I recently wrote about cleaning out my paper files. I tossed folders for voice-over clients who can’t pass my red velvet rope policy and, in doing so, created a vacuum for the clients whom I want to attract.
I looked at and made a decision about every piece of paper in my filing cabinets. I found an e-mail message that I sent to a client in 2002. I extracted the main portion below because I wondered if you have found yourself in a similar situation:
Hi, Clientname. When I agreed to do this project, you will remember that I cut my normal rate severely in order to work with you and establish an ongoing business relationship. I thought the script was in final form, so we did not discuss whether any changes to the narration would be included in the original fee.<
I have already spent about 3.5 hours on the narration, editing and transmission of the files, including resaving and resending the files in .mp3 format earlier this week [because the client originally specified .wav format on CD]. At my normal rate … this project would have cost $675 instead of the $150 to which we agreed. Because I am committed to providing you with high quality service and ensuring your total satisfaction, I will not request additional compensation for these edits. However, please be aware that I will be unable to perform future projects at the same low introductory price.
In reading my words today, I realize that I was dealing with a textbook definition of price-buyer. In addition to demanding more work than was originally agreed, the client never followed through on the promise of additional work. I don’t remember, but I believe I had difficulty in obtaining payment for the narration. Price-buyers are the same clients who can take months to pay you.
When confronted with client who does not pay promptly, I follow the advice that I read in advertising executive Donny Deutsch’s book Often Wrong, Never in Doubt: Unleash the Business Rebel Within:
From that moment on, I knew I would never lose the respect of a client by asking to be paid promptly. If I allow a client to pay late, what am I really saying? One, that I am not as good as my word, andtwo, maybe what I am providing to the client is not as good as I say it is. If you don’t value it, how will they? The same holds true for offering to cut one’s price.How valuable is your product if you’re willing to discount its value?
To underscore Deutsch’s last statement, Larry Steinmetz, author of How to Sell at Margins Higher Than Your Competitors: Winning Every Sale at Full Price, Rate, or Fee, declares that when you cut your price, you are the one who BLEEDS!
As evidenced by the first line in the e-mail that I quoted, I have had my share of painful, undervalued projects! In my maturation process as a voice artist and business person, I have learned that my experience, education, studio and services all have a value. I now include my payment policies with my written quote. I am blessed with clients who appreciate my service and pay promptly for it. I gratefully welcome them through the red velvet rope!
Karen, boy, I know what you mean when you speak of price-buyers. I had one of those earlier in the year when a client wanted a children’s magazine (which has about 15-20 stories) turned into an audio production with the works…music, sfx, voiceover, intro creation, outro creation etc. They also wanted unrestricted rights to not only the full production but also the dry audio segments for each story. Thus, the client could potentially modify my work or make a compilation and sell it in Wal-Mart and I would not get a penny. Though, I’m humbled to say, they loved my fully produced demo (which they said they would pay for but never did…it took 20 hours to produce), they decided to go with someone else who would do it over $1,000 cheaper than me.
I hope you don’t have to deal with another one anytime soon!
Brian in Charlotte
Hi, Brian. Thanks for sharing your story with me. I’m sure this ex-client DID love your demo! I doubt you would have spent so much time on it without the promise of payment, so I encourage you to hound the client until they pay you!
Sometimes I will produce an audition with music and/or effects just because I enjoy that process. However, if a client requests the extra production as part of a demo, we are entitled to assess charges for that extra work. In that case and in the case of booked jobs, I insist on receiving 50% payment up front.
I made this rule after a client who hired me for a commercial and THEN decided they wanted to use someone else. Since I was told I was hired, they needed to pay whether they used me or not. We finally compromised on half payment.
With a 50% up-front policy, I know I will receive compensation. It establishes a bond of trust between me and the client. People often contact me for quotes, but fewer follow through with the jobs after reading my payment policies. Those who do hire me at that point are usually delightful collaborators.
Brian, I hope you do get paid by these people. If nothing else, the experience gave you a wonderful demo that you can utilize to obtain other work.
Karen