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03/07/2006: "Pay Attention When You Get a Red Flag --- It Could Save You Money, Time and Worry."

My column today is directed mostly toward my fellow copywriters who struggle as I do to maintain a good business, a good reputation and make money for their clients. But most of what I comment on today is information that can be used by just about anyone doing business online.

Today I'm talking about red flags. When you have a good idea, you're said to have a light bulb go on above your head. Well, when you hear or see something that causes you to think twice or feel a thump in your gut, that's called a red flag.

People just starting out in business don't get red flags often if at all. Why? Because they've never been suckered or stiffed by a client. But it only takes one time and you've earned a red flag.

I'm at the age when I've had just above every con game in the world tried on me. I can usually tell in seconds when a missil is being set up and pointed in my direction. I miss a few red flags. One example is the chargeback I was hit with awhile back. But let the record show --- even then I saw a red flag. I just didn't heed that red flag. So shame on me.

What was the red flag? The prospective client told me he had called other copywriters and he named one, a very reputable, expensive copywriter. He then indicated that he wanted to copy another site and yet make it appear different. Now that's not something I'll do so I saw the first red flag. I knew he probably wouldn't like my copy because I wouldn't copy another site. But I also knew I could do a good job for him and make his site unique, even better than the site he wanted to copy. I have since learned that all he does is copy other sites.

The next red flag was when he asked, "What if I don't like what you write? Do I get a refund?" Well, I've never given refunds and if he had bothered to read my site he would have known that I don't. I told him that I did not give refunds and I don't make guarantees. But I added I would make revisions and corrections and do everything I could to make him happy. Of course, clients don't always know what's best for them. But we copywriters try and make them happy anyway. Whether that's good or bad could be debated. Sometimes we make the client happy only to cost them sales because we did it the way the client wanted and not the way we know is best.

This person gave me another red flag when he didn't use e-mail. He didn't want a paper trail or an audit trail of the transaction. Warning! This may indicate a person intends to do a chargeback. Read the consumer credit laws on this and you'll see what I mean.

But I made a big mistake with this person. I did not get any kind of a written or electronic agreement. So shame on me.

As a result of this one transaction I now:

Always get at least an electronic agreement which is perfectly legal in all states and totally binding.
No longer accept credit cards.
No longer use Paypal.
Turn down prospective clients who give me a red flag.
Wait until all checks clear before presenting copy to a client.

Here are some other red flags in no particular order of importance.

1.When a prospect insists on using Paypal, avoid the client unless you don't mind the risk.
2.When a prospect tells you how important he is or how much money he has, beware.
3.When a prospect says he will have a whole lot more business for you if you lower your price, beware.
4.When a prospect says he'll send you lots of business if you lower your price, beware.
5.If you give a money-back guarantee when a client isn't satisfied, you'll lose lots of money. A large percentage of your clients will be mysteriously dissatisfied.
6.If you don't get paid all your money upfront, charge twice what you would otherwise charge. You'll need it to make up for what you lose on the back end. And you will lose a lot of it.
7.If a prospect asks if you guarantee your work, beware. He may be planning a chargeback or stop-pay or some scheme to get his money back. He wouldn't dare ask his doctor for a guarantee or his lawyer. But people think copywriters should be grateful for any crumb of business. Tain't so McGee!

Now in the defense of people who want to pay through a system like PayPal let me say this. It is very convenient to both the buyer and the seller. And most people who pay through PayPal are honest people and use it because it is convenient. Most people are NOT going to stiff you.

But when you deal with people all over the country or all over the world and you're usually a one-person shop, you can't afford even one deal gone bad. If you've got a team of lawyers and you're a big corporation, that's another story. So you determine for yourself how much risk you want to expose yourself to.

Keep in mind too that the majority of people you do business with are basically honest. They understand that they can soon ruin their reputation in the age of the Internet by stiffing people. In addition, most people want to do what's right. But it only takes a few to make your life a living hell.

So watch for the red flags. I've named a few. There are more. You'll feel them in your gut when you hear them. Pay attention to that feeling. It could save you a ton of money and stress.