Trades and Potential Partnerships
Many coaches and consultants, especially those in "start up" mode are often very open to trading their services in order to obtain necessary services. It’s not unusual for start ups to try to conserve cash by trading for logo design services, branding, marketing, web development and other necessary start up expenses.
The key to a successful trade is simple: don’t enter into a trade relationship with someone with whom you wouldn’t be willing to write a check for their services.
As a beginning web developer, many of my web sites were done on trade. In those days, we both won. I needed sites in my portfolio and these clients needed a web presence for their virtual practice.
However, as my practice and skill level progressed, I began to realize that the trades were becoming more and more lopsided. My clients, most of whom were newly minted coaches, were testing their trade skills upon me while I had nearly perfected my trade skills. My portfolio was fat, so it was time to begin saying no to these trade for service agreements.
Soon after I began saying no to trade for service agreements, another type of trade began presenting itself for my practice: the percentage of profits model. The concept was similar to the trade for service agreements of old, with a new twist. I was to be working for a “deferred” cash payment, one which would continue to flow after the work was done.
I was lured several times by the swan song of the partnership ploy. Inevitably, a need for cash would arise and suddenly the partnership would crumble as the would-be entrepreneurs ran for cover.
As I look back to the trade and partnership days, I realize that I allowed that phase to continue much too long in my practice. If I had it to do over again, I would set in advance the number of trade for service agreements I would perform. Those non-cash clients, for the most part, were the most demanding. It’s amazing how unimportant certain aspects of web design and development become when changes are being billed instead of done for free.
Yes, that is how I view those trade agreements in hindsight: they were projects done for free. The value I received was far less than I gave and in the end, those sites don’t even appear in my portfolio anymore. I have since adopted a cause and provide pro-bono web services for this worthy non-profit.
My advice to coaching professionals is simple:
a) set a limit to the number of trades you’ll participate in to build your practice.
b) don’t trade for service with a professional to whom you wouldn’t write a check. Just because a web developer, accountant or even hair stylist will agree to a trade doesn’t mean you should enter into a trade with him/her.
c) Never do pro-bono work for a for-profit company.
d) part of the trade agreement should be a testimonial or letter of recommendation. After all, your goal should be to pad your portfolio of clients.
e) If a coaching client is treating your relationship disrespectfully, then terminate it quickly and professionally. Missed appointments, ignoring assignments and a laid back attitude doesn’t do either of you any good.
Trades and partnerships can be a wonderful way to boost your experience, however they can also drain you of energy you need to promote your business to paying clients. Also realize that referrals from trade agreements usually are the worst kind. Clients tend to recommend other clients like themselves. Do you really want to build your practice on start ups that can’t afford to pay your fees?
View trade agreements for what they are, a way to build your testimonials which will act as a sales tool to help you land clients who are not only willing but able to pay your fees.
