Re: Advice for perpetuity?

by "Judith C. Kallos" <webmaster(at)theistudio.com>

 Date:  Wed, 23 May 2001 09:59:07 -0500
 To:  hwg-business(at)hwg.org
 References:  mindspring
  todo: View Thread, Original
Wow!  What a bunch of astute folks on this list - no wonder it has been so 
quiet, we are all busy running successful enterprises!  ;-)

At 11:15 PM 05/22/2001 -0400, Kevin A. Jackson wrote:
<snip>
><snip>
>5 Years ago we were struggling to get started, learning how to quote, 
>learning how to stay in business :). We built websites for clients at 
>rates that we could not afford now, some in barter, some for free just for 
>the experience. These clients were too cheap, or too small to afford a 
>larger, more experienced web firm, hence they took a big chance on us, 
>some thinking: "what have we got to lose?"

Boy can I relate!!  Experience can put such a different focus into your 
business.  Both in the niche you want to target as well as the type of 
clients you prefer to work with - and this is different for each 
business.  Speaking from my own experience, I am blushing even thinking 
about some of the things I compromised on (or didn't know any better about) 
when I started in 95. :-0  (The situation yesterday is one I am still 
living with and a reminder of what NOT to do!)

>Don't get me wrong - we appreciated the opportunity and without them we 
>may never have gotten off the ground.

So true.  However, they gave us an opportunity and I would assume we all 
gave them more than they paid for.  However, at the same time at some point 
if a mutually respectful relationship is not produced, then there is no 
profit in the relationship - for either side.

>If those clients are still thinking the same way today, then they will 
>have a really hard time paying us the rate we charge everyone else. In 
>some ways I feel responsible for creating a co-dependency, where they 
>think that all web services should be delivered at the rate they got it 
>before, so I try to explain how things have changed, how it takes a little 
>more money to keep a fully staffed shop, with computers and software, and 
>paying people enough that they do the job reliably and repeatedly.

I find that if I have to explain the basics involved in what is required to 
run a business than those are folks who don't know how to run one 
themselves and generally turn out to be the worst 
customers.  Unfortunately, I have found that some folks will be left behind 
as you continue to succeed and strive to run your business to be one that 
can grow to it's potential.

I hihgly recommend this book:

The Invisible Touch by Harry Beckwith

We are basically all selling something intangible to our clients and this 
book helps put your marketing into perspective in knowing how to sell 
knowing this.  Great read!!

><snip>
>I have tried - I would treat them like a brand new client, generate a 
>proposal, manage their expectations, but sooner or later either they slip 
>into the old habit of trying to get it for free, or we slip into the old 
>habit of giving it away for free - even worse!

I hate when that happens.  But we are only human and I think that is a sign 
of trying to run a fair and equitable business.  I know that I too give too 
much away support wise sometimes - that is why if I get to the point where 
I don't want to do it any more, I know for a fact is because someone has 
taken advantage of my good graces and I draw the line.

><snip>
>
>Thank you for your patience with my rambling.

And some darn good rambling I must say!  ;-)

Let me ramble a bit about some of the things I have in place that work for me:

Clients are advised in their starter package that after the launch of their 
site any phone or office consultations are at no charge.... contingent upon 
they retain us for the work within a 30 day period.  If we consult and no 
work is produced based on this effort, they are invoiced at our hourly rate.

We offer access to our support area and newsletter with unlimited email 
support (not site changes) for 3 months after the launch of their 
site.  (Of course, depending on the client this can be extended.)   If they 
are MIA for 3 months, they no longer get our monthly newsletter which 
contains time-sensitive information and the access passwords to the client 
only area.

This gives me the opportunity each month to review my account base and see 
who is active or not as well as giving me a constant reminder who are the 
active, participatory clients at the core of my business - and profits.  I 
then know who deserves that extra TLC because they are the ones who help 
pay my bills.
We all know how this gig is fluid and changing all the time - someone who 
doesn't keep up with their site generally could care less about the support 
area or the newsletter anyway.  ;-)

Twice each year, June and January - all clients who have fallen by the 
wayside or that we have not heard from receive a different newsletter 
updating them on our company, reminding them about our services  (and 
pricing schedules) and updating them on general technology information and 
changes they need to be aware of.  I also remind them of one of my sites 
that is geared towards the "do-it-yourselfers" so that if they are so 
inclined the resources and tools to do so can be purchased at that 
site.  Within this newsletter we invite them to visit our password 
protected Site Progression area to request information on the services 
mentioned.  Password protection always makes them feel as though they are 
going to an exclusive area not available to just anyone.  ;-)

For those who call wanting to just chat about "what if's", much like what 
Kevin stated, I send them to  Site Progression Request form mentioned 
above.  I state I am about to go into a meeting but will quickly get them 
off an email that points them to this page.  They can then complete the 
form, ask their what if's - giving me all the details I need to know how 
serious they are (or aren't) as well as allowing me to provide those 
answers and a quote by return.

And, in the worst cases, when comments are made such as I mentioned in my 
previous post, I will actually say:  "So, you would like me to assist you 
at no charge to learn how to do the things you don't want to pay me to do 
for you?"  This generally will put things in focus and I then offer to send 
them the email containing the various links (options) mentioned above.

HTH!  ;-)


TTYL!
/j

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