Sunday, July 16, 2006
Learning Curves - Who Pays?
For the freelance speechwriter, with every new client, comes a substantial learning curve. You not only have to come up to speed with the sum and substance of what the client does, but just as importantly you have to absorb the corporate and political culture of the enterprise. And do so quickly.
The subject matter is usually the easy part.
Understanding the internal dynamics is a far different matter.
And so it is inevitable that for the first few speeches there is a steep learning curve on a multitude of fronts. The question is - who should pay for that learning curve - you or the client?
I have an easy approach. If I know for a fact this is a one-off - such as a convocation or wedding or funeral speech the client definitely pays the whole shot.
If I am pretty sure it is going to be an ongoing relationship - and there can be some educated guesses here - I eat most of the initial learning curve cost. I don't actually tell the client this but it is pretty obvious and they appreciate it.
Let me give you a small example. I got a first time call from the president/owner of a small tool company. He was giving a speech to a convention of hardware/construction dealers. As is often the case with a new smallish private sector client I gave him a project cost rather than an hourly rate. Told him it would cost him between x and y.
The learning curve was not huge - but not insubstantial either. We liked each other and I was fairly sure even before I started this speech we would do business again.
At completion I gave him an invoice at the less expensive end of the quote. He was very appreciative and paid me the very day he got the invoice and asked me if I would like to pick it up or would I like it couriered over?
Needless to say we have an ongoing relationship.
Undercharging and over-delivering on that first job can pay huge dividends over the long haul. Simple as that.
