I saw an amazing article on Entrepreneur.com called “4 Ways to Hire and Keep the Best Freelancers” by Daniel Dowling, the founder of MillennialSuccess.io.
While I agree with all four of Daniel’s points, let’s zero in on #3, which is “Pay more.”
Some time ago, I was 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 40% 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.’ They owe you this courtesy.”
I mean, I kept listening, because some of the other stuff was good. No need to toss the baby with the bathwater.
That’s a waste of money.
Actually, That Client Should Be Paying MORE. (Are You KIDDING ME?!)
Think about it:
- That virtual assistant is taking a big risk, putting so many of their eggs in one client’s basket
- Spending 40% of their time on one client reduces their leverage in so many ways
- By going deep with one client, they reduce their own bandwidth to go get more clients
How motivated will they really be if they know they can be making more money elsewhere?
I won’t even spend time on the idea of putting higher-paying clients in second place behind the lower-paying clients, because I assume most business creators have a basic level of common sense.
OK… actually, I will – because I DO make that assumption and want to bring it into sharp relief for you.
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, social media humblebrags aside) and badly need to get some wins on the books and some invoices out, they naturally swim toward the clients who pay the most, not the ones who get discounts.
The whales, not the minnows.
Be a whale.
That’s how it works.
Spending more time on higher-rate activities brings more money in faster.
Also, folks are going to do the “little extra” for the whales, not for the minnows.
Do you want team members who take the time to know you?
To anticipate you?
To develop a shorthand with you, so that both of you spend less time talking and more time walking?
To walk 12 steps and pour that damn glass of iced tea when the kitchen staff is on break?
To be so enthusiastic about rendering exceptional service to customers, they’ll even do some stuff they’re not getting paid for?
Starting to see how paying more actually saves you money? Turnover is a bitch on your bank account.
Hey, stranger things happen every day.
But who knows, maybe people will leave despite the money.
Could it be a commitment issue?