2020 Health Insurance Open Enrollment: The Facts

Hello Freelancer Friend, the enrollment period for health insurance is here, now through mid-December (in most states). Because health insurance is a vital topic, I decided to defer to an expert and pass along info compiled by Les Masterson for Insure.com. For more detailed information, please visit the site. https://www.insure.com/health-insurance/open-enrollment-for-individual-health-insurance.html

We have 6 weeks to make a decision on individual/ family health insurance or the Affordable Care Act (ACA) exchanges plan (in most states). We can sign up for health insurance on our state’s health insurance exchange or individual marketplace only during the annual open enrollment period, unless one has a “qualifying life event.” Those events include getting married or having a baby.

If buying health insurance on your own, there are several options for purchasing a policy:

  • Your state’s health insurance marketplace — see healthcare.gov https://www.healthcare.gov
  • Directly from a health insurance company
  • Sites like Insure.com that offers insurance quotes from multiple carriers
  • A health insurance agent
Open enrollment for 2020 individual and family health insurance plans
Begins Ends
November 1, 2019 December 15, 2019

The open enrollment period differs in these states: 

  • CA – Oct. 15, 2019 to Jan. 15, 2020
  • CO – Nov. 1, 2019 to Jan. 15, 2020
  • DC – Nov. 1 , 2019 to Jan. 31, 2020
  • MA – Nov. 1, 2019 to Jan. 23, 2020
  • MN – Nov. 1, 2019 to Dec. 23, 2019
  • NY – Nov. 1, 2019 to Jan. 31, 2020
  • RI – Nov. 1, 2019 to Dec. 23, 2019

If you buy after December 15 in the states that are extending the enrollment period, confirm when the coverage will start. Most states require you to obtain your plan by December 15 for a January 1 start date. If you buy late, your plan might not start until February 1 or March 1.

Those who qualify for Medicaid or the Children’s Health Insurance Program (CHIP) can enroll at any time, because they are state/ federal programs created for people with limited incomes or disabilities.

Marketplace Open Enrollment is for health insurance only

The Open Enrollment period does not apply to life insurance, long-term care insurance, or Medicare. The fall open enrollment period for Medicare is October 15 to December 7, 2019. If you qualify for employer-sponsored health insurance, you will want to buy health insurance through your employer. Individual insurance usually costs more than employer-sponsored plans.

That said, if you qualify for subsidies based on your income, you may find an inexpensive plan on the Affordable Care Act (ACA) Exchange. Many states offer financial help for people with income below 400% of the federal poverty limit. You can find out more about these subsidies at insure.com. 

Remember to enroll!

It is not possible to sign up for coverage if you miss open enrollment, unless one qualifies for one of the special enrollment periods. The following events may grant entrance into a special enrollment period:

  • Divorce
  • Marriage
  • Birth or adoption of a child
  • Death of a spouse or partner that leaves you without coverage
  • Your spouse or partner, who has you covered, loses his/her job and health insurance
  • You lose your job and with it your health insurance
  • Your hours are cut making you ineligible for your employer’s health insurance plan
  • You are in an HMO and move outside its coverage area

Update your plan during Open Enrollment only

What you can do during open enrollment:

  • Renew your current individual or family health insurance plan
  • Choose a new health insurance plan through the marketplace in your state or through private insurance

If currently enrolled in a marketplace health insurance plan, it will automatically renew. However, the plan may make changes to its provider network, co-pays, co-insurance and drug coverage. Your plan must send you a notice of any changes it will make for 2020.

Read the health insurance update notice to learn what it means for youConfirm that your doctors and preferred hospital are still in your network. Be aware that you may be able to use out-of-network doctors and hospitals if you’re willing to pay more. That’s an option in Preferred Provider Organization (PPO) plans. In some cases, such as Health Maintenance Organization (HMO) plans, you’re covered if you go out of network. That means you’ll have to pick up the costs. 

Prescription drug coverage also could change. The plan may no longer cover the drugs you take to manage your chronic conditions. Confirm your plan’s drug benefits for 2020 before you allow it to renew. You may need to find a different plan for your needs and now’s the time to do it. Health plans must provide an online link to the list of drugs they will cover, known as formularies.

ACA Premiums set to decrease for some plans

The premium you pay depends on several factors, including income, your state and the plan type. The Centers for Medicare and Medicaid Services said the average ACA federal exchange plans premium costs dropped for the first time this year. However, because not all plans will be cheaper, it’s still important to shop around to find the right plan for you. 

Choose a level of health plan coverage

Plans in the health insurance marketplace are divided into 4 categories:

  • Bronze – highest out-of-pocket expenses for services (lower premiums)
  • Silver
  • Gold
  • Platinum – least out-of-pocket expenses for services (higher premiums)

Each level indicates how much cost-sharing each requires. Cost-sharing includes deductibles, co-pays and co-insurance that we must pay until the annual out-of-pocket maximum limit is reached.

Bronze plans have the highest deductibles and other cost-sharing expenses. That means more out-of-pocket costs when one uses healthcare services. Silver plans have lower cost-sharing than Bronze and Gold plans even lower than Silver. Platinum plans have the lowest deductibles and co-pays. Once one signs up for a level of coverage, changes are not allowed during that year. If you choose a Bronze plan and discover you need surgery, you cannot change to a plan with a lower deductible.

Generally, the more you pay in premiums the lower your cost-sharing.

In a 2019 report, eHealth estimated that 2-person families paid more than $1,000 in premiums monthly for the first time in the individual market in 2019. Premiums for individual coverage for a single person was $448 in 2019. 

The average premiums for individual coverage according to eHealth:

  • Bronze — $440
  • Silver — $481
  • Gold — $596
  • Platinum — $706

The average premiums for family coverage according to ehealth:

  • Bronze — $1,080
  • Silver — $1,179
  • Gold — $1.426
  • Platinum — $1,460

The health plans, no matter the level, must provide some coverage for at least 10 essential benefits. They are:

  • Outpatient care including chronic disease management
  • Emergency care
  • Hospitalization
  • Pregnancy and newborn care
  • Mental health and substance abuse services
  • Prescription drugs
  • Rehabilitation services and devices
  • Lab tests
  • Preventive and wellness services
  • Dental and vision care for children

The level of coverage for these services can vary. All the plans in the marketplace must provide consumers with a brief, understandable description of what they cover and how their plan works. The Summary of Benefits and Coverage (SBC) must be posted on the plan’s website. Check out the SBCs for the different plans you are considering. This is a good way to compare plans and benefits.

Not all states require health insurance

The ACA once required nearly all Americans to have health insurance. However, Congress decided in 2017 to eliminate the individual mandate penalty. Although the individual mandate is technically still on the books, the tax penalty is not. Still, a growing number of states have implemented their own individual mandate. Here are states that have an individual mandate in 2020:

  • California
  • District of Columbia
  • Massachusetts
  • New Jersey 
  • Rhode Island
  • Vermont

I hope you found this information helpful.

Thanks for reading,

Kim

Image: Thomas Eakins (Philadelphia 1844-1916) The Agnew Clinic, 1899 courtesy of The Philadelphia Museum of Art. The painting was commissioned to honor the anatomist and surgeon David Hayes Agnew, on his retirement from teaching at the University of Pennsylvania.

Got Power? 6 Types You Should Recognize

“Nearly all men can stand adversity but if you want to test a man’s character, give him power.” Robert G. Ingersoll (1833 – 1899, NY), orator and author of Some Mistakes of Moses (1879) and known as The Great Agnostic

“Power tends to get to people’s heads. We’re not really trained to handle power well.” Nicole Lipkin, Ph.D., psychologist and author of What Keeps Leaders Up At Night (2013)

Power is sexy, seductive and sometimes addictive. Power is heady, power is magnetic, power brings perks—money and sex, fast cars and prime real estate, fame, prestige and respect. Perhaps it is evolutionary imperatives that drive certain personality types to seek out power more than others: males, alpha personalities and extroverts.

Powerful people, whether they obtained power through achievement, birthright, marriage, or fortunate friendships are favorably positioned to acquire leadership positions, through which they acquire still more power. Yet not everyone knows what to do with power once they have it. In 1959, psychologists John R.P. French and Bertram Raven identified sources of power that leaders commonly gain.

Formal Power

This power is derived from holding a leadership position in a hierarchical organization, e.g., Admiral or General in the military, Mayor or Senator in the political sector, CEO, Executive Director, or President in for-profit or not-for-profit sectors. Individuals who wield Formal Power have considerable control over the lives of others.

However, Formal Power is in reality transferred to the individual. Formal Power resides in the title and such power will be lost when the title is relinquished, whether by choice or by force. Only the organization’s founder(s) truly hold power (of the Expertise variety) because they’ve earned it by inventing or launching a significant, long-lasting product, service, or organization that has impact and influence. Earned power cannot be completely taken away by force, even if the organization ceases operations or is the target of a hostile takeover. The founder(s) will forever own the achievement.

Kingmaker Power

Powerful people who desire to prolong or amplify their power by installing allies into positions of power are known as Kingmakers. These individuals are power brokers who sponsor and groom favored candidates for leadership positions, through which they will ascend to Formal Power. Kingmakers arrange for their protoges to receive training, high-profile assignments and other types of support that enable the chosen ones to receive credientials, experience, visibility and ultimately, inevitability.

The Kingmaker’s goal is to persuade both key influencers and rank-and-file members of the organization that their preferred candidate is deserving of a top leadership position. Developing trust and confidence in the candidate is essential, so that decision-makers will accept and nominate him/her for leadership and power.

Oftentimes, Kingmakers are themselves unable to ascend to the highest rungs of leadership, but they wield enough power and respect to influence decision-makers when future leaders are chosen.

Expert Power

In the 1970s, western societies entered the Information Age and in the 1990s entered the Knowledge Economy, both fueled by expertise and information. Expert Power is derived from the belief that others, especially thought leaders and powerful people, have about the superiority of a person’s capabilities. If enough of the right people feel that an individual has clearly superior knowledge and proficiency in a subject that society has decided is high-value, that person is considered an expert and s/he earns power.

Expert Power is held by architect Frank Gehry, whose talent for creating distinctive designs, in particular museum designs, has enabled institutions to become world-renowned attractions that have had game-changing impact on the communities, local and regional, in which they were built (see the Guggenheim Museum in Bilbao, Spain). Bill Gates and the late Paul Allen, co-founders of Microsoft, are another example of Expert Power. Their development of Windows software helped spark the microcomputer revolution and Microsoft became the largest personal computer software company in the world.

Expert Power is the easiest power to acquire and because it is earned, it cannot be taken away. Study hard and it may be yours! However, its holders must continually study, do research, make process improvements, or operational efficiencies in order to stay ahead of the curve and maintain their power.

Charismatic Power

Here we have the cult of personality, rock star appeal. Their supporters are sometimes more akin to fans, if not disciples. Integrity, discipline, talent, trust and likability are its pillars. “People with high Referent (Charismatic) Power can highly influence anyone who admires and respects them,” Lipkin says.

Their associates/ followers are very loyal and happy to do their bidding. People believe in those with Charismatic Power and will strive, and sometimes compete, to please them, in order to win favor and approval. Charismatic Power holders are tremendously persuasive and they excel at rallying supporters around a cause. Mohandas K. Gandhi, Nelson Mandela, Martin Luther King and Ho Chi Minh used their Charismatic Power to launch successful civil rights movements on behalf of those who were systematically disenfranchised and abused (by those who held Formal Power that descended into Coercive Power).

Charismatic Power is self-generated and cannot be given, but the discovery of unethical behavior will break the spell and power will be lost forever.

Relationship Power

This person derives power from whom s/he knows and to whom s/he has access. Relationship Power can be acquired from the powerful family into which one was born, marriage, or a fortunate friendship. Those with Relationship Power are wise to carefully nurture the relationship, to ensure that the gravy train continues.

The holders of Relationship Power are positioned to receive many benefits through their relationship(s). They glide through doors that lead to coveted business or employment opportunities. Proprietary information helps them find the house of their dreams or make the right investments. Introductions to still more powerful people amplify their benefits. They may use their Relationship Power to leapfrog into a position that gives them Formal Power.

Coercive Power

This individual may have acquired power by any means, but s/he abuses that power. Unfortunately, we’ve all witnessed this type of scenario and it is enormously stressful for those who must live or labor in proximity to its toxic presence. Coercive power is harmful according to any metric. Abusive parenting is the most tragic example of Coercive Power.

This power is enforced and maintained with threats, intimidation, lies, manipulation and sometimes actual physical or sexual violence. Shockingly, those who elect to wield power in this fashion can become enormously successful and even admired by their peers (who sometimes know of their transgressions but find it convenient to ignore the problem).

A recent example of the long-term and highly rewarding use of Coercive Power can be found in reports about the now-disgraced and unemployed co-founder of Miramax Entertainment Harvey Weinstein, who became the prime focus of the #metoo movement. For 20 years Weinstein basked in the fawning favor of two U.S. Presidents, dozens of members of Congress, Hollywood and television stars and leaders of Fortune 500 companies, the result of sky-high box office grosses and robust profits earned by films and television programs produced by Miramax.

It’s all over now, though. Dr.Lipkin cautions, “There is not a time of day when you should use it. Ultimately, you can’t build credibility with coercive influence—you can think of it like bullying in the workplace.”

Happy Halloween and thanks for reading,

Kim

Image: “Off with her head!” The Queen of Hearts, here confronting Alice, embodies Coercive Power. Illustration by Sir John Tenniel (1820 – 1914, UK) for Alice’s Adventures in Wonderland (Lewis Carroll, 1865)

Defining and Delivering Good Customer Service

Superior customer service is a cornerstone of the customer experience and the customer experience is a foundational element of the sales journey. I see the customer experience as governing everything that leads up to the sale and customer service as governing what happens after the sale. Along with designing a confidence-building customer experience that persuades prospects to become customers once the need for your products or services is established, to remain viable, every business must develop customer service protocols that support customer retention and encourage referrals.

As reported in Forbes Magazine in May 2018, American businesses lose $75 billion annually due to poor customer service and the U.S. Small Business https://www.forbes.com/sites/shephyken/2018/05/17/businesses-lose-75-billion-due-to-poor-customer-service/#5777314e16f9 Association reported in 2018 that 68% of customers stopped doing business with a company due to poor customer service. It is worthwhile to review your company’s customer service from time to time. Below are suggestions that might guide a refresh of your company’s approach to customer service:

  1. Answer the phone.  When a prospective customer calls for information, s/he does not want to leave a voicemail message and wait for an answer. The prospect wants to speak with a live person now who can answer questions quickly and correctly, in a friendly and professional manner. Hiring the optimal number of front-line staff is the antidote. Freelancers who work alone and receive a fair amount of incoming calls can hire a telephone answering service to take calls when you cannot.

2. Take the extra step. When the intention is to help a prospective customer, understand that doing the minimum is not enough. For example, when speaking with a prospect who has questions about your products or services, merely directing him/her to the company website to obtain more information does not exemplify good customer service. Instead, ask the customer about the problem that must be solved, inquire as to what s/he would like to achieve and then discuss how your product or service can (or cannot) provide the desired solution.

3. Be helpful. If it is discovered while speaking with a prospect that your product or service cannot provide the necessary solution, do not be afraid to refer the prospect to a competitor or another company that can meet his/her needs. Your generosity will be remembered and may be returned with future business and referrals.

4. Listen. Let the customer talk. Allow the customer to ask questions or describe a problem. You (or front-line staff) ask clarifying questions along the way, to demonstrate that you are listening and evaluating how your products or services might be useful (or not) to the customer. The more front-line staff know about your customers and their needs, the more of an asset they will be to your company and customers. Prospects and customers will appreciate the empathy and product knowledge and that will almost certainly increase customer retention, new business and referrals.

5. Resolve problems quickly. No business owner enjoys receiving complaints, but those complaints reveal product or process breakdowns that you have the opportunity to fix. Customers gain confidence when a business quickly responds to and resolves complaints. Apologize profusely and throw in something extra (an upgrade or gift certificate, based on the price of the item purchased) to demonstrate that you value the customer and regret the inconvenience that you’ve caused. If handled correctly, you will win repeat business and a source of referrals (instead of bad-mouthing on Yelp).

6. Train staff. Make training a key element of front-line staff on-boarding. Conduct a product boot camp for new hires, plus an annual refresh for all staff, to ensure that employees are familiar with your product and service lines (bring in a Freelance colleague with sales training experience to conduct the annual training session). Give front-line staff the tools and information they need to support customers as efficiently as possible. Empower them to make those small customer-pleasing decisions, so they’ll rarely have to say, “I don’t know, but the owner will be back at…”

Thanks for reading,

Kim

Photograph: Date night at the malt shoppe 1930s USA

Bad Decisions: Or, Why We Screw Up

Research has shown that every day, we make 2000 decisions, i.e. choices, by another name. Most of our decisions are minor and we make them quickly, almost without thinking. We decide what to wear to work in the morning, we choose whether to eat lunch now or in 30 minutes.

But a select few of our decisions have serious consequences and for that reason they demand serious thought, if not actual research. The choices we make affect our health, safety, finances, relationships, our time and our reputation. Ultimately, our decisions define our lives. Consistently making good decisions can be considered among the best things we can do for ourselves, in both our personal and professional lives. 

Now when we make a decision, we do not always have all of the information that we’d like to have. Sometimes, what one could reasonably expect to be a sound decision turns out to be less than positive because of factors that were unknown when the decision was made.

According to Michael Erwin, CEO of the not-for-profit organization The Character & Leadership Center, U.S. Army Reserves Lt. Colonel, Asst. Professor in Leadership and Psychology at the U.S. Military Academy /West Point and author of Lead Yourself First (2006), those faced with an important decision should be mindful of the following conditions, which are capable of undermining good decision-making:

Decision fatigue

With so many decisions to make, especially those that will have a big impact on our own lives or the lives of others, it’s almost inevitable to avoid decision fatigue. To counter it, identify the most important decisions you need to make and arrange to make them when your energy levels are highest.

Social Psychologist Roy Bauminster studied mental discipline at Case Western Reserve University in Cleveland, OH and at Florida State University in Tallahassee.  His work indicates that it’s best to make important decisions in the morning after eating a light, nutritious breakfast. Our brains derive energy from healthy food and that helps us to comprehend and value long-term prospects and bolsters decision-making ability.  In the morning we have enough willpower to exercise the self-control needed for making important strategic or financial decisions.

Bauminster advises that we tackle big decisions first, before we have to make numerous smaller decisions that will sap energy and lead to decision fatigue.  So do your best to schedule client meetings for early in the day, before late afternoon, whenever possible. Write and pitch proposals early in the day as well.

According to the researcher Martin Hilbert, Professor of Communication at the University of California at Davis and instructor of the seminar Information and Communication Technology: A Venture into Applied Data Science, our brains process about five times the amount of information today as we processed in 1986. Consequently, many of us live in a continuous state of distraction and we struggle to focus. Ongoing distractions are detrimental to sleep, productivity, concentration and, yes, decision-making.

To counter this, schedule time each day to go offline and step away from email, social media, news and the onslaught of the Information Age. It’s easier said than done, but do-able if you make it a priority.

Insufficient information

Researchers at Northwestern University’s Kellogg School of Management in Evanston, IL found that in a typical meeting, an average of three people do 70% of the talking. As author Susan Cain describes in her book Quiet: The Power of Introverts (2012), many introverts are reluctant to speak up in meetings until they know precisely what they want to say. Unfortunately, introverts fairly often feel blocked by overly expressive extroverts and they keep their insights to themselves. As a result, decision-makers might ignore or gloss over certain possible answers or options, perhaps due to the bias of habit (“we’ve never done that before”).

Meeting conveners can temper this inclination by sending out a meeting agenda 24 hours in advance, to give everyone time to think about their questions and suggestions regarding the agenda items. Furthermore, it is incumbent upon the convener to create an environment that encourages all attendees (whether they participate physically or virtually) to contribute— i.e., speak up and share information and when necessary, persuade others to examine and question their assumptions.

Introverts often ask the right questions, or contribute great ideas and relevant information to their teams, because while the extroverts are busy talking over one another and doing whatever possible to monopolize the conversation, introverts are quietly listening and thinking, questioning and analyzing. Decision-makers can greatly benefit from input supplied by the quiet members of their team.

Multi-tasking

There are few jobs left in the world today that don’t require at least some multi-tasking. While that’s the reality, research pioneered in 2009 by Earl Miller, Professor of Neuroscience at the Massachusetts Institute of Technology, showed that performance, including productivity and effective decision-making, can be diminished by as much as 40% when we attempt to focus on two (or more) cognitive tasks simultaneously. When called to make an important decision, set aside a block of time so that you can devote the required thought and focus to the question (or task).

Analysis Paralysis

The Information Age has deluged us with an abundance of information—Big Data, algorithms and a vast array of metrics— and there’s almost no end to the amount of information one can access. However, more information doesn’t necessarily lead to the best result.

Information overload can hinder the decision-making process; the more information there is to consider, the longer it takes to make the decision. Which data thread should we follow? Analysis-Paralysis, which is an expression of confusion and fear, can set in.

Because time is often a factor in big decisions, knowing when to draw the line on data gathering and move forward to finalizing your decision is a valuable leadership skill. While the decision-making process should be thorough, the best way to make good decisions is not to continually search for more information but instead to understand what information will be useful, review the selected data, set a decision-making deadline and adhere to it.

Emotions

Strong emotions have the power to impair one’s ability to make sound decisions and it is advisable to delay important decisions when one is angry, frustrated, excited, or even very happy. May I also include fatigue, inebriation, illness, pain and hunger in this category?

During those times, one’s ability to reason and take a measured and balanced view of an important question or unfolding events usually disappears. When blood sugar drops, a trip to the grocery store often results in a shopping basket filled with the wrong foods. Sending an email when angry or frustrated can present a danger to one’s career or business, since the temptation to use provocative or even harsh language could be strong and the ability to self-censor may be low. Likewise, inebriation, fatigue, illness and pain may potentially diminish one’s ability to think clearly and reach a rational decision about anything of importance.

When faced with an important decision while in the grip of strong emotions or similar feelings, honor your emotional state and focus on self-control. Give yourself time to calm down and gain perspective on what is happening. Forgive yourself, postpone your response, breathe and take a time-out. Have a cup of tea. If possible, you might also take a nap or a shower. Resist the temptation to respond to people or make decisions while you’re flustered or agitated.

Thanks for reading,

Kim

Image: Sir Peter Paul Rubens (Belgium, June 1577 – May 1640) The Fall of Man, Adam and Eve 1628-1629, courtesy of The Prado Museum, Madrid

5 Genius Questions for Your Customer Survey

Every business owner or leader must study his/her customers (or potential customers for those in start-up or new product launch mode) and gather as much potentially useful information about them as possible. The first and greatest commandment of business is “know thy customer” and the research must continue for the life of the business. We can never stop learning.

The important matter of measuring customer satisfaction and customer loyalty became the life’s work of Frederick F. Reichheld, now an Emeritus Director of the Boston, MA consulting firm Bain and Company, also the founder of its Loyalty practice and author of The Ultimate Question: Driving Good Profits and True Growth (2006). Reichheld reported that it took two years of studying customer satisfaction and customer loyalty survey responses and correlating those responses to actual customer behavior—i.e., purchases and referrals made and then linking customer behavior to growth—to discover that a single survey question can reliably predict sales revenue growth.

The big reveal question does not directly address either customer satisfaction or customer loyalty. Rather, it simply inquires about customers’ willingness to recommend a product or service to someone else. While other factors besides customer loyalty play a role in driving a company’s growth—economic or industry expansion, a product or service line that reflects the needs and tastes of current and prospective customers, good financial management and so on—repeat business and good word of mouth are indisputably two of the most important drivers of sales revenue growth and in general, no company can be profitable without them.

Loyal customers talk up a company to friends, family and colleagues. Their recommendations are among the truest demonstrations of loyalty because the customer puts his/her own reputation on the line when making them. Customers will risk their reputations only if they feel intense loyalty.

The customer experience is, I am certain, another significant factor in a customer’s willingness to recommend a business and many actions contribute to that experience. Marketing Departments point survey questions toward metrics they control, such as brand image, pricing and product features and benefits. But a customer’s willingness to recommend a business is also connected to how well the customer is treated by the front line employees—are they friendly (but not intrusive)? Are they helpful?

According to Reichheld’s findings, customer loyalty differs subtly but substantively from customer satisfaction. Gauging loyalty by way of the usual customer-satisfaction survey questions is not helpful. His research indicates that customer satisfaction lacks a consistently demonstrable connection to customer behavior and growth. Reichheld says it is difficult to identify a sufficiently strong correlation between high customer satisfaction scores and outstanding sales growth. “The question ‘How satisfied are you with (company X’s) overall performance?’ is a relatively weak predictor of growth,” he says.

One of the main takeaways from Reichheld’s research is that companies can keep customer surveys simple. The most basic surveys, providing that the right questions are asked, can allow companies to obtain timely data that is actionable. Reichheld goes so far to assert that a customer feedback program should be viewed not as “market research” but as an operating management tool. Below are five of Reichheld’s survey questions.

  • How likely is it that you would recommend (company X) to a friend or colleague?
  • How likely is it that you will continue to purchase products/services from (company X)?
  • How strongly do you agree that (company X) makes it easy for you to do business with it?
  • If you were selecting a similar provider for the first time, how likely is it that you would you choose (company X)?
  • How satisfied are you with (company X) overall performance?

Thanks for reading,

Kim

Photograph: (l-r) Phyllis Povah, Rosalind Russell and Joan Crawford in The Women (1939). Sales girl Crawford is showing her customers the fictitious fragrance “Summer Rain.”

Prediction: Emerging Social Media Platforms 2019 – 2020

Which new social media platforms are lining up to become The Next Big Thing for B2B marketers? Take a look at these four up-and-comers and figure out which might appeal to your customers and be a good forum for your products or services. Jumping in early can provide big benefits for your business, keeping you a step ahead of the competition. As they say, fortune favors the bold.

Lasso

Here is yet another video-based social media site, but it could be worth your time, especially when you consider how popular this form of content has become. Plus, Lasso is owned by Facebook and as such cannot be ignored. It’s being pitched as an alternative to TikTok (see below). Videos have a 15 second limit and users can add their favorite songs to play in the background. You can create and share videos with fun filters and effects. Users can also log in with a Facebook or Instagram account and cross-post videos to Facebook Stories. Posting Lasso videos to Instagram Stories is soon to come.

Why You Should Consider Using It: While Lasso isn’t as popular as TikTok now, it could rival its top competitor soon. If your target audience is using TikTok, Lasso is a platform you’ll want to keep an eye on. 

Steemit

Steemit is a blockchain-based blogging and social media site that rewards content creators and curators with the cryptocurrency named STEEM. Creators whose content gets up-voted are paid with STEEM, as are those who write useful comments on others’ content. Recipients of STEEM currency can take their digital tokens and exchange them for real money.

This Reddit alternative is about more than cryptocurrency and technology topics, however. Users are invited to create content on a wide range of subjects, including travel, photography, food, music and sports. Besides the Steemit platform, the service aims to compete with other social media platforms as well. To challenge Instagram, Steem created Photosteem and SteemQ is a video sharing platform built on the Steem blockchain that will chase Youtube’s market.

SteemQ and PhotoSteem will employ the same model as Steemit. Since Steem is open source and they have announced that they will support new applications, we’re likely to see more Steem platforms pop up in the future. As of March 15, 2019, the service had 1.2 million registered users.

Why You Should Consider Using It: While Steemit has a relatively small user-base so far, smart marketers can use the platform as an additional channel to share content, grow their audience and pick up some cryptocurrency along the way.

TikTok

In 2017, the lip-synching app Musical.ly merged with a similar, newer app called TikTok. The newly configured company has enjoyed explosive growth: as of 2019, TikTok has 500 million+ active monthly users worldwide and 800 million + downloads. TikTok is now more popular in app stores than Facebook, Twitter and Instagram. The service is a huge hit with younger audiences. According to the research firm Sensor Tower, TikTok was the fourth-most downloaded app in 2018.

TikTok’s short-form videos play on a loop, similar to the now-defunct Vine. Users can easily create and share content, but what sets TikTok apart from other video-creation platforms is the simplicity of adding musical overlays, fun effects, AR filters and more. Once you make a video, you can optimize by adding hashtags that can make it easier to find via search.

Why You Should Consider Using It: If your target audience is age 16-24 years, then TikTok is a great place to promote your business. I predict its popularity is poised to expand into the 25 – 39 year old cohort, based on a TikTok video of a service designed for parents of infants that was shown to me as I taught a business plan writing course yesterday evening. That TikTok is also potentially effective for fashion and e-commerce purveyors who want to work with influencers reinforces my confidence in the prediction.

The Cambridge, MA marketing firm Hubspot recently reported that The Washington Post is on TikTok and has already marked 54,000+ followers. Heads up, the Post’s TikTok content typically features relaxed and personal behind-the-scenes looks into its newsroom.

Vero

Vero is an Instagram alternative that boasts about having no ads, no data mining and no algorithms. Vero labels itself “more social, less media” and focused on providing a natural and ad-free experience. Users share photos, music, TV shows, movies, books, links and more. You can decide who can see each post by choosing between four categories: Close Friend, Friend, Acquaintance, or Follower.

Vero does not accept advertisements, a real plus for many users, but brands are able to work with influencers on the platform and pay to add a “Buy Now” button for their posts. Brands can create a Vero account and those brands whom Vero determines are capable of selling and fulfilling orders may share posts directly with their followers, i.e., those who opt-in to view posts that contain items for sale and a “buy” button to facilitate purchases.

Vero calls itself a subscription service but so far, the service is free. Registration for Vero can only be done on the app. There is no option to sign up on the website. Mashable reports that 50% of users are 21 – 40 years old and 68% male. As of March 1, 2019, there were 5 million subscribers.

Why you should consider using it: Without ads and algorithms, Vero is touted as the more “authentic” social media platform. It’s perfect for companies that want to build stronger, more meaningful relationships with their audience. Plus, because users can share such a wide range of content, it’s great for learning more about your target audience.

When evaluating which platforms are worth watching or experimenting with, here are four questions you should ask :

1. How many active users? Big numbers could mean that the platform is gaining momentum and your brand will have more opportunities to get in front of a large pool of users.
2. Are publications or thought leaders talking about it? If a platform doesn’t specify exact numbers, but marketing industry thought leaders or even news publications are discussing it, then it might be promising.
3. Will audiences be interested in the platform? While a tech novice might not enjoy TikTok, a teenager might get bored on Facebook. Younger people prefer visual apps like TikTok and Instagram. While you want to pay attention to the level of adaptability, you also pay attention to how your audience wants to interact with social media.
4. What type of content should we use to promote our brand on the platform? Always draft an action plan when introducing your brand on a new platform. If you can’t come up with any interesting ways to market your specific product on a really niche platform, you might want to postpone engaging. On the other hand, experimenting with different posting strategies could allow your brand to look creative and cool to your audience.

Thanks for reading,

Kim

Hipparchus (c.190 – c.120 BC), Ancient Greek astronomer, at the Alexandria Observatory in Egypt. At left is the armillary sphere he invented. Hipparchus is considered one of the greatest astronomers of antiquity, who calculated the length of the year. It is thought that the later work of Ptolemy was based on the work done by Hipparchus. Engraving from Vies des Savants Illustres (1877).

How Freelancers Scale Up

According to the Small Business Association in 2018, there were 30.2 million small businesses (< 500 employees) in the US and 80%, 24.3 million, were one-person ventures, i.e., Solopreneurs. Although just under 6 million small businesses have paid employees, those businesses nevertheless employ 47.6% of private sector workers, 59 million of 124 million employed Americans (factoring out government and not-for-profit organizations—schools, hospitals, social welfare agencies, the arts, religious institutions). BTW, there are fewer than 20,000 large businesses in the country—19, 464 in 2018. 2017/08/04125711/Frequently-Asked-Questions-Small-Business-2018.pdf

I suppose it can be said that in American business small is beautiful, or perhaps more accurately, small is the reality. Many of those 24.3 million Solopreneurs attempt to turn what could easily be called a Weakness in the SWOT (Strengths, Weaknesses, Opportunities, Threats) strategic planning matrix into a Strength (me!) and use terms such as “boutique” to describe our business, along with marketing-spin phrases such as “personalized service” to communicate to prospective customers that the experience of doing business with us will be very positive and that no one is treated as a commodity.

Operating a boutique business is all well and good, however “boutique” can easily turn into “broke” if the proprietor continues to just scrape along, trying to bring in enough customers to pay the rent and keep the lights on. In order to make a go of being a business owner/ operator, it is necessary to scale the business. A business has successfully scaled when it can deliver its products and services to a significantly larger customer base while maintaining or improving operational efficiency and quality control. Good strategy and execution are needed to scale, but it’s often do-able. Read on and learn tactics and inspiration that will help you decide how to scale your venture.

Scale the Brand

The process for scaling your Freelance business starts with knowing, articulating and communicating your Brand. To attract more clients so that you can double or even triple your roster over a 3-year period, for example, you must communicate in various ways—client testimonials, case studies, LinkedIn recommendations, social media, company website, your newsletter or blog and other marketing channels—that you are highly competent, trustworthy and dependable. You deliver every time and you meet and often exceed client expectations. You bring value. Invent a Branding tagline to help yourself stand out from the 24 + million Freelancers in America and add it to your email signature block.

Be advised that Branding doesn’t simply refer to the colors you use for your business card or logo. Branding encompasses all client touch points during which your client encounters or interacts with you and your company, from the initial contact with you, interaction with employees, the tone of emails, visiting and navigating your website, your payment and billing systems, social media posts, advertising and everything in between. Articulating and communicating your Brand not only enhances the perception of your know-how as a Freelancer, but also makes it easier to scale your business in the future.

Scale client acquisition

Freelancers tend to get stuck in a rut of competing for projects in the same way over and over. We find a tactic that works, whether it’s cold emailing potential clients or applying for jobs posted on sites like Upwork.com and Guru.com. One will eventually figure out how to get hired on those sites, but you’ll still leave a lot of work on the table. It’s been reported that 27% of Freelancers find assignments via referrals made by friends, family and clients; 24% find projects through online job boards, email marketing and social media platforms like LinkedIn ProFinder. How can you make the most of these sources?

You don’t have to chase down all possibilities but do get into the habit of exploring alternative client acquisition methods, to get your name and expertise in front of a wider audience. Your current clients are also a potential source of referrals (I’ve been lucky enough to have that happen). Get the ball rolling by making a referral for your client first, so that you will come to mind if one of the client’s colleagues could use your services. BTW, unless you’re in IT, job boards attract clients who low-ball the money. Not only that, but Upwork now requires Freelancers to pay to submit a proposal and then pay again 20% of the fee when one is hired. I will not pay to apply for a job and that service is off my list.

Scale your network

Networking can potentially deliver significant benefits that accrue from the relationships you build. Networking helps us meet new friends, find a future spouse, get invited to join a board, learn of a house for sale when we’re looking to move, or get a job referral. Networking will also bring to you potential collaborators, for those times that you need to bring in a Freelancer colleague in order to take on a bigger project, or the gift of community support when it would be helpful (and when is it not?).

Start building your professional network ASAP, compiling connections who are Freelancers themselves and maybe also potential clients. Try connecting with fellow Freelancers in the comment section of industry blogs and industry-related LinkedIn and Facebook groups and participating in relevant Twitter discussions.

Scale your skills

Whatever one does for a living there is always training and development involved, that is, if one is lucky, because professional development is an investment in you and no one can take it away once you have it. In order to find work, the Freelancer must be considered a trusted expert. To be considered an expert, one must be better than the rest and that means your knowledge and skills must be bleeding edge current.

When preparing to scale your business you have to grow as a person and a professional and that means learning new skills, keeping up with the newest trends and learning to use applicable tech tools. This can be challenging, as well as time consuming, but what you learn can perhaps lead to new business ideas, smarter planning for the future and implementing new systems and approaches. Online education sites like Coursera, Udemy and Codecademy are a good place to start. Serving on a board, teaching and even judging a business award (I’ve judged the Stevie Awards/ Women in Business category https://stevieawards.com/women for 6 years) are other ways to keep skills current and learn new competencies (and network as you do).

Scale your creativity

To effectively scale your Freelance gig and transform it into an enterprise, you need to break out of your service-based mentality and the best way to do that is to create a product to sell. Think about it—once you’ve created your e-book, course, or physical product, you can sell it over and over, whereas you’re limited to providing a certain amount of services per week to clients.

Not only does a product give you the ability to reach many more people, but creating a product also provides you with passive income, giving you more time to work on other areas of your business. Put on your thinking cap and see what you can dream up. An e-book or online courses are probably the most accessible products for B2B service providers to produce. I don’t have an online course to sell (yet), but I’ve been teaching business-related subjects for more than a dozen years.

Scale your systems

In order to grow, one needs the tools to keep revenue consistently coming in at a steady and abundant pace. To support opportunities for that business growth, it pays to systematize certain business functions and responsibilities. Outsourcing gives you the pleasure of employing a fellow Freelancer as you devote more time to the pursuit of lucrative clients or identifying another product to sell.

Invoicing, bookkeeping, newsletter or blog editing and social media account management are popular outsourcing functions because they do not require a deep knowledge of your business. Outsourcing (or automating) routine tasks gives you the time you need to work on your business, not in your business and that will enable you to scale.

Thanks for reading,

Kim

Photograph: (Reuters) Master Baker Bartolo “Buddy” Valastro, owner of Carlo’s Bakery in Hoboken, NJ and star of the reality television show Cake Boss (TLC)

6 Questions to Ask a Prospect

Woo-hoo, you’ve got a live one here! You’ve stumbled upon a prospect and you do not want to screw up and lose what might be an opportunity to get paid. You want to keep this fish on the line and figure out 1.) if s/he is serious about hiring a Freelance consultant to work with and 2.) if the project is something you can handle. A series of easy-to-remember questions that help you to encourage the prospect to open up and tell you what s/he needs and also move the process toward a commitment for further discussion are essential. Your goal, of course, is to obtain a project that will both enhance your revenue and if possible, enhance your CV as well.

Picture this—you and the prospect have each given the meet’n’greet (short) versions of your elevator pitch and the prospect is showing an interest in your offerings and would like some details. You’re asked if you’ve ever worked on a particular sort of project, or provided a solution for a certain kind of challenge or problem. Presented below are questions designed to make it easy for your prospect to share information and allow you to position yourself as a good candidate for hire if a project actually becomes available.

  1. How can I help you?

“A customer’s time is valuable, so that first question must be impactful while still respecting their time,” advises Eng Tan, Founder and CEO of Simplr, a customer service and customer experience start-up. ‘How can I help?’ is open-ended enough to invite feedback, but also show that the customer comes first.”

2. What is the problem or pain point?

You cannot jump into a sales pitch until and unless you hear the prospect describe the matter that must be resolved or challenge that must be overcome. Only then can you determine if you have the expertise and resources to provide the desired solution. Allow your prospect to tell you what s/he would like you to do.

3. What is your goal?

Get the prospect to articulate the purpose of the proposed project and what the resulting deliverable means to the organization. Determine if this is a mission-critical goal and the date that the deliverable must be received. It is to your benefit to understand why the prospect feels it’s worth paying outside help to get the project done. The proposal you write and your pricing structure, if negotiations get that far, will be impacted by this information.

You must also understand what will happen if the client does nothing (and nothing is precisely what most of them do anyway, am I right?). So do your best to find out what it all means to the prospect and the company and how the proposed project fits into important goals.

BTW, not every project that gets funded is tied to a meaningful goal. I know someone who probably makes 3x what I make in a year by producing an ultimately ridiculous vanity-driven deliverable for well-known for-profit and not-for-profit organizations. Enhancing reputations can be big money, it seems.

4. Have you done anything about it so far?

With this question, you’ll learn if the prospect has worked with a competitor. You can follow-up and ask if there was dissatisfaction with the competitor’s deliverable, price, or customer service. If the matter has so far been handled in-house, you can follow-up and ask why outsourcing looks like a good option now. In short, you’ll learn why your decision-maker or stakeholder/ decision-influencer prospect is motivated to talk to you about the problem and inquire about how you might resolve the problem or produce the deliverable.

5. Is it you who decides how this matter gets resolved?

At this point in the conversation, it is both prudent and politic to ask who makes the decision to bring in someone from the outside, i.e., a Freelancer. You will have earned the right to know if the individual with whom you are speaking has the authority to green-light a project on his/her own, or in concert with a select group of stakeholders. You need to get a sense of how superiors, colleagues, or stakeholders feel about bringing in a Freelancer and I recommend that you get an answer before proceeding with the conversation.

It is possible that your prospect is alone in thinking that an outsider should be brought in to manage the project and his/her opinion may or may not prevail. Now is the time to get a sense of whether outsourcing this project is wishful thinking or a possibility.

6. What would you like to see happen next?

With this question, you invite the prospect to commit to follow-up, be it a face-to-face meeting, an email, or a telephone call. The prospect will be able to reconfirm his/her confidence in your capabilities as s/he shares more information about the proposed project and digs deeper into the how and why your product or service can address pain points and facilitate realization of the company’s goal.

This conversation will determine whether you are considered a serious candidate for managing the project and if the company is serious about hiring a Freelancer. You could very well be invited to submit a proposal and if that is the case, it is a big vote of confidence (but alas, still no guarantee).

If asked upfront about pricing, you might like to respond “What’s your budget?” If it’s smaller than you hoped, work with the prospect to provide the project must-haves, minus the too-expensive extras, at a price the organization can afford. Then again, they could surprise you and appropriate more money. You just never know!

Thanks for reading,

Kim

Photograph: The Fuller Brush man visits a prospective customer (circa 1950)

Harnessing the Cloud: You’ve Got an App for That

Freelancers and other business owners are nearly always pressed for time and we need to get things done, quickly, efficiently and accurately. Advances in technology have yielded many apps that can make our lives easier and make us look good as we take advantage of their features. Below is sampling of free to low cost apps that will help your business.

 SIMPLIFIED GRAPHIC DESIGN

Canva. If you’re in need of professionally-designed marketing materials for your business but don’t have the budget to hire a graphic designer, you can successfully DIY with Canva https://www.canva.com. This useful app features attractive design templates that allow you to create beautiful visual content for the images that are the core of social media marketing. You can also design logos, brochures, infographics, business cards and templates for Instagram, Twitter and Facebook posts. Canva will also allow users to crop images and enhance photos. The website provides good support, including tutorials on how to use Twitter for marketing. The free version of Canva offers most of the features a Freelancer or business owner will need and an upgrade to the Pro version costs $9.95/ user/ month.

MANAGE RECEIPTS AND EXPENSES

Expensify. All those who travel for business must collect and organize a stack of receipts very soon after returning, whether you’re a Freelancer who must save them for quarterly taxes or an employee who must submit receipts to your boss.  Expensify makes an onerous task much more bearable by automatically scanning the printed paper receipts and adding them to pre-designed templates that facilitate a seamless transition into your electronic records. Other features include reimbursement calculation based on the number of miles travelled, hourly billable amount or wage, a choice of four currencies for calculation and synchronizing directly with your bank account. Free  – $4.99/ month for most users.

ACCOUNTING AND INVOICING

FreshBooks. If you operate a B2B knowledge economy service business that doesn’t need a high-powered accounting solution, then FreshBooks  will give your organization a user-friendly option that offers a lot of functionality. You can track billable hours here as well and also log receipts and send invoices from your smartphone or tablet. The service integrates with several others, including Basecamp, PayPal, Google Apps and ZenPayroll.  The basic plan starts at $15 a month and allows management of up to 5 clients. More fully featured versions allow unlimited clients for up to $50 a month.

NEWSLETTERS AND EMAIL MARKETING

Mailchimp. This easy-to-use email marketing tool is a go-to for Freelancers and small businesses. It offers easy-to-use templates and intuitive drag-and-drop email building that anyone can use to create a professional-looking email that will enhance your company’s reputation. It also allows you to automate your email campaigns and track subscribers, so you can make the most of your communications campaign. Plus, Mailchimp https://mailchimp.com offers easy integration with many popular e-commerce tools. The basic service is free, but many will want to upgrade to either the $9.99/ month plan, which provides custom branding email design or the $14.99/ month option, which gives users custom newsletter and email templates and marketing automation.

SCAN BUSINESS CARDS

ScanBizCards.  Rather than taking a card from someone with whom you’d like to follow-up, it’s much more efficient—and cooler—to scan the business card or even a conference name tag and know you have that important person’s information will be saved automatically in your phonebook. ScanBizCards

VIDEO CONFERENCES

Skype for Business. The classic video conferencing app is owned by Microsoft and the functionality of its infrastructure is versatile, powerful and seamless. The service offers free online meetings for up to 10 participants, set-up from any device, PC or MAC, Android, iPad, or iPhone and PowerPoint upload capability, Instant Messaging and a white board feature. Unlimited free video conferencing, instant messaging, conferencing and audio calling are also offered and  Skype for Business runs ad free and without interruptions— excellent for a business interview or discussion.  Explore the premium features through Microsoft Office 365—$6.00 / user/ month – $15.00 / user/ month.

TEAM COMMUNICATION AND COLLABORATION

Slack. There are several real-time messaging and file-sharing apps available, but Slack prevails as a result of its simplicity. It has DropBox, Asana, Google+ Hangouts, Twitter and Zendesk compatibility built into the app and the platform is very responsive and user-friendly. Every message is archived, so searching is quick and easy.  Free – $15.00/ month / user for premium services.

BILLABLE HOURS MANAGEMENT AND INVOICING

Toggl.  This timer tracks how you spend your time, making it an ideal support system for those who must record billable hours in order to accurately and quickly prepare invoices so that they will get paid, Freelancer friend. You can track as many projects or clients as you want and assign your hourly rate to each project, so that you can quickly calculate what you’re earning, export timesheets and sync your numbers with several project management apps. Toggl is priced from $9.00 / month /user for the basic service to $18.00/ month/ user for team time tracking and other premium services.  

Thanks for reading,

Kim

Photograph: Kim Clark September 7, 2018. Fog x FLO, a “fog sculpture” installation by Fujiko Nakaya (Japan) that appeared in five Boston locations from August – October 2018. Every hour from dawn to dusk, a blast of steam would be emitted by a special mechanism and the fog would appear—and disappear in a minute or two, depending on how the wind blew. The fog sculpture pictured here was across the street from the Isabella Stewart Gardner Museum.

Pricing B2B Services

According to Dorie Clark (no relation), Adjunct Professor of Business Administration at Duke University’s Fuqua School of Business and author of Entrepreneurial You (2017), there are four pricing strategies that Freelance consultants might use, depending on the project at hand and the relationship you have, or would like to have, with the client. It is crucial to follow a pricing strategy that will support your objective to persuade the client that your prices are fair, your solution will be effective and you are the right person to hire.

Hourly billing. The most straightforward pricing strategy is to bill clients by the hour. When you are unsure of the number of hours it will take to complete a project, perhaps because your responsibilities will vary from week to week or month to month, then an hourly rate pricing strategy is reasonable. On the other hand, if you do have a good idea of the number of hours that should be necessary to complete the job, an hourly billing strategy is also reasonable, particularly for one-off assignments or sporadic work with the client.

You can then provide a reliable project estimate, based on your hourly rate for the work proposed and the anticipated number of hours, and that information will be reassuring to the client. But if you underestimate the time needed to complete the assignment the downside of this strategy will emerge, because your final price will overshoot your estimate and your client may not be thrilled.

Another potential downside to hourly billing is the level of scrutiny that it invites. Some clients may challenge the number of hours you record for the tasks involved and that is uncomfortable.

Set fee for services. This pricing strategy requires the Freelance consultant to develop a standard suite of services, where all related tasks are included and there is one price for the whole package. “Productized services” is the term pricing experts use for this strategy. If certain of your services are frequently requested, make life easier for yourself and your clients and create a standard rate sheet for services you perform most often.

For example, if you often conduct half or full-day workshops, billing a flat fee for all tasks involved is a more favorable strategy than billing separately and hourly for the associated tasks. Clients are comfortable accepting a flat fee because the project price is all-inclusive, predictable and transparent. Furthermore, the project specs describe your duties and discourage “scope creep,” those extra unpaid tasks that some clients like to sneak in. If the client would like an extra service or two, then you’ll price those separately and not be tricked or coerced into giving away free labor.

Value-based pricing. Evangelized by Alan Weiss, elite management consultant to multinational companies such as Merck Pharmaceuticals and author of dozens of books, including (Million Dollar Consulting [1992]), this strategy hinges on what Weiss calls “a value-based project fee structure.”

You begin by having a detailed conversation with the prospect so that you will understand the project requirements and the project’s relevance, urgency and impact on the organization. In other words, you and your prospect will achieve mutual agreement on the value of the project to the business. Weiss says that it’s useful to ask questions such as, “What would be the value to the company if this weren’t a problem?” or “What impact would it have if you could do XYZ better?”

Dorie Clark recommends the value-based pricing strategy for Freelancers who work with Fortune 500 companies, because value-based pricing is a way to help the prospect envision and appreciate the value of the right outcomes delivered at the right time. Clark feels it is appropriate to charge a higher project fee when working with big-budget clients because the stakes are so much higher.

Your work for a Fortune 500 company might, for example, create $10 million in new value, whereas even a dramatic improvement for a small not-for-profit organization may only enhance the bottom line by $10,000. Once the prospective client understands the full value that your work will bring to the organization, your fee — a tiny percentage of the overall gain — will in theory seem trivial in comparison.

Retainer agreements. These are an excellent arrangement because predictability is a wonderful thing for both you and the client. Once it is established that you’ll work a more-or-less fixed number of hours per week or month on a certain assignment or category of assignments and a comfortable relationship develops, by all means suggest that you create a monthly retainer agreement. Bring evidence of 6 – 12 invoices to bolster your case.

In the retainer pricing strategy, the client pays the Freelancer a flat fee every month for on-demand access to your services (and that could be anywhere from $500/month to a four or even five figure sum). This allows you to depend on a certain amount of money each month, no matter what. The downside is that unless you’re careful, your client may take advantage of the “all you can eat” pricing by monopolizing your time.

To prevent abuse, be very clear upfront about who can contact you and for which types of services. It is also advisable to specify the hours that you’ll be available ( 8:00 AM – 6:00 PM or longer?), the protocol for weekends and holidays and the methods of contact—email, phone and/or text. You’ll also want to specify whether they only have access to your advice, or if there are specific deliverables you may be asked to produce (for example, you might also agree to generate content for social media or the company newsletter). As you gain more experience and develop long-term relationships with clients, you will be able to propose retainer agreements and institute more control over your monthly income.

Freelancers who succeed are those who are appreciated for the value they bring to their clients’ organizations. An important building block that supports how you communicate your value to the client is your pricing strategy. Study the pricing options discussed above and choose the most advantageous for you and your client.

Thanks for reading,

Kim

Photograph: Courtesy of the Everett Collection. Dink (Margaret Nolan) gives James Bond (Sean Connery) a massage in Goldfinger (1964).