Podcast Episode 5 - What to do about mates rates

podcast Mar 31, 2021

All our friends and family expect special treatment don't they? Even though they don't really know what you do or how to run a business, they all want a deal!


Do you discount for friends and family? I think the answer is no, you shouldn't discount for friends and family, particularly if they're taking up space that another client would be taking and a paying client. And there's a whole thing about whether you should work with friends or family anyway.


You could say I'll do it for you for free or I don't do it at all. Because they are still a paying client and they want the same level of service. If you're entering into professional relationship with a friend or a family member, you want to keep it on a professional footing.


There is always a risk that as a friend, they push the boundaries, and it is always a bit muddy.


I have a general view that you shouldn't discount anyway, if people can't afford you offer them something like a Power Hour, where they're just paying for an hour of your time, which is much easier.


And you're doing a mate a favor. Is that what you want to do? And how would you feel about it was free.

If however, it's taking away from your paid clients, and that sort of thing, then I think it's really important to be offering it at a full price, you might offer a friends and family discount of 10 to 15%. But I wouldn't be offering big discounts for your friends and family.


You can pretty much guarantee that your mate that is paying almost nothing will be your most demanding client, and be careful of mixing personal stuff with business stuff, because often that can be quite a tricky thing to manage.


Be very clear from the outset what you're offering and make sure that you're not always the one that says yes.


I was talking to somebody the other day, who said, you know, everybody comes to me because they know I'll build their website for nothing. And that's when it's got to stop. You need to work it out and say "Actually, I don't do that for free anymore. I'll do it for half price my friends and family".


But also you can be very strict about where that boundary is and just say it's only my immediate family or I don't offer friends and family discounts. I think it can be quite a tricky thing to navigate.


But I think it's also important that your friends and family recognize your professional capabilities. My family don't really understand my business, they understand that I'm an accountant, but not how an online business works.


And I think it's making sure that your friends are not just taking the p**s really, it's really important that they see that they're buying a professional service and that you have a relationship by getting them to pay a reasonable amount, it puts it on a professional footing.

Selected links from this episode

Blog - When should you work for free  

Blog - What is a power hour and why should you have one

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The Pricing Queen podcast is produced by Decibelle Creative

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