Mea culpa, mea culpa, mea maxima culpa

Those in the crisis communications sector of public relations will have a very Merry Christmas indeed.  Your client list is growing and billable hours are overflowing! Accusations of powerful men (and at least one woman—Mariah Carey) behaving badly have been flying thick and fast.  The professional, political, personal and financial fall-out will be enormous.  Whose brand will be resilient enough to survive the scandal?

Re: the accused, the smart (and probably most evolved) perpetrators quickly ‘fessed up, accepted responsibility and apologized to those who felt violated and hurt, whether a presumed victim or family member (e.g., soon to be ex-Senator Al Franken and comedian Louis C.K.).  My guess is that those with the pragmatism, if not decency, to own up early on will fare the best in the long run.  A couple of years of restorative PR may possibly allow them to re-enter polite society and re-start a public career,

The arrogant—-most notably, Bill Cosby, Harvey Weinstein and Matt Lauer—are probably finished.  Their public careers are over and they’ve seen the last of good tables in the right restaurants.  The trophy wives of Lauer and Weinstein have jumped ship, now that indiscretions of which they were well aware have become public (Cosby’s wife opted to ride it out).

Yet the most arrogant and most teflon of all publicly accused violators—former President Bill Clinton—faced allegations so serious and believable that he was successfully impeached by the U.S. House of Representatives in 1998, only the second impeachment of a president in U.S. history (he was acquitted by the Senate in 1999).  Furthermore, he was compelled to pay a settlement that exceeded $850,000 to former Arkansas state employee Paula Jones, who sued Clinton in 1994 for sexual harassment.

High profile feminists (Gloria Steinem, Senator Dianne Feinstein, et al.) defended Clinton to the end and they still do (as they attack President Donald Trump for less onerous and numerous incidents and remain silent on Weinstein, who’s been a big contributor to “liberal” causes).

Clinton never apologized to anyone for anything and he vociferously denied his actions (“I did not have sex with that woman!” [Monica Lewinsky]). Like it or not, it’s obvious that the Clinton brand is the strongest in the land (and the most controversial, too).

Regardless of the Bill Clinton style, effective leaders learn how to apologize.  What is an apology and why is making one necessary?  An apology is a statement in which an individual expresses sincere remorse for behavior that can be considered inappropriate and that person acknowledges that s/he has hurt, mislead, embarrassed, or betrayed another—the public trust, a friend, colleague, or intimate partner.  An explanation, not to be confused with an excuse, could be made, as might an offer to make amends or restitution.

Trust, respect, team building and performance will be positively impacted when you make it clear that you, the leader, are willing to hold yourself accountable for your behavior, including your missteps.  Your apology is the core of that process.

Lolly Daskel, President and CEO of Lead From Within, says that there is a wrong way and a right way to apologize and I’m sure that you’ll agree.  Most of us have received so-called “apologies” that were offered grudgingly, sometimes under duress, or given disingenuously, in an attempt by the perpetrator to evade responsibility for his/her actions.

An apology is a statement in which an individual expresses sincere remorse for his/her behavior and acknowledges that s/he has hurt, mislead, embarrassed, or betrayed the public trust, a friend, or an intimate partner.  An explanation, not to be confused with an excuse, might be made as might an offer to make amends or restitution.

THE WRONG WAY TO APOLOGIZE

Blaming

A former colleague from the my days in the corporate world was known to say “Never complain, never explain.” Lolly Daskel would add “and do not blame.” Pushing responsibility onto others when it was you who dropped the ball is the wrong thing to do, every time.  As temporarily uncomfortable as it may make you feel, put on your big girl pants and admit your mistake.  Apologize to those whom you offended or inconvenienced.  Make restitution when possible and move on.  You will when respect and admiration when you do.  Blamers are losers and they never win.

Excuses

While there may have been legitimate reasons for making a mess of a situation, or burning dinner,  or not completing an important assignment, be careful that you don’t devolve into making too many excuses as you explain to those who may want to know what happened.  Just say you’re sorry and that you should have stayed on top of things, or started earlier, or whatever.  Once again, it’s about taking responsibility for your behavior.

Justifying

Don’t even think about trying to defend your behavior when you’ve screwed up.  I mean, there goes your credibility, down the drain.  Own up and apologize.  Now.

Minimizing

When you’ve let someone down, it is imperative that you take their hurt or inconvenience seriously.   In no way are you entitled to deny the full measure of the outcomes that are the result of your failure to hold up your end.  That other person has every right to be upset when they’ve been let down.  If you did not come through as expected, squelch the temptation to resort to manipulation and accept responsibility, apologize and make amends ASAP.

Shaming

Those who feel that they are doing quite enough for you (whether or not that can objectively be considered the truth) may sometimes feel entitled to break promises large and small, if they eventually find fulfilling that obligation inconvenient or expensive in some way.   When you speak up they attack and accuse you of being ungrateful for all the “other” favors they’ve done for you.  You have a right to expect that someone will keep their word.  Shame on them for being both unreliable and manipulative.

Stonewalling

Refusing to apologize, discuss, or acknowledge your mistakes or bad behavior and the difficulties it causes other people is called stonewalling.  It is abusive behavior.  It is hugely disrespectful.  Seek therapy immediately if this is common behavior for you.

THE RIGHT WAY TO APOLOGIZE

Timing

An apology is much more meaningful when it is delivered sooner, rather than later.  The longer that the offending party avoids making a sincere apology, the greater the risk to the relationship.

Acknowledge

Admit what you’ve done and apologize for the inconvenience, misunderstanding, hurt feelings, or embarrassment that you’ve caused.  This is an important step toward maintaining or rebuilding the trust that the other person had in you.

Accept

Own your behavior.  Show the respect that you have for the injured party and the esteem in which you hold him/her when you make a proper apology.  Demonstrate that this person matters and is entitled to your integrity.

Express

The apology made must be sincere and not self-serving.  Be prepared to grovel a little, if you’ve really dropped the ball, or if the other person(s) is very hurt or angry.  You can explain why or how you miscalculated, but don’t fall into excuse making.  Ask for forgiveness.

Amend

Do what you can to mend fences, so that you can soothe hurt feelings compensate for disappointment,

Thanks for reading,

Kim

Image: Secret Hearts #88, 1963  (the study for Ohhh Alright, 1964)  Roy Lichtenstein

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Christmas Season Networking for Introverts

Hello! Last week, we talked about how to network during the Christmas season and the meet & greet suggestions focused on attending parties and finding networking opportunities there.  This week, I propose that we revisit the Christmas season topic from a different perspective and explore how to network when the party scene is either not convenient or undesirable. This week, I’ll network with the introverts.

You may have noticed that I’m an extrovert by nature.  I love a good party.  I’m writing the first draft of this post on Friday December 1 and at a few minutes past 6:00 this evening, I will walk into a party and inaugurate my holiday season.

I’ll attend another party on Saturday afternoon at the branch library where I’m a board member and to round out the weekend, I’ll join the festivities at my neighborhood tree trimming party on Sunday afternoon at 4:00.  I’ll attend another three or four parties through December,  but I don’t expect any of them to be a networking bonanza.  All are social and that’s OK with me.

But be advised that in between holding glasses of wine I’ll do some targeted networking to support the roll-out of my newest content marketing service and I will not be in extrovert mode when I do.  The style of networking that I’ll employ as I prepare to beta test and launch the service I’ve been refining since September requires me to adopt the introvert mode.

Networking at parties is a subtle art.  It’s a turn-off when at social events some hyper-ambitious extrovert wrestles as many people as possible into participating in unsolicited business discussions, in a misguided attempt to find clients.  Introverts intuitively know that such behavior is a major faux pas.

So I’ll wear my introvert’s hat and email or call a short list of colleagues and good friends to propose that we get together soon. “It’s Christmas. Let me treat you!” I’ll reach out early this month, but won’t mind if we meet in January.  The two of us can catch up, compare notes and talk a little business.  I’ll broach the subject of my new service and describe how it can benefit the client’s business. “I’m looking to get this thing going quickly and I need referrals.  Is there someone at your company who might be interested? Who do you know at other B2B companies?”

We’ll figure out a strategy as we have a nice, uninterrupted talk that is free from blaring music, loud voices and friends plopping down in adjacent chairs, looking to join our conversation.  Extroverts get all of the attention when it comes to the subject of networking, yet introverts may have the inside track when it comes to relationship building and reaping benefits from their networking efforts.

Introverts know that a room full of chattering people balancing plates and drinks is a less than ideal environment for getting to know anyone beyond the surface gloss.  They feel most comfortable in small groups, where they can relax and get beyond superficial attempts at communication and that is why they can be so successful.

When an introvert does attend a party, s/he is likely to approach the girl or guy who’s sitting alone, to make some friendly small talk that might develop into a real conversation.  They often know how to make others feel included and welcome, in the most genuine sense.  That is the essence of networking and relationship building and it can be very profitable.

Thanks for reading,

Kim

Image: Five O’ Clock Tea, Mary Cassatt (1880)                                                                   Courtesy of The Museum of Fine Arts  Boston, MA

Christmas Party Networking: What Would Santa Do?

Holiday season is here, hooray!  OK, maybe not hooray for everyone.  Not everyone celebrates Christmas.  Those who do sometimes feel pressured to spend more money and time on gifts and activities than they’d like, all the while projecting a façade of holiday cheer, in order to avoid disappointing others.  But the season is what it is and it’s not going to change.  If you can talk yourself into the right frame of mind, it’s probably possible to get something more valuable out of Christmas than 10 extra pounds and a stack of bills to pay.  Let’s talk about it.

Holidays mean parties and parties are about renewing and creating relationships.  If you go to the right parties you will have a good time, if you let yourself.  So why not go for it and make the holidays work for you?

Christmas party invitations will slip into your inbox and give you decisions to make.  Chances are you will not have the time, energy, or money to accept all of your invitations.  One way to plan your December calendar is to divide your party possibilities into business and social categories and edit from there.

It might be most enjoyable for you to attend a mix of business related and social occasions, to promote a healthy work-life balance for yourself.  Social invitations can be ranked according to your relationship with the host.  You’ll be happy to turn out for a party given by a dear friend or favorite cousin with a bottle of wine or some other host gift in hand, because you are a good friend and a good guest.  If you are a member of a social organization, you may choose to attend that party as well.

Professional association parties require a more carefully crafted strategy, because networking with the goal of identifying someone with whom you can create a potentially profitable business relationship will be on your mind.  Which parties are likely to offer good networking opportunities along with an atmosphere that makes it fun to catch up and schmooze with colleagues? There will be an admission charge and cash bar.  Where might you get the best value-added? Ask yourself two questions and evaluate your choices:

  1. Who are my best business prospects?

To which industries do you sell your products and/or services? Are your customers B2B, B2C, or B2G, for-profit or not-for-profit, small, medium or Fortune 1000? What are the job titles of the decision-makers and key influencers?

     2.   Where might I meet those prospects?

If your customers are small businesses, then chambers of commerce or neighborhood business associations are good places to find business owners, who are the decision-maker for all important products and services.

If your customers are Fortune 1000 or even prosperous mid-size businesses, you’ll be better off joining a committee or the board of a not-for-profit organization, or exploring service clubs such as the Kiwanis or Rotary Club, which are hubs for professionals who want to volunteer their services.  You will be much more likely to find decision-makers at the philanthropic organizations.  Invest your time and talent and get to know potential prospects and referral sources as you demonstrate your competencies and leadership skills through the service work that you do.

If networking is your purpose for attending a party, you’ll have more success meeting people when you go alone.  You’ll be forced to introduce yourself and talk with others and in so doing, you’ll meet people whom you may not have met if you brought along your spouse, good friend, or colleague.

Nearly all party invitations are now sent by Evite and that gives guests the huge advantage of seeing who has signed up to attend.  Otherwise, if you have the right relationship, call the host to RSVP by phone and tactfully inquire about the guest list.  Don’t be ashamed to perform an internet and social media search to help yourself prepare talking points and questions for guests you’d like to reconnect with or meet.

Finally, figure out the party dress code.  A Sunday afternoon tree trimming party at the home of friends or family means relaxed business casual attire.  Wear business attire to professional association parties, which are nearly always held on a week night. Gatherings at someone’s home or at a social organization on a Friday or Saturday evening can mean that guests will wear anything from black-tie to more relaxed, yet festive attire.

Now, go check your email!

Thanks for reading,

Kim

Image: Roman Sarcophagus (detail), 240-260 BC    Courtesy of the Nelson-Atkins Museum of Art  Kansas City, MO

 

Make Your Marketing Content Pop

Long time readers of Freelance: the Consultant’s Diary  noticed that a few months ago, I was inspired to regularly add artwork to the posts, something that in the 9 years I’ve been writing for you had been done only four times (including one movie trailer video).  Regularly including artwork with the posts occurred to me after I went to see the Tall Ships Parade at Boston Harbor one Saturday afternoon in mid-June.  I used my iPhone to take photos of those amazing ships and decided to post one on my LinkedIn site and another on a blog post.  I loved the look of the photo with the post, even if it in no way referred to what was written.  I was just giddy over the fact that I took a group of nice-looking photos, something that is not guaranteed with me! I was off to the races.

But where could I obtain interesting, free and legal images on a regular basis? In the U.S., intellectual property laws are  enforced and using the work of a photographer or painter without permission or (sometimes) payment could result in a lawsuit.

Some of you will recall that a few months ago I served as an (uncredited) editor and photo editor for a short women’s history book.  My job was to source mostly historic (and preferably free) photographs.  I visited the Boston Public Library website, which has links to Flickr and  Digital Commonwealth collections that were very helpful.  You’ll find thousands of historic and other photos on the site and nearly all have no copyright restrictions and are free to use.  BPL appreciates a line of attribution, “Photograph (or image) courtesy of Boston Public Library.”

The New York Public Library is another excellent source of (mostly) free historic photographs  Wallach Collection of Prints and Photographs . NYPL would also appreciate a credit for images used in your published content.  Be sure to confirm who has rights to the image and follow the directions for inclusion in your content.

Not every photo is free to use.  From the British Museum in London’s site (where there are hundreds of thousands of images of paintings, photographs and fine art objects), there are guidelines to keep marketers and researchers on the right side of the law  copyright and permissions . I’ve requested and received permission for three or four photographs.  Lucky me, I obtained those permissions within 24 hours, but if a photographer or other artist is deceased and the work is now controlled by a foundation, it could take a month or more for the board to review your request and make a decision. BTW, copyright and IP laws are applied more loosely for a blog or newsletter that features no advertising and more strictly for a book.

When looking for free contemporary stock photos, you’ll find 200,000 mostly in color on Unsplash .  The photographers would appreciate a credit line and a thank you sent.  Morguefile  is another site that I’ve successfully used, with its 350,000 mostly color photographs to comb through.  Be aware, however, that stock photos often do not resonate with viewers, even if what you find illustrates the story you are telling.  That is why most of my blog photos are fine art paintings or photographs.

The images that you include in your newsletter, website, blog, ads, or social media should reflect your brand and reinforce the story you tell.  Searching for appropriate images is time-consuming, but I consider it time well spent.  You, gentle reader, are well worth the investment.

Thanks for reading and Happy Thanksgiving,

Kim

Image: Freedom from Want (The Thanksgiving Picture)  Norman Rockwell, 1942   Courtesy of the Norman Rockwell Museum, Stockbridge, MA

 

Client Retention: Surpass the Minimum

In 1990, the consulting group Bain & Company and Earl Sasser of the Harvard Business School analyzed the costs and revenues derived from serving clients over their entire purchasing life cycle and found that regardless of the industry, the high cost of acquiring clients will render many business relationships unprofitable during their early years.

Acquiring a new client can cost up to five times more than it does to retain a current client.  It is only over time, when the cost of serving a long-term client falls as the volume of their purchases rises, that these relationships generate big returns.

The Bain-HBS review found that when the client retention rate increases by 5%, profits increase by 25% – 95%.  Also, long-term clients are more likely to refer new clients to the business and increase sales revenues and profits accordingly.

That said, an ongoing client retention strategy is a must-do for all Freelance consultants and business owners.  Read on and discover how your organization can embed client retention practices in nearly every step of your client interactions.

Context and expectations

When you propose a solution designed to help your client resolve a problem or achieve an objective, include in the conversation your rationale for presenting that particular path rather than another.  Make it possible for the client to better appreciate your decision-making process and divulge how you carefully considered his/her priorities, values, budget, staffing, or other factors that impacted your recommended solution.

We may infrequently discuss the behind-the-scenes thinking that guides the possibilities we envision for a client and his/her organization.  Revealing your big picture thinking demonstrates the depth of the value you attach to the client and his/her unique circumstances and that builds loyalty, trust and a good relationship.

Become an adviser

Don’t shy away from asking questions that will surface your client’s sometimes unexpressed expectations or concerns.  You may discover a solution that is ideally tailored to the clients’ needs when you employ the consultative approach to selling.  You and your client can collaborate on the development of the solution if s/he is comfortable with that process.  Buy-in is a given when the client is a co-author of the process.

Along the way, let your client know what to expect as the solution is implemented; it will also be helpful to review what success looks like.  Communicate often, so that the client understands where you are with the project, especially as regards milestones, Key Performance Indicators, the deadline and other agreed-upon metrics.

Moreover, depending on your product or service line, recommend services to your clients, based on their previous purchases.  According to a 2015 survey of marketers, this personalized touch generates a high ROI.  It shows that you’ve paid attention to client preferences and it is a compliment.

Finally, we are nearing Holiday time.  Make sure that you send cards to clients you’ve interacted with over the past five years.  Who among us does not appreciate a card at this time of year, when we reach out to those who matter?

Thanks for reading,

Kim

Photograph: Corine Vermuelen (2013)  Alicia and John George, owners of Motor City Java House in Detroit’s Brightmoor neighborhood

 

 

The Confidence Game

More than a dozen years ago, after being laid off from a Fortune 100 company and learning that hiring managers were not interested in our skills, or they were not interested in those skills when attached to someone over age 40, a work colleague and I each launched ourselves into the self-employed life, specializing in different aspects of business strategy and marketing services.

We each suffered through lean financial times, but eventually I broke through to regularly generate a comfortable, although by no means extravagant, level of business earnings.  Unfortunately,  my friend and colleague has continued to struggle, if not starve.

I was recently inspired to estimate the value that the projects I’m hired to manage bring to my clients’ organizations (an important factor when calculating the project fee, BTW) and concluded that the impact of my work is worth a five-figure sum to the client.  My clients’ confidence in me extends to an unspoken but consistent (monetary) value.  I am trusted to manage the five-figure tier of responsibility for the small and medium size for-profit and not-for-profit organizations on my client roster.

I imagine the limitation is at least partly related to the fact that I work alone (although I have colleagues to enlist if a project exceeds my ability to fulfill the scope).  My projects are mostly ongoing and modestly paying contracts, interspersed with short-term, more lucrative, assignments.  When invited to meet with a prospective client, I usually get hired.

My friend, who also works as a Freelance consultant, is infrequently called to speak with prospective clients about her marketing services and when she is invited to discuss a project, she is seldom hired.  The projects that she aspires to manage can be confidently estimated to have a seven-figure value to her prospects’ organizations.

My theory is that my friend is so seldom hired because even her most solid prospects remain uncomfortable about the capability of a one-person shop to successfully get the job done and help them achieve very important, high price-tag goals.  Her prospective clients apparently do not trust her to successfully manage and impact that tier of responsibility and so she is not hired

At a cocktail party last weekend, I had the unexpected opportunity to meet a lady who does precisely what my friend would like to do.  But this lady does not work alone.  She is part of a three or four person team that offers clients a comprehensive package of services that my friend could never deliver.  I doubt that she could ever persuade those with the necessary expertise and experience to work with her because she lacks the professional stature that would give them the confidence to do so.  My friend and colleague is out of her league and refuses to acknowledge it.

Another acquaintance recently closed her business, rather than sell it (I wonder if she preferred not to disclose financial statements that would reveal to potential buyers that she’d been using her own money to float the organization for five years or more). About three years ago, she invited me to her office to discuss how the two of us might do some business.  We were together for about half the day and we were joined by her second-in-command. Her goal was very straightforward—-win back former clients and acquire new ones.

I suggested the creation of a monthly newsletter, a form of content marketing that has been shown to be an effective client outreach tool if properly chosen topics are featured.  I would be happy to produce the newsletter and take on as much of its production as was mutually agreeable.

That time, I was not hired.  No one was hired and there was no content marketing campaign.  It became obvious that this very elegant lady, who over 50+ years built a business with an enviable client list that was now quite diminished, did not warm up to the current marketing methods, including an e-newsletter.  She did not trust the process.

So what can we learn from these three tales?  First, we can acknowledge that trust and confidence play a foundational role in all relationships, business and personal.  Second, those who elect to go into business or self-employment are advised to offer products or services in which you have the deep knowledge and experience that gives prospective clients and potential referral sources the confidence to hire or recommend you.  Do that and you will succeed in business.

In closing, let’s heed the advice of entrepreneur and selling skills trainer Grant Cardone, author of Sell or Be Sold  (2012), who says that getting sales is often not about money (pricing), but about the buyer having confidence in three things:

  1. Confidence in the product or service
  2. Confidence in the salesperson
  3. Confidence in the company

 

Thanks for reading,

Kim

Image: Luncheon of the Boating Party (1880-81), Pierre-Auguste Renoir

Overcoming Income Inequality

Happy Halloween! Today, we’ll take a look at one of the ultimate Trick or Treat scenarios, the business model known as the Global Economy (the most recent version, that is—trade has been global at least since the glory days of Timbuktu) as well as other factors that will impact your income.  The Global Economy as we know it began about 20 years ago, midwifed by the internet.  There is plenty of evidence to show that the vast majority of the world’s 7.6  billion souls have received only a global Trick, while a fortunate “1% of the 1%” has received a nearly endless supply of economic Treats.  Most of the candy is in the goody bags of the 2,043 billionaires in the world, 233 more than there were in 2016.  In aggregate, they are worth $7.7 trillion USD. (Forbes Magazine, October 2017)

Earning a living isn’t getting any easier for the 99.99%.  In the October 8 and 15, 2017 issues of The New York Times, lengthy articles appeared and told sad tales about blue-collar workers.

From Indiana came the story of skilled factory workers who until recently earned $25/hour.  Those workers have now joined the growing ranks of low-wage and  underemployed workers, in the aftermath of the ball bearing factory’s move to Monterrey, Mexico.

Factory leaders appealed to the Indiana workers to train their Mexican replacements.  Despite significant peer pressure from most of their colleagues a few agreed to do so, primarily to receive the $5000 bonus that was promised to those who cooperated with the transition.  But once the replacements were trained,  factory leaders reneged on the $5000 bonuses.

Workers south of the border are paid less than $6/hour for their skilled labor.  Most of the former ball bearing factory workers in Indiana have secured other employment, but nearly all have seen their wages cut in half.  Financing their housing costs is an issue for many.

From Oslo, Norway, came the story of construction workers whose labor has remade the skyline of that city, capital of a nation that has become wealthy on profits from North Sea oil that was discovered in the 1960s.  Pay for construction workers remains generous, thanks to a strong union, but workers haven’t seen a pay raise in five years or more.  Further, workers from eastern and southern Europe are now being hired by local construction companies and factories at considerably lower wages than Norwegian citizens receive, so that the companies can compete successfully for projects that are put out to bid by national or global firms.

The global economy has caused workers everywhere to get low-balled on wages and benefits, whether we are blue-collar skilled labor or white-collar professionals.  Most companies fear losing a contract to a competitor; their strategy has become to keep internal expenses low, so that project proposals can include not only lower prices for the prospective customer, but also more in-house profit.  To minimize the heft of payroll, which is usually the biggest expense on the P & L statement, companies send jobs off-shore, recruit and hire foreign-born workers who desire a residency visa and are willing to accept a lower salary to obtain one , or clandestinely hire illegal aliens at bargain-basement pay.

Meanwhile, citizens who are employed at well-paying, full-time, benefits paying jobs are loath to complain or quit, because what are the chances of doing better financially at another company? For most, it’s smarter to grin and bear it.  Maybe you can rent out a spare bedroom on Airbnb or drive for Lyft or Uber to make extra money?

Another factor that depresses wages and impedes hiring is what appears to be lingering discrimination against 50% of the population.  Honeybook, a company that provides administrative support to the various specialties that service the special events and conference planning industry, in a 2017 report on the gender pay gap reported that on average, women earn 24% less than men and in the finance and insurance industries, women earn 29% less than their male counterparts.

Female Freelancers in the events and conference planning industry fare even worse. Honeybook analyzed 200,000 of the client invoices they prepare for affiliates from October 2016 – October 2017 and found that women who Freelance earn 32% less than men in the industry.  Female photographers make 40% less than their male counterparts and female event planners make 24% less than their male peers earn.  Regarding annual earnings, 42% of men earn more than $50,000 per year, while only 20% of women are paid at that rate; 20% of men earn at least $80,000 annually, while only 8% of women are able to do so.

Things are even more dismal for women at the top of the self-employment food chain, the venture capital funded start-ups.  The start-up database Crunchbase confirmed that globally, 43,008 venture capital-backed start-up enterprises were founded from 2009 – 1Q2017 and 6,791 (15.8%) of those companies had one or more female founders.

Crunchbase reports that in 2016, start-ups founded by men received a total of $94 billion in seed (angel) investment fundraising, while start-ups that had even one female founder received a total of only $10 billion.  Start-ups with one or more female founders raised 19% of all seed investment rounds, 14% of early-stage venture rounds, 8% of late-stage venture rounds.

Yeah, OK, so do we continue to cry into the champagne, or maybe do something substantive? The Honeybook crew strongly suggests that women (and men) who are Freelancing to negotiate rates and in fact, to come in with a project fee or hourly rate that reflects the quality and value of your work in the marketplace.  This is not exactly easy, however, and requires some courage. No one wants to lose a contract to a competitor, or to be challenged by a prospect.

Regarding negotiation, Freelancers have an advantage over the traditionally employed because fee negotiation is not unusual.  To succeed in a negotiation, it’s necessary to do a bit of research in advance to learn more about the project.  The process is quite simple—talk to your prospect and ask a few basic questions.  If you learn that your work will bring the client a significant ROI, or if a deadline looms, let that be reflected in your project fee or hourly rate.

If the client balks at your pricing, do not lower your fee.  Instead, adjust the scope of the work you’ll do.  If at all possible, avoid allowing a prospect to dictate your pricing terms.  Ask how much has been budgeted for the project and then decide how much work you can afford to perform for the money available.  Address the client’s most urgent needs and make him/her feel good about the value s/he will receive when your superior expertise and work ethic are applied.

Regarding female entrepreneurs, Crunchbase notes that there are now several angel investor networks funded by female investors who welcome women who lead venture capital backed enterprises.  Access to capital when it’s needed is crucial to a start-up venture’s success.  Women helping women is how we can climb the mountain.

Thanks for reading,

Kim

The Fendi sisters (l-r) Alda, Paola, Anna, Carla (who passed in June 2017) and Franca took over the business founded in Rome by their parents Adele and Edoardo in 1925.  Led by Carla, they transformed Fendi into an international brand that is now owned by LVMH.                               Photograph: REX (1988)

Leverage Your Brand and Make Money

Hello Freelancer friend and thank you for coming back to continue our examination of how Freelancers who are just regular folks can leverage our know-how to generate a sufficient income in the 21st century knowledge economy.  For most, it is an uphill battle.

One very ambitious (and possibly overwhelming) monetization strategy is to write a business book that will either:

  1. tell your business creation story— how you overcame adversity and persevered until you prevailed, or breezed through every door and stumbled into lucrative assignments
  2.  function as a how-to guide that details how the reader can become a more proficient and successful public speaker, financial manager, business strategist, Freelance consultant, or the like

A business book is an evergreen PR tool and door opener.  Authors are often asked to give quotes to journalists and content producers, are more often invited to speak at business or professional association meetings, receive more adjunct teaching opportunities and are considered more qualified than non-authors by potential clients.

Podcasts are another promotional strategy, one that is more accessible than writing a book.  Ideally, podcasts will position a Freelancer to monetize his/her knowledge or skills and it’s not necessary to create a series that will attract thousands of listener downloads and a gaggle of advertisers.  For at least a handful of podcasters, several of their strategically selected guests have become clients.  However, in order to make that transition, one must be the host of the show and not merely a guest.

Yet, if one appears as a guest on enough podcast shows and moves up the food chain to appear on popular shows, it will be reasonable to apply that achievement to the pursuit of paid speaking engagements.  Preferably, speaker circuit bookers will find you, but it would nevertheless be worth your while to initiate contact.  You could possibly receive offers in the $250 – $750  per talk sector.  You won’t get rich, but you might create a modest revenue stream and enhance your ability to attract big-budget clients to your core business.  Along with your podcast appearances, become a panelist or moderator at conferences sponsored by neighborhood business associations, chambers of commerce, or professional associations, to hone your pubic speaking skills and enhance your presence and brand.

Finally, there is the growing popularity of creating and presenting online courses.  If you are an experienced teacher and comfortable in front of the video camera, you may want to brainstorm a course or two to create and present.  Essentially, this means you must identify a problem and then design a course to solve it.  Click the link and get information on how to  create your online course

In closing, I don’t see much of a solid business model in the new economy brand and knowledge monetization game, I’m sorry to say, and maybe that’s why so many Freelancers are struggling.  As I see it, a business model is similar to the template for a franchise.  The template is not as precise as a mathematic formula, but given similar business conditions and customer demographics,  one can produce the desired outcome.  In other words, if you buy a CVS or Dunkin’ Donuts franchise, you will make money if the store has the right location and management.  Unfortunately, our fortunes in the 21st century knowledge economy are not so predictable.

Dorie Clark (no relation), author of Entrepreneurial You (2017) and frequent contributor to the Harvard Business Review, advises Freelance consultants to follow these steps to monetize our knowledge and brand:

  1. Cultivate an inner circle.  From this group, one receives feedback and  encouragement.  If some in your circle are well-connected, they may provide important client referrals and open other doors for you as well.
  2. Build an audience.  This is how you launch your monetization strategy.  Announce the roll-out in your blog or newsletter, on your website and on social media and YouTube.  The goal is to become visible.
  3. Build your community.  As your audience grows, you must encourage them to talk to each other and connect around your concept. The community will initially be nurtured online, probably through Facebook and Twitter. Eventually, you will solidify your community support with ticketed face-to-face gatherings where you are the featured speaker.
  4. Build trust.  Your community has to trust and respect you.  Continue to create content that they find relevant and be careful in what and how often you attempt to sell to them.

Thanks for reading,

Kim

Image: Screenshot of Paul Masson Wines advertising campaign. Academy Award winning writer (Best Original Screenplay 1941, Citizen Kane), producer, director and actor Orson Welles was the Paul Masson Wines (of California) brand ambassador from 1978-1981.

How to Monetize Your Brand

In the internet age, there are numerous Freelancers who gain significant notoriety through social media platforms, mainly Instagram, Facebook, YouTube, Twitter or their blogs.  Their accounts have thousands of subscribers and followers.  Paid advertising deals have come to about all of them and provide a revenue stream.  However, advertising deals are not all equal and advertising rates received can be too low to substantively impact one’s financial status.  Often, the achievement of notoriety earns these Freelancers little money.

Among the primary differences in earning a living in the 20th and 21st centuries is that in the former, one made money by doing a particular activity, such as law, medicine, secretarial, writing, or being a musical entertainer.  In this century, there are proportionately far fewer traditionally employed full-time workers and many more of the self-employed.

A 2017 study by Intuit (maker of QuickBooks) reports that 34% of U.S. workers are self-employed, swelled by Lyft and Uber drivers who join the usual plumbers, electricians, website developers and event planners.  The path to money for Freelancers is to skillfully parlay the achievement of notoriety into a series of revenue streams that create a sustainable income.

For example, Freelance writers of magazine articles were formerly paid $1.00 per word or more and many publications would regularly hire writers to produce 500 – 1500 word articles. The writing life was good.  Even those who wrote for a mid-level daily newspaper and occasionally submitted a story to a middle-brow magazine could be financially comfortable.

Then the internet age arrived and turned the world on its head, in more ways than one.   Online ads may sometimes be clever but they are apparently perceived as less compelling than the full-page ads that once fattened your Sunday newspaper and as a result, online ads command a lower price.  Advertising revenue is tanking and has caused publishers to cut back on editors’ salaries and perks.  Compensation for writers at online magazines is a mere pittance.  In the literary world, advances to writers have become smaller and less frequent.  Book tours are for big-name authors only.  Publishers and editors-in-chief have much smaller budgets and the chauffeured town car to take them to the office is about to disappear.  The Vanity Fair and Rolling Stone editors-in-chief recently announced their retirements.

Musical entertainers of every level made money from record sales, singles and albums, plus touring.  But in the late 1990s that began to change when Napster brought about peer-to-peer sharing of music files. Today, music is downloaded and performers from Nicki Minaj, who is the face of MAC cosmetics, to Lady Gaga for Tiffany & Company, use their famous brands to generate millions of dollars for the corporation and themselves by appearing in ads.  Touring remains relevant but music sales, for decades the very reason for being for a musical entertainer, are greatly diminished.

In the 21st century, one must learn to generate a livable and sustainable income as a result of one’s writing, or other expertise.  This is an unprecedented shift in the way an economy works.  The big challenge for those of us who are self-employed and following the playbook as regards developing a strong online presence, teaching at the university level, speaking at business and professional associations will not appear in an auto advertisement any time soon monetize their comparatively modest brand and perhaps superior expertise?  For those who no longer find an open door to full-time, benefits paying employment, making a living only becomes more difficult as time goes on.

So what does one do? Suggestions on how to make money by building on your brand will be featured in next week’s post.

Thanks for reading,

Kim

Academy Award winning actress Joan Crawford (Best Actress 1945, Mildred Pierce), who was the Pepsi Cola brand ambassador, in Frankfurt, Germany (1963).  Photograph: Tony Evanoski/Stars and Stripes (publication that has served military personnel since 1936)

Freelancers Hiring Freelancers

Are you preparing to submit a proposal for a big assignment you hope to win and know that the project specifications will cause you to subcontract some of the work? Congratulations! You will have the pleasure of hiring one or more of your Freelancer peers. Together, you will become a team whose mission will be to produce the client’s deliverables by achieving outcomes of the highest quality, on or in advance of the project deadline and on budget.

You, the external team leader, must understand the skills that the project requires, know how much it will cost to secure the services of your Freelancer team and write a winning proposal.  Project management is an everyday reality for Freelance consultants and the bigger the project, the more planning is involved. Your reputation is forever on the line and when subcontracted work is involved, you must be diligent in your search to identify the best talent to bring on board.  Read on and get some helpful advice on how to assemble a winning team that will enhance your brand and your billable hours, current and future.

Get budget estimate

Get a reliable project budget estimate from your client, if possible.  If the client prefers playing possum with that amount, then make sure you are able to accurately estimate both the quantity and quality of work the project requires so that you can first, calculate your own labor cost and target profit margin and next, understand what you must budget to pay your subcontractors.

Hire specialists

Directly ask candidates you interview and confirm that the skill you need is a competency in which that candidate excels and that s/he has performed often enough to claim deep experience.  You are in no position to train someone on the job.  You must guarantee superior results.

Pay well

Why not ask candidates what they want to make as a subcontractor on the project? Start by researching the going rate range for that specialty, so that you’ll know what to expect to pay and you can rule out those who attempt to take advantage of you.  People will do their best work when they feel valued. They’ll be happy to give extra to make you look good and make themselves shine along with you.  They’ll go above and beyond because they’ll want to be hired to work with you again since you value their capabilities.

If you encounter someone who seems a perfect fit for the project but his/her subcontracting fee is somewhat beyond what you planned to offer, then ask what perks might make that person happy, in addition to money.  You may be able to get who you want for a little less money if you give a little more in another area that demonstrates how you value the skill set.

Set clear expectations

If the project is on a tight time frame and in order to meet the deadline long hours and a seven-days-a-week schedule will be needed then you, the external team leader, must present this schedule information to your candidates in the interview.  You need team members who are able to block out the necessary time and are willing to work hard.  If time is an issue, expect to pay a premium to your subcontractors and add a premium to your own fee as well. Develop a contract for your subcontractors, so that all responsibilities, relevant milestones, the project deadline and the rate of pay are in writing.

Communicate often

Request weekly or bi-weekly written progress reports from your subcontractors and send similar updates to your client.  Announce to the client and your subcontractors whenever a project milestone has been met.  Interim victories will give you an opportunity to thank and congratulate your subcontractors and inspire them as you do.  Learning that you and your team have reached a milestone gives your client confidence in you.

View work samples

In the subcontractor interviews, be sure that work samples provided correspond with the project specs, to confirm that you are evaluating what is relevant.

Check references

Ask to speak with two of your candidate’s clients.  Confirm the type of work that the candidate has done for each reference.  Inquire about the quality of that work and the candidate’s willingness to do what was needed to get the job done.  Ask what it’s like to work with the candidate—is s/he positive and upbeat, or a constant complainer? Finally, ask if there’s anything else you should know about the experience of working with the candidate.

Paperwork

Once you understand the project specs, the role that your subcontractors will play and what you will pay for their services, you can then write a draft contract.  Also, download from the IRS website tax form W-9 for your subcontractors to complete and return to you. You’ll retain the W-9 and use it to prepare and mail to subcontractors IRS form 1099 before January 31 of the following year if payments to any subcontractor reach $600.

Finally, set up an accounting method that will allow you to easily and accurately calculate hours worked and dollars earned for each subcontractor.  If you’ve seldom worked with subcontractors, then speak with a bookkeeper or accountant for more information.

Thanks for reading,

Kim

Photograph: Seven Samurai (Japan, 1954) Directed by Akira Kurosawa and starring Toshiro Mifune (foreground)