When the idea is worth more than the business
Published by on December 1st, 2008 Comments Off
Client opens with. “That’s OK. So I don’t know what happened to the other guy, he just didn’t get back to me, so you have a chance to take this on”.
What follows is a tirade of growing intensity while the client – accompanied by gibbon-like arm waving to demonstrate his interlinking, money-earning online website concept – while the the developer sits and struggles to grasp what he’s going on about – while trying to ensure his child is suitably lubed up with caffeine, I should add.
Over half an hour or so, the end of which was signified by the client abruptly switching his attention to his Blackberry to the exclusion of everything else, I hear much of the idea the client presents – sells to the developer (off goes that alarm bell again). What I did not hear, even once, was a proposition on how this wonderful concept, which was “just like so-and-so’s idea only better and he made millions but we can do it with hardly lifting a finger once you build the site”, was actually going to become a real, viable, profitable business.
When the client has to sell the concept to a developer, he is wanting more than simply someone to design-build a product. What he wants, is someone to work for equity, for a promise, or from a percentage of some future profit – a profit which, you will remember, has had not one syllable of substantiation.
There’s a subtle difference between a client briefing you on a project and the client persuading you to take on the project, and it is a difference the freelancer must learn to spot.
Ask to see the business plan
The moment you spot someone selling you a concept, and particularly once they have injected the suggestion about working for equity or a cut of future earnings, there is only one course of action: ask to see the business plan.
Then sit back and watch across the table at the avoidance, fidgeting, and all manner of excuses about it not being ready, incomplete, or “haven’t really worked out the details yet”. The best of all is “we don’t need one there’s no investment and it’s easy money”. Any kind of clear avoidance tactic to not offer a business plan – and one is assuming here there is already an NDA in place, which certainly should be the case prior to a meeting if you are going to discuss a new project concept.
It is at this point you discover why the first developer “never came back”, and at this point you finish up your coffee and politely end the meeting.
Show me the money
Providing you have the portfolio to demonstrate your ability to deliver, lay out a charging agreement that prevents you from undertaking any work until an initial percentage is paid. In cases such as described above, you can be fairly sure you will hear nothing more of it – and you should be grateful of that fact.
When you are politely reminded that the concept requires no investment, feel free to remind the client that while they sit back and watch you work your magic, you are not earning enough money to pay the rent and feed mochas to your hyperactive child.
Saturated market
The space is saturated with hungry developers eeking out a living on increasingly devalued skills, and equally flooded with preying, pseudo-preneur clients keen to exploit a newcomer to the business with the promise of something sweet for the portfolio. Though I have to say some are not so deliberately contriving and genuinely believe you are able to sweat for a promise while they sit back and watch. I’ve been caught by a few myself over the years but have thankfully walked away from many more.
Watch out for the predators!
