Just this morning, an article appeared on Entrepreneur.com called “4 Ways to Hire and Keep the Best Freelancers“.
While we agree on all four points, we’d like to zero in on #3, which is “Pay more.”
A number of months ago, we were listening to an entrepreneurial podcast where this advice was given:
If you’re giving your virtual assistant a lot of work, they should be giving you a discount. Say this to them: “Look, I’m responsible for about 60% of your volume. I’m asking you to adjust your fees downward, since I’m bringing you so much of your income. Also, I want to make sure you understand, I always come first, before your other clients, for the same reason.”
Actually, That Client Should Be Paying MORE. (Are You KIDDING US?!)
Think about it:
- That virtual assistant is taking a big risk, putting so many of their eggs in one client’s basket. (They should go out and get new clients TODAY just to diversify, but that’s another topic.)
- Spending 60% of their time on one client reduces their leverage. (Stop assuming everyone wants to “build a team” – maybe they just want a business that pays their bills and funds some other passion they’re actually investing in.)
- By going deep with one client, they reduce their own bandwidth. (Because after eight hours a day with one client, their energy to go out and get new clients will be nonexistent.)
We won’t even spend time on the idea of putting higher-paying clients in second place behind the lower-paying clients, because we assume our readers have a basic level of common sense.
See Where This Is Going?
After all, entrepreneurs may be in it for the passion, but the money allows that passion to flourish.
When entrepreneurs find themselves in “cash flow mode” (which is the vast majority, Facebook humblebrags aside), they naturally swim toward the clients who pay the most, not the ones who get discounts or deliver volume.
That’s how it works.
Spending more time on higher-rate activities brings more money faster.
Also, folks are going to do the “little extra” for the whales, not for the minnows.
Are you going to be the whale, or the minnow, in the eyes of the people and the companies who render services to your business?
More on a related topic in an upcoming installment.