Freelancer News

$600 Clients vs. $60,000 Clients

 wrote this 3 days ago in General
$600 Clients vs. $60,000 Clients
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An interesting twitter thread from Patrick McKenzie. I'll try to highlight the major points:
  • The type of client you pursue will determine the type of business you run. If you go after $600 clients, your business revolve around managing complaints. If you go after $60,000 clients, your business will revolve around getting sales. 
  • If you're stuck dealing with bad clients, the solution is to improve your client qualification processes. I outline how to do this here.
  • When going after larger clients put it in your SOW terms that deliverables will be deemed accepted after 2 weeks. This will help you avoid the extremely common situation where a client cannot self-manage their internal teams’ schedules to sign off on your deliverables in a timely fashion and Purchasing won’t pay until they do.
Overall some good tips on qualifying and going after high-value work. I DO think there is some gray area. There's probably a minimum threshold where I wouldn't pursue work (say, $1,000 per project.)

However, there are times when reviewing advice like this where we make things seem black or white (ie. pursuing larger, more expensive projects is what EVERYONE SHOULD DO ALWAYS) which I think is wrong. 

Probably the best takeaway for me is the illustration comparing your services to others:

The vendor is rarely solely responsible for getting the results accomplished. Exercise trainer isn’t eating dinner for you; consultant isn’t sitting at strategy meeting determining whether implementation phase retains staffing.

This is helpful to keep in mind when you are working and thinking about things like Value Based Pricing.

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