15 Ways to Protect Yourself from Big Bad Clients

Like in the rest of life, your business relationships are going to vary. There are many different types of people who you will have to deal with. Sometimes you cannot see a bad apple coming before you bite into it.

Especially in the beginning of your business, you will feel obligated to take every offer possible for work. Sometimes you may even know it is going to be a bad road to take but out of desperation you feel you need to take it. I have been there and done that.

There are a lot of people out there looking to get what they want even if it means screwing over others like you and your company. Here are some ways to protect yourself from being abused.

BEFORE BEGINNING

1. Add a Policies page to your website. It is remarkable how different clients’ expectation of you and your process will be. By adding a general (and easily accessible) Service Policies page, you can let your clients know your general processes like billing process, work time frames, cost structures for additions, general rights as a contractor, and anything else that will get you both on the same page.

2. Meet in person. People are much more likely to screw you over if they have never met you. By meeting in person you can read the client. This seems silly but your interaction in person will inevitably reflect the future relationship with that person. You need to know what they are like from the beginning.

3. Check their references. They check your references, why shouldn’t you check theirs? You are most likely to be strangers and have no idea what they are capable of. You also spend a lot of time with building a portfolio and getting testimonials and referrals to ensure trust on your end. Shouldn’t they extend the same courtesy?

In casual conversation ask if they have worked with anyone in your profession before. Get a name or and email address and ask the person how the experience was. It seems pushy, yes, but if asked subtly it will not seem like a big deal.

4. Put everything in writing. A Policies Page is a good start but for each individual clients, a contract may be necessary to ensure quality on both ends of the deal. By laying out in writing what services will be rendered and what the amount due will be (and how it will be paid), there will be less confusion of what is expected from you or them.

WHEN CHARGING

5. Charge for outcome, not hours. I have addressed this a little in the past but I want to talk about it again because I think it is important. Your client does not really know or care how long it takes you. You don’t have to go by convention and charge for your estimated hours. Instead, look at the true value your outcome will have to the client when pricing it. This way you are guaranteed to get the amount your really deserve and there is no space left open for debate.

6. Get a fairly sized deposit. I always take between a 30% and 50% deposit from clients I work with. This does three things. 1. It makes you more secure that they are good for the money. 2. It most likely will finance the costs involved in the project. 3. It allows the client to pay a smaller amount at the end of your service.

7. Set up a payment schedule. Many clients you deal with will not have all the money required just lying around. I work with a lot of artists in my business who statistically have lower incomes than business owners. This means to ensure both of us that the money gets paid and everyone is happy, it is best to pay in installments. Set up your payments over the course of your project time line so at least 75% of it is paid by the end.

DURING SERVICE

8. Only accept small changes without charging. Once a decent size request has been made by a client and you agree to it, you are opening the door for future requests and expectations. Smother this before it starts. You want to make them happy but you don’t want to get used.

9. Give yourself enough time. Sometimes we feel the necessity to tell our client it can be done faster than we really want to work, especially when competing with other firms. In reality, a client will choose you for the value they think you can provide over the time frame. If time is their number one priority, then you may not want to be working with them anyway.

10. Have deadlines for them too. They give you deadlines of project completion so you need to give them deadlines as well. I and other entrepreneurs who I am friends with have been put in a position where the client’s tardiness to give important information has caused us to be late on a deadline and then the client gets mad. Avoid this by recording when info is supposed to get to you and when you receive it to defend yourself.

11. Learn to say no. It is so hard to resist doing whatever is necessary to please the client. You want to them to refer you to others and continue to use your services but this doesn’t mean they own you. You went into business to not have a boss. You cannot say no to your boss. You can say no to a client.

WRAPPING UP EVERYTHING

12. Be in control of your work. Whatever your profession, you should add security to your work. If you are a graphic artist, be sure to watermark your designs to be in control of them, at least until you have received your final payment. As goes for a web designer, add a licensing package to your website design so only you can access the source until payment is made.

Especially for those of us who work online, it is important to protect your work. You don’t want to be the helpless old lady who get her purse stolen. Stick a bomb in the purse and be willing to push the detonator just in case. (I know, that was a drastic example but you get the point.)

13. Have a Post Service Agreement. This would entail any post service work you do including add-ons, hosting, etc. depending on your industry. You want to make sure that they understand that you will charge for additions after the original project is completed. Some clients may assume small changes are free forever with no regard to your interests.

14. Have a clause of late payment interest. Even if they have made their deposit, they still may not pay fully for the service on time. Make sure they agree to pay additional fees if they do not pay within the agreed time. It is something that can be in your service contract (#4). Remember—this contract is not just to protect them. It is there for you too.

15. Double check everything. Make sure before you finalize that you double check everything yourself. Did you do everything you were supposed to? Does everything work as it should? If you do not make sure everything is as it should be when you close the deal, it may come back to bite you in the butt when you least expect it.

Some of these points seem harsh but, especially if you are small, being on the receiving end of a proverbial slap in the face can cripple your ambitions and goals. Most of these items are fairly subtle, understandable, and easy to accomplish but should be done. Remember that some clients may not even know how things effect you. You need to protect yourself.

These are very useful when dealing with your clients but what if sometimes you could avoid these types of clients in the first place? Soon to come is the follow up with tips on how to avoid bad clients.

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Photo by Martini Captures