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Old 07-24-2009
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Default Client wants to Barter
I thought I finally landed my first client. We have been discussing how I would work with him to update his contact management spreadsheet for about a month. He asked me several times my rates and I quoted him the same rates for hourly, retainer and project every time.

He send me the spreadsheet last week. After looking it over and guess-estimating the time it would take me to clear up the 1200 rows of names, I sent him the estimated time and my project rate. I also included the contract and request for down payment. My contract clearly states that I must have a signed contract and down payment to start work.

After several days, I received an email staying he has a cash flow problem and wants to barter the job. His barter part would be advertising in his weekly one page newsletter. Since my business is very new and I don't feel that this would benefit me, I don't want to barter this job.

My return email requested that we meet to further discuss. I haven't heard from this client yet and another friend told me the client was in Florida on vacation this week.

What would you do?

Janet
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Old 07-24-2009
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Default Re: Client wants to Barter
Oh boy, Janet. I know how you feel being a new VA business, too. If there was value to YOU for what he was offering in barter it might be worth thinking about. Since there isn't a benefit to you, I would say "Take a hike, Mike," but in a nice way. Or better yet, tell him to then give you a call, or drop you an email when his cash flow problem straightens out. I would make sure to get paid upfront, too.

That's just my 2-cents. Others might have a completely different take on it.

This stinks for you.
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Old 07-24-2009
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Default Re: Client wants to Barter
Jules is right. I would add, just sweetly say so long and ask if you can add him to your mailing list. Then think of him when you create your next newsletter, and gently move him along in understanding how your services can help him.
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Old 07-25-2009
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Default Re: Client wants to Barter
Totally agree. Sounds like this guy is trying to get something for nothing. So, he can afford a vacation in Florida but he can't pay you money for your work? I don't think so.

Tell him that you also have a cash flow problem except that yours is that you need to be bring it in.

Seriously though, I would just let him know that you aren't able to accept a barter arrangement and to let him know he's welcome to contact you when he is able to make a down payment of at least 50%.

Also, if you do end up working with him, make sure you don't just hand over all the finished work without being sure you'll get the rest of your payment.
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Old 07-25-2009
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Default Re: Client wants to Barter
Originally Posted by JKVirtualOffice View Post
Totally agree. Sounds like this guy is trying to get something for nothing. So, he can afford a vacation in Florida but he can't pay you money for your work? I don't think so.

Tell him that you also have a cash flow problem except that yours is that you need to be bring it in.

Seriously though, I would just let him know that you aren't able to accept a barter arrangement and to let him know he's welcome to contact you when he is able to make a down payment of at least 50%.

Also, if you do end up working with him, make sure you don't just hand over all the finished work without being sure you'll get the rest of your payment.

HA! I like your response to the cash flow problem.

I agree with what everyone else is saying. If this were more of a mass publication, I might accept the publicity for a small discount on the project, but I definitely would not accept this barter.
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Old 07-25-2009
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Default Re: Client wants to Barter
Janet,

Tell him you cannot barter but that you can also offer him bookkeeping services to help collect his receivables and alleviate his cash flow problem.
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Old 07-25-2009
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Default Re: Client wants to Barter
Originally Posted by leedrozak View Post
Janet,

Tell him you cannot barter but that you can also offer him bookkeeping services to help collect his receivables and alleviate his cash flow problem.
GREAT suggestion, Lee!!
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Old 07-25-2009
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Default Re: Client wants to Barter
Great answer Lee! That should help get the point across.
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Old 07-25-2009
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Default Re: Client wants to Barter
Lee, your answer was great!! I laughed when I read it and so did my husband!!
Thank you to everyone for your input and suggestions.

My "gut" was to just outright refuse, nicely but firmly. I probably will be meeting with "client" next week.

Janet
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Old 07-27-2009
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Default Re: Client wants to Barter
I don't like the barter system - I think that people value something more when it has a price they have to pay. The right client WANTS to pay you because they believe in your VALUE. It's kind of like when you get something for free and you don't cherish it as much as something you bought. It might be exactly the same product, but when you open your wallet and pay for it, this really says something. I don't believe this guy has a cash flow problem, he just sounds cheap. I mean he emailed you for a month, acted like he wanted your services, and then coped out. Someone else will pay you, so I would move on.

Lindsay
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