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How to stop giving away your ideas for free

by Donald Cowper  |  December 17/2012  | 

The ideas you have to help your clients solve tough business problems are great—except when you don’t get paid for them. That statement summed up Deidre’s problem. Deidre is a brand consultant, a really good one. But she would often go through periods of struggle—secretly because she never wanted any of her clients and prospects to think she wasn’t a success. It was a secret she’d been keeping since she started her business almost ten years ago.

An ulcer gives birth to a new business

Back then, she quit her corporate job as a branding specialist to escape a toxic work environment, one that had literally given her an ulcer. To guarantee her next workplace would be easy on her tummy, she decided to open up her own brand consulting practice. She did a great job of branding herself (surprise, surprise), which helped make sure her phone rang frequently. Unfortunately she often had trouble turning those callers into clients. Her unpaid bills would pile up like little haystacks on her desk and she’d worry she was closing in on another ulcer.

A prospect comes a calling

A mutual friend who knew what Deidre was going through sent her to me. When we got together, I asked Deidre to tell me about some of her calls. After listening to her for a while, I noticed a recurring theme. One of her typical calls went like this.

A guy named Tom who’d heard about her from a client called her up. Tom recently joined a food service company that had lots of potential, but was struggling to market itself properly. He knew branding was a problem and he was excited to get referred to Deidre, who his friend said was a branding superstar.

Throwing the client a bone, and then some

In their call, Tom asked Deidre to pull up his website. After she did that, he started asking her what she thought of their current branding and what she would do differently. She immediately saw what was wrong and what to do about it, but she knew not to give the farm away. Still, she felt she had to throw Tom a bone so he could see the value she could bring. After he chewed on that first bone, he asked for more. With some hesitancy, she gave him a second bone, telling him that his company’s values of taste and nutrition should inform the brand. He loved those bones, but was still hungry. Worried she’d lose the sale if she didn’t feed him more, she dug deeper into her treat bag, giving more and more bones away as she developed examples of imagery and messaging that could convey the brand themes. In the end, Tom told her he absolutely loved her approach and said he would be in touch.

The dog never comes back

That first call was the last time they spoke. A few months later, she checked Tom’s website and saw that he’d actually implemented a lot of her ideas. That pissed her off. But it wasn’t the first time something like that had happened to her.

It’s show don’t tell…. But how? 

Deidre’s no dummy. She knew she shouldn’t have given away so much, but she didn’t know what else to do. “I’ve tried not giving away any ideas, but that doesn’t work either,” she told me. “You can’t just tell somebody you can help them, you have to show them.”

Dirty dogs 

I told her she was spot on. In fact, showing a prospect how you can help them is essential. They’ll rarely work with you unless you do. But it’s how you show them that matters. Most people who run a service business provide two things—ideas and execution. Both are valuable to your prospects and they should be paying you for each one. If you give your ideas away during the sales process, the only thing you have left to offer is your execution of those ideas. Sometimes your prospects can do the execution themselves, or use someone else. It stinks when your prospects take your ideas but don’t use you for the execution. People who do that are often dirty dogs, but not always. They might not realize what they’re doing—after all, it was you who gave away your ideas for free. So, what should you do?

Think of it like solving a termite problem

As I told Deidre, first, you have to consider what your prospect needs to know in order to make the decision to hire you. They don’t need to know how you’re going to solve their problem, they only need to know that you can. Imagine finding evidence of a termite infestation in your home. You’ve never had this problem, so you call an exterminator. You don’t need the guy to come to your house and get rid of the termites before you decide to give him the job. And neither do you need him to show you how he’ll do it so you could do it yourself if you wanted. You just need to know he’s successfully done it before. You probably also want to know he’s trustworthy and affordable, but those issues aside, all you need is the exterminator to show you he’s capable of solving your problem. Same goes for you toward your prospects.

The power of story

So, how do you show your prospects you’re capable of helping them? You show them how you’ve helped someone else. You use the power of story. When I told Deidre this, she immediately thought it made tons of sense, but then wondered about crossing a confidentiality line by revealing what she did for a client. “You certainly don’t want to do that,” I said. “In fact, you don’t even have to actually give the name of the client away.” As I explained to Deidre, you can change the names and any telling details (like I’m doing here with Deidre’s story). All you need to do is make sure your story reveals your client’s problem and how you solved it. And, of course, what the wonderful result was. You do have to watch out for stories that express the same idea that you would use with your new prospect. It can often be tricky. Sometimes, you have to give a little hint here or there of the solution. That’s okay. Just don’t go too far and solve your prospect’s problem. Make sure they’re a paying client before you do that.

You’re a problem solver

The main thing your story must communicate is that you’re a problem solver. In her conversation with Tom, Deidre could have said that the challenges he faces are similar to the issues a client of hers had. Then she could have gone into more detail on how she developed themes and imagery and messaging for that particular client. She’s not giving Tom ideas for his business, but she’s showing him how she delivers powerful solutions.

A grab bag of stories

I advised Deidre to go away and develop a minimum of five branding stories she could pull out in her sales calls and meetings. Each story should convey a different problem and/or a different type of client, so she would always have an appropriate story.

Deidre did her homework and started to experiment with the story approach. At first she had trouble resisting the urge to directly help her prospects. She realized part of her problem was her inborn desire to help, so holding back wasn’t easy. But she found that if she stuck to her stories her prospects were eager to see what their own story would be. Wisely, she would make it clear to them that to get their story, they would have to pay up. And many of them did. More frequently than they ever had before. And go figure, the year she started telling stories was the first year she didn’t struggle. No more pressure to keep secrets and no more tummy problems either.

If you’ve struggled with giving away your ideas or have any other approaches that can help you get paid for your ideas, please let us know in the comments section below, or shoot me an email at donald (@) freshbooks (dot) com.

The big takeaway: Stop solving the prospect’s problem during the sales process. That goes for conversations over the phone, in-person meetings, proposals, presentations…. anything you’re doing to try to turn a prospect into a client. Instead use stories to prove to your potential client that you have what it takes to help them. Once they’re paying you, you’re all set to deliver the goods.

Author’s note: this post is based on a brand consultant I’ve coached. I’ve called her Deidre, but that’s not her real name.  

For other stories by Donald step into The Cowper Files.

Donald Cowper is a Small Business Writer at FreshBooks. He’s a successful entrepreneur, an experienced coach and the coauthor of two bestselling business books—Mega-Selling and The 8 Best Practices of High-Performing Salespeople. 

  • http://www.andrewareoff.com Andrew Areoff

    This is a thorough and very insightful post and one that I can relate to very well.

    I offer branding services to my clients as well as website and graphic design. Much of what we do is based on our experience and ideas rather than just producing work – there are many people who can do as good a job on a technical level but what makes the difference is the raw ideas and advice I give to my clients.

    Like ‘Deirdre’, as a company we have to be careful not to let the cat out of the bag as it were before being hired by the client and I do indeed tell lots of stories about our how I and my colleagues have helped other clients with similar issues over fifteen years of being in business.

    I like to try and avoid the case study route because this does indeed go down the route of telling other people what you have done for specific clients and this is far from ideal. Not only do most clients prefer you not to tell the world and his wife what they are up to as a business and the problems that had with their marketing, to do so tends to send a message to a potential client that you might spill the beans on their business as well – a sure fire wire to send some businesses running for the hills, and who can blame them?

    So there is a fine line to tread between not giving away all your secrets before actually getting a client to commit to using you, but at the same time reassuring and convincing that would-be customer that you know what you’re doing, you’ve helped clients in similar marketing predicaments many times before, and above all, that you’re going to represent good value for money and a decent ROI for their business.

  • Donald Cowper

    Hi Andrew,
    Wow…Your point about distinguishing between case studies and stories is an immensely valuable one, so thanks for taking the time to express it so eloquently. It’s a point we can all learn from. It’s a little bit like that common dating mistake where people trash or gossip about their exes. The other person thinks, “Ugghh, I don’t want to go out with this person and get talked about like that.”
    Donald

  • Lisa Gorman

    Donald great article!
    I too have been in this predicament and with written proposals find it difficult not to give my content away!
    I am currently building a website though and had planned to include case studies. That gets me part way there I suppose.
    I’m retweeting this now!
    Thanks again
    Lisa G

  • Donald Cowper

    Hi Lisa,
    Thanks so much…. you make a fantastic point about proposal writing — I know all too well how hard it is to resist giving your content away in a proposal – so you’ve got lots of company there. Hopefully you find that using stories that demonstrate your capability are all that your prospects need before hiring you. Wishing you the best with your new website.
    Donald

  • http://www.seanoliver.com Sean

    Wow! Call me Deidre and paint me ‘guilty as charged’. More than once, I’ve solved 5-figure business problems over some fish tacos. I rarely make the lunch mistake anymore, yet as a Business and Leadership Coach I hate solving the wrong problem (symptoms vs source). So in identifying what the ‘real issue’ is during the initial conversation I find that my discovery process can be so enlightening to them that they say things like, ‘wow, i think you’re right, I’ve been going about this all wrong and let me work on the things you’ve pointed out and i’ll get back with you.” In trying to add so much value and show expertise that I find that instead of giving them a sample, before i realize it I’m laying out a 5 course meal. They are so full on my initial offering that they feast on that info for months. And the thought of ‘more helpings’ when someone is that full is like grandma trying to send food home with you after Thanksgiving… NO Thanks! i don’t want to see food for a week!
    I love the idea of 5 branding stories. It appears to me that MS did this with their
    Dynamics CRM site. http://www.microsoft.com/en-us/dynamics/crm.aspx
    Stories (Solutions) are told about how each department’s problems will be addressed. They also highlight some of their clients which as you know creates social proof and credibility. I am sure there are other examples.
    Thanks for reminding us that our real value is providing solutions that clients are willing to pay for and partner with you on. I needed that as I embark on 2013.

  • Donald Cowper

    Hi Sean,
    Loved your comment… solving “5-figure problems over some fish tacos.” Brilliant. And the grandma-Thanksgiving metaphor — WOW. Blown away. Even better, your point is spot on — exploring the problem with the prospect is a slippery slope that often leads to giving away too much. It’s really hard to hold back, especially if you’ve got an expressive personality — that was always my struggle. Thanks so much for sharing your story and your insights. And smash it out of the park in 2013!
    Donald

  • Guy Nouri

    Thank you for the
    “not giving away your secrets during sales”
    it is very helpful

    i did it more than once with large digital media companies
    only to see these ideas up on their site the following week
    and no return call

    best to you

    guy
    dragonfly

  • http://www.sweetercpa.com Helena

    I’m going to write “termites!” on a post it and hang it where I can see it when I take my calls. That is a wonderful metaphor!

  • Donald Cowper

    LOL – thanks, Helena!

  • http://stickystarfish.com/ Angela Beasley

    This is a great article! I was really struggling with this type of situation – especially in Miami where every one is a “smooth operator” if you know what I mean. Thanks!

  • Madeline Yau

    I wish I would of read this blog in October 2012. I got burned by a company that wanted me to manage their social media and website. Because I wanted to receive more experience and build up my portfolio I took the position. They ended up taking my ideas and letting me go before the holidays. But now I have learned my lesson. You fooled me one shame on you, but if you fool me twice shame on me. Never again. Thank you for taking your time and sharing valuable information and tips.

  • Donald Cowper

    Hi Madeline, thanks so much for sharing your story, and sorry to hear that you got burned the way you did. That’s quite awful treatment. So many of us have suffered in similar ways. Hopefully it doesn’t happen again. I’m rooting for you.
    Donald

  • Donald Cowper

    Thanks for the heads up, Angela…. I’ll be on the lookout next time I’m in Miami :)
    Cheers,
    Donald

  • http://www.tacitconsulting.ca Jeff Sararas

    Hi Donald,

    All of my reactions/responses have already been covered in the comments! (What a rich commentor community you have here – happy to find the blog)

    SO, taking it a step further: Do you recommend suggesting a retainer of some sort? Because it’s hard to quote on a project until you’ve fully digested the scenario, identified some solution(s), discussed budgets with the client, and (in my case) gotten a sense of development times with your team. So, at *some* point you’re gonna have to spill the beans and unveil your brilliant perspectives and ideas upon the client – but usually that’s still going to happen *before* you’ve determined a project budget, invoiced your initial/up-front cost, and recieved payment.

    Could you share any advice or common practices on asking for a retainer? Or how would you suggest handling/structuring some up-front payment with these factors in mind?

  • Daniel

    Donald,

    This piece is excellent and exactly what I need to figure out as I am starting up my own company *and* I run an NGO. My personality is such that I am in the businesses that I am in to help others (and animals), but I basically lose clients regularly because I’m so quick to discuss the answer to their problems – and then they never get to the other myriad of challenges they face that I could resolve because they are satisfied with the main one being taken care of.

    I’m with Jeff on the question of retaining them. Part of the issue in my work is that sometimes I’m not the best person for it (that they need a different type of expertise – they came to the wrong place, essentially, but I often cannot tell this until I am looking at the situation on site). Because of that, I provide “free consultations” that also allows me to give give them a little bit while making sure I don’t need to simply refer them elsewhere. It’s tough.

    And I’m no dummy. Took a $60K budget and turned it into a $2.2 million budget at my former employer in a few years. Right now, I just want to get off of unemployment following my layoff (how’s that for thanks! lol – though it was about location and my family and I could not move even though we were welcome to stay on and move across the country).

    My other challenge is that my services are superior to those of my competitors and I am trying to establish my prices now. I should be charging more than others for what they will get, but I worry that I won’t get the clientele because of it. The most sustainable aspect of my work is ongoing clients and if I take on a bunch of clientele at the prices my competitors offer, I’ll be cutting myself short and it will be much more difficult to obtain that level of recognition and word of mouth referral that will make my price make (more) sense to someone who is just looking into such services.

    You’ve got some insightful readers here and I’m glad this blog just came to my attention … hopefully right at the time I needed it!

  • Donald Cowper

    Hi Jeff,

    We’re glad you found our blog! You’ve asked a great question, and one that lots of people struggle with.
    To answer your questions – if you are solving your client’s problem they should be paying you. So, as best you can, resist providing solutions during the sales process. Do what you need to do to convince your prospect that you can help them – use stories, references, referrals, demos, case studies, samples, charm, confidence etc…. when they believe you can help them, then yes, ask for payment. A few common practices you can explore are:

    1) ask for 1/3 of the project. This of course means that you are presenting a fixed fee up front, which is commonly done, even if you don’t yet know everything that might be involved. Let’s say the project is a website. You can have an off-the-rack price for a basic website and ask to bill that to get the project going. Your terms establish the scope of the project, so that if it goes over, you have the ability to charge more. It’s common to use a mix of fixed fee plus hourly rates for work that goes beyond the basic project.

    2) ask for a retainer. If you can’t set some kind of fixed fee amount and bill an upfront portion, you can ask for a retainer to get you started.

    3) bill for an assessment. Some people simply charge for the assessment part. Here you get paid for your ideas and recommendations. If the client goes ahead and wants you to implement your recommendation, you’ll charge the project fee (getting 1/3 or partial payment upfront). If the client doesn’t go ahead, you’ve at least gotten paid for your ideas.

    In all cases, it’s wise to get a sense of the prospect’s budget as early in the process as possible, so you know that you’ve got a genuine opportunity.

    Established service providers move as quickly as they can from the sales process, which is unbilled time, to a paid relationship. Oftentimes, for newer or less established service providers, it’s a matter of getting over shyness about asking for payment. Like I said, don’t give your ideas away for free, and with the strategies portrayed in the article above, you should be able to avoid doing that.

    Hope this helps.

    Thanks again for the question and if anyone else has any thoughts or practices that they use successfully, feel free to jump in.

    Best,

    Donald

  • Donald Cowper

    Hi Daniel,

    Congratulations on starting your company and thank you so much for sharing your personal and inspiring story. So many successful businesses have started the way yours has. And I can’t wait to hear about your own successes as you grow.

    With regard to your question about retainers and upfront payments, take a look at my response to Jeff above.

    As for setting rates, you’ve touched on a complex subject and one that I will be addressing in the future – so stay tuned. In the meantime, set rates that are fair for the value you offer. When it comes to your clients’ comparing your rates to competitors, the best approach is to show them what makes you unique. If they understand that you’re the best person to solve their problem, they’ll have no trouble paying you fairly for your great work.

    Thanks again and keep in touch.

    Best,

    Donald

  • Jeff Sararas

    Thanks alot Donald, I especially appreciate #3 – I’ve been chewing on some sort of combo formula and that makes perfect sense.

  • Amanda Young

    Awesome! This hit the spot. I’m going to write up my 5 stories and use them to show my skills while not giving it all away. Thanks for this great post. I’ll be sharing it with friends!


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