is imperative that you recognize which KPIs point to a particular revenue and profit boosting strategy and give you the confidence to follow that solution. To earn more revenue and become more profitable, there are three options—expand, grow, or scale. Each strategy requires certain marketplace conditions and financial and other resources and carries its own kind of risk.

Expansion is a much bigger investment, especially for Freelance professionals, who typically operate a service business, work alone and deliver the service yourself. Launching your operation in a new location typically places a significant demand on financial and logistical capabilities, making growth or scaling, which both entail relatively fewer demands on resources, more accessible to Freelancers.

OK, so how can you recognize which option makes more sense for you? First, let’s know what we’re talking about. Many business owners and Freelancers misunderstand the meanings of growth and scale, so let’s take a sidebar and examine their definitions. Growth means adding more projects, new services and/or signing additional clients as the engine of your strategy to boost revenue and profit—activities that mostly entail more expenses. Scale focuses on increasing revenue and profit without significantly increasing the associated production costs. Essentially, scaling means working smarter, not just harder, and aligns well with the financial and logistical capabilities of the typical Freelance professional.

Nevertheless, scaling a business, particularly a small, service-based company, will require extensive preparation and a well-designed strategy to make it work. To evaluate the possibility of scaling your operation, you’ll dive into company KPIs and conduct an extensive financial analysis, marketplace research and strategic planning. Data-driven decision-making will yield the most trustworthy information and outcomes.

Furthermore, when contemplating your scale, or any other significant business investment, as you study the data, contact your business accountant, who is familiar with your financial situation and is positioned to be your Sherpa and guide you as you climb (scale!) the mountain. There are a couple of obvious questions that you should address before calling the accountant.

  • So, how’s business? Are clients lining up to do business with you? Are you meeting, if not exceeding, your revenue targets? How many clients are on your roster? If business is off the chain, then get your accountant on the phone and share the good news. However, if you’re merely pleased with your performance metrics, set higher goals and observe what happens during the next two or three quarters. if you surpass those metrics by an impressive margin, it may be time to call the accountant and discuss next steps.
  • Client feedback Listening to what clients observe or experience can steer your business toward success and it’s good business to invite them to give their perspective. Invite clients to share their thoughts and suggestions regarding your services. Client insights may open your eyes to add-ons, upgrades and/or new services you can provide and what they tell you could contribute substantially to your scale. Make giving feedback convenient by occasionally including surveys in marketing emails, soliciting online reviews, maintaining an active presence on social media, or making yourself available for in-person conversations. Your objective is to hear and assess what clients say about your services, company and the customer experience you provide. You can use their feedback to better understand what clients like, what you can do better and get early warnings of emerging trends and how your clients feel about what’s on the horizon. With this knowledge, you can tailor your services to meet this demand and strengthen your positioning as a go-to provider in the industry, whether or not you decide to scale.

Use data to evaluate a potential scale

Analyzing and interpreting company performance data will do more than answer the expand, grow, or scale question. KPIs will also spotlight company strengths and weaknesses, help you recognize competitive advantages and call your attention to gaps that limit progress and need fixing. With the help of your accountant, your KPI data analysis will also indicate the overhead expenses, staffing and other resources, so that a realistic budget can be developed.

Moreover, your analytics tools can build reliable data-driven sales forecasts for the proposed scale that will include the number of new clients needed, average billable hours/ hourly rate and sales revenue you must generate within a particular time frame. BTW, if you were wondering when and how to incorporate AI into business operations, evaluating a potential scale could be your motivation.

Find your money-making niche

Turn to marketplace and industry data to point you to a niche you might enter. You might also consider how you to diversify your current service line? In either scenario, consult your data projections to suggest whether client price tolerance will allow you to achieve a profit margin that covers the expense of delivering at scale. Competitive intel is also likely to be useful; for example, there may be few competitors in certain market segments because there’s no money to be made. Once you’ve learned where the opportunities are, you can start making changes to scale successfully.

Upgrade marketing and branding

Build up company visibility and reputation with robust marketing and branding. Sharpen your marketing messages and establish a presence on inbound and outbound marketing channels that are a fit for your services. Search Engine Optimization, social media and content marketing should be especially useful. Nearly half of all clicks on search engines come from organic searches, which suggests that prospects are more likely to trust the results they find naturally.

Your marketing and branding strategies will also be more impactful when guided by data. By analyzing metrics such as website traffic, conversion rates and client engagement, you’ll be likely to discover actionable insights that may shape marketing strategies and campaigns that produce the results you need.

Standardize service delivery, invest in automation

Scaling a service-based business requires being able to deliver those services in the same way, every time. A strategy that will both save time and ensure that your profit margin is sufficient to cover the expense of delivering at scale is to package your services as a menu of products and eliminate the need for you to customize every order. Next, create standard operating procedures to ensure quality, efficiency and consistency in how your services are delivered. Map the step-by-step workflow, provide written or video instructions for clients and if applicable, ensure that your team is trained on best practices, so that clients will receive the same excellent results every time.

With a service-based business it is you, Freelancer friend, perhaps assisted by a team member, who will provide your services. In order to scale, you must develop and perfect turn-key, streamlined processes that allow you to work with the number of clients necessary to realize the scale. From your client onboarding procedure to billing and invoicing, automation will make your organization more efficient, appear more professional, inspire trust and build your brand at every touch point. Not only that, you’ll have more time to focus on improving your business and optimizing the scale.

Thanks for reading,

Kim

Image: Jack’s First Beanstalk, illustration from Jack and the Beanstalk, a circa 1734 English fairy tale. Author and illustrator unknown.

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States Pass New Laws to Help Freelancers

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According to the 10th annual Upwork survey Freelance Forward, 64 million Americans worked as Freelance professionals in 2023, labor that contributed $1.27 trillion to our national economy. It’s a ringing testament to our talented and ambitious community but unfortunately, 71% of the 3000 survey respondents also reported that they’ve struggled with the frustrating problem of late payment or even non-payment for their work.

The persistent occurrence of payment gaps that Freelancers and other gig workers endure exacts a terrible toll on the ability to live and work. Late payments and, worse still, nonpayment, wreaks havoc on cash-flow and may threaten the maintenance of normal business operations and the ability to plan for the future. When payment for services rendered doesn’t arrive within 30 days after the invoice is sent, the ability to pay bills can be undermined and the problem is exacerbated as the price of everything continues to increase. But for those of you working with clients based in California, Illinois, or the State of New York, things will soon get better.

New state laws protect Freelancers

It is said in legal circles that a contract is only as good as one’s ability to enforce it and that sometimes puts Freelance professionals at risk for exploitation. You seldom have the leverage to adequately defend yourself against unscrupulous clients who ignore their contractual responsibility, written or verbal, and decline to pay on time and in full for appropriately provided services rendered. But in NY State, IL and CA, a new day has dawned. Freelance professionals and gig workers, who are often in a comparatively vulnerable position when entering into work agreements with clients, are celebrating the passage of legislation that puts the force of law into contracts between the independently employed and their clients. The driving force behind the legislative victories was the Freelancers Union, a New York City-based advocacy group that has championed the rights of independent workers since its founding in 1995.

On August 4, 2023, Illinois became the first state in the country to adopt protections for an estimated 1.2 million Freelance workers when Governor J.B. Pritzker signed the Freelance Worker Protection Act, which took effect on July 1, 2024. The Act applies to work agreements between Freelance professionals and “contracting entities,” i.e., clients, in exchange for the Freelance worker’s services valued at $500 or more over a 120-day period. The Illinois Act excludes from the definition of “Freelance worker” any workers performing construction services, or those defined as an employee.

On November 22, 2023, New York Governor Kathy Hochul signed into law the Freelance Isn’t Free Act, groundbreaking legislation intended to shield Freelance consultants and other 1099-NEC workers from the financial damage done by non-paying or slow-paying clients. The Act was created to guarantee that Freelance workers retained as independent contractors who work with clients based in NY state receive timely compensation for all services rendered. The NY law went into effect on August 28, 2024 and some 2 million Freelance workers are expected to benefit from its much-needed legal protections.

In CA, the Freelance Worker Protection Act was signed by Governor Gavin Newsom on September 28th, 2024. As does the IL and NY legislation, the Freelance Worker Protection Act ratified in CA provides legal protection to Freelance professionals and the independently employed who work for clients located in CA. The CA law takes effect on January 1, 2025 and an estimated 2.2 million Freelancers (11.6% of the workforce as of 2022) are expected to benefit. The CA Freelance Worker Protection Act requires written contracts for Freelance services valued at $250 or more when working with clients based in CA. It is now mandated that contracts must outline the scope of work, payment method, deadlines and other important details that ensure transparency and fairness.

Written Contract
Per the Freelance Isn’t Free Act, all contracts pertaining to NY state clients and worth $800 or more must be in writing. This includes all agreements between the Freelancer and the hiring party (client) that total $800 in any 120-day period. The written contract must specify the work the Freelancer is expected to perform; the amount the Freelancer will be paid as compensation for the work; and the date the Freelancer will be paid for the work performed. Both Freelancer and client must keep a copy of the written contract. The NY Department of Consumer and Worker Protection (DCWP) created a model contract [English] that includes the terms required under the law and optional terms that may apply to different work types and arrangements. 

The Illinois Freelance Worker Protection Act requires that contracts for products or services must be in writing, and that the client provide a physical or electronic copy of the contract to the Freelance worker. Contracts must include certain information, such as the name and contact information of both parties (including the client’s mailing address), an itemized list of all products and services to be provided and their value, the rate and method of compensation and the payment date or mechanism by which such date will be determined. The client must retain a copy of the contract for a two-year period.

California’s Freelance Worker Protection Act likewise requires written contracts for Freelance services, when the value of services provided is $250 or more. Contracts must outline the scope of work, payment method, deadlines and other important details, to ensure transparency and fairness.

Timely Payment
In CA, IL and NY, your client is required to pay you for all completed work and you are entitled to receive payment on or before the date that is specified in the contract. If the contract does not specify a payment date, the client must pay you within 30 days after you complete the work.

No Retaliation
In all three states, it is illegal for a hiring party (the client) to penalize, threaten, blacklist, or otherwise deter Freelance workers from exercising their rights under the Freelance Isn’t Free Act or the Freelance Worker Protection Act. Denying an independently employed worker from obtaining future assignments and threatening to take unwarranted legal action against that worker is likewise now illegal. Freelancers who feel they have been targeted for retaliation as a result of pursuing a claim against a nonpaying or slow-paying client can file a complaint with DCWP (NY), or the IL Department of Labor, or in CA at the Labor Commissioner’s Office.

What is Freelance Isn’t Free (NY)?

  • 30-Day Payment Terms. Unless otherwise specified in a contract, clients must pay Freelancers within 30 days of work completion.
  • Mandatory Contracts. Clients must use a contract when hiring a Freelancer for over $800 of work and they can face fines if they refuse to provide one.
  • Payment Agreement Protections. Clients cannot require that Freelancers accept less than they’re owed in exchange for timely payment.
  • Anti-Retaliation. Clients cannot retaliate against a Freelancer for pursuing payment.
  • Legal Assistance. A city agency will investigate, may try to collect on the Freelancer’s behalf and will provide court navigation services if needed.
  • Double Damages. Freelancers can collect double damages and attorney fees in court and repeat offenders can face penalties of up to $25,000.

What is the Freelance Worker Protection Act (IL)?

  • Written Contract Required. A written contract outlining the products and services to be provided, the dates by which services are to be performed, and the rate and method of compensation (sample available online, and free Union contract templates available) 
  • 30-Day Payment. 30-day payment terms, unless otherwise specified in the contract.
  • Payment Agreement Protection. Protection against coercion for faster payment.
  • No Retaliation. Anti-retaliation measures against Freelancers pursuing payment.
  • Enforcement and Legal Remedies. Double damages for non-payment, covering costs and attorney’s fees.

What is the Freelance Worker Protection Act (CA)?

  • Written Contract Requirement. Freelancers must have a written agreement in place for work totaling $250 or more over a 120-day period. The contract must clearly outline the scope of services, deadlines, compensation rates and payment methods.
  • 30-Day Payment Terms. Freelancers are entitled to payment within 30 days of completing their work, unless the contract specifies otherwise. This provision eliminates the uncertainty many Freelancers face when waiting for payment.
  • Anti-Retaliation Protections. Freelancers are protected from any retaliation by hiring entities if they assert their right to fair payment under the law.
  • Enforcement and Legal Remedies. If a client fails to pay, Freelancers can seek legal recourse, including double damages and the recovery of attorney’s fees. Both Freelancers and public prosecutors can file claims to ensure compliance with the law.

Confirm milestones, invoicing, payment format

On your end, Freelancer friend, remember that the importance of providing a pleasantly efficient and smoothly delivered experience for your B2B clients cannot be overstated. Working together is a partnership and the dance is much more enjoyable when each partner understands his/her role. The contract between your company and the client describes and confirms your mutual agreement in a written document, specifying the responsibilities, terms and requirements and payments associated with the working relationship.

Once your hire has been confirmed, schedule a project kick-off meeting and review with your client the scope and timing of project deliverables, plus the associated payments or other payments. Also, include in the kick-off meeting agenda a discussion of the project or product performance goals, client expectations for the product or service you’ll provide and the ideal outcomes expected to be achieved when using your product or implementing your service. You and the client can then discuss how you’ll work together to make the client’s goals and expectations actionable and attainable. If an electronic invoice payment system will be used, ensure that your client sends the payment registration form to you, to promote a timely first payment.

  • Review and confirm project milestones
  • Review and confirm payments triggered when milestones are achieved
  • Review and confirm the invoicing schedule, if milestones are not used
  • Confirm the accepted payment methods—digital, credit/ debit card, check (electronic or physical)
  • Integrate info with your Client Relationship Management software (if applicable) to capture client data
  • Allow clients to view, comment on and sign e-documents

Thanks for reading,

Kim

Image: The Signing of the Treaty of Mortefontaine 30th September 1800 depicts the signing of the agreement that ratified the sale of Louisiana to the U.S. by France. The treaty was signed by Joseph Bonaparte, a diplomat and former ambassador, on behalf of France and Oliver Ellsworth, a framer of the Constitution and Senator from CT, on behalf of the US. Artist: Charles Etienne Pierre Motte