Whether you like it or not, building strong client relationships requires looking beyond the money exchanging hands in the client-service provider relationship. It’s a fact—everyone involved is looking to achieve financial gain. Yet, when the focus centers around money as a transaction, the dynamic shifts, creating friction between you and your clients. When these relationships start to rupture, it usually leads to a breakdown in trust and, ultimately, the loss of valuable revenue streams.
Here’s the thing: treating clients like ATMs isn’t sustainable for long-term success. It doesn’t feel good for either party, and you can’t grow at a reasonable or ideal rate when you’re not getting any repeat business.
Reflecting on my experiences of running several companies (including Prospology) and being self-employed for many years, it’s clear that building strong client relationships means more than financial transactions. I’ve been on both sides of the equation on countless occasions. From sending rushed invoices in an attempt to avoid the ickiness of asking for money, to receiving unexpectedly extortionate, questionable, or abrupt invoices from contractors, I’ve seen it all. Let me tell you: the repercussions of mishandling financial conversations are real. So, I want to dive into some of them now to help you avoid making the same mistakes that I and others in my network have made.
The biggest issue I see when it comes to money is when an invoice—particularly a large one—catches a client completely off guard. Abrupt invoices, without sufficient prior negotiation or transparent communication, often breed feelings of disrespect and can easily sever relationships. I know I’ve felt it when I’ve received them, and I’m certainly guilty of making past clients feel that way too. I’ve personally let contractors and Team members go when I felt like an ATM because, frankly, I’m not. I care deeply about my companies’ vision and mission, and don’t appreciate it when others are clearly only involved for monetary gain. The whole time I was working with these individuals, I thought we were on the same page, and then it turned out I was completely wrong. This severing of trust cannot easily be repaired—it’s much easier to let someone go and replace them with someone more aligned with a company’s values and easier to work with than it is to try and get on the same page with someone who’s clearly speaking a different language to you. All this to say, it’s crucial to establish open channels of communication with clients early on to prevent such situations.
I remember sending one invoice in particular, very early on in my freelance career, very hastily. It was before the project had been reviewed because I was too nervous and just needed to get it out of my hands. The client didn’t respond well to my impulsiveness and could immediately sense my own insecurities about money. The energetic exchange was completely off; we could both feel it. Had I had a more secure relationship with my personal and business finances, I would have been able to take a confident, well-timed approach to invoicing and they may have continued hiring me for freelance medical writing projects thereafter. But alas, I had a long way to go and the client ditched me after just one project.
On the flip side, I’ve also witnessed how humility and full transparency from a contractor has strengthened my relationship with them as their client. When Team members have deducted time spent on work that was initially incorrect or needed to be re-done after my feedback, it has alleviated any feelings of frustration or resentment on my side and I’ve felt inclined to continue engaging them with future projects. This is because admitting mistakes and rectifying them by amending invoices or adjusting fees builds trust and respect. In other words, clients appreciate service providers who openly acknowledge errors and take responsibility for their actions, and it doesn’t go unnoticed.
Another example that stands out is when I felt overworked and underappreciated by a client fairly recently. I retrospectively suggested that I invoice them for consulting time, after an impromptu meeting whereby I provided a lot of “free” advice and support regarding the operations of their business. I don’t recommend taking a retroactive approach, unless you have already been working with a client for some time and/or you know they value you enough to pick up the “money conversation,” even if it’s difficult. In this case, suggesting the invoice revision did spark a crucial conversation about boundaries and mutual understanding, which salvaged our relationship before it turned sour. Though, I wish I had just spoken up sooner to avoid the added stress.
As a service provider, it’s paramount to be able to clearly define your services and fees right from the get go. Misunderstandings about what constitutes billable time versus non-billable interactions is almost always going to lead to a nasty conflict. But, when you establish clear boundaries and offer detailed explanations of the services you intend to provide, before you do so, it prevents unwelcome surprises on invoices.
As I alluded to earlier, improving my own relationship with money has been pivotal to my ability to grow as an entrepreneur, and thus, in building strong client relationships. In fact, the two are closely and directly correlated. While not easy to explain (because it’s so intangible), this involves deep self-reflection, challenging existing beliefs, and reframing narratives you have pertaining to money. I’ve done this mainly through investing in 1:1 coaching, and journalling. It may be easier to work backwards from the “end goal” to where you are now, to identify how much work needs to be done to be in a good place with your finances. I’d say you know you have a good relationship with money when you can approach monetary discussions with clients from a neutral place and with their best interests in mind—not from a defensive, anxious place where you’re worried you’ll be treated unfairly or won’t be compensated sufficiently. This will help you foster healthier relationships and grow your business from a sustainable place, as the latter is very off-putting for clients.
At the end of the day, you have to be 100% sure that a client wants to buy the services you are trying to sell them. If there is any disconnect there, it’s going to lead to a lot of problems further down the line. When you’re willing to go the extra mile to provide a valuable service, your clients will notice you’re exceeding their expectations and want to hire you again and again. Whereas, when you feel resentful about something you’re providing you’re either a) not supposed to be offering that service because it isn’t in alignment with your values or interests, or b) not having upfront, honest conversations with your clients about money from a very early stage in a project. In other words, when you offer services that match up with a client’s needs, and the value is clearly laid out, you’ll minimize misunderstandings and reluctance among both parties and the relationship will remain intact.
When I think back to where I started off, and analyze why I’ve been so successful as an entrepreneur, it’s largely because I followed the principles in this article. To summarize, the crux of building and maintaining strong client relationships lies far beyond transactional exchanges. It resides in fostering open, transparent discussions about money early on, setting clear boundaries, and aligning services with mutual expectations. By prioritizing relationships over transactions, you’ll establish a strong and long-standing foundation for your business, based on mutual goals and respect, where no-one can get in your way!
Remember: your client isn’t an ATM. They’re a partner in your business journey. Treat them with the respect and consideration they deserve, and watch as your professional relationships flourish into long-term, profitable collaborations.
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