Attention Freelancers! How to spot a client red flag 🚩
What are those warning signs you need to look out for and how to deal with them.
I recently posted on Twitter that over the years I have learnt, as a freelancer, to identify red flags from clients. But these aren't always obvious or apparent at first, so we have developed a system on how we can avoid being caught out by these.
If you are a freelancer (either full time or as a side hustle), or thinking about becoming one then you might find this post helpful.
We know how difficult it can be as a freelancer. You have to do everything - the work itself, look after admin and accounts, invoicing and also marketing. On top of this, there is the pressure of securing clients and being as accommodating as possible because after all, this is your livelihood.
So we decided to use our combined knowledge - I have a been a freelancer for over 15 years and Sara practiced as a lawyer for just as long - to show you what red flags you need to look out for and how you can protect yourself as we do in our business.
We know how difficult it can be as a freelancer. You have to do everything.
Common red flags:
These are the most common red flags from clients we have come across:
No clear brief. No matter how many times you ask, they do not explain what they are looking for or are really confusing about this.
They keep changing their mind about what they want, especially after you have done substantial work on the project.
They have a track record of asking (and expecting) for free work. The likelihood is that they already have reputation for this in your network (and it’s always a good idea to check in with them)... then when you decline to do free work, they ghost you.
They say they want to test how good you are (or the results of the work) first, so expect the work to be free. This is accompanied by the promise that the next piece of work they request will be paid. Guess what? There will never be another piece of work from them.
They say you are too expensive or immediately ask for a discount ...before you've even told them your pricing!
And the last one - and this is a big one for me. They refuse to proceed if you insist on a retainer agreement or an invoice. One of the excuses we've heard is that dealing with an agreement will take too long and they need the work done straightaway.
They have a track record of asking (and expecting) for free work.
How you can protect yourself:
Whether you are dealing with one person, a startup or a big enterprise, here are our top tips on how you can protect yourself - even if those red flags come up.
Right from the beginning when initial contact is made:
Make it clear you expect to be paid for this work. If you have a pricing list then send this over right at the beginning.
Ask what it is they are looking for. You can even give some suggestions based on the services you provide.
Try to avoid spending too long at this initial stage or giving free advice, in case this is not a serious client and they ghost you. This includes avoiding a call so early on. You should be able to explain what you offer concisely in an email. If they insist then time box the call to 15 to 30 minutes maximum.
Once you are clear as to what the client is looking for and confirmed the price, do not be afraid to ask whether this is within the client’s budget. I would strongly suggest that you have an answer to this before moving forward.
If it looks like the client is serious about proceeding, the next step is to agree the scope of the work so that both parties know what is being done.
Our suggested steps are:
If you are finding hard to piece everything together in an email, then do have a call to talk about what you are going to provide but also (and sometimes most importantly) - what the services DO NOT include.
Follow up this call with an email setting out the above and also confirming next steps, which should include payment terms and also that you need a retainer agreement in place.
Send the agreement and invoice...more on that later.
Wait to have the signed agreement back and payment.
Once received...start work.
Do not be afraid to ask whether this is within the client’s budget.
This bring me to… payment:
You need to think about the type of work you are doing for this client. Some work might be appropriate to ask for the full free upfront. For example, I do this for sponsored social posts for clients.
If asking for the full fee upfront is not appropriate, then we would really recommend asking for money upfront so that you are not carry out work on risk. For example:
50% to begin the work
the last 50% at the end once the work has been completed.
Asking a client to make a financial commitment at the start is a good way of making sure they are serious about proceeding, they understand the deliverables and they believe they are paying a fair and reasonable price.
Plus if something happens then you are not completely out of pocket for the work you have done.
And now, let's talk about putting it all on paper.
We think it's super important to have a retainer agreement (which is sometimes called a Statement of Works) in place. This is a document signed by both parties which sets out:
the service: what you will do
it might include what you won't do
the timing of when the service will be delivered
the agreed price and when payment is required
what happens if one party wants to pull out of the deal
what to do if there is a dispute
This is a very simple overview of the key points a retainer agreement should cover.
Just like discussing money, it can sometimes be difficult to bring up the subject of a retainer agreement with your client.
Here are our top tips on how to confidently do this:
Make it clear from the start that you require a retainer agreement.
Ask your client if they already have one. Some companies have a standard agreement they use when working with freelancers and this is sometimes known as "Vendor Terms and Conditions". If you are sent one, then make sure you ready it carefully and clarify anything you don't understand.
If your client does not have a standard agreement to share with you, then consider spending some time putting one together yourself which you can use with clients over and over again. Just make sure to cover the points we mentioned earlier.
Conclusion
Your confidence will grow with time and also the more you have these conversations.
I completely understand that the topics of fees, payment terms and a retainer agreement can be difficult to bring up with clients. This is particularly true for freelancers where their livelihood depends on whether they can secure the work or not. Unfortunately there are some companies who will exploit this vulnerability.
Your confidence will grow with time and also the more you have these conversations. Plus, if you are confident in the services that you offer and that you charging a reasonable price, this will also help.
If there is anything else that you do as a freelancer which works well when spotting client red flags then I would love to hear from you in the comments.
If you would prefer to watch a video on this topic: