I am feeling so discouraged right now. I spent a lot of time over the past month trying to sign a new client. There was a proposal followed by questions, meetings, emails, conference calls and more questions. Just when I thought I had the job, I found out it went to someone else.

I was counting on this work and really put everything I had into it. I really need the money I would have made. What do I do now? I don’t have any other prospects. I feel frustrated and sad and I just want to quit.

Wow. Been there, done that. We have all had times where things didn’t go our way. Sometimes big things, like this. Rejection at any time can feel like you were punched in the stomach, and it is especially hard to take when you really need the work (and the money–mostly the money!).

Back in the early days of my business I encountered a situation very much like this. I had what seemed like a sure thing. I interviewed with the client and they liked what I proposed. I went back and met with others at the company and everyone was enthusiastic. We were discussing terms and a timeline. Then, nothing. I called a few times and finally got in touch with my contact who told me that they had hired someone else. I was devastated. Not only did I think I had the contract, business was slow right then and I really needed it.

What got me through was the promise of another opportunity. Even though I was sure the first contract was going to happen (and it would have kept me quite busy) I had other possibilities in the works. Sure enough, one of them came through within the next week, with others falling in line after that.

The lesson I learned from this was to always have more than one client in the pipeline. It can be tempting to stop marketing once you think you have enough work lined up to keep you busy for a while. But some of those clients may not come through and, even if they do, the work will run out sometime. Always have more waiting in the pipeline.

That is good advice for the future, but what about now? Let’s figure out how to take care of your immediate problem then plan for the future.

The immediate problem may be that without this client you won’t have the money to pay your bills. If that is the case, you need to deal with that NOW. Find a way to earn money. You might:

• Call past clients and see if they could use your help now.
• Put together a package of products and/or services and offer it at a special price.
• Sell your stuff on eBay or CraigsList. Or hold a garage sale.
• Offer your services through CraigsList, WarriorForum or other places where you can advertise inexpensively.
• Contact colleagues to ask if you can support them by assisting on their projects.
• Get a part-time job.

You can not effectively focus on your business if you are worried about the electricity being shut off, so do what you have to do to earn the money you need to live.

The other side of the current situation is your emotional state. You feel depressed and scared and unsure of yourself—not the strongest position to be in when you want to attract business. People do not respond positively to desperation, so do not talk about how much you need to earn money or that you don’t know what you are going to do if someone doesn’t hire you. You have just found yourself with an unexpected opening in your schedule and you are looking to fill it.

Give yourself a pep talk, put a smile on your face and get out there and look for clients. Keep smiling and you will start to believe you are happy and confident. Believe you are happy and confident and you will be.

The stuff in the previous section is the short-term strategy. The mid- to long-term strategy is not to find yourself in this situation again. Here is what you need to do so that you never find yourself at the mercy of a single client again.

Don’t put all of your eggs in one basket. Do not rely on one client to provide a large percentage of your income (What happens if you lose that client?) and do not focus on getting one client at a time. Always have many possibilities in the works. What is the worst that can happen if you are juggling several proposals and possible clients? The worst might be that you get offered more work than you can handle. At that point you can turn some of it down, hire people to help you serve your clients, or outsource some of your work. You already know the worst that can happen when you are working only one possible client.

Keep marketing even when you have plenty of business. There is always some amount of churn in any business. Clients come and go, circumstances change and your income can be affected. Make sure that when one part of your income disappears there is another opportunity waiting to take its place.

Diversify your income sources. That means not only that you should not depend on just one client to provide a large share of your income, you should look for sources of income that are not directly related to your primary business. For example, if most of your customers are in one industry actively seek customers from other sectors.

Create a base income that comes in whether you are working or not. Passive income. You want to know that you will have $300 or $700 or $1500 coming in every week no matter what. There are lots of ways to do that, more than I can address here. The short answer is to create some kind of intellectual property: write a book, create a training program, set up a website and run advertising, whatever. Start creating sources of passive income that will be there for you.

If business is slow, you need to take action right now to turn things around. Even if things are going well, you should be taking steps to keep them going well.

I thought I would be nice, so I asked him to email a couple of questions that I would answer for him. He insisted that we had to meet and discuss this in person. Well, I don’t even do paid consultations in person any more, so I told him we could set up a telephone consultation and told him my rates. His response? “Well, if you are going to charge me, forget it!”

That is the kind of “customer” that I am more than happy to see go. In fact, I would gladly have given him the names of a few of my competitors so he could waste their time instead of mine. (Nah, that would be bad karma. ;o) )

There is nothing wrong with giving away some things for free, whether you are establishing a new business or you have been around for ages.

I give away a lot of free content, sometimes do free teleseminars and webinars, and answer the occasional question. However, it is important to know where to draw the line, and how to say no to people who want more than you are willing to give. For me, there is a firm line when it comes to giving away my time for little or no return.

Not sure when you should work for free? Take a look at this hilarious flowchart from illustrator Jessica Hische. (Note: The chart includes language some may find offensive.)

And here are some tips to help you figure out when and how to say no to free.

Set limits. There are always people who will call or offer to take you to lunch to “pick your brain.” That is called free consulting, and it is a mistake to do it. If someone calls with questions, and you want to help them, set a limit right up front by saying something such as, “I have 10 minutes right now. If you need more time than that, we can schedule a consultation at my regular rates.”

Leverage the free stuff. Spending a lot of one-on-one time giving free advice is probably not the best use of your time. When you are going to do something for free, look for the activities that will give you the best results and best reach for the time you invest. Instead of having lunch with one of those people who want to pick you brain, hold a teleseminar and invite everyone on your list. Record the teleseminar and give the recording to everyone who signs up for your email list, or sell it as a download or on CD. Spend that hour reaching thousands of people instead of just one.

Limit access. Have someone else deal with your phone calls and emails so you don’t get in the position of responding to routine questions that can become time consuming. That also gives you a buffer so that your assistant is the one saying no to unreasonable requests, not you. Set up a “help desk” (Many webhosting companies, including http://MyFavoriteWebHost.com/, offer free help desk scripts.) and get a virtual assistant to handle inquiries.

Establish a pro bono budget. Just as you set a budget for how many dollars you can donate to worthy causes, set a budget regarding the time you can spend on free work. It is fine to do some unpaid work to help worthy groups or individuals, but you will find yourself overwhelmed with “opportunities” to work for free unless you have a firm policy about how much free work you will do and how you decide for whom you will work pro bono.

Don’t be afraid to ask yourself, “What’s in it for me?” When you are asked to do something without pay, there is nothing wrong with choosing the unpaid work that benefits you in some way over that which does not. If you only have time for one unpaid speaking engagement this month, choosing the one that allows you to speak to a room full of potential customers while turning down another that is unlikely to result in any business for you is the only sensible thing to do.

Only you can decide how much you are willing to do for free. However, don’t get caught in the trap of giving away more than you want to because of the unreasonable expectations of others or because you are unwilling or unable to say no.

Establish a firm policy about what you will do without pay, and stick to it.

Testimonials are an effective buying trigger because they offer information about your product or service that you just can’t offer yourself. It’s like a personal recommendation, and it’s worth the effort to get quality testimonials and to use them.

How Do You Get More Testimonials?

The best way to get more testimonials is also easy: You ask for them. Are you afraid to ask for testimonials? Many people are. They think that it is pushy or self-serving to ask someone to give a testimonial. Or perhaps they are afraid that the customer will say no. In fact, most customers are happy to give testimonials; they just don’t think to do it.

when you have a good or bad experience with a companyshout it from the rooftopsw;associatesMaybe you When you have a good experience, you say thank you. the good news newswe’ll go on for hours aboutour positive experiences
So in order to get more testimonials you will have to ask. Start by asking your happy customers. When someone has just had a good experience with you, they will happily agree to give a testimonial.

Also consider also asking experts in your industry to provide a testimonial. Send them a sample product or offer a service in return for their honest opinion. Expert testimonials and endorsements are very effective because they come from someone people like and respect.

Be Prepared

You work is not finished when someone agrees to give a testimonial. Many people don’t know what to say in a testimonial. They do not know how long it should be or what they should mention and may feel uncomfortable writing in the first place. Consider being prepared with a pre-written testimonial they can use as-is or as a model for their testimonial. If they agree that they stand behind the information, they just need to provide a signature and a link.

An alternative is to write down the nice things they said about you, then polish them a bit to tighten up the wording and make them read well. Provide a copy to them for review and get them to sign off on the testimonial, verifying that it represents their opinion.

Ask the customer how they wish to be identified. The best testimonials include the full name of the customer, and some identifying information such as their company name and title (for business customers) or their city and state for consumers. When the identity of the person giving the testimonial is specific, the testimonial is more credible. This is especially true if the testimonial comes from someone with a major company or someone with a prestigious title.

Keep a copy of the customer testimonial for your files, even if it is only a couple of emails back and forth. Although I have never been questioned about the validity of a customer testimonial, I believe that it is important to have documentation.

How to Use Your Testimonials

There are some key places to position your testimonials. Obviously, you will want testimonials on your sales page. The testimonials will serve to support a prospect’s buying decision. Testimonials can also be used effectively on your home page or even your “About” page. Customer quotes can be effective when used in press releases, so you may want to use a full or partial testimonial in your next press release. You can also use them in your newsletter and and emails. You might even havea page on your website strictly for testimonials. Place the strongest and most compelling testimonials prominently where they’re sure to be read.

Don’t be shy! Get in the habit of asking for testimonials, then use them in your marketing to attract more customers.

In each of these cases, you would be wise to do something to show the customer that you care about providing top-notch service and quality. One way to do that is to provide something extra or go out of your way to do something special.

The best way to make it up to the customer when things go wrong will depend on what your business does and the exact circumstances with the customer. There is not one right way to fix things. However, here are some ideas of ways you can make it up to the customer when they do not get your best.

Act fast. The customer is unhappy now. They do not want to wait six months for a resolution. Even if you can not fix the problem immediately, let them know that you are doing something to take care of it as quickly as possible.

Just ask. Ask the customer what they want. Some may ask for unreasonable accommodation, but most will not. You may be surprised how simple it will be to meet their expectations.

Give them something extra. Throw in an extra bonus item without charge. It could be some samples of other products, or an accessory to go with something they purchased. Make it something that complements what they paid for so that it is useful to them.

Make it personal. Take the customer out of the usual flow and let them know that you are personally seeing to it that their situation is resolved to their satisfaction. Knowing that they are getting extra attention makes the customer feel special.

Comp them. Restaurants often do this. If there is a problem with the meal, they comp some or all of the cost. At least the customer didn’t have to pay for the bad experience, and your willingness to comp them may encourage them to return.

Provide a future freebie. Another way to encourage them to return is to provide a certificate for a free product or service on their next visit.

Extend the term. Give them more time on their membership, warranty or other time-limited program.

Follow-up. Call the customer after the problem has been fixed to see that everything was properly handled.

Every business makes mistakes and has things go wrong. The measure of a quality business is how they handle those problems. In fact, customers who have a bad experience with your business can become your most loyal customers, when they see how much you care about making things right.

How have you fixed things when your company messed up? Let me know what you did and how it worked out by commenting below.

But what if you do business with people over the web, or by phone or mail? How can you build trust?

Of course, it is important to provide excellent products and services. Whenever customers decide to do business with you, they will know their trust was well-placed.

Here are some ways you can encourage them to make that first purchase:

Let people know you are for real. Put your name on your website and in your ads. Show your picture.

Give customers ways to reach you—email, phone, fax, pager, cell phone, physical address, mailing address—as many as are appropriate. And respond when they contact you.

Offer a guarantee. Let buyers know they have recourse if they are not satisfied. You’ll fix it, replace it, or give their money back. Then, honor your guarantee. (Note: You don’t have to agree to unreasonable demands from customers, but do what you can to make it right and make them happy.)

Use testimonials, from real people, with names attached. People like to buy from businesses others have given their “seal of approval.”

Make information available. Publish information in brochures, articles, and on your website. Answer questions honestly. Make sure the most common questions you hear are answered in your written materials.

In summary: Be open and honest. Be accessible. Say what you will do, then do what you say.

Pierpont, one of the largest public relations and marketing firms in Texas, regularly brings clients and others together for a variety of events. Each is an opportunity to create connections among some of the 10,000 people in their contact database, and to strengthen Pierpont’s relationships with these people.

Every month Pierpont brings 20 clients or other contacts to their offices for a networking luncheon. The luncheons are designed to let attendees meet people they do not know and make helpful connections. Guests may seemingly have nothing in common but their connection to Pierpont, but lasting friendships and business relationships result. Everyone gets three minutes to talk about themselves, what they do and what help they need. Attendees are asked to do something for at least one other member of the group. That might mean making a referral or an introduction, recommending a book, or getting them involved in an event or organization.

In addition to the monthly networking meetings, Pierpont hosts other client events in their offices through the year. The largest event, attended by 175 people this year, is the annual First Taste of Turkey, held one week before Thanksgiving. It is an opportunity to thank clients, friends and supporters with an early Thanksgiving dinner, complete with all the trimmings.

Because the general manager of Pierpont’s Austin office is a wine aficionado, they started the Tasteful PR Series in their Austin office. About once a quarter they provide a program by a speaker, entertainer or artist, followed by a wine tasting. Invited guests get to mix-and-mingle, view an interesting presentation and sample a variety of wines.

According to Morabito, holding the events in the office is important. “My theory on it is that you want to get people on your home court, get them to your office,” he says. “I always tell people to make your place a shrine of who you are and what you do, so that when people are there they can look around and say, ‘Ah, these people are creative. These people are good at marketing and PR.’”

Look for ways to bring your contacts–clients, potential clients, suppliers, investors and others–together. Host a structured networking meeting or an informal open house where the people you know can meet each other. If you want to build your network of contacts, encourage each invited guest to bring a colleague with them.

Bringing groups of people together not only helps them to form new relationships, it enhances your bond with them. As Phil Morabito says, “When you set up a social setting, the conversations go to places they wouldn’t normally go in a business setting or meeting. You end up deepening your relationships with the people who are most important to you. And you can never go wrong doing that.”

The justification for giving away free information and services is that by demonstrating your expertise, clients will see how you can help them and will then be willing to pay you. However, every service provider has horror stories of potential clients who strung them along, getting all of the freebies they could, and never becoming paying customers.

It is up to each business to decide how much they want to give away, and when they will start to charge. Providing free information can certainly be an effective marketing method, but when is enough enough?

Putting free content, such as articles, on your Web site will attract customers and help your standing in the search engines. Articles can also be submitted to print publications, such as professional association newsletters and trade journals.

Publishing articles, online or offline, is a low-risk strategy. You write them once, and your articles remain in circulation indefinitely. They will be viewed by hundreds, thousands or even millions or potential customers. You may even be paid for your articles.

Clients often want to see a demonstration of your capabilities before they hire you. That might mean putting extensive effort into a proposal, or providing them with a sample of your work. Some clients may ask you to describe how you would solve a particular problem they face, or ask for sample copy or design ideas.

How much time do you want to invest in gathering information and preparing custom work in the hope that it will generate business? When deciding how much you will do during the proposal process, consider the value of the client and the likelihood that you will be able to get the contract.

Phone calls from information-seekers can be a problem when what you have to sell is your time and expertise. When does answering a question or two cross the line and become an unpaid consultation?

Some consultants decide that they will answer two questions without charge. Others place a time limit, such as ten minutes, on free telephone calls. For example, you may transition a freebie-seeker into a paying client by saying,  “I can spend ten minutes with you, and if you require more assistance I will be glad to schedule a consultation at my regular rates.”

As an expert in your industry, you may be asked to speak to professional and community organizations. Some pay, but many do not. When evaluating a speaking opportunity, consider if the audience includes people who may become customers or who may refer customers to you.

Of course, in addition to attracting new customers, some free work may even open new profit opportunities for you. For example, free articles and speeches may lead to a profitable new career as an author and speaker.

There are people who will sell anything, and will say anything to sell something to you.  Although you may encounter them anywhere, the Internet seems to be a breeding ground for those who continually hype the latest and greatest way to separate you from your money.

Everyone in business has to sell. It is how we stay in business. However, I decided when I started my business (back in 1994) that I would rather not make a sale then make a sale the customer or I would regret. My rule of thumb has always been that if I could not look someone in the eye while taking their money, I shouldn’t make the sale.

Even when I am not face-to-face with a customer, that rule has served me well. I have turned down opportunities to make money that, although they may have been profitable in the short term, would have damaged the relationships I have with  people who trust me.

Spend less time thinking about making the quick sale today, and more time looking for ways to build relationships. Do not try to sell something unless you truly believe that it is the right thing for your customer. And always treat your customers the way you want to be treated.

If you respect your customers, they will reward you with their continued business and by recommending you to others.

I found it hard to believe that he gets the fees he claimed, based on what I heard. He may charge those fees, but I don’t believe he gets them. What I mean by that is that I believe he has a fee schedule that says he gets $15,000 per speech, but he actually works for free, a reduced fee or a percentage of product sales. Having a fee schedule that says he is a $15,000 speaker sounds impressive, but if he does not deliver a $15,000 speech he loses credibility instead of gaining it.

This is an example of someone whose resume has outpaced his abilities. That is, his claims are greater than what he can produce.

There is nothing wrong with setting high expectations and promising great things. However, if you don’t deliver on those promises, you can do serious harm to your reputation and your future. This speaker damaged how I think of him with his poor performance, and I suspect I am not the only one who had that reaction.

Don’t misrepresent yourself, especially if your performance will not live up to your representations or your claims are easily disproved.

Complaints can identify problems in your business. Customers who let you know about them are doing you a favor. It is only when you are aware of a problem that you can identify the cause and fix it. After all, wouldn’t you prefer they tell you about it instead of complaining about your company to all of their friends? That is not the kind of word of mouth you want.

Is the customer always right? No. Sometimes customers are demanding and unreasonable. Fortunately, those people are few and far between. Do what is reasonable to resolve the situations, then move on and don’t worry about losing these customers.

Most customers just want what they were promised. If you made a mistake, or they received a defective product, make it right. Do not underestimate the power of an apology. Simply saying, “I’m sorry this happened. Let me take care of this for you,” can go a long way toward improving your relationship with that customer. Then, repair the situation and learn from the complaint to avoid future problems.

Listen to the customer. Let him define the problem and tell you what he wants. It may be simple to fulfill expectations.

Never criticize a customer or minimize their concerns by saying things such as, “No one else seems to have a problem with this,” or, “Most customers like that feature.”

Perhaps the customer complaint (or a pattern of customer complaints) reveals a problem with the design of a product. Or many customers are receiving items broken in transit. That could mean a problem with the product itself, the packaging, or the delivery service.

Some complaints may be the fault of your marketing. The sales copy may set up unrealistic expectations, or sales staff may make promises that can not be kept, and customers are disappointed with the product or service they receive.

Other complaints may be the result of the customer not understanding what the product or service is supposed to do, or how to use it. Do you include understandable instructions your customer can use, including troubleshooting suggestions for when they encounter a problem?

Offer a solution that makes the customer whole. That might be repairing or replacing a product or re-doing a service. You might even want to give the customer something extra to make up for any inconvenience or loss they experienced as a result of the problem.

If there are obstacles to resolving customer complaints, such as arbitrary rules and policies, get rid of them. Give your staff the authority to resolve most routine problems as they see fit.

If you handle complaints properly, your unhappy customer can become a happy lifetime customer.