Creative Biz Note #23

The Con Artist

I decided to write about a mistake we made awhile back. Not to whine...but to share.

The phone call was somewhat skeptical at first. My gut feeling was to walk away. It was an entrepreneur with a supposed small company backing his endeavors. This seemed odd to me. I checked backgrounds on the client and the manufacturing company and there had been some healthy production in the past--which meant money. But most entrepreneurs talk big about their projects--as though it's the next "Harry Potter"! Overall, if words such as,"I really want to work with you guys (sweet talk)..involving you in ALL the future projects"--run like hell!! I've read many times before about staying away from clients with all kinds of promises. Honestly, how could a client even have that kind of control--they don't. The client may be ignorant to the fact that the investors/manufacturer will have a say in the process.



We always look at every incoming call as an opportunity. You have to--now days. So, we took tiny steps with our "client". Spelled everything out, had a signed contract covering every detail. Typically, we receive a third or half payment upfront with clients we've never worked with unless it's a substantial company. And if a client thinks this requirement is crazy, then ask them if they've ever hired a contractor to work on their house?--it's no different. This "client" claimed that the check was in the mail and to go ahead with sketches. I started the sketches and sent preliminary roughs. Big mistake...the check never came. We even requested PayPal or wire transfer--that was ignored. The "client" loved the concepts and wanted to go further. We reinforced the fact that we couldn't move forward without payment. We were reassured and so, we held to our guns and waited. Nothing.

After many months of shooting invoices, the "client" still makes promises of a check. I know that the roughs are being used to promote investors for a bigger portion of the project--which kills me. Obviously, if the designs show up in public, there will be a lawsuit. We'll be watching closely.

Our lawyer--an incredible lawyer-- is a good friend of ours. As for now, the minor sketch payment wouldn't necessarily require a lawyer but would be pushed into a small claims court. The fact that the client is out-of-state causes issues. And it's not about the money. I lost very little in monetary value but I did lose time. My time is important to me.

My Thought:
Every business person makes mistakes. We learn from them and don't make them again. Always go with your gut feeling--that's the your experience knocking on your brain! Integrity and trust should never be expected or assumed when it comes to business. Abide to specific business rules and never waver. We bent our rules slightly and paid the price. Never deal with client promises, spec work or check payments from unknown clients. My final note--don't make the same mistake we made. : )

Next Creative Biz Note #24---(Drawing Programs) Manga Studio Ex vs. Sketch Pro
Next Creative Biz Note #25---Negotiating Price--What We've Learned So Far