Tag Archives: contract

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How Does Influencer Marketing Work for B2B Freelancers?

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Influencer marketing has been white hot for a minute and it’s getting even hotter. A strategy born of user generated content and nurtured by early bloggers soon produced content creators who came to be considered authorities within their niche fields of expertise, developing loyal audiences for their blog content and generating follower communities along the way. Those early pioneers earned reputations and gained recognition for product reviews that showed trustworthy insights and built credibility. The DIY grassroots aura and absence of corporate advertising gave it all the blessing of authenticity. The independent and impartial assessments provided by the bloggers encouraged engagement and audience trust. But this is America so gradually, bloggers with the biggest followings in the scene featured sponsored content on their sites (often disclosed through affiliate links) and next, collaborations with retail outlets and product brands.

The phenomenon was accelerated by the introduction of social media platforms and exploded with the arrival of visually-focused platforms. Images, and especially videos, provided an ideal environment for newly minted marketing influencers to showcase themselves and the brands they represent with exciting visual content. The visually focused platforms caused an inflection point that gave rise to influencer marketing stars who found a lot of work in the B2C sector, in particular fashion, beauty and travel. Bloggers and others who had a flair for creating appealing content plus the ability to connect with and encourage relationships with their audience began to grow significant followings and exert influence over the behavior (aspirations) of prospective and current customers.

The rise of B2B Influencers 

While originally a strategy used by your flashy B2C cousins, competition for billable hours in the B2B sector seems to have stimulated the adoption of influencer marketing in the B2B sector. However, be advised that B2B influencer marketing is not about showcasing services or products. Rather, B2B influencer marketing is about helping you build trust and connect with prospective clients who, if all falls into place, will be more inclined to become your loyal clients. The goal of B2B influencer marketing strategies is to align your organization with recognized and respected industry thought leaders—the influencers— whose industry knowledge, reputation and loyal followers can be leveraged in your target market sectors.

B2B influencers are well-known and respected experts and thought leaders in their field. They’ve acquired impressive knowledge, experience and authority that confers recognized credibility that’s enabled them to build a sizeable, loyal and often activist following. Based on that authority and credibility, effective influencers are able to build trust and enthusiasm for a brand within their community of followers by making endorsements that can stimulate purchases made by decision-makers within the community. Furthermore, a brand endorsement can also result in a significant number of positive reviews posted on social media that creates a word-of-mouth campaign that can spread to the general public and can stimulate still more purchases of the brand’s services or products.

On a national level, you might think of sales training expert Brian Tracy, marketing wizard Neil Patel, professional development guru and author Stephen Covey and leadership and personal development maven Brene Brown as powerful B2B influencers. The best influencers assist brands by providing targeted exposure, building industry credibility, facilitating strategic partnerships and product or service endorsements that, ideally, will substantively enhance brand recognition, reputation and sales. Potential B2B influencer marketing goals for your organization could include:

  • Increased credibility and trust for your brand within your target market
  • Heightened audience engagement with your marketing content
  • Enhanced perceived value of your brand
  • Increased stature and influence of your thought leadership
  • Accelerated rate and quality of leads generated and an enhanced sales conversion rate

Is influencer marketing for you?

Let’s examine how influencer marketing could be useful to B2B Freelance consultants. As usual, your first act will be to assess your client base and refresh your understanding of your target market(s). You must know whom you’d like to influence, what you’d like to achieve and why that achievement will matter. Verifying your target market will enable you to recognize which influencers, marketing tactics and channels can be expected to resonate with your clients and prospects. So that you can begin to recognize the expertise, authority, connections and social media presence your most effective influencer should have, it’s imperative that you clarify the problems and projects that clients and prospects ask you to resolve. As you go through this process, you’ll also get an idea of whether (or not) influencer marketing might be a fit for you.

Identify and investigate influencers in your industry

Take your evaluation process to the next level by investigating the types of content your clients and prospects usually engage with and the platforms that supply it. What types of content do they find relevant, whom do they follow and on which platforms can that content be found? Also, what are the most common questions they’re looking to answer and the problems they want to resolve?

Next, develop a list of influencers you’d like to contact. Your job here is to speak and get to know who you might like to work with. Does this candidate have not only the industry experience and authority that you’d like but does s/he have the connections and clout in your niche to move the needle for you? Essentially, you’ll search for influencers who can help you reach and impact your ideal audience. It’s no help if an influencer has a large community of followers but does not have a prominent presence in your industry and niche. Before you decide who you’d like to follow and follow-up with, verify precisely how your potential influencer can produce what you want, which is probably some combination of upgrading and/or increasing your leadgen, enhancing company brand, encouraging brand loyalty, upgrading and expanding the earned media you receive and, ultimately, impacting purchase decisions that increase your client roster. Keep all that in mind as you look for good potential influencers. Here are common methods you can use to find influencers you can meet and interview.

  • Social media. Many influencers have large followings on social media platforms and it makes sense to start your search there. You’ll want to choose influencers who have a strong presence on the preferred platforms of decision-makers for your service or product. Engage with the content of influencers who seem to have promise for you. You can follow those who look promising and then reach out and initiate contact. This strategy gives you direct access to potential influencers and enables you to build relationships.
    • If Facebook is your preferred platform, use their search function to find influencers. You can also check out industry specific Facebook groups or pages to find B2B potential influencers.
    • Instagram is your gateway to connecting with Millennial generation decision-makers and discovering the influencers they trust. Search the platform for producers of excellent and consistent content and then visit the site profiles of those content producers you find compelling.
    • LinkedIn is the usual suspect for all things B2B, including finding B2B influencers. You can search your industry to find influencers directly. Definitely join and investigate relevant LI groups and watch for influencers within their membership ranks.
  • Networking at industry conferences and events. Attending in-person meetings and conferences provides a unique opportunity to network with professionals and identify potential B2B influencers within your niche. The strategy is effective for discovering and getting to know B2B influencers with whom you can potentially build a mutually beneficial relationship.
    • Attend relevant conferences in your industry.
    • Actively participate in networking sessions.
    • Identify B2B professionals with significant industry influence
    • Establish connections and express interest in collaboration

  • Discover B2B influencers through industry publications, influential blogs and speaking engagements. This strategy lets you evaluate is the credibility of influencers by learning who is featured in respected industry publications, which indicates expertise, authenticity and most likely, influential relationships.
    • Regularly follow industry publications and relevant blogs, with an emphasis on organizations such as chambers of commerce or other well-respected professional societies and business associations. Identify content contributors and speakers who have the industry expertise and reputations that you seek.
    • Familiarize yourself with the content of industry experts that you find promising
    • Reach out to suggest the possibility of collaboration opportunities.

Evaluate B2B influencer industry authority and credibility;

Confirm the authority and credibility of potential B2B influencers within your industry by examining their past collaborations (if possible), content quality, consistency and presence in prestige publications. Your job is to investigate which B2B influencers’ audiences and authority align with your target market and can be useful for you. Refer to your research to develop a candidate shortlist.

Reach out to your follow-up list gauge and request an opportunity to discuss the possibility of an influencer marketing relationship. Enhance your appeal to your intended influencer with a personalized and compelling outreach message that demonstrates your awareness of his/her industry authority, as evidenced by the quality and consistency of his/her published content, speaking engagements and /or professional awards. Express your admiration for their insights and expertise.

If your invitation to talk is accepted, during the conversation inquire about the brands and types of campaigns your would-be influencer has previously collaborated on. If the initial discussion leads to further and more specific talks, request a link to his/her portfolio to verify the success of past collaborations and get a feel for how a collaboration with you might work.

Negotiate terms and collaboration agreements

Clearly define and commit to writing in a signed contract your expectations of the influencer marketing campaigns, the roles and responsibilities of the influencer you’ll partner with and the compensation agreement (monetary amount and due dates) with your selected B2B influencer. Execute this agreement by producing a transparently communicated legal document—a contract.

Keep in mind that a contract is only as good as your ability to enforce it. Help yourself by keeping your wish list and the timeline for its achievement realistic. While discussions and negotiations with your preferred influencer in advance of finalizing the contract, do your best to confirm which items of your wish list outcomes seem possible for your organization as well as the amount of time and other resources that will likely be needed to get you there.

Monitor and measure campaign influencer performance

Monitor the performance of your B2B influencer campaign by tracking the relevant associated key metrics, such as client and prospect engagement, click-through rates and shares, follower growth and expansion, leadgen growth and expansion, brand reach and impressions and sales revenue. In sum, you’ll want to evaluate the campaign ROI outcome and understand the costs associated with your influencer marketing campaign versus the sales revenue that can be attributed to the campaign.

It’s imperative that you obtain an objective and comprehensive assessment of your influencer marketing activities. As with all of your business strategies, obtaining a big-picture performance evaluation is a must-do. Once you learn which strategies and campaigns are effective, and therefore worthy of your investments of money and time, and what failed to live up to your expectations, and might either benefit from an adjustment or maybe should be dropped will, as always, show you the path forward.

Thanks for reading,

Kim

Image: © gstockstudio for Freepik

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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

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Can You Bring Blockchain into Your Business?

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The technology known as Blockchain has received loads of attention in the business and tech press over the past three years or so but until recently, I never understood what it and never thought it would apply to me, anyway. Blockchain is for the big guys, right? Not really. The benefits of Blockchain play to many audiences.

Before we go any further, let’s understand what Blockchain is. Blockchain is a record-keeping ledger that is accessible only to its participating creators. Blockchain is also the ultimate permanent record because information entered into a Blockchain document cannot be deleted and will be stored forever. Registered participants may enter new data into the Blockchain ledger to update it, but nothing can be deleted.

Blockchain data is secure and permanent and each document entered into the network has an unique software code. Once the document is triggered, that’s it—the document is forever locked down. If it becomes necessary to make substantive changes, one must start over with a new Blockchain document.

Companies that deliver complex services or offer a wide array of products that are purchased from numerous sources are a natural fit for Blockchain. Think of retail operations that order inventory from overseas manufacturers. Cultural business practices, language differences and the processes of ordering, shipping, payment and confirming arrival of the goods creates many opportunities for the ball to be dropped. Blockchain enables all parties to monitor in real time every action-oriented element in a contract and can even link payments to meeting milestones that demonstrate fulfillment of terms.

Freelancers, professional service providers and small business owners can also find practical uses for Blockchain technology. For example, the Blockchain Smart Contract has potential for broad usage. Your Smart Contract is registered with the network and legally cleared as a valid agreement. Each point of agreement specified in the contract, e.g., the scope of work, milestones, deadlines and the invoicing schedule, is then automated and when fulfilled, that element is triggered and recorded as complete. That achievement allows any incentives connected to its fulfillment to be approved and awarded.

Let’s say that you contract to write a certain number of social media posts for a client. When your post is received by the client, or when you’ve uploaded it to the the client’s account, your Blockchain Smart Contract will signal that you are eligible to be paid for your work and you will not need to send an invoice to request payment. What a relief!

Blockchain can simplify and speed accounts receivable payments and as a result, enhance your cash-flow. Moreover, if you hold client credit card information that is used for automated payments, the information will be super- secure in the Blockchain network. Clients will feel more confident when doing business with you when you deliver your services with cutting-edge efficiency that includes an added layer of protection for their financial information. In other words, Blockchain is a brand and customer service enhancer.

For more information on how to set up Smart Contracts for your important projects, visit https://applicature.com/smart-contracts-development/. Plan on $500 for reusable Smart Contract development.

Thanks for reading,
Kim

Image: “Signing the Marriage Contract” (1905) by George Sheridan Knowles (private collection)

Survival Strategies , , Leave a comment

How To Manage A Difficult Client

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Full disclosure: when I went out on my own as a Freelancer, my very first client was a terrible human being and as a result the project was a difficult  experience.  I did the best that I could to satisfy the completely unreasonable expectations,  time frame and amount that this individual was willing to pay.  Most of all, I came to recognize the rookie client management mistakes I had made,  chiefly,  failing to confirm the full project scope,  budget and length.  I also learned how to recognize who had the potential to become a bad client (not a fool-proof science,  but helpful nonetheless).

Furthermore,  I now have the inner strength to fire a bad client,  because they just aren’t worth the money.  If you find yourself in an assignment and client neuroses suddenly emerge,  you’ll need tactics that will help you exercise some control over the situation and preserve your dignity and sanity and perhaps the client relationship as well.

The nitpicker

There are two types of nitpickers: one who is willing to pay for the time it takes to second-guess every aspect of your work and those that want to abuse your time.  The only good thing about a nitpicker is that s/he can make you more precise about your work.

Setting boundaries is the preferred defense,  but be advised that a client has every right and in fact a responsibility to scrutinize your work,  especially if this is your first project with the organization.  If your nitpicker client is OK about paying extra,  then pretend to welcome his/her suggestions and involvement.  Consider it a lesson in meeting or exceeding client expectations and building trust.  Maybe the exacting attitude stems from a previous bad experience.  Reassure the client that getting the job done right is your goal, too.

If your nitpicker does not want to pay extra for the second-guessing,  here is where the boundaries must be applied.  Allow for two revisions of your work and make it clear that beyond that,  there will be a surcharge for your services.  Consider declining future projects offered by this individual.  Going forward,  write into the contract a surcharge for revisions that you would find excessive.

The meeting maven

Meetings are useful in that stakeholders can convene to discuss the progress of the project and make any desired refinements along the way, while verifying that milestones will be met.  Progress meetings can be held periodically,  but too many are a waste of time.

In the project specs meeting,  it is useful to address the subject of progress meetings and suggest tying them to project milestones.  Include meeting time in your project fee.  It’s difficult to address the number of meetings after the fact if you encounter a meeting maven who thinks that you should not be paid extra,  or who likes to stretch meetings out to much longer than  necessary.

That client has you by the short hairs if numerous meetings are demanded,  or prescheduled meetings drag on and on.  You may need to decline future projects and chalk it up to a lesson learned.  Going forward,  anticipate the need to meet and discuss it beforehand.  Some long meetings may be beneficial to you as well as the client,  but make it known that you will be paid.

The penny-pincher

You may have been led to believe that you will work x hours/week on a project and unexpectedly,  your hours are decreased.  Or maybe the scope of your work is scaled back.  The penny-pincher’s motivation may be that s/he has second thoughts about paying an outside consultant,  or maybe there really has been a cash-flow problem.

Regardless of the agreed-upon contract that you have with this client,  s/he has the power to change certain elements and there is nothing a Freelancer can do,  except to opt out of the assignment and you may do exactly that if you have a better opportunity available.

If you do need the assignment,  make sure that the scope of the project decreases in proportion to the hours taken away.  Under no circumstances do you perform as usual,  no matter how much you may like and respect this individual.

If you can offer lower-cost alternatives that will help the client achieve certain important objectives, consider doing so.  You will be perceived as a real professional and positioned to win future assignments when cash-flow improves.  This would be a good time to ask for a referral.

Next week,  we can look at more difficult clients.

Thanks for reading,

Kim

 

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Why You Don’t Get the Sale

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Two or three years ago,  I read that a Freelancer’s main competition is not another Freelance consultant who does what you do.  Our real competitor is the client.  As the less than stellar economy grinds on,  enriching primarily the top 1%  of the population plus a few lucky folks in the  (shrinking)  middle class,  that statement gains more credence every day.  Prospective clients have got a boat load of excuses to slide away from a contract,  or cutting down what was originally promised.  Do you ever wonder what could possibly be on the minds of clients and prospects who promise you the moon and then either disappear or offer up a very paltry version of the original proposal?

According to Steve W. Martin,  professor of Sales Strategy at the University of Southern California Marshall School of Business and author of  “Heavy Hitter Sales Linguistics: 101 Advanced Sales Call Strategies for Senior Salespeople” (2011),  stress caused by peer pressure and insecurity is the culprit and its impact on decision-making is detrimental  (no surprise there).  Freelancers and sales people must do everything possible to communicate our value-added but in the end,  the decision to give the green light is an internal matter and those outside have only so much influence.  Here are examples of what worries our prospective clients:

Budget availability

There are two main criteria for deciding whether or not to give someone the contract or sale:  1). What is the ROI that will accrue from the sale? and 2). How does that ROI compare to what might be derived from other projects being considered?  Projects that are considered strategic by the senior execs have priority,  so if your project has that status,  it’s only a question of how many hours you can get.  Whatever your project,  product or service,   you must first receive the initial approval.  You may believe that because you have confirmed that you are talking to a decision-maker and s/he says the go-ahead is imminent,  that is not the whole story.  There is the all-important step two and that happens when  the team of heavy-hitters examines and ranks all pending projects and major sales and decides which items receive funding and at what amount.  In other words,  that decision-maker that you’ve been speaking with will confer with other decision-makers to compare which projects will go forward,  because projects are continually re-prioritized in response to shifting conditions.

Strategic imperatives

Your project must align with the organization’s goals as perceived by the higher-ups.  If you notice,  projects that are championed by lower-ranking employees often do not get funded because higher-ranking execs do understand or appreciate the value-added,  do not view the proposal as strategically significant.  Moreover,  your project must demonstrate that the sponsoring higher-up understands and is actively advancing strategically relevant projects,  products and services.

Ego and image

This is related to the above.  Your project must make its chief sponsor look good to the person s/he answers to,  as well as look good to colleagues and subordinates. When an outside consultant is hired or a major purchase is authorized,  the project champion absolutely must look like a genius for doing the deal.  Under no circumstances must s/he be perceived as having made the wrong move.  Peer pressure is real and the project champion worries about making the right decision,  especially if this is something that has not been done before.  This is why the Freelance consultant must at all times deliver exceptional service,  must exceed expectations,  because the reputation and career advancement of your project sponsor is riding on it.

I’ll talk more about your nervous prospect next week.

Thanks for reading,

Kim

Business Strategy , , , , , , 1 Comment

Your Big Client Bid Strategy

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Freelance consultants have to be nimble and resourceful in order to compete successfully and that is especially so when in pursuit of a big-league client.  Winning a big client is tremendous validation,  but when swimming with whales it is essential to take precautions and maintain as much control over the process as possible.   It would be disastrous to do what is second nature to many small business operators and Freelancers: whatever it takes to get the job in and whatever it takes to get the job done.   Pursuing important clients with big contracts out for bid takes a more sophisticated approach.

When assessing and pricing a big  contract,  the project fee attached to your proposal carries much weight,  in more ways than one.   Bid too high and you’re knocked out of contention.   Bid too low,  a common practice of Freelance consultants and small business owners,  and one of two impressions will be made:

1.   That you are perhaps unqualified to do the work because you’re selling your services for too little money,  or

2.   That you’re desperate for business and probably ripe for exploitation.

To both convey the image of a capable and experienced professional and ensure that you make money on the project,  be sure that you thoroughly understand what will be required to fulfill the contract and your ability to do so.   Job costing and cash flow projections will need special care.   Will you need extra expertise for some aspect of this job,  or perhaps an extra pair of hands in order to meet the timetable? 

Realize that big projects for big clients mean big accounts receivable and there can be a downside.   Be honest about how much money you can afford to have outstanding,  even if  payments are received on time.   Help yourself by requesting 20% – 35% of the project fee up-front and due within 15 days of the contract signing.   Set up a payment schedule in your proposal that ensures you’ll be able to pay any subcontractors and also yourself on time.

Freelancers and small business owners often compete on price,  but one is advised to avoid dangerously low bids in order to get work or add a marquis name to the client list,  only to receive very little profit from the project.   Michael MacMillan,  founder and CEO of MacMillan Communications of New York City,  focuses on selling personal attention and customized PR strategies to his clients and providing more bang for the buck.   “One of the advantages of being a smaller organization is that you’re more efficient because there are fewer overhead costs.  We are able to apply more of the project fee directly to account work”. 

According to Jeffrey Bolton,  managing partner at the accounting firm Daszkal Bolton LLP of Boca Raton, FL,  the key to evaluating whether to pursue a big client is to ask yourself  how important that account will be for future business growth and whether the project work fits into your strategic plan,  even if you don’t make money on it.  “If you’re trying to build a reputation,  that foot in the door is necessary,  but you must have an institutional mind-set when taking on a big client and not a mom-and-pop mind-set”.

Thanks for reading,

Kim