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When dealing with people in business - especially over the Internet - you have to watch out for those who are trying to scam you. As an independent developer, I have had to learn how to decipher all types of people through a few e-mails or a brief phone call. I have found that there are some trends among those who appear to be potential clients, but could end up becoming money eaters.
After discussing this with other developers in the field, I have found that I am not alone. Here are four of the most common client statements that are a dead give away that you are heading for trouble with them:
1. Lets start a partnership.
2. I plan on bringing more work your way.
3. I have a ton of clients I can refer to you.
4. Instead of a direct payment, how about a cut of the profits?
1. Lets start a partnership. (Translation: I would like a free lunch.)
The first thing that should go through your mind when a client says to you, "Let's partner" is, "Why would someone I barely know want to partner with me?" The answer is simple. They want something for nothing. This is the most common statement I have heard from potential clients. They will explain to me how we can benefit from each other by becoming a "team". Then the explanation is usually followed by a request for a discount on the services you offer or even free service. After all, they may say, they will return the favor down the road.
First of all, you need to be cool and calm in this situation. They may very well be sincere in their partnering idea (although it's very unlikely). People throw around the idea of partnership now days with every business card they hand out. It has emerged with the phenomenon of the networking power of the worldwide web community. However, a "partnership" anywhere at anytime has been considered a very serious thing - sometimes binding through many generations. If you start a business as a partnership with someone, then you are both held reliable for any downfalls of the company. That means if your partner makes some bad deals and the company goes bankrupt, you will owe the money personally.
As a professional, you can diplomatically handle this situation by telling them that you consider this a very serious proposal and that you would like to get to know them before you consider partnering with them. Discuss the option of doing a few jobs together to see how things go and to see if you are both still interested.
From there, you will be able to see how serious they are. If they are just trying to scam you into giving them a deal, they will find a way out of it or won't follow through during the trial period. If they are serious, then they will embrace the opportunity to build a business relationship with you before committing to a permanent agreement. Either way, you have a tactful way of dispelling a potentially horrendous situation.
2. I will be bringing a lot more work your way. (Translation: Do a really good job and give me a discount.)
This statement has two purposes. The potential client is looking for you to give him a discount and/or he is trying to inspire you to give him the deluxe treatment. This is another hard one to point at and say, "Look, They're trying to rip me off!" because the client could very well be sincere in his intention to bring you more work.
If they are specifically looking for a discount, they will say something along the lines of, "Since I plan on bringing you a lot more work, can you swing me a deal?" A lot of sole proprietors fall for this - you do not want to be one of them. I have heard from numerous web designers who have fallen for this more than once. The usual outcome of this scenario is that the web designer does a ton of work at a very low cost and then they never hear from the person or company again.
The best way I have found to deal with this situation without losing their business is to offer them a discount on any future projects they send your way. While the initial project will be charged at regular price, anyone who actually plans on bringing you future business will be thrilled with the added savings later.
If they're just trying to inspire you to do your best, don't be offended. Clients are going to have some reservations when they are paying a stranger whom they know only over the internet to do work for them. As long as you produce the results you promised, they will quickly treat you as a trusted business associate and most likely bring any future projects to you.
3. I plan on referring more clients to you. (Translation: I will tell my friends about you if you give me a break.)
This is a variation of number two. A potential client will tell you about others in the industry he is involved in and that he can recommend your services to them. Again, this is either an attempt to convince you to give their site extra attention or to give them a discount. Either way, you have no way of knowing how much influence they really have on other decision makers in their field.
Whatever you do, do not give them a discount. Nine times out of ten they will not refer anyone to you, and if the client does refer your services, their friends will come expecting the same generous discount. A promise for referrals for a discount is not legitimate. Don't let it effect how you price the project or your approach to the site. If you do a superb job and they like your work, the referrals will happen naturally.
Again, you can offer clients discounts on future project for any referrals that result in a paying job. Or, you could offer your clients a fixed percentage from the profits of any referral projects. This will show your clients that you appreciate their business and any business they bring your way, as well as allow all of your clients the same benefits and eliminate the appearance of favoritism.
4. Instead of paying you upfront, I could give you a cut of the profit. (Translation: I can't pay you now.)
So you've taken the bait and designed a site for next to nothing, or for free. Now, you are waiting for the profits to start rolling in so that you can collect your dues. How are you going to keep track of the client's profits? What if they don't make a profit or at least they tell you they haven't made a profit? What if they don't make a profit for several months or (gasp) years? What if they go bankrupt?
This is one of the worst situations to get into because you have no way of ensuring that you are paid. Meanwhile, you're starving waiting for the money that should be rolling in. Don't fall for this scam. Simply tell the client that you only accept payments upfront, agreed upon in a contract.
There you have it. In each of these cases, never underestimate the power of tactfully declining such offers. As long as you are polite in your response, you are nurturing professional relationships with potential clients. No matter how good intentioned some of these offers may seem, they will still end up losing you money. Good intentions don't pay the bills, nor do they make for good business on the internet.
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