I have been criticized by some professionals for giving away too much of my time to prospective clients, and I do go longer than the customary 30 minutes before fees begin. My first meeting, and possibly the second, are off the clock. So, in essence, I give away my product.
During that initial meeting, there is a give and take in effect so the prospective client gets a feel for my expertise and style of doing business, and I get a feel for the potential of the engagement.
Neither the potential client nor I is obligated to go any further. The client learns about business structuring, planning, proformas and the capital market, but stills need someone’s service’s, possibly mine, to accomplish the goal.
What I do is similar to what large packaged good manufacturers have done for years — provide samples of their product to potential customers.
That package of instant breakfast cereal delivered with the newspaper, and the supermarket demonstrations where you get a taste of free food are examples of providing a product or service to those people who, if they like it and the value is right, become buyers.
Giving your product away can take a much more advanced form when you work on a contingency fee basis. While salespeople who are paid solely on commission are unfairly disparaged, think of the contingency successes and how you might be able to work contingency fees into your business plan.
Some of the most successful law practices operate solely on a contingency fee basis — they give away their work and are compensated only if they win your case. A few firms that do audits and other services are paid a percentage of what they save clients. They have a great selling proposition in being able to say that they believe so much in their own expertise that they are willing to go unpaid unless they produce tangible results. Additionally, they can say to a prospective client, “What do you have to lose by hiring us?”
So, while it might seem counterintuitive, you can gain significantly by giving your product away. Erwin Bruder ([email protected]) is president of The Gordian Organization. Reach him at (216) 292-2271.
