A “client engagement” is a formal agreement between a service provider and a client that outlines:
– Scope of both tasks and deliverables
– Expected timeline
– Fees and payment terms
– Reporting
– Legal matters including confidentiality and intellectual property
– Termination, and dispute resolution mechanisms
It also covers the usual tools and templates that help describe what’s happening: proposals, options, and contracts.
Two points:
Firstly, although you should consult your lawyer and accountant while drafting your engagement guidelines, don’t delegate the task wholesale.
How you structure your client engagements is often the difference between a profitable, fulfilling business and one that leaves you overworked and underpaid.
Secondly, here is a summary of policies that I hold dear:
1. Value-based pricing > hourly rates, within reason
2. The scope of work should be flexible, within a range
3. Initial consultations should be paid, not free
4. Always offer pricing options, but fewer and more tailored
5. All discounts need to have a disclosed underlying reason and be used to drive client behavior rather than sales
6. Deeper relationships and adaptive agreements lead to higher-value outcomes for both parties.
These ideas may go against a lot of advice commonly found online, but that’s because most advice isn’t written by or for people who work as independent experts.