A major reason why client engagements fail and I get stiffed on payment is that after a few months or, as in the case of the “executive search firm” a few years I suddenly am told – “I did not get any revenue from you (or your efforts)”. And, I keep telling my clients – CLOSING is YOUR responsibility – not mine. I also advise them when a lead is informational or sales oriented – typically well in advance.

My role is use a combination of research, prospecting/outbound calls, and compelling content (emails) to identify and draw out interested parties. An interested party is defined as someone who UNDERSTANDS what is offered, has a NEED, and wants to potentially engage. They are qualified leads. Sometimes they may be qualified for budget – if my client actually tells me what the cost of their solution is or what their rate is. If the client does NOT communicate that or sets price based on multidimensional factors (i.e. number of users, geography, intensity of search, etc.) then a discovery call or introductory call is needed to discuss and qualify further. Many clients want to talk to the prospect and do not let me discuss price or get into technical conversations, therefore, the onus is on them to further qualify the prospect and determine whether they can or want to work with someone who wants to work with them.

A few examples of where the accusation was levied.

  1. The search firm and a major food company met to discuss a higher level management position. They had the meeting and my client did not indicate that they can do the search on contingency and apparently told them to finish an existing contract before they would engage. The food company WANTED to work with my client and a qualified opportunity existed – but the client essentially put them off. Is this my fault? No.
  2. Companies indicated a need for a client’s services and would provide a information for a quote. I was not informed of current pricing or given any pricing by which to determine qualification on cost. The prospect provided my client the information and his sales manager/account executive would prepare a proposal or cost quote. They repeatedly (not once or twice) were turned down and not engaged with because their cost was quite high. In addition to the cost being high, the SALES MANAGER did NOT JUSTIFY the cost or ‘sell it’ to the prospect. The value was not communicated. Is this my fault? No.
  3. A client did demos and repeatedly talked over prospects, did not ask good questions, and failed to focus – at times- on salient features of their software. Not to mention, had no flexibility to actually meet with the prospect at their company location – it was difficult due to the fact my client had a full-time job. Part of the requirement for success in selling to the target industry was the need to shake the hand of the prospect. Feedback I had received was that the software was good, but my client was rude and they did not like them or want to work with them (which I shared). They failed to get into the industry, despite having a great product. Is this my fault? No.
  4. A client had a interest for a document management solution they were reselling. The prospect wanted a meeting early in the morning. The meeting was scheduled, but the CTO failed to show up for the meeting – it was too early and he had some issue with his kid at the bus stop. A general meeting was done, but the prospect was not impressed and did not move forward. You can’t get a critical resource on a call – blow the meeting – and then say you had no opportunity? Is this my fault? No.
  5. A client had a newer solution for asset tracking. I called a number of target companies, some they had met with before. No one could understand the value of the solution and did not even remember any meetings they had with the client. No revenue was generated, I don’t think any meetings were generated. Is this my fault? No.
  6. A client had a data center solution, I called folks based on a list they had provided. There were about 3 or 4 demos generated over six months. Halfway through they changed gears and launched a new solution which I think had one demo and some leads (interest to see the solution the following year). The company accused me of no revenue and stiffed me on my last invoice claiming my performance was awful and that they never should have gone beyond the trial period. They sure were happy when the demos happened and I think everyone knows it takes at least six months to a year to get traction on a brand new product – everyone except them I guess. Was my performance “awful”? Is this my fault? No.

What is my fault is that I worked with these people and companies. I know it is a risk to work with startups and small businesses and take that risk….I enjoy the challenge of building businesses and developing markets. I know that many clients are engineers and not salespeople. But to not take responsibility for your own shortcomings, to not learn from it, to not adequately communicate issues during the engagement and then stiff me on payment I justifiably earned – is rotten. I admit I have a qualification problem of my own….although as someone told me – how was I to know before working with these people what the outcome would be? But, I take responsibility for working with these people. Some are out of business, some are not….but will probably disappear in the next recession or future when they are obsolete.

I continue on. Hoping my next client will be a good one (and I have worked with some great ones) and there will be success and they will end the engagement by hiring full time people – maybe even making me a job offer….and pay my invoices for all the hard work and effort they recognize that I expend on their behalf.