Miami, October 5, 2009

Are you managing client expectations effectively?

Filed under: Business — Posted by Charlie @ 2:55 pm

I’m not sure whether it’s a product of the economic recession or a lack of education regarding how small businesses operate in today’s market, but we’ve received a few inquiries recently from companies looking for SEO services…without having to really pay for them. I’d like to throw my two cents out into the mix on this one…

When you walk into a Home Depot to buy a lamp, do you barter with the cashier? Do you attempt to negotiate the price of the lamp? Do you explain to the cashier that your budget for home improvement this year will only allow for half of the price indicated on the sticker? Do you ask to speak to a manager in order to explain that your payment terms are net 30?

No.  You don’t.  You pay for the lamp, go to your car, drive home, unpack the lamp, plug it in, and enjoy some nice lighting in your living room.

Pretty simple.

I’m not sure who came up with the idea of net 30 payment terms, results first/pay later, vendor probation periods, or the principle that it’s acceptable to not pay retail for something in a retail environment…but let me make this perfectly clear…speaking not as an SEO, but as a small business owner:

If you’re paying for a service, a product, or someone’s time – be prepared to pay for it up front.  It’s a recession out there.

Yes.  I’m bitter.  Yes, this company has been burned by net 3o payment deals and a variety of other payment conditions we accepted while we were in start-up mode.  It happens.  I understand that, and in hindsight, it’s become very apparent to me that managing client expectations…from the very beginning of a project…is important before a contract is initiated.

While I understand that some companies hate the term “vendor”, you have to be realistic about business to business transactions. It’s just how the service game works. A company provides a service to another…it gets paid for in advance…and the company should receive what they paid for…and if they didn’t get what they paid for…then they should terminate the relationship and find another service provider.

Taking advantage of small businesses because you’re in a position to do so is bullshit. And any company who does take advantage of their vendors…

You deserve this.

Start right at the root of the problem.

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