Ask FreelanceSwitch: IOUs and Networking with Clients

Credit: freddyfromutah on Flickr

In this issue of Ask FreelanceSwitch, we look at promissory notes and networking clients. Ask FreelanceSwitch is a regular column here that allows us to help beginners get a grip on freelancing. If you have a question about freelancing that you want answered, send an email to askfreelanceswitch@gmail.com.

Question 1

I am a freelance reporter based in the UK who has had trouble getting my American client (based in Florida) to pay for three months of editorial duties. Although she recently promised to pay me the whole amount due, similar promises have been broken before, which is why I’m wondering if I should write an IOU (promissory note). Do you have any experience writing these type of notes?

Carlos

Asking your client to sign a promissory note or an IOU can be a tricky matter — in much the same way that having them sign a contract is. The fact of the matter is that a signature on a note or a contract doesn’t actually mean that you’ll get the money. At best, your client will behave with integrity and pay you. At worst, you have an edge if you have to take the client to court for non-payment.

Since I assume in this case there’s already a contract in place, an IOU isn’t going to make a lot of difference, especially since taking an international client to court over non-payment is not a trivial matter. It’s rarely done, simply because a freelancer will likely spend more on the court case than she can collect. Asking for a promissory note may drive home the fact that you’re serious to your client and, if you think that signing a note will motivate your client, there’s no harm in trying. And if you don’t have a contract, asking for a promissory note will at least establish the situation in the event that you do want to try to take the matter to court or turn it over to a collections agency.

Question 2

I recently (as of Sept. 2009) started my own graphic design company. I have been a graphic designer for over eleven years, but I had worked only for small time print brokers, so I never got to work on any large-scale projects. Around September last year, the broker I was working for decided to close up shop on his print brokering business and focus on real estate. I figured this would be the perfect time for me to finally go freelance.

Here’s the issue: I am having a lot of trouble getting customers. I can’t go back and contact any of our previous customers because my old boss sold the business to his sister (she now gives me work and is virtually my only customer) and it wouldn’t be right. I also can’t go back and contact any of my previous employer’s customers for the same reason — you just don’t do that. Funny enough, they all liked me and my design and would flock to me in a heartbeat if they knew I was freelance now.

So here I am now. Hardly any money to start with but plenty of skills. Using fliers for local marketing costs money, so I can’t do that very often. What are the some of the best ways to market locally to get some start-up customers. I realize that this business is mainly word-of-mouth but I have to get the ball rolling. Right now, I hardly have a ball! My main client (my old boss’ sister) does get me steady, low-paying work (mostly typesetting) but it’s not enough to live on.

Any tips to get started locally would be GREATLY appreciated. Oh, also, I’m currently growing my online presence but that stuff takes a while anyway.

Damian

Setting aside a block of time for networking is going to be particularly useful for you. Go to any business-oriented event in your town that you can — check Meetup.com, the local Chamber of Commerce and everyone else. Just going and introducing yourself to the businesses in your area can be crucial to finding work, especially if you can walk into an event and tell all the business owners in the room exactly how you can help them.

It’s also reasonable to go around to local businesses during the day and introduce yourself. You don’t want to come off as overly salesy, but just by introducing yourself and explaining that you’re trying to get a better feel for the businesses in your area, you may be able to build some connections without spending money on fliers. I’ve landed new business just by going to the grand opening of an office space and telling them I’m interested to see who goes into the new building.

I’d also suggest thinking outside of the box. Approaching the new owner of the broker that you’re working with to see if both of you can grow your business together may be an option. Consider asking her if you can negotiate a higher rate if you’ll help her bring in more business. Among other benefits, this puts you back in contact with those customers that love your work, in a manner that isn’t going to leave you feeling icky.

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