Forget Getting Your Foot in the Door

To establish a relationship with a new client, some consultants offer to do a free or reduced-fee project, often as some sort of diagnostic. Consultants cooked up this strategy to endear themselves to prospective clients in the hopes that future work could be billed at higher rates.

If you get your foot in the door that way, your next step is likely to be on a booby trap. Once you've set a low fee precedent, you'll fight to get fees to a profitable level. Your client will know there's wiggle room in your fee structure, so expect a request for lower fees each time you propose new work.

Your objective should be to provide value--in excess of the client's cost--regardless of the state of the relationship. Demonstrating that value early in the relationship should forestall a request for a reduced fee, even for the first project.

If your value is apparent, and the client still wants a reduced fee, you're better served by walking away. It's tough to walk away from new work, but it could be one of the most profitable moves you ever make.