Forum Moderators: LifeinAsia

Message Too Old, No Replies

Closing shop on close client relationships

business close clients relationships

         

Nealreal

4:47 pm on Jun 23, 2006 (gmt 0)

10+ Year Member



Hey guys. I need help here.
I'm a freelancer for about 6 years and I've recently decided to move towards employment (for stability and secruity). I have about 40 clients and 3 clients who I have a really close working relationship with. These guys have come to call me as friend.

The problem is, I have other ventures and a soon to be career that I'll be pursuing. I simply don't wanna use the extra time to work on their projects anymore. I do alot of work for them on discount and on credit. I gotta drop these guys in order to have time to pursue my other dreams etc.

These are relationships that I will have to break. These guys have been using my services for years, they're comfortable with me and look at me as an extension of their companies. I dont know a designer, that has my skill level, that I could refer them to, nor will they probably get the relationship like they do with me.

How do I tell my 40 clients and then my 3 close clients that I'm leaving them - funny, it sounds like a romantic relationship.

rocknbil

5:58 pm on Jun 23, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



"There must be 50 ways to leave your clients."

:-)

If they are "friends," it's pretty simple, tell them the money they've paid you just wasn't enough and you have to go to work for "the man," thanks a lot you pack of cheap vultures!

Seriously though, it shouldn't be that difficult, just say what you've said here. Or if your new employment is in the same line of work, maybe you can have them follow you, your new employer would certainly be thankful.

le_gber

8:32 am on Jun 26, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



try to 'sell' your company to another one - ie if you are a web designer guy try finding a web design company in you area that would be willing to 'buy' your clients of you.

Such a deal usually works out in getting one lump sum at the start and commissions over a set time (6 months - a year) for each customer.

Where are you based :)?

vincevincevince

8:43 am on Jun 26, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Increase all your prices to full commerical rates + 25%. Most of your clients will quietly look for someone else. Those who don't can be outsourced at commerical rates and you still get the 25%.

Jack_Hughes

1:06 pm on Jun 26, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



with 30 clients you should be able to make a perfectly adequate living. I'll wager that you haven't been charging enough. a lot of people underestimate the value of their skills and charge too little.

be straight with your clients. though you will probably have trained them so well to expect great service for a pittance that you'll lose many of them if you try to 'upgrade' your prices. put your prices up, get some more clients and you'll make a decent living.

solly

4:25 pm on Jun 26, 2006 (gmt 0)

10+ Year Member



I guess the first question to ask yourself is what everyone else has been kinda asking: Do you really want to find a job? Is it the money? Or the work? I think you have answered this already, or else you wouldn't have posted here. It sounds like you are tired of the work, because you said you don't want to do it anymore. Do you have a job lined up, ready to go? Or will you have to find a job? Keep in mind, finding a job may take time. Maybe send a letter to a few slow-paying clients first, and then more later.

I think raising the rates would be a bad thing, if, in fact, it actually gets them to find another freelancer. If you tell them that you are going to raise your rates and they don't find another, what would you do? I think being honest is the best way. You don't want to burn any bridges, just in case the job thing doesn't work out. Start with an ice breaker and what you said:

"I have some bad news. For the last 6 years, I have worked doing"...whatever. "I have decided it is time to pursue full-time employment [or the venture] doing blah blah."

Tell them why: "I have always wanted to do this." OR "With the ever-changing marketplace, an exciting opportunity has opened up doing that."

Then maybe a couple of sentences saying where you are going, if you want. (People will want to know anyway, so you might as well tell them before they ask.)

Then offer them help with the transition. Tell them where to find someone, or a company, that can do all of what you do...what "keywords" to look for on the Internet or phone book. Leave it up to them to find a new person and determine if the new guy is right. Offer to talk to the new guy(s) to get him familiar with your work. They probably won't take you up on that offer, but it is important to show you care.

And, I would thank them for the business, and ask them to keep in contact. "I thank you for the business, and I have truly enjoyed working with you. I have gotten to know you as a friend, and I hope you will keep in touch."

I think it is good that you care enough about your clients to worry over this a bit. But, realistically, the old saying is still true: "Everyone is dispensable."

Korrd

5:45 pm on Jun 28, 2006 (gmt 0)

10+ Year Member



"All good things..." Don't feel guilty. It's the way of life and business. Just be honest and tell them you're moving in a different direction. Timing is everything. You don't want to burn your old bridge before the new one is ready. At the same time your final responsibility to your clients as a good designer is to give them some time to evacuate the old bridge in an orderly manner.

When you are ready try to give your clients a decent amount of time to find a new designer. But set deadlines and stick to them as many of your clients will not move before they have to. Do something like no major new projects effective immediately winding down to no maintenance after a certain date. Warn them that because of your changing priorities your service may not be as prompt as they're used to, and then start dragging more and more as the cutoff date approaches. It wouldn't be a crime either to give the three really close clients a bit longer deadline. If things work out they might be able to benefit from the experiences of the early movers when finally choosing a new designer.

I'm not a fan of selling clients to another designer on a transfer basis. It just doesn't really work for one on one personal relationship businesses. Now referral commissions are a different story assuming you feel comfortable enough with the referrals you're giving. But even if you're not comfortable setting up a referral agreement with any other designers, go ahead and give your clients some direction even if it's only a list of some other local designers with a caveat of "no recommendation". The sooner your clients see a possible future the easier the transition will be for everyone.