Impossible Conversions: Avoiding Bad Clients the “Cheap” Way

Let me start off by telling you a story. I love to bake, and I experiment in the kitchen on a pretty regular basis. Not too long ago, I made a semolina cake with oranges and cranberries. I’ve made it before, so I knew what I was doing. However, recently I ran out of baking powder (I know, right? Who runs out of baking powder? Me, that’s who), and I had to resort to making my own out of baking soda, cream of tartar, and cornstarch. Just in case you were wondering what’s actually *in* baking soda? Now you know. You’re welcome.

Anyway, since this was my first time making my own baking powder, I of course had to look up a recipe for it online. Everything was going well, then disaster struck. As it turns out, one tablespoon of baking soda is actually not the same as one teaspoon of baking soda. Who knew? Unfortunately, I didn’t find out my error until after the cake was done and I tasted it. (Note to everyone: don’t ever make a cake with too much baking soda. Just…don’t.)

I tried to save this cake, people. I tried and tried, drizzling more and more cranberry-orange sauce on it; smothering it with whipped cream and cherries. No dice. It still tasted like the Dead Sea and any hope of presenting it to my dinner guests went completely out the window. My point here, if you haven’t already guessed, is that, no matter how hard you try, you can never make something good out of something that’s just plain bad. I think there’s a popular adage about this; no matter how much you polish it up, it’s still…well, you know.

Pruning the Money Tree

Today, I want to talk about our favorite subject as designers: clients. Oh, clients. You can’t live with them, you can’t slap them. The primary thing to remember when dealing with clients is this: you can never – I repeat, *never* – make a bad client into a great client. Let me say that again: you can never make a bad client into a great client. Sometimes you can make a bad client into a passable one, but, unless you’re getting compensated extremely well, it’s rarely worth the effort. Just like my cake had too much baking soda, and no amount of noodling could get it to taste better, an unreasonable, demanding, emotionally disturbed client already has those qualities before you even meet them. It’s not personal – they’d most likely be that way with any designer. If you want to have a challenging yet rewarding, insanity-free working relationship, you must start with a good client.

Fair enough, you say. But how am I supposed to tell which clients are good and which ones aren’t before I work with them? In my experience, there’s an easy way to determine which clients are worth the trouble and which ones you should just skip over, and it has to do with their budget. Not the specific amount, per se, but their attitude towards budgeting in general. There’s a profoundly important difference between a reasonable client who doesn’t have much of a budget, and a client who’s just, well, cheap. The former you should by all means seek out and work with – the little guys need good design too! Clients who can’t pay you what you feel your standard rate should be can usually help you out in other ways that will lead to much more lucrative opportunities later. Let me explain what I mean:

Something For Nothing

When working for less than your standard rate (and again, there’s nothing wrong with that, especially in today’s economy), you should always negotiate for something else in exchange for your “discount.” And you should treat it like a discount. Your client is receiving your services at a lower rate, and they need to be aware that, as such, there are certain deliverables which won’t be available to them. If your client can’t pay the initial price you quote them for the work, the second price must carry a reduced amount of work. The initial price you quoted them has value in the client’s mind. If you are willing to “bend” on that price – if you, say, do a job worth several thousand dollars for a few hundred – what happens is that you reduce your perceived value to the client. The client will know then that you weren’t serious about your standard rate, and they may try to take advantage of you and get more work for even less money.

Always be firm about how much you cost. When clients know that you value your work and don’t compromise your own worth by wavering on your prices, they will value your work as well. Just as you wouldn’t expect to get an oil change and new brakes for the price of a car wash, your potential clients must know that there is a limit to how much service you can provide on a budget. If a client is worth working for, they’ll accept that your higher-priced services are out of their range, and will be willing to discuss other, non-monetary options as part of your compensation. What kind of options? Well, I’ll tell you.

If you’re dealing with a reasonable client, you’ll be able to negotiate for three main forms of non-monetary compensation. You can negotiate for just one, or all three, but using this technique will help you quickly weed out those clients who don’t value you or your work. The three main elements that can be included in your compensation are:

  1. Referrals. Not “exposure” – that’s a vague word which can mean almost anything. But actual, genuine referrals from your client personally to people who can and will hire you. A list of warm leads directly from a paying client is worth its weight in gold, and can sometimes be more valuable than a single paying job. It’s not too much to ask, and if you’ve got a good client, he or she should be more than happy to provide at least a few. If not, run far away. That client is not worth the trouble, because they aren’t going to get any more reasonable. If someone can’t be bothered to come up with two or three referrals among their friends or colleagues, what makes you think they’re going to trust your design decisions or resist unnecessary scope creep?
  2. Creative freedom. You can and should use your lack of financial compensation as leverage to secure more creative freedom on a project than you would have otherwise. This doesn’t mean go berserk with the composition or give them something completely inappropriate. But a client who’s receiving a discounted form of your services can absolutely be expected to hand you the reins and allow you the freedom to make the decisions you feel are best for the project.
  3. A guarantee of future paid work. Whether it’s at your current rate or at a more standard one, your client can offer to provide you with more work in lieu of more money up front. Perhaps something more challenging that has a bigger budget, or something recurring that you can deliver on a regular basis. Be creative, and think of all the ways you can provide value to your client. A good, satisfied client will be happy to give you first priority for future work, if you let them know that you would like it to be part of your compensation. Again, this is not too much to ask for, and any client who thinks it is is a bad client. Period. Run away.

Always make sure to discuss these options with your clients to make sure you’re never just slaving away for peanuts. It goes without saying that, if you expect to receive these kinds of extras, you should do your very best work and provide as much value to your client as possible for the price they’re paying. No client is going to refer a bad designer to their friends, nor should they be expected to. But if you’re awesome, and you do awesome work, there’s no reason why you shouldn’t expect to be fairly compensated, even if the client is on a budget.

I think that the most important thing a designer can learn is how to be discerning, and how exactly to go about negotiating extras. There’s an art to it, which many designers, sadly, have not yet mastered. The key is to project confidence and subtly make your clients aware that you have other options without coming off as arrogant, rude, or condescending. By gently but firmly negotiating extras in your compensation package, you’ll make even the most budget-conscious clients respect you and desire to work with someone of your performance level.

And the “cheap” clients who won’t budge? Leave ‘em – they’re impossible conversions.

What do you think?

Have you ever worked with cheap clients? What strategies have you used to avoid client disasters?

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Author: (37 Posts)

Addison Duvall is the author of Food Identities, a blog that explores the crossroads of food, design, art, and culture. She’s written some things, designed other things, and eaten a whole lot of food.

  • indie_loop_garden

    Great article! It’s a difficult thing to subtly make the client aware of other options while maintaining your integrity. A problem I frequently come across is clients who are ‘scared off’ by the opening offer, perhaps because they lack the imagination to see how there are other bargaining chips on the table. Referrals, creative freedom and future work are all great points to flag up. Another negotiating point might be some kind of share in the success of the product – ie. payment on the back end, either indefinitely or until the creative feels compensated. The trouble is getting the time to discuss these options before they go and sign up with somebody else at a cheaper rate…

  • http://www.oldworldcreative.com Evan Skuthorpe

    One thing I’ve encountered, is that clients who are funny about paying a deposit up-front are the ones who are most difficult.

  • http://www.twitter.com/chgraphics Dorothy

    Hello Addison,

    Great points! I’ve tried the “Creative Freedom” angle—worked like a charm…will try requesting “Referrals” and/or “Guarantee of Future Work” in my next “low budget” negotiation/s…

    Thanks :)  

  • Simonmcferran

    Great article, some great points. I have a number of RSS feeds, often this topic comes up, but what is never touched on is how to convert old clients who have been paying buttons from way back when i was studying (and charging very little), into clients that pay the regular rate like everyone else.
    I feel i cant walk away and abandon them , but i worry they dont appreciate the value of what they are getting , and also i worry about getting referals from them as they usually refer me as ” The designer who produced this for X amount” so the referals are expecting the same.
    Any advice appreciated.

    • http://amazingwomeninhistory.com/ Keri@AmazingWomenInHistory

      There’s a great two-part post about how to raise your freelancing rates here: http://www.getpaidtowriteonline.com/its-time-to-increase-your-freelance-writing-rates-part-2/

      Technically it’s written for freelance writers, but the advice works for any freelancer, really.

    • http://www.winkpress.com/ Adai

      You can’t always do it. Even in better times, clients are sensitive to rates. For example, I have a client with whom I have been working for about 7 years or so, mostly occasional projects, like one small writing/design job for 2-5 hours 4 or 5 times a year. The guy is really nice and for all these years, I have had only 1 problem with him, which was the result of very comic mutual misunderstanding. At one point I even slightly decreased my rate because he was really in financial pain then but since this is a small project, it is not a problem for me.
      He did refer me to several other clients and the first time he told them the rate I charge him at. After I clarified that this rate is not my rate but since he is a special client this is why I charge him 3 or more times less my usual rate, he didn’t disclosed any rates to the next people he referred and left it to us to negotiate. So just ask them not to mention your rates.
      As for rate increase, as my experience shows, almost always clients don’t take increases well. One solution is to ditch the client, though if he or she is nice I wouldn’t do it. I’d rather do what I am doing with the client in the previous paragraph – have occasional small projects with him because they don’t block my time and reject larger ones (i.e. writing a 100+ page book on a design topic that would have taken me a couple of months). Hope my advice helps.

  • John Bolyard

    A long time ago I read an article entitled “The Client in NOT the Enemy”, probably in Art Direction or a similar magazine (yes…magazine).

    I never forgot that. It’s a waste of time wishing clients would change or see it your way.

    This is where the rubber meets the road in my opinion “Referrals. Not “exposure”.

    That’s a hard one to get until you’ve been working for a bit.

    Thanks for the great article – I can never read enough about how to work with clients!

  • http://www.sadurska.com/website-design-york Anita

    Addison, this is your next article about bad, bad customers I have read. There must be plenty of them:) 

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    this blog provides really wonderful information and provides alot of awareness.

  • Jazz73

    Yeah once a client makes up their mind regardless of truth and facts you are stuck with the results.  The problem is if it is negative then unfortunately shit sticks, no matter how great the other 99 people out of 100 people think you or your service are.  My experience involved a wrong size.  I offered to replace with correct size or give a full refund.  No big deal – simple. How wrong was I? Apparently this was a deliberate slight on the client and I was being difficult.  Resulted in numerous personal attacks unrelated to the matter at hand. Go figure, you can’t even be reasonable with people when you try to do the right thing. Best to go with your obligations and remember at the end of the day you have the right to refuse their business.  Good luck on your cake baking by the way.

  • Cristi Constantin

    Really great and useful article !
    Thank you !