Back-to-back client calls Tuesday morning brought up the same issue–inadequate results from contracted work. After hearing my clients’ frustration with their vendors and brainstorming action steps to move forward, they were still left with two challenges:
- Disappointment with the referred vendor
- Indecision regarding payment
In one case a designer failed to please the client’s aesthetic. In the other, a writer missed the mark on a bio she submitted. Who’s to blame? Do you still pay, and if so, how much? Further, how do you prevent this from happening again in your future?
For those of you who are pulling out your notepads to jot down my pearls of wisdom, sorry. There are no short answers to this because there are always extenuating circumstances. Each situation needs to be handled individually. But you can take precautions and follow certain principles.
Most important: Address the issue with the vendor directly. Tell him/her of your unhappiness and say what you would like to have happen. From this point the conversation can go in many directions. My advice is to be sure to have it.
Second, what you can take control of is how the work arrangement is set up in the beginning. And that means creating a written document. Here’s a mantra for you: Reduce all deals and business agreements to writing. A Letter of Agreement needs to be a standard template you keep in your files for all future business relationships.
You’ve heard the saying, “A short pencil is better than a long memory.” Having the terms written out, how much/by when/kill fee, etc. gives you something to refer back to. Keep it simple, but do it.
With no written agreement you may get stuck with the bill. However, that $50 or $5000 may be money well-spent. I often say to my clients, “It just cost you $500 to learn that course towards your MBA.”
I’d be very interested to hear your stories on this subject, particularly ones that came out happily. Curious minds want to know.
9 comments
Comments feed for this article
January 22, 2010 at 5:12 pm
Sharon
Excellent advice, Jane. Several times, friends of clients have asked me to do work without signing my letter of agreement. Three times I said yes, to be “nice”, but each time I got burned. I am now happy to walk away if a person won’t sign my understanding letter, because it seems to mean they never intended to pay anyway.
January 22, 2010 at 10:17 pm
Val Gosset
No stories, but two tips, as someone who often sits on the vendor side of the fence: 1) I treat a letter of agreement as a sales document, restating the benefits of the project as well as the terms, and 2) I never ask for money “upfront” but rather “as work begins.” Both things make it much easier for the client to say yes.
January 23, 2010 at 1:59 pm
Lennie Rose
Quality service partners, like accomplished writers and graphic designers, want their clients to be happy. The happier their clients, the more referrals. So what happens when there is a snag?
1) Give the vendor clear directions on how you want the project changed or adapted. Establish how many revisions you both think is fair to include in the current price. I’ve never known a writer or graphic designer to hit the nail on the head the first time. Like a perfect suit, work is often tailored to the client but the boundaries must be set.
2) IF the work returned is WAY off the mark – express it and your doubts that this is a match. Give the vendor an opportunity to renegotiate and to try again but set-up an exit strategy. This may mean paying half or less. Strive early to cut your losses & preserve feelings as this vendor may become accomplished in the future. .
3) Do more homework before you hire – see if their style, their track record and even their company values are in line with yours. Look for fine entrepreneurs with excellent reputations. One referral does not make a great service partner. With websites you can review a body of work and then check around to see who in your circle knows this company.
4) Listen to your gut. Don’t get in deeper, when you suspected you shouldn’t enter into the relationship at all. Sometimes we get totally desperate to find the right professional because we need to move forward. But don’t! As Dylan says, “If it ain’t right, it’s wrong.” I’d rather be patient than wrong. It’s less expensive.
5) ‘Tis the season to negotiate a great deal. We’re all in this economic climate together. If you don’t ask, you won’t get – so bravely go for the rates you can afford – even if the pro seems a bit out of your league – reach up!
5) Call or email me at the Big Ooga. We are an entrepreneurial resource of fine companies who are already loved by their clients. I know everyone in the membership and can suggest who would be a great match & value. Lennie@BigOoga.com 708-524-4562 http://www.BigOoga.com
January 24, 2010 at 2:33 pm
Wendy
Hi Jane,
This really hit home to me today. I did my first presentation on Wednesday. It was for a non-profit company and they pay $50 per speaker. I didn’t get paid and didn’t realize until I got home (I helped them clean up at the end so we were kind of distracted)…..I feel so awkward now.
I am a horrible businesswoman at this point and collecting money is my biggest issue. I worry if I don’t get this under control it will be the downfall of my business.
I know I should have confirmed the fee ahead of time but felt bad because they are non-profit and don’t have much money etc…..
How do we overcome that softness?
January 24, 2010 at 3:41 pm
janepollak
@Lennie
Such great advice! Thank you.
@Wendy
I feel your pain. The way to overcome the softness is practice. Actually, you don’t want to lose the softness. Re-position it as self-care. You love yourself too much to be taken advantage of. Practice saying, “I need to be paid_______.” How much by when. Put it in writing. Ask how you will be paid. It’s a muscle that grows stronger with flexing. I know. I was where you were…
February 4, 2010 at 10:25 am
Jennifer
My advice is separate your passion from the purpose of the work. As entrepreneurs, it’s easy to get wrapped up in the ribbons and bows, but take a moment to evaluate what you NEED vs what you want. Spell out the terms clearly, sign a letter of agreement ONLY when both sides have a firm understanding of deliverables and deadlines.
February 5, 2010 at 8:29 am
janepollak
@Jennifer
Boy, this cuts out a lot of emotion which has no place in written agreements. Thanks for this.
February 8, 2010 at 9:12 pm
Pat Burton
I’ve had a two decade struggle with negotiation as a graphic designer/freelancer. I ALWAYS felt the only option was to take the job: “work is work” no matter how grueling (or low paying). After many win/lose situations, my husband brought up the concept of “No Deal”.
A few years ago a client/friend asked me to design, layout & illustrate her cookbook. She told me the many ways this was a “win/win”. The prestige! The book tours! My name on the cover! After I (as a friend) dived into doing some rough layouts & sample watercolors, she, (as a client) started “tweaking” and she laughingly said “I’m going to owe you 5,000 dinners”. I went home shaken, realizing she never intended to pay for what could be 6-12 months of work. I did some soul-searching. I didn’t need prestige or to tag along on book tours — I needed to be paid for bringing 18 years of publishing design experience to the project. I wrote up an estimate, which she turned down and for the first time I struck a NO DEAL. I’m thankful. She burned through 3 designers, one of which had a breakdown during her endless revisions. Interestingly she ended up paying someone else more than my original estimate.
February 9, 2010 at 8:03 am
janepollak
@Pat
What a great example! Thank you for contributing this, especially what happened to the less wise designers who came trailing after you. It really underscores the lesson and reinforces the wisdom of your decision. NO DEAL is a great mantra.