The Demanding Client Vs. The Unreasonable Client

At one time or another, we all have dealt with our share of demanding clients. You know, the clients who believe you work exclusively for them. After a while, we come to know the nature and tone of each conversation we will have with them. No matter how hard we try to please them, at least one of those conversations will be an expletive embellished diatribe. But as always, we will comfort and reassure them. In the end, no matter what it takes, we will satisfy their every expectation and, heaven help us, they will soon return with another project.

It is my policy to try to never refuse business, and that certainly includes the business brought by demanding clients. Keep in mind that the operative word here is business, defined by Merriam Webster as: a noun - the activity of making, buying, or selling goods or providing services in exchange for money. Now one might ask: Can you actually make money with these types of clients? The answer is a definitive yes…you can make money with “demanding” clients. Difficult? Sometimes. Doable? Absolutely.

Unreasonable clients?

You will never make money.

Actually you will loose.

When first meeting with a client, you can usually glean a fairly accurate sense of his/her expectations concerning the project at hand. That’s the easy part. Estimating the evolution of the personality that will emerge once the contracts are signed is the challenging part. Below are a few ideas to help you manage potentially difficult clients and/or projects.

• Win your client’s trust. Take the time to inform your client of the competency of your staff. Provide a folder briefly reiterating facts that may already be on your website: Governance, biographies of key team members, endorsements, awards, the process associated with each project, pricing and above all…BOUNDARIES. Clients should know your professional parameters at the onset. Every aspect of the project should be indicated in the proposal, including anticipated time for periodic updates and discussions. The proposal should also state that any changes, requests, or other activities representing a departure from the terms of the proposal shall be deemed chargeable. In addition, the proposal should be read aloud to the client, so that there is no risk of miscommunication.

• Negotiation is to be expected. Most clients will want to know they are getting a good deal. Remind your client that an investment in your services is an investment in their business. On the other hand, an overly frugal client can mean trouble. I will make every attempt within reason, to work within a client’s budgetary guidelines. The depth of your team can provide a little flexibility here. Think of a lawyer who can reduce his hourly wage by having a paralegal do some of the work. But at some point, it’s important to remember you are running a business, not a charity. Devising a payment schedule and sticking to it is a must.

• Despite a client’s decision to hire a professional agency and despite all the efforts you’ve made to get your client to trust you, there will always be those clients who think they know better. These clients will tend to be unwilling to accept advice, resistant to change, and demand constant revisions. Often these may be well paying clients, but they can frustrate your staff, deplete their creative energy and end-up having you producing a project unbecoming of an agency like yours. On these occasions, you can only respectfully continue to make recommendations, apply any appropriate charges, complete the project and move on

• There may be times when a client is slow to provide information or feedback. There can be various reasons for the delay, so you shouldn’t take the lack of communication personally. On the other hand, if you find the client to be a habitual procrastinator, keep a very accurate paper trail, refer to the proposal and contract so that you can apply any additional charges resulting from the client’s inaction. Send an invoice reflecting the newly incurred fees and tell the client to reach-out to you when he/she is ready to proceed with the project

You have assembled an outstanding group of professionals. You maintain a genuine interest in the success of your clients. You know the quality of the work your agency delivers. Respect your reputation and respect your clients. Just remember: respect is reciprocal. If you exemplify that respect to your team and your clients, you should expect and require that it be returned. When it is, you will distinguish yourself as a top tier agency with a successful record to prove it.

Demanding clients make you better. Cherish what they will teach you and "how managing to their demands", within reason, will have a positive impact on your business. Once demanding clients become unreasonable, fire them. If not, get ready to layoff staff because your business will suffer. 

Often the most profitable deals are the deals you do not take.

Edward DuCoin

856 304 2800

ORPICAL GROUP

Experienced Innovation: The Older Entrepreneur

The Entrepreneurial Spirit is age blind. It is not the seeker; rather it exists as a character trait that lives within each of us. The bravest among us will surrender to it, feed off its energy and confidence and let it lighten our way down ambitious paths. Whatever awaits…success or failure, the Entrepreneurial Spirit remains faithful. It is neither diminished nor dissuaded by achievement or downfall. It lives on, continuing to prod and encourage both young and old.

The impact of the entrepreneurial energies and creative thinking of middle aged Americans garnered significant attention following a remark by Vinod Khosla, co-founder of Sun Microsystems, who said: “People under 35 are the people who make change happen. People over 45 basically die in terms of new ideas.” Mr. Khosla further claimed that older entrepreneurs are unable to be innovative because they are constantly “falling back on old habits”.

Immediate and justifiable backlash ensued. As for me, I find so many things wrong with these comments, I hardly know where to begin. Let’s get this straight; I’m not talking about political correctness here. I am addressing the blatant inaccuracies, flawed research and unadulterated ignorance that would result in such an irrational statement. 

According to a research project conducted by the Kauffman Index of Entrepreneurial Activity a few facts might disprove if not shame Mr. Khosla and his ridiculous theory:

• The lightening rod was invented by Ben Franklin when he was 44, he discovered electricity at 46, helped compose the Declaration of Independence at 70, and later invented bifocals
• We were introduced to Henry Ford’s Model T when Mr. Ford he was 45.
• Sam Walton built Walmart while in his mid-40s.
• Ray Kroc opened McDonalds in his early 50s
• Do you want a coke with that? John Pemberton invented Coca-Cola in his 50s
• And of course we can’t forget…the brilliant Steve Jobs, whose iMac, iTunes, iPod, iPhone, and iPad all came after he was 45

Aside from determination and perseverance, the older entrepreneur can bring a wealth of experience to any endeavor. More often than not, it’s an experience fueled resilience and resistant to pessimism and complacency. When all is said and done, experience is perhaps, the most valuable source of knowledge.

Rather than disregard or dismiss older entrepreneurs, Vinod Khosla would be better advised to study them. For there is something astonishingly admirable about individuals who continue to be hopeful, innovative and committed to effecting change for the greater good, particularly after living through decades of an uncertain world facing trials on every front.

For disclosure I am 49 years old. I started my first company at age 18. I have had tremendous success and “very expensive educational experiences” aka business failures. The Ed of age 49 can outsmart the younger "versions of me" plus react properly (maturely) to challenging situations. The 49 year old Ed could kick the 29 year old Ed's ass up and down the balance sheet.

Just wait till I am 59 Vinod!

Edward DuCoin

856 304 2800

Orpical Group