7 Lessons Learned From Running A Consulting Company

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Although I don’t do much consulting these days, I used to run a consulting company. It
was an Internet marketing agency that helped small and large brands like GM, HP,
Samsung, Viacom and AOL boost their traffic through search engine optimization and
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social media marketing.
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I did it for around six years, and boy did I make a lot of mistakes. Running a consulting
company is tough, and sadly it’s a lot less sexy than it seems.
Download this printable version of 7 lessons I learned from running a consulting About Neil Patel
company.
Here are 7 lessons I learned from running a consulting company:
Lesson #1: The day you sign a client is the day you start losing them
Consulting companies have a high churn rate. Some consultants claim that they have
never lost a client, but that’s a bunch of horse crap. If a customer doesn’t renew their
contract, I consider that a lost client.
You never know how long a client is going to last, so make sure you do everything
possible to keep them. Here’s what I used to do to ensure that clients stay as long as
possible:
Neil Patel is a New York Times best selling author.
He is the co-founder of Crazy Egg and Hello Bar and
Set expectations from day one – before you take on a client, you should let them
he helps companies like Amazon, NBC, GM, HP and
know what they should expect and when to expect it by. If they have unrealistic
Viacom grow their revenue. The Wall Street Journal
expectations, let them know why. calls him a top influencer on the web, Forbes says
Have a kick-off call – having one is a great way to ensure that things start on the he is one of the top 10 online marketers, and
right foot. One unique thing you can do is send your client some cookies or snacks in Entrepreneur Magazine says he created one of the
the mail so that they feel like they are with you during the kick-off call. 100 most brilliant companies in the world. He was
Weekly calls – every week, you should have at least a 5-minute call with your client. recognized as a top 100 entrepreneur under the age
Tell them what you did for the week and see if they have any questions. of 30 by President Obama and one of the top 100
Send industry updates – if you are a design agency, you should be sending unique entrepreneurs under the age of 35 by the United
Nations. Neil has also been awarded Congressional
design news to your clients. If you have a marketing agency, you should send them
Recognition from the United States House of
marketing information. Sending industry related news to your clients not only shows
Representatives. Continue reading
that you know the latest and the greatest, but it also makes them feel special.
Monthly reports – at the end of each month, you should send your clients a detailed
report of everything you did. Ideally, it should include pretty graphs and other forms
of visual aids. You should go over the report with the client over the phone or in
person.
Monthly surveys – at the end of each month, I recommend sending your clients a
quick survey. The survey shouldn’t have generic questions like “are you happy?”, but
instead it should have specific questions that help you improve the quality of your
work. Include questions such as “how can we make the monthly report better?”
Lesson #2: Clients are always right, except when they are wrong
You are always going to have clients telling you what they want. And although they are
paying you, they shouldn’t be telling you what you should be doing.
See, you were hired because you have a specific expertise that they don’t have. This is
why it should be you telling the client what is best for them. It doesn’t matter if they like
what you have to say or not. Your job as a consultant is to do what’s best for the client.
If you focus on doing what’s best for them, your work will provide better results for their
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Lesson #3: You’re worth every penny, so show it
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Lesson #4: You have to dress to impress
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Lesson #5: The more you charge, the less they complain
One of the first things I learned is that there is an inverse correlation between how much
Hire me to speak
a client pays you and how many times they complain. In other words, the more money a
client pays you, the less they will complain.
Large paying clients usually have a lot more cash, so spending it isn’t that big of a deal.
They know that if they want to continue to grow, they have to spend money. And when
doing so, sometimes things work out, while other times they don’t, but at the end of the
day, they have to keep on making bets.
Smaller clients, on the other hand, don’t have that much money. So, if they hire you and I speak at over 25 conferences per year on
entrepreneurship and Internet marketing. Before
you mess up, they usually don’t have the luxury of hiring someone else like the larger
you hire me, there are a few things you need to
clients do.
know. Click here to find out what they are.
When you first start off, you may have to take on smaller paying clients, but your goal
should be to transition to the larger paying ones as quickly as possible. Subscribe
Even if you don’t visit my site on a regular basis, you

Lesson #6: Fake it till you make it can get the latest posts delivered to you for free via
RSS or Email:
As I mentioned in Lesson #5, you should be going after larger paying clients. If you don’t or email@address.com
have a bunch of case studies or years of experience under your belt, don’t worry. You can
still lock in the big guys.
All you have to do is figure out what separates your consulting company from the larger
ones. Big clients typically pay big consulting companies, but if you can show why you are
better than the bigger ones, you will lock them in.
At my consulting firm, I realized that clients loved the fact that I myself would work on
their projects compared to the practice of bigger firms assigning junior consultants to
them. Once I found this out, I would tell potential clients that I personally would be
working on their projects, which they would not get with the bigger firms.
Lesson #7: When it rains, it pours

Like I mentioned earlier, you are going to lose clients. It’s just a matter of time. Because of
this, you should try to conserve as much cash as possible. When things go south, you
don’t want to have to fire people; instead, you want to operate off your reserves.
A few ways you can conserve cash is:
1. Have a cheap office – my office was cheap and didn’t have windows. I also didn’t
have fancy furniture, and I made sure my clients didn’t see it by only doing in-
person meetings at their offices.
2. Create a variable compensation plan – when my business was doing well, my
employees got compensated well. And when it wasn’t, they didn’t. Everyone had a
low base salary and earned a percentage of the profit.
3. Keep a healthy reserve – I never depleted my corporate bank account by taking a
high salary. I always left a 6-month to a 1-year reserve in the bank before I paid
myself well.
4. Don’t grow too fast – even if you are constantly getting new clientèle, don’t hire too
quickly. Consider outsourcing some of your work to a local firm before you hire new
employees. This way, if you lose a few clients, you won’t have to fire any of your
staff.
5. Always be closing – even when things look good, remember that someone still has it
better than you. Never stop trying to bring in more clients as this will help your
business stay afloat.
Conclusion
Running a consulting company isn’t easy. It’s a lot of work, and you have tons of bosses
(each one of your clients is your boss). Although it can pay very well, at the same time it
can be very stressful.
If you want to reduce your stress as a consultant, make sure you learn from your
mistakes and only take on clients you can actually provide results to because being with a
client is like being in a marriage. Sometimes you get into it for the wrong reasons, and
eventually it hits you in the face.
So do yourself a favor, don’t get into a marriage unless you know it will work.
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Comments
Titis Kaifa September 19, 2011 at 8:14 AM
Nice post! And thanks for the lessons, i really got it.
“Clients/Costumers is king”, may be that words will be compare with the case. Our job is
how to make them(client) fell satisfied.
REPLY
Neil Patel September 19, 2011 at 11:23 AM
Thanks,
Glad it helped. It is true the best way to do our job is by making the client satisfied.
REPLY
johnQ October 4, 2011 at 7:57 AM
Your client is actually your boss. Even when he is wrong you have to make him feel
that he is right in some way.
REPLY
Neil Patel October 5, 2011 at 9:01 PM
True, you want your clients to be happy. As long as it doesn’t affect the business
you are doing for them.
REPLY
Vernon September 19, 2011 at 8:30 AM
Great Post, laid back “inviting” style, yet so relevant!!!
REPLY

Well, I am a pretty laid back and “inviting” person. I appreciate the kind words.
Hope they are useful to you in your business.
REPLY
Caleb Woodard September 19, 2011 at 8:36 AM
This is a really good post for me because I am looking to start a Public Relations Firm,
these steps could help me out a lot!
REPLY
Great, glad to see you are doing research. I hope you do use the steps and they work
for you.
REPLY
johnQ October 5, 2011 at 1:51 PM
Public relations implies a lot of interaction with customers so your wardrobe

should be top notch in this case
REPLY
I agree, appearance is a major factor in business. You want to always come across
as professional and successful.
REPLY
ron May 30, 2015 at 2:33 PM
@Caleb. Good information. What’s new with PR and the gig?
REPLY
AngelInvestor8 September 19, 2011 at 8:50 AM
Keeping constant communication with the client is definitely a must, as suggested by the
bullets at the beginning of the article. Misunderstandings are reduced, if not eliminated.
REPLY
It is the only way to make sure everyone is on the same page and expecting the
same things. The last thing you want is for their to be a misunderstanding between
you and your client or else things could get complicated and messy.
REPLY
Project Manager September 19, 2011 at 9:51 AM
Great post Neil! I’ve finally gotten out after 10 years of consulting and I have to agree it
isn’t as sexy as some people think. For me the worst part is clients that you have to
regularly travel to.
REPLY
Neil Patel September 19, 2011 at 12:29 PM
Yep, it really isn’t. I can see where it may be tiring after a while traveling around a
lot. However I always enjoy traveling to new places.
REPLY
Dennis Jenders September 19, 2011 at 10:26 AM
Really great post, thanks for sharing. From my experience it was always tough to keep
new business coming in. When you begin consulting, or any business, you never realize
that more than half of your time may be going to developing new business. That certainly
was an eye opener.
REPLY
Thanks, anytime. Constantly bringing in new business is definitely tricky

sometimes, but key to a successful business.
REPLY
Pete Stevens September 19, 2011 at 10:27 AM
Thanks Neil,
some very helpful pointers here for my new website consultancy.
Am looking forward to learning lots from my mistakes!

Pete
REPLY
Definitely,
Happy it was helpful to you. It is all about learning and moving forward.
REPLY
Yair September 19, 2011 at 12:51 PM
Great post. Generally trying to keep only to bigger accounts (rather than trying to grow
through the “base” of smaller accounts) is very good advice. Hard to say if resisting the
temptation is possible, but very good advice.
REPLY
Thank you. Sticking to bigger accounts typically gives other large businesses a good
impression. If they see you deal with bigger accounts then they will figure you
know how to deal with them. It can be difficult to resist like you said, but having
almost all smaller accounts can make you look like you can handle only small
business.
REPLY
Toni September 19, 2011 at 1:44 PM
Great advice Neil! I am curious if you ever promised prospective clients specific results?
Like ranking position for keywords. If not how did you approach these kind of questions?
Thanks for a great resource!
REPLY
I never promised them anything. I always provided estimates on what I think I

could provide and the time frames they should expect results in. If I couldn’t
provide the results I “estimated” I would be the first to cut the contract.
REPLY
Wasim Ismail September 19, 2011 at 3:23 PM
Love the point Lesson #5: The more you charge, the less they complain.
The clients that pay less also expect the whole world off you, and really make you work
for every penny, and at times you think to your self…WHY.
Thanks for the points.
REPLY
Glad you liked it. They definitely do, many people who have money to spare are
willing to pay more and will give you an easier time about it. While those with a
tighter budget will try to get everything they can for their dollar and make your job
harder.
REPLY
Sandra Eamor September 19, 2011 at 5:12 PM
Great post. Some things I have learned from a Managment Consulting course I took, some
other things were things I hadn’t thought of. I agree that it’s important to set expectations
from the get go. Also as a Business Analyst, I really know the importance of it when you
are dealing with stakeholders who continually want to change their mind. You have to
have agreement and understanding up front.
REPLY
No problem. Happy to contribute to what you have already studied. It is important

to make sure everyone is expecting the same thing or else you could wind up in a
difficult situation later on. Keep it up with the courses and reading!
REPLY
Chad B September 19, 2011 at 6:55 PM
Very informative post! Thanks for sharing this
REPLY
You’re welcome, glad to do it.
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Ramesh September 19, 2011 at 9:34 PM
Great post Neil! Shared it with my business partners. I’m sure it will help us!
REPLY
I hope it does! Thanks for passing it along.
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Chris Vandepas September 19, 2011 at 10:02 PM
Ah consulting. It is an interesting business. I remember when I was once attending a

friend’s comedy show in Hollywood and I was sitting in front and one of the comedians
picks me out in the crowd and asked, “You sir, what do you do?”. I responded, “I’m a
consultant”. He said, “So you’re unemployed”. Even I laughed. I suppose he was right in a
way. When you consult, you are always cramming for new jobs and getting paid by the
jobs you have. What makes it even more difficult is when you are younger and trying to
establish yourself. Age can be a liability, it doesn’t always have to be, but in consulting
young age usually goes against you. I like Neil’s creative explanation to the large
companies of how expensive and established consulting firms would only assign new
college grads they had hired to do the work for these corporations when if they would
hire Neil (I’m sure most did) then they would be getting his full attention, effort, and
devoted expertise. I am in my early twenties and have been able to get by on consulting
gigs while I develop a new business. The way I have been able to get the jobs are through
networks, vouching, and sales. You have to tell the client why you are a valuable ROI. Yes,
I cost X amount, but I bring in Y amount, which is Z amount greater than X. It is as simple
as that. Well, figuring out the numbers and strategies is a little more complicated, but the
big suits only care about the simple result. Then you must produce. This formula doesn’t
work all of the time either. The past few years I’ve consulted for a public school district
and the local municipal government. Oh boy. It is true the private sector is relatively “cut-
throat”, but the public sector is full of huge egos, bureaucracy, and people who think they
are God’s gift to the world (sorry about the religious reference). Now I’m not necessarily
an anti-government guy, but these people are the prime example of why government has
a bad name. It takes forever to make a decision, and then the implementation takes a ton
of effort in reporting, accounting, and updating. I’ve run $1.5 million in grant projects for
this government the past 2 years and I did an excellent job in completing the projects if I
do say so myself (I do have the “awards”). However, when I went back to them recently to
increase my rates on the next project, they had a problem with it. They just could not
understand the X = my new salary, Y = equals the project and the grant money, and Z =
the money you save by having me run it through efficiency and money raised through
available grants. To some it can be simple, to others it’s a nightmare. So to all future or
current consultants; I wish you good luck and to please share your experiences like Neil
has to make us all the wiser. I am switching over to the .com retail business. Also, if you
are a consultant and a client calls to ask you a question, you have failed. Communicate.
You should always have the answers for your clients and makes sure they have them.
REPLY
That is funny, I would have had a good laugh too. Definitely, it seems like you have
a pretty good understanding of how it all works. I agree, like you said it can be
simple, because the most important thing to clients is results. But only if you get
those results. Each process is different though for each deal and it can become
difficult and â€œcut-throat.â€ Clearly you have been doing well for yourself so far.
Thanks for your input and advice to others.
Best of luck.
REPLY
sam @ goa carnival September 19, 2011 at 10:39 PM
Great post Neil,
Yes one thing is very true if somebody is giving you money for their work that means he
will want great expectations from you like you will give more benefits to him than others
and in simple language he would treat with you like your boss because he is spending
money on you for his profits.
So better thing is that we should learn much things from our mistakes. Which you
mentioned very well in your post.
REPLY
Thanks,
You bet. If someone is paying you for something then they are going to have many
expectations. The most important thing is to make sure those expectations are laid
out from the beginning. This way if they are not within reason you can say no and
move on.
REPLY
Casey Armstrong September 19, 2011 at 11:07 PM
I believe I’ve said this before here, but this is easily my favorite post of yours yet, and
perfectly timely. I know I need to improve some things, such as pretty reports (definitely
keeps the clients happy) to show off the results/ROI, along with maybe dressing to
impress at times (sandals are rather comfortable though). Thanks!
REPLY
You might have. Either way thanks again. I agree, if those are problem areas for
you, do what it takes to better them.
REPLY
Shilpi Singha Roy September 19, 2011 at 11:37 PM
Hi Neil,
Great post.
I really laughed when I read this point. ” Lesson #5: The more you charge, the less they
complain” And some times its true too.., Thanks for the great post.
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REPLY
I appreciate it. I aim to please.
REPLY
Valer September 20, 2011 at 2:14 AM
Neil,
fantastic insights! Thanks a lot for sharing these along with the great advices.
REPLY
No problem. I hope the advice you received is beneficial to you in the future.
REPLY
Web Design Resource September 20, 2011 at 3:31 AM
Consulting job is always a difficult business, my lots of friend having their own consulting
firm and they always say that ” whatever client says is Line Of Control”, you can not cross
it. Lots of things to do before doing any consulting business. I am happy i m not in this
business.
REPLY
Whole Body Vibration September 20, 2011 at 7:10 AM
Then get out, its not that tough.
REPLY
Web Design Resource September 21, 2011 at 3:44 AM

@Whole Body Vibration may be you enjoy this business, i m poor in this business
but you are very poor in replying on comments .. Neil has explained about my
doubt clearly, which is the best example of “how to reply anybody comment”
need to work on it
REPLY
Getting to every comment can be time consuming and can take awhile. It is
ideal to get to each comment in a timely fashion, but if you don’t it is still
important to respond even if it comes late. It is definitely something anyone
needs to take the time to work on.
REPLY
Whole Body Vibration September 22, 2011 at 10:00 PM
I guess I’ll work on my advice, but there are more important thing in life than
internet consulting.
REPLY
It depends on what your priorities are at the time. I agree though, it is work
and there are many things more important then work.
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I agree, if it’s not working get out and move on.
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Everyone is skilled at something different. Some peoples strengths are others

weakness. If consulting isn’t for you then it is best you are not in it, otherwise you
would just be struggling and miserable.
REPLY
Joseph Flanders September 20, 2011 at 6:18 AM
Neil, I saw you on Twitter, liked what you were posting, came here and I like it even
more. I’m a lawyer, but a lot of your information is very relevant to practicing law. I also
like the different perspective you bring.
REPLY
Thanks, happy to hear it. Interesting, nice to know my information is applicable to

different fields of work such as your own.
REPLY
Rico Figliolini September 20, 2011 at 6:42 AM
I loving reading your posts. This really hits all the marks. The agency I work for can learn
from this too. Thank you for the great straight forward non-varnished truth. Have you
been married?
REPLY
I appreciate it. They just might, share it with them and see. Also no, I have not been
married.
REPLY
Brian September 20, 2011 at 7:01 AM
I totally see how the more people pay the less they complain. Awesome… I really liked
this article.
REPLY
Yep, seems a little odd, but it really does work that way. I am glad you liked it.
REPLY
Whole Body Vibration September 20, 2011 at 7:09 AM
#5 is true, but a lot of us don’t have the reputation to walk in to GM and stay pay me
$1000 an hour!
REPLY
Reputation does certainly help out, but confidence and the ability to deliver is all
that counts. You’re worth what you make yourself worth and large companies will
be willing to pay if you can deliver results showing you are worth the cost.
REPLY
fas September 20, 2011 at 7:16 AM
You cant really compare with say marriage because its a try and see situation. No option
there.
REPLY
Every relationship I believe is a “try and see” situation like you said. When you get
married you are in a binding legal contract, just like when you do business. There
are always options, because even though marriages are meant to be forever, it is
possible to get out of one. Same with business, if it doesn’t work out then you might
end up slitting up will it be difficult and complicated, absolutely. Much like a
divorce.
REPLY
Craig Deakin September 20, 2011 at 7:26 AM
Excellent tips Neil!
I think setting expectations is a simple thing that will save a lot of time and effort. I also
liked the idea of monthly reporting, as this is helpful to the consultant and the client.
It would be interesting to hear about your methods of attracting consulting work and
what you’d recommend to someone starting out to get work.
=)
REPLY
Thank you,
Setting expectations can save a lot of time and prevent a lot of complications. If
everyone knows what it is they are getting and doing then things will go much
more smoothly. Monthly reporting is just a way making sure everyone is still on
track and showing your clients proof of productivity.
Thanks for the suggestion I might just have to do a post on that for you. If there are
specific questions you had in mind you can always email me too at
neil@neilpatel.com I’ll see what I can help you with.
REPLY
Morin September 20, 2011 at 7:27 AM
There is the thruth. Thanks Neil.
REPLY
No problem. It’s easy to be truthful when I am writing what I have learned.
REPLY
Kevin Shorter September 20, 2011 at 7:38 AM
These are such great tips. My former boss had created a great consulting business and
instilled many of these truths to the development team. The constant contact with the
client and the nice clothing went a long way differentiating us from other vendors to
those big companies.
REPLY
Definitely,
Sounds like you had a savvy boss. Was he Kind of A Big Deal?
REPLY
Nick J. West September 20, 2011 at 7:43 AM
Thanks on the tip about marriage, ouch!
REPLY
It’s just a way of saying be carful about the commitments you make and get into
because it is better to find out sooner then later that they aren’t a good fit.
REPLY
Web Design Halifax September 20, 2011 at 7:49 AM
Good tips here Neil. I believe setting up the right expectations is one of the most
important things and really makes a big difference in a client that’s happy and stays and
one that doesn’t.
To add to your lessons, I find out many consulting businesses struggle to really excel
because they don’t know who their perfect / ideal clients are…so find out your perfect
client so you have a filtering process to engage potential clients with. This will ensure you
get the clients you want to work with and will make your life much easier.
But since you’re working with big corporate co’s. I can see how they want to run the
show and some processes that work for small to medium sized biz will not work for the
larger ones like the co’s you mentioned above.
What would you say is the biggest difference in what the client wants between a medium
sized business (5million and under) compared to a large corporate like IBM?
REPLY
Thanks,
It definitely is very important. I agree, it can ultimately affect your clients

happiness. It’s always important to keep your client happy.
That is a good point. In order to do your best work you have to be sure the client
you are working for is suitable for you. Otherwise you may not be able to deliver
on what they want and that will look bad on your business.
I would say clearer channel of communication and more personalized customer

service.Â
REPLY
Lane Rapp September 20, 2011 at 8:30 AM
Lessons #2 and #7 are my favorites. As a consultant you are not being hired to be
supportive (yet, the client expects that) but you are certainly being hired to make it
known when the client is wrong. That news can be delivered diplomatically, but it must
be given ASAP.
#7 about rainy day funds. Well, that is true for any business with volatility. Most firms go
out of business because of the obvious, they run out of money. Our government faces that
dilemma.
REPLY
Very true. You want to let a client know when they are wrong but in a way that
won’t come off insulting. The sooner you make it clear the easier your job will be.
Saving money is just a way of always having something to fall back on if it all
comes crashing down. It is something you must do if you want true security.
REPLY
Pankaj Singh September 20, 2011 at 8:36 AM
Great work Niel !!
All seven mistake always truth,These are very helpful for me as I am going to open my
own concsultancy services..
Thanks you very much
REPLY
Thanks,
Glad you found useful. I hope you use them when you start your new business.
Best of luck.
REPLY
Jeff September 20, 2011 at 8:44 AM
#5 is especially true with sales too. I find that the smaller companies with smaller budgets
are sometimes the hardest to close and are the biggest leach for information. They kick
the tires a lot before they buy.
Neil, you always have great insight and information. Thanks for sharing.
REPLY
Yep, it can be difficult to work with smaller companies because they have a tighter
budget and want to squeeze every drop they can out of what they paid for.
Anytime, thanks for commenting.
REPLY
Linda C. September 20, 2011 at 9:01 AM
This is so true – I’ve had the pricing issue for a long time, but I’m getting ready to raise
the roof – eiher you are or are not going to do business, and this is what superior service
costs!
REPLY
Sounds good, if you know you are worth it then don’t settle for less.
REPLY
ROL September 20, 2011 at 9:24 AM
Niel,
With your experience, what do you think of consulting as a scalable business model
versus Kissmetrics or Crazy Egg which is more transactional?
REPLY
Consulting really isn’t scalable. As you add more clients, you have to add more
people. I used to be a consultant and I prefer scalable businesses like KISSmetrics
and Crazy Egg.
REPLY
John Sullivan September 20, 2011 at 10:30 AM
Nice Neil. I think the most important tips with consulting is: 1) Set expectations and
boundaries at the start; 2) Learn to say “No”; 3) The higher your rate, the more clients
will respect you.
REPLY
Absolutely, all good points. It seems like you know what you are doing.
REPLY
Y. Rosinho September 20, 2011 at 10:32 AM
Neil,
This is a great article. i am not a consultant myself and i do not think i will ever be, but
the principles you have high lighted here can actually be applied at any business or
servicing business. I own a service company, that supports the Oil&Gas industry, and i
can certainly say that some of your principles apply to our industry.
Thanks for sharing your experiences mate.
REPLY
I appreciate it,
Interesting, glad to know it was of use to you even though you are in a different
field of work. I hope what you learned is able to benefit you in your business.
REPLY
Ben @ BankAim September 20, 2011 at 2:00 PM
Neil great post! Love your first point.. The day you sign a client is the day you start losing
them. Seems like many clients will use your services and then just ditch you when they
see some success. Have a friend who just lost a client because they saw successes and
didn’t want to pay their monthly salary. Sad how that happens, even though their was a
bunch of success, they thought they didn’t need the guy anymore. I think he’s going to
start his own ecommerce site in the same field though since they had no ‘non compete
agreement’
REPLY
Thanks! Definitely, the seconded hardest part after getting a client, is keeping them.
You need to make them realize the only reason they are seeing that success is
because of the work you do.
REPLY
Ted September 20, 2011 at 3:13 PM
Neil,
Having been a consultant myself, I can totally relate to everything you wrote here. One of
the biggest things holding me back in my business was charging too little for my work.
You definitely need to charge what you are worth and even charge a little more than that.
You still get clients, but you are happier working for them and you do a better job
because you are stoked about the money.
REPLY
Glad to hear it. Absolutely, you are worth what you make yourself worth and
clients who you want o be working with will be willing to pay. I agree, you will feel
better and do better work when you are getting what you are worth or a little
more.
REPLY
Sandra Newton September 20, 2011 at 5:40 PM
Nice summary. It’s good to get a dose of reality. Really like and will adopt the point about
letting bigger clients know they will be getting you and all your expertise (not a junior).
REPLY
Thanks, I hope what you picked up will help you become more successful and
better paid too. As long as you can deliver results.
REPLY
rakesh dwivedi September 20, 2011 at 6:14 PM
this blog has been really vry much benefetial to the small cobsulting firm like us.
Thanks a lot and keep posting
REPLY
Definitely,
No matter how small or large a company is these tips will help. I appreciate it and I
will!
REPLY
Matt September 20, 2011 at 6:27 PM
Some solid advice here. After every client I remind myself I need a stronger contract….
REPLY
Yep, the more solid the contract the safer your business will be.
REPLY
Mitch Mitchell September 20, 2011 at 9:44 PM
Man, I’m fully feeling you on #2 & #3 and need to be doing more of #5. Based on recent
history I’ve already decided that except for my true friends I’m never lowering my fee
again. It seems like every time I’ve done that I’ve been burned in some fashion, which to
me means they’re not valuing the work I do. That’s going to change for sure.
REPLY
Thanks, it definitely makes you look less valuable when you ask for less. I hope you
do change it and value yourself at what you are worth.
REPLY
Terje Sannarnes September 21, 2011 at 12:56 AM
I would like to say that running a consulting company has its own distinguishing
peculiarities. It should be noted that lessons shared here are efficient for other types of
business as well. So, it makes sense to read this post carefully. Most of all I liked the
advice “Clientâ€™s are always right, except when they are wrong”. A successful
entrepreneur will never show his/her clients that they are wrong. This rule is especially
effective for business owners.
REPLY
It definitely does. Thanks, I hope they are. That is definitely a good rule. Thanks for
the additional input.
REPLY
Aditya Patadia September 21, 2011 at 5:44 AM
One most basic QUESTION… I have many skills about web apps and servers, HOW can I
actually start a consulting firm? How can I identify that this guy will need consulting. I’m
facing a starting problem.
REPLY
Most people do.
You just have to start. Create a website, call companies and ask if they need your
services… do whatever it takes. As you start you will run into roadblocks and you’ll
end up figuring it out.
Hope that helps.
REPLY
Ben @ BankAim September 21, 2011 at 10:41 AM
Neil.. anyway you can write a post about getting guest post on solid sites. Many sites like
Technorati require you to show examples of your past work, but if you are just starting
out, you have no past work to show and then therefore cannot get on those sites.
Plus if you have any tips for beginners and non beginners on how to accomplish this? By
using Ghost writers?
REPLY
I will consider it. Try starting off with some basic work to be able to show large
sites examples. Try to just send work that you create even if it wasn’t paid and see
if that works.
REPLY
Ben @ BankAim September 23, 2011 at 2:07 PM
working on it. We’ll see how well we can get out there and find these sites to
guest post on. Thanks
REPLY
Neil Patel November 28, 2011 at 8:31 AM
Good luck.
REPLY
Faisal Masood September 21, 2011 at 1:43 PM
I liked following under Lesson #2: Clientâ€™s are always right, except when they are
wrong.
…This is why it should be you telling the client what is best for them. It doesnâ€™t matter
if they like what you have to say or not, your job as a consultant is to do whatâ€™s best
for the client….
I had run into this numerous times where a client’s resource demanded or asked for
something which was not good for the business. As consultant, I had to convince the
person by documenting the facts, data, architecture and results showing the result /
outcome.
A doctor shouldn’t give poison to his patient, even if they ask for it. The same way,
consultant should not deliver a client things not good for the businees.
I learned it in Quality Management during my PMP.
It was a very nice article. Thanks for sharing.
REPLY
It is a favorite of mine as well. Yep, that is part of the job. Nice comparison I would
hope that no doctor would ever do that. Thanks, I glad you liked it.
REPLY
perth internet marketing September 21, 2011 at 8:11 PM
Great article Neil! I believe your Lesson #1 is indeed the first thing that must me settled.
Impressions are very important but setting expectations for clients are too as well. It’s the
real key to start the business relationship and if you mess up step one it’s hard to keep
thing going well.
REPLY
First impression can make or break a business deal in a lot of cases. It can show
how much you value yourself ay as well as how much they should. It can be
difficult to smooth things over when if you mess up, but you should always try and
only move on if it truly isn’t worth your time.
REPLY
melbourne internet marketing September 21, 2011 at 8:32 PM
Yes, it’s so true running a consulting firm is a stressful job. You right when you stated
things will eventually go wrong. One just need to prepare for its eventuality. Great points
on how to soften the impact of the difficulties to be faced. I really like lessons #7 and #1.
REPLY
Things usually do go wrong every now and then. Nothing stays perfect forever. The
true test of talent and success is how you deal with those difficult days. Preparation
is key to everything and could ultimately save you. Thanks, I hope it helped.
REPLY
sell used textbooks September 21, 2011 at 8:42 PM
Ah-ha! I’m glad you brought up the dress to impress again. That one’s a biggy for me, so
of course that’s the one that I noticed first. But my favorite one out of your list in this
article is the one where you tell your clients that you will “personally” work on their
project. This is just me talking, I can’t speak for anyone else, but I really like when the
person presenting a proposal to me says they will “personally” handle the details that
we’ve just discussed. Conversely, it irks me to no end when I spend lots of time with
someone, and in conclusion they tell me that so-and-so over in such-in-such department
will be handling the matter. Neil, another really nicely done article!
REPLY
Good, happy to hear it. It is a big for most people. It is better for business when you
handle most of it personally because it is you who is making the deal and speak ing
with the client. So it is you who they are hiring and trusting to get done what they
are asking.
REPLY
Rakesh September 21, 2011 at 9:10 PM
The best mistake, i maid during my first telephonic conversation was, I told my client
what is my charge before telling him the Pros of my services and ROI that big
consultancy companies may not offer, and lost.
REPLY
It is always better to let them know what it is that you are providing and why they
need it before you name a price.
REPLY
cc September 21, 2011 at 10:29 PM
While I don’t nor have I ever ran a consulting company I am a freelance and can related
to some of your issues. I have made so many expensive mistakes that it has nearly killed
me. It’s nice to know there are legions of people out there experiencing the same hurdles!
Great Post
Great Site
Thank you
cc
http://bit.ly/cassiebay
REPLY
All mistakes are just lessons. Everyone will make mistake. All there is to do is
understand why it failed and then move on keeping those mistakes in mind.
REPLY
Akankasha September 21, 2011 at 11:58 PM
Thanks Neil!
These points definitely helped. As much as we know them its always good for someon to
reiterate what really works! Am in the process of starting up one such Online Marketing
firm myself and these pointers certainly are a takeaway!
Keep Posting!
REPLY
No problem. It really is, knowing what works is what makes you successful. Happy
to hear it and good luck.
REPLY
veecreate September 22, 2011 at 2:46 AM
Great post! and it is very informative and useful. Thanks for sharing
REPLY
Your welcome, glad it was useful to you.
REPLY
smart pens September 22, 2011 at 6:54 AM
wow! As expected from an expert. I could learn everything from you when it comes to
business. But what I love is number 2. I think mostly companies I know lack this one.
Mostly they say that clients are always right and you should always say yes to them. I
know what they mean but to the extent that not showing why you are hired is wrong.
Thanks for an eye opener, neil.
ellen
REPLY
Thank you I appreciate the kind words. It isn’t about the client being right, it’s
about keeping the client happy. In order to do that you have to be able to tell a
client no when something they want won’t work. Then explain to them why that is
and what will work.
REPLY
Plamen Ivanov September 22, 2011 at 7:54 AM
Really an informative post. Thank you very much for sharing it
REPLY
Thanks, glad you enjoyed it.
REPLY
Mack September 23, 2011 at 2:15 AM
Hey Neil informative post and thanks for sharing such an useful lessons.
REPLY
Glad to hear you liked it. Thank you.

REPLY
K1 Visa September 23, 2011 at 3:49 PM
Your bit about not letting the client how to do your job is spot on. If someone goes to the
hospital for a surgery, do the tell the surgeon how much anesthesia to use? Of course not,
they trust his opinion. Any consultant should be trusted the same way.
REPLY
Definitely,
Nice comparison, I enjoyed it. They hired you to give them advice and you need to
remind them to take it. Thats why they pay you.
REPLY
Jason September 24, 2011 at 7:09 AM
Hello there,
Thanks for sharing.
On the issue of having a cheap office and then making sure they don’t see it by
conducting personal meetings elsewhere, how do you conduct consumer acquisition
processes? Without a prominent office, I’d think you only have presence on the web &
perhaps through e-ads. Then again, what do you think a traditional consulting company
should do? By traditional, I mean consulting companies that offer consulting services to
non-web-based companies, companies with physical presence in the country.
Thanks in advance.
REPLY
Close companies over the phone. You don’t have to meet them in person to lock in
the contract.
REPLY
ishan verma September 25, 2011 at 5:12 PM
Hi Neil,
thanks for the stuff on hiring. i did these mistakes in past. will keep in mind next time.
REPLY
Yep, no problem. I think most people make these mistakes at one point or another.
Keep these tips in mind and you will be better off.
REPLY
Outdoor Furniture September 26, 2011 at 12:05 AM
I would like to come in with my knowledge of working in different companies ( Iâ€™ve

been a contract worker for years with various companies and work environments) with
different people, and recommend a more human one on one approached between
management and employee.
REPLY
Sure, that is a good point. Thanks for your additional input.
REPLY
Outdoor Furniture September 26, 2011 at 7:54 PM
Thanks for sharing this nice information.It is really very interesting blog.thanks for this
nice post.i like it very much…
REPLY
Glad to hear it. I hope it helped.
REPLY
Charlena Baruth October 2, 2011 at 9:05 PM
Hey there! I know this is kinda off topic but I was wondering which blog platform are
you using for this site? I’m getting tired of WordPress because I’ve had problems with
hackers and I’m looking at alternatives for another platform. I would be awesome if you
could point me in the direction of a good platform.
REPLY
I use WordPress, you should try updating to the latest upgrade.
REPLY
Alex @ Easy ways to make money October 4, 2011 at 4:54 PM
Thanks a lot for this post Neil… especially your advice on “not growing too fast.” I know it
can be tempting to expand your business when you know you’re doing well and having a
constant stream of clients. This type of situation happened to me before and I learned a
lot from my mistakes… Taking one step at a time even if you’re business is flourishing is a
good way to safeguard the future of your business.
REPLY
Yep, you want to make sure you don’t get to carried away when you first start off.
Glad to here you were able to grow from your past experiences.
REPLY
Internet Marketing October 6, 2011 at 6:20 AM
Lesson # 4 is definitely left out most of the time. People tend to just show what they are
made of on production basis but how could you let a client believe or sign up with you
when you can’t express them on their first impression? They may say it is deceiving but
dressing nicely is one of the key points to get clients FIRST.
REPLY
Definitely, first appearances are critical regardless if you realize it or not. People
say what you see is what you get. So make sure they see success.
REPLY
Chris October 9, 2011 at 1:16 PM
Like you mentioned in #7, running a business reminds me of a roller coaster. Some days
are phenomenal when you are booking multiple clients in one day, and some weeks suck
when you loose multiple clients in a week.
REPLY
Yep, that is one way of seeing it. Thanks for your input.
REPLY
Reiki Bedfordshire October 18, 2011 at 12:03 PM
Do people actually take note of what you, as a consultant tell them? In my experience
when a business needs a consultant they are usually too far down the drain to want to
take advice.
REPLY
They do and they should.You can usually bounce back as long as you know what to
do to fix your problems. Which is why they typically hire a consultant in the first
place.
REPLY
Vishal Vivek October 19, 2011 at 1:08 PM
I have had few client who paid less and complained the most. I always tried my best to
carry on despite our bed time fights and If it continued for long then I had to consider
closing down the project. But It happened in early days of my career. Now I choose my
client very wisely.
REPLY
That seems to happen a lot with clients who have a tighter budget. Glad you
learned which clients work best for you. You always want to have a decent
relationship so that way work can be easily accomplished.
REPLY
Yasir Khan Quantum SEO December 3, 2011 at 1:14 PM
I’m impressed Neil!

This post is something which is probably the crux of your life experience.
REPLY
jcel July 6, 2012 at 9:35 PM
This article helped me on my first ever Casa Analysis homework….Thank you very
much….
REPLY
Sajid August 8, 2012 at 8:22 PM
Hi Mr. Patel,
Thanks for the wonderful advice, it was very helpful. I am currently a double M.S major
in Operations Research and Engineering Management the techniques are all about
optimization and better decision making for a business. I haven’t started working yet still
a student and I do have dreams of opening my own business in this field. For my field
how much of a demand would I be in the market?
Thanks
REPLY
Matt December 12, 2012 at 7:30 AM
hey neil,
i really liked this lesson ” You have to dress to impress”. i actually believe in it. and of
course you have practiced this as you told. it’s a very impressive article.
Thanks.
Matt
REPLY
cyrille January 21, 2013 at 7:30 AM
good stuff! thanks for the tips!
REPLY
Jessica February 10, 2013 at 11:31 PM
Hi,
Really great post, thanks for sharing. From my experience it was always tough to keep
new business coming in. When you begin consulting, or any business, you never realize
that more than half of your time may be going to developing new business.
REPLY
Jessica Ben February 11, 2013 at 11:57 PM
I loving reading your posts. This really hits all the marks. The agency I work for can learn
from this too. Thank you for the great post,,,,
REPLY
KW83 February 28, 2013 at 12:13 PM
I thoroughly enjoyed reading this post. I am in the process of planning to open my own
PR consulting firm, and this is precisely the type of advice I need. Thank you – truly.
REPLY
Neil Patel March 1, 2013 at 12:47 PM
Thanks, and good luck!
REPLY
Adeel March 3, 2013 at 10:19 AM
Neil, I would like to understand dynamics of consultancy business especially in area of

business process reengineering where i am specialized.
Is there any way to get further on tips from you. Thanks a ton for nice post!!!
REPLY
Adeel, shot me an email..
REPLY
Deepali March 10, 2013 at 3:48 AM
Hi Neil, i had great learnings from your article. I have just started healthcare marketing
consultancy firm. Your article has given shape to few of my thoughts. I feel, biggest
challenge is to get clients. if you don’t have any, you are busy without business. Currently,
i am in that struggling stage:(
REPLY
Neil Patel March 11, 2013 at 9:28 AM
Thanks for reading and good luck moving forward!
REPLY
vinodh March 30, 2013 at 11:36 AM
Great lesson for an aspiring consultant like me. I endorse your idea of cheap office.
REPLY
Pankaj March 14, 2013 at 3:59 AM
Hi Neil,
Informative post and thanks for sharing such an useful lessons and wonderful advice.
Clients loved personal attention for their projects *Lesson #6*.
REPLY
Very true! Thanks for reading
REPLY
fatima April 5, 2013 at 4:07 AM
Very fruitefull article. Me and my husband are planning to start an audit and consultancy
firm. Your tips will definitly help us in various ways. One question, is it necessary that a
consultant should be more talkative than his / her client? i m not good in exegerating
things i am very precise in every matter… plz advise
REPLY
Neil Patel April 5, 2013 at 9:55 AM
Best of luck to you guys. I think you should just speak with the knowledge you
have, no exaggeration needed
REPLY
Zaira April 15, 2013 at 9:19 AM
Neil,
I truly enjoyed reading your post. I am in the process of starting a non-profit and I would
love your feedback, may I request you on linked in?
REPLY
Zaira, glad you enjoyed the post. Yes, feel free to add me
REPLY
Jugnu July 8, 2013 at 9:03 PM
Hi Neil,
To go through your study was really an informing session. Since i am starting my

consulting business very soon, this study will help me in dealing with clients.
Thanks.
REPLY
Neil Patel July 9, 2013 at 11:54 AM
Jugnu, best of luck!
REPLY
Adegboye July 11, 2013 at 9:12 AM
You are very right Neil, I have found out that majority of my clients are the ones who pay
less. As a result, i have a fixed rate and I have been better off. Atleast now I know the
stress is worth it.
REPLY
Neil Patel July 11, 2013 at 12:17 PM
Adegboye, the stress is definitely worth it when you have the opportunity to
communicate the way you want.
REPLY
Saurabh July 12, 2013 at 2:34 AM
Neil, great article. i have been an avid reader. i really need help in terms of how do you
start finding and pitching to the right clients, or even to prospects. the challenge i have
been facing is of getting connected to the right people and getting a start. I am confident,
that once i can break in, i could get through.
any suggestions would be great.
REPLY
This article should help: https://www.quicksprout.com/2013/05/30/7-steps-to-getting-

that-100000-deal/
REPLY
Kay Fudala July 30, 2013 at 12:15 PM
Neil,
I love how you have covered a broad spectrum of advice on consulting here. As a
seasoned consultant I agree with all of them. The biggest lesson that is missing (and
addressed well with examples in Freshbooks latest ebook) is this, always conduct an
assessment or meet-n-greet session before you divulge your rates.
In your preliminary session, you can learn the client’s budget and specific concerns by
probing them with well prepared questions before you commit to your rate. The session
will also give them an indication of your capability and breadth of knowledge. Also
always be thinking packages instead of hourly rates.
Great read!
Kay
REPLY
Kay, glad you enjoyed it. Thanks for sharing your insights. I think packages really
push the needle for any business.
REPLY
Sangita Singh August 26, 2013 at 2:15 AM
Awesome article. .Well, I also run a HR Consulting company..am sure some tips gonna
help me out ass well. I enjoyed reading it. Also, “The more you charge, the less they
complain” was amazing..
REPLY
Neil Patel August 26, 2013 at 12:07 PM
Sangita, glad you enjoyed the article. It’s so true…price really does matter. Thanks
for reading!
REPLY
Miss Mary September 25, 2013 at 11:35 AM
This is one awesome article! An opportunity fell into my lap for a consulting gig where I
live, in Barrow, Alaska, and I’m glad I came across your article. I really appreciate
learning from all of the comments and responses too. The only thing that doesn’t apply is
the dress code. I love going to board meetings for a 2 billion dollar Native company
where they wear a nice shirt and jeans and only the visitors wear suits. And I thought
$115 was a lot of money until reading your article…
Quyanaqpak! (thank you very much)
REPLY

Mary, glad you found the article helpful. I have always believed in the philosophy
of “to each their own” — you can wear whatever you want to a meeting as long as
you have great ideas and show a passion . Thanks for your feedback and I look
forward to hearing more from you!
REPLY
Kevin November 3, 2013 at 3:35 PM
Great article. On the dress to impress lesson. Does that also apply to the car that you
drive? Would a consultant in a 1 to 2 year old Mercedes be perceived better than a
consultant in a new Toyota Camry?
Kevin
REPLY
Kevin, I really don’t extend it to cars. I think cars should just be reliable. I think the
way one dresses though is important in seeing how well they take care of
themselves — in most cases.
REPLY
Billy November 13, 2013 at 9:47 AM
Neil, this is outstanding information. I’m retiring from the military in less than 2 years.
My plan is to utilize my 20+ years of experience as an officer in the military as a
consultant. In particular, I would like to focus on management consulting. I have a few
additional questions that I would like to present to you, if possible. Again…absolutely
GREAT information!
REPLY
Billy, that sounds like a great path to take. You can email me at neil@neilpatel.com
to discuss. Cheers
REPLY
Nikhil December 2, 2013 at 6:40 PM
Great article Neil… I had my own consulting firm. It’s very challenging and like you said
sometimes we need to fake it out. Every lesson in here has been very well written. Even
for those who are planning to start a new venture, not only consulting, this article helps a
lot. I am planning to expand the firm now, but your article has made me to think
numerous times before I could come to any conclusion.
Hope to see you posting more & more articles.
REPLY
Neil Patel December 3, 2013 at 1:12 PM

Nikhil, I definitely think you are on the right track because you are voicing the right
concerns. I think with a little patience you will see greater success. Keep up the
great work and keep doing all the right things. More articles are on the way!
REPLY
Madhsudan Dadhich January 6, 2014 at 9:38 AM
“A customer is the most important visitor on our premises. He is not dependent on us. We
are dependent on him. He is not an interruption in our work. He is the purpose of it. He is
not an outsider in our business. He is part of it. We are not doing him a favor by serving
him. He is doing us a favor by giving us an opportunity to do so.”
REPLY
Neil Patel January 6, 2014 at 4:05 PM
Love the quote. Thanks for sharing!
REPLY
Madhusudan Dadhich January 7, 2014 at 8:51 AM
Most welcome, I’m finding a lot difficulty while approaching a new client can you
please help me out with any idea that how should I talk to them so that they give
me a chance to serve them.
I’m working in a HR consulting company who supplies manpower to different

companies to close their vacancies at earliest at the cheapest price available in
market.
Also its really difficult to call and shortlist the candidates and get them interested
is their any other way out that by posting adds more number of candidates
approach me I tried in lot of classifieds but none of them is successful upto my
expectations.
Thanks
REPLY
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Exceptional submit. I became verifying frequently this blog with this particular
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REPLY
Mike May 7, 2014 at 10:27 PM
Great information Neil. My main question would be that if its a new consulting firm.
What would be the best way to approach our first clienteles? Till we build trust and form
a relationship to last.
REPLY
Neil Patel May 9, 2014 at 1:28 AM
I would hit up companies in your local area and manually pitch them. Do this in
person… I know it is a lot of work, but you need a few clients to create case studies
from.
REPLY
Rajesh August 9, 2014 at 9:04 AM
No Offence, but Sir, You are full of BS, This Article was a bunch of Baloney and nothing
more
REPLY
Neil Patel August 11, 2014 at 9:31 AM
Rajesh, sorry you feel that way.
REPLY
Bertie October 2, 2014 at 11:38 PM
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REPLY
Leigh October 26, 2014 at 12:16 PM
Good article on consulting. Nice to hear real stories that make a connection between
Internet marketing and consulting with big brand named companies.
REPLY
Concerto May 21, 2015 at 6:57 PM
Nice post. Great consulting experience and insight.
REPLY
Concerto, glad you liked it.
REPLY
Ilan Finer May 26, 2015 at 10:04 AM

This is a must read article for anyone who thinks about starting a consulting business.
And you said it best at the beginning of the article “sadly it’s a lot less sexy than it seems”.
REPLY
Neil Patel May 27, 2015 at 12:23 PM
Ilan, glad I could help.
REPLY
Jordan July 8, 2015 at 8:56 AM
Hi Neil,
I find your article inspiring. I am currently a student I took a course in digital marketing I
know all the theory but need help with implementing all this theory. Maybe you have
some guidance or tips you are willing to help me with?
REPLY
Robin Jons July 13, 2015 at 12:31 AM
Your article is interesting and amazing so far. Thanks for sharing this article, it helps
many people who thinking about to start a consulting company
also i recommend a consulting company:
http://www.vestureindia.com/vesture-retail/
REPLY
Bala July 23, 2015 at 1:27 AM
Hi the above post is very good.pls tell me how to manage employees in work place when
they are not reaching the target.
REPLY
Bala, there are a number of tactics you can use. Can you be a little more specific?
REPLY
Kevin July 27, 2015 at 5:45 AM
great post very helpful and informative
REPLY
Kevin, glad you found it helpful.
REPLY
Jeff September 25, 2015 at 7:16 AM
Neil,
I’ve recently been offered a consulting position as a potential segue into a permanent
position. However I’ve never consulted before…have no idea how to set expectations,
agree upon project deadlines, or establish base rate of pay. Can you recommend some
resources for someone new to this world?
thanks!
Jeff
REPLY
Jeff, best of luck — what an exciting time & I am sure you will do great.
Here are some blogs that can help:
https://www.quicksprout.com/2013/07/11/why-consulting-is-a-career-everyone-
needs-to-experience/
https://www.quicksprout.com/2011/09/19/7-lessons-learned-from-running-a-
consulting-company/
REPLY
Toyin September 28, 2015 at 5:52 PM
Thanks for the article Neil. Been a fan of yours for a while but now finally want to go into
consulting: Marketing, Accounting and Tax. This article is a real blessing. God bless you.
REPLY
Toyin, glad to help. If you need any specific help with anything else please let me
know.
REPLY
Warren Cowley October 3, 2015 at 6:14 AM
Thank you for the advise. I am thinking of entering my market in South Africa as a
consultant. I like your idea about the cookies, alot of people overlook the small things like
cookies but I know working at my current company, when we use consultants, the small
things like them offering you coffee or a tour and keeping you in the loop with
weekly/monthly meetings creates a favorable impression.
A balance of been good at what you do but also the soft skills like creating friendly, warm
sessions with your clients is key
REPLY
Neil Patel October 3, 2015 at 8:36 AM
Warren, sounds like you got it right! It’s all about creating a relationship with your
clients to make sure they feel comfortable and that their concerns are being heard.
Looking forward to hearing much more from you. Thanks for sharing.
REPLY
Manpreet Kaur October 30, 2015 at 7:44 PM
Great post and quite useful.

Keeping rainy day savings in your bank account are really necessary, especially when
you’re working by yourself. When I started out with my blogging and social media work,
I would use every penny I earned and as one can expect, there was a time when I earned
less than my essential monthly expenses. That was really tough and hence I learned this
lesson the hard way.
Since then, I have been working on building a big rainy day fund before I move on to buy
all the stuff I think I need or just want to buy. Your post will work as a motivation to keep
working on those lines and get prepared before it starts raining.
Thanks for this great post. It gives out the best lessons as always.
REPLY
Manpreet, it definitely is smart to always keep a rainy day fund. You never know
what will happen. Why do we earn? To save and enjoy our hard labor another day
REPLY
samsudeen November 21, 2015 at 1:50 AM
please what can a consultance company had to advise his /her client that have some
amount of money hanging as debtor position and the client need a little money urgent to
replace a warrant of machine
REPLY
Neil Patel November 21, 2015 at 5:13 PM
Samsudeen, can you be more specific — I can help if I have more context.
REPLY
Dimitri February 11, 2016 at 8:12 AM
Hi Niel, Thanks for the advice. I am starting with a consulting practice and it is
comforting to know it is not easy by itself and not than only me is having a hard time
REPLY
Neil Patel February 11, 2016 at 6:24 PM
Doing something by yourself can definitely be hard and sometimes difficult

emotionally. Think about partnering up with someone in a similar position as you
and merge your businesses. Check out this post on finding the right business
partner: https://www.quicksprout.com/2009/11/04/finding-the-right-business-
partner/
REPLY
Dimitri February 12, 2016 at 3:12 PM
Thanks a lot for the advise. These times I try to complement my services with
closely related consulting startups as mine and freelancers. So we invite each
other to deals and recommend leads.
REPLY
Neil Patel February 12, 2016 at 9:41 PM
The more specific you are, the easier time you’ll have with getting the deals
you want.
REPLY
Hannah March 9, 2016 at 4:50 AM
Neil,
I’m amazed at how prolifically helpful you are with your articles. How in the world do
you do it??
Anyways, after having experienced a lot of the “downsides” of what you mention in this
article, I quickly determined I needed a better model. I needed something more
systemized.
Exploring this path I came upon the term “productized consulting”, meaning you figure
out a set suite of services that a set group of businesses need, and then offer that.
I think of it like pizza. I offer pizza to people who need pizza, and since I only focus on
pizza, my pizza is the best. Yes, you can get it slightly customized with a different topping,
but underneath it all is pizza. Most consultants are like “smorgasboard” restaurants. How
confident are you that a place that serves sushi, fried chicken and pork fried rice will also
have the best pizza you’ve ever tried? Not very. You want the best pizza? You come to MY
restaurant.
So if you apply that idea to consulting, you get a “productized” service offering. Meaning
it’s less customized (just the toppings), but it’s the best at what it is. So if you are a
business consultant, maybe you have a set process every client goes through. You have
THE best ___ process. If you are an SEO consultant, you have your own specialized
“proprietary” process that every client goes through, and set of deliverables that every
client gets. And if they ask for web development, you send them to a JV partner. The fact
that it’s not 100% customized is actually better for them too. You are saying, “hey, I’ve
already figured out what works. This is a proven system. Customizing it is actually riskier
than giving you what already works”
I’m in the process of figuring out my productized consulting offering now. That means
surveying the market to see if they really do need pizza or if they need something else
like sandwiches. Then, sure, I will offer them the best type of sandwich for their
situation, but only sandwiches. No steak.
Approaching consulting this way I think will help side step a lot of the painful issues that
come with consulting. That’s the idea at least!
Hannah
DoubleYourDigital.com
LocationFreeEmpire.com
REPLY
That sounds like a delicious.. I mean great approach
And something to add, always focus on doing the thing that brings you the most joy
and satisfaction. The more enthusiasm you have for what you do, the more clients
you’ll attract that want your help in doing it.
REPLY
Hannah March 11, 2016 at 5:08 AM
That is very good advice. Funny how we sometimes overlook that part…arguably
the most important “ingredient” of all, in the bigger picture.
I guess I’ll be selling Pho, not pizza then!
REPLY
lol
You will learn from each mistake and become better and better.
REPLY
Franchesca DAvis March 22, 2016 at 11:00 AM
Neil,
Is there a way we could chat offline? I want to start a consulting business but this is all
very new to me. You offer great advice but would love to discuss further
REPLY
Send me an email neil @neilpatel.com
REPLY
Thanks fro the tip
REPLY
Boomy Tokan May 23, 2016 at 3:16 PM
As far as I am concerned Neil writes some of the most amazing and actionable content I
have read in a long time. I am increasingly becoming a fan!
I am looking forward to learn more from Niel. Boomy
REPLY
I’m happy I could help! Let me know if you have any other questions
REPLY
Dimitri Flores May 27, 2016 at 11:45 AM
Neil, today I had to read this article again because one of my first clients is dumping me
with the argument they have not seen improvements in their business. There are plenty
of course and I can and will remind them. They just became business as usual and
nobody remembers that is was me who recommended things and showed the way.
Thanks again for a great piece of timeless advice.
REPLY
Well hopefully you were able to gain some valuable experience and insight from
this experience. You will only get better.
REPLY
Anthony July 27, 2016 at 12:33 AM
Dimitri, I’ve been there and you can typically cut that short. I’m a growth
consultant and typically these small businesses only focus on the bottom dollar.
They never look “between the bucks” as I say and that is…
A. Are your clients still doing the same ol thing you suggested not to do first?
B. How long has it been since you first consulted with them before they noticed no
improvements?(I see this all the time too, they expect after 24 hours, they should be
making $48,000 from the prior $15,000 they currently make)
C. Are any of your clients utilizing what you teach?

D. Are YOU following up with them? They are not remembering you so you gotta
stay more on top and stand your ground. Let yourself be known like the Greek
Gods.
http://www.wgconsultant.com
REPLY
Those are great tips Anthony!
REPLY
Anthony June 23, 2016 at 10:01 AM
This is the most awesome post I’ve ever read. I never read any blog posts because the
majority of the time it’s bullshit. They work at mcdonalds and blog about how to be a
better consultant… GET OUTTA HERE!!!!! When I ask where di you work, they say I
haven’t done this in 10 years… Dude really? This nails everything and I also give credit
where it’s due and that’s thanking you big time for not once bringing up “How many
certifications” and “Degrees” and stupid stuff like that that does not matter to how much
KNOWLEDGE YOU HAVE IN THE INDUSTRY. Man if I met you, I want an autograph and
we need to go throw down some beers
REPLY
Neil Patel June 23, 2016 at 11:31 AM
Thanks Anthony. You will know you have the right mentor when you are enjoying
the experience you having as they demonstrate their value. As for beers, how about
the next time we run in to each other at an event
REPLY
Neil we should talk seriously. Shoot me an email man and I surely will be sure to
pay for some throw downs.
Just got my email up and running finally and have taken on some fairly large
clients but can really use some sort of way to push my word to more and so I
started setting up alkl kinds of networking meetings through meetup.com. This is
a sureshot way to push your word our and has made one heck of a turnaround
for me. $80.00/20 day trials. People see potential(Hey when you started a full time
business with no loans and no help and a black and white printer, your liable to
have some experience and intelligence). They go for it, I produce the knowledge
for them and if they want to extend and continue, then boom we discuss the real
price and I typically say “Hey, your price is not $x,xxx to make more money, your
price is the money you want to make. So what’s what’s more expensive?”
Anthony
http://www.wgconsultant.com
972-302-4413
REPLY
Sounds like you definitely have the hustle inside of you Anthony, love it!
I speak at a lot of conferences, that you may be attending, hopefully we can

meet one of these days!
REPLY
laura July 6, 2016 at 2:40 AM
I have read a lot of articles and I still have a question that has still not been answered.
How exactly do I get clients? For my consulting business? Should I just keep advertising
and hope someone would be interested one day? What do I do?
REPLY
Neil Patel July 6, 2016 at 7:50 PM

What kind of consulting business do you have?
REPLY
Hey Laura, the best way to get started and I’m not joking…. You have to promote
yourself. People are getting tired of reading blogs and Imma tell you right now,
Facebook copy/paste advertising methods do not work effectively. Twitter,
linkedin… yea no those don’t eithier. They have way to show people BUT if you
want to really push out. You are going to have to save only a mere $100.00 ONLY
FOR MEETINGS ok? follow me…
Jump on meetup .com and start setting up RSVP’s on the netwkring meetings that’s
worthy for you. Don’t randomly select just anything and call it a day. Find small
business startup groups or so. Me, I’ve walked directly into businesses and said who
I was, stood my ground and the company has depleted all of my services including
using my point of sale app developed by me. You have to be patient.
REPLY
Thanks for sharing that Anthony
REPLY
REENA MAKKAR KATARIA July 26, 2016 at 11:15 AM
Hello Mr. Neil,

Its really very useful points which will be very helpful for my new consultancy business.
THANKS & REGARDS
REENA MAKKAR KATARIA
INDIA
REPLY
REPLY
Sarah Choudhary July 28, 2016 at 11:42 AM
I used to work for consulting firms for last 6 to 7 years. My mind got the pieces of advices
I find in this post. This is so true, working as consultant to manager for consulting firm
make us very firm believer that we are always in trouble especially lining up with the
timelines and updates. That hectic routine was not enough for me. I startup my own
consulting business. Though I am startup fish in this industry and looking for wonderful
advices. This page is very helpful. I definitely will keep in mind and practice these
lessons.
REPLY

There’s a great deal of opportunity for you on the web. Let me know what you
decide to do and if you have any questions I can help with
REPLY
Maria January 4, 2017 at 7:49 AM
Just put yourself in the client shoe, they are business men and women who want their
investment to have payout
REPLY
Neil Patel January 4, 2017 at 11:28 AM
As does anyone really.
REPLY
step up shine March 22, 2017 at 4:54 AM
Whatever you wrote, it is appreciable but ow could you write – every client is a boss? Is it
real? Not for me.
REPLY
It will feel that way as they decide the decisions.
REPLY
WAFA ALKHALIFA March 25, 2017 at 9:26 PM
Thank you for the positive advice. I’m working as a freelance business consultant for
startups and I’m planning to take it to the next level to have my own consultant office.
that was very helpful especially with the pricing part.
Thanks Neil
REPLY
Awesome, hope it goes well.
REPLY
Gibran Munozcano May 2, 2017 at 5:27 PM
I have been trying to figure it out what is the average churn rate for a Consulting
Company? what is acceptable in the industry. I know for a SaaS it is 7% or less annually.
REPLY
Sure you can find average churn online but try to see beyond averages and aim
higher
REPLY
Gibran Munozcano May 3, 2017 at 1:34 PM
I have looked and I cant find it… would you mind sending me a link… or in your
case what is your churn rate.
REPLY
I have too many ways to consider churn but I would focus on what you want it
to be more than what others have achieved.
REPLY
Gibran Munozcano May 5, 2017 at 8:57 AM
As you know in order to set a goal it has to be a realistic one. For example I can say that I
wan to run 100 meters in 6 seconds…. that’s impossible considering Usain Bolt can’t event
do it under 9 seconds for the past 3 Olympics. So in order for me to set a target for our
Consulting Company I need a Benchmark. That is why I reach out to you and other
Consulting companies. if you want you can email me directly. I’m in the middle of helping
reorganize our own workflow and this is a very important point to figure it out. Any help
would be very much appreciated.
REPLY
Thanks, Gibran.
REPLY
Vick May 11, 2017 at 7:45 AM
Neil,
Fantastic article..i have been consulting for 7-8 yrs now
but only for other firms..

have a q : Can i start my own consulting firm S-Corp and i be its
1st employee ( and can i pay myself..)
-Vick
REPLY
Neil Patel May 11, 2017 at 1:15 PM

That’s the idea for some.
REPLY
Chris October 24, 2017 at 3:00 PM
Thank for sharing Neil. I realize that consulting is not always the easiest business model.
I’m pretty new to consulting and I’m currently in the process of writing the curriculum
for an 8 week growth strategy course. Up until now, I haven’t actually landed any paid
consulting clients, and right before I finished with week two of my training content, I get
a Linkedin email from an insurance company that’s looking to hire a marketing
consultant. And now the main thing that’s stressing me out so bad is exactly how to price
my services in order to win this client’s business. I have hourly rates, monthly retainers
and program packages, and I’ve been told by other consultants to never charge by the
hour and to instead charge by the program, which is what I’m currently doing, except my
program is not yet completed as far as content is concerned.
And so now I’m kinda forced to charge by the hour or by monthly retainer. I guess what
I’m saying is please tell me what I need to do in order to get over the fear of pricing my
consulting services. I currently have block rate pricing and I also have my hourly rate
based on my previous jobs. My block rates range from $135 – $200/hour depending on
how many blocks are purchased, and my hourly rate based on my resume is around
$65-$100. I know as a consultant, my rates are much higher because my program is really
worth that much more than what I would usually do in a full time position.
So I just don’t wanna tell my prospect a price without knowing their max budget upfront,
which I think is what I’ll be asking them first. I also don’t wanna get locked into tracking
every hour on Quickbooks, but I will do it if I absolutely have to. I want to focus more on
providing a program with set monthly rates, expectations, frequency of phone calls and
other things but I’m stuck on exactly how to price it and present my offer in order to land
this new client. Please help Neil.
REPLY
Neil Patel October 25, 2017 at 10:16 AM
It sounds like you know what you’re worth. If you’ve done the research and you
know what other similar consultants are charging, you should feel confident about
giving your new client your price list. You can also ask the client upfront whether
he or she would be more comfortable with an hourly rate or a retainer.
REPLY
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Titis Kaifa September 19, 2011 at 8:14 AM

Neil Patel September 19, 2011 at 11:23 AM

johnQ October 4, 2011 at 7:57 AM

Neil Patel October 5, 2011 at 9:01 PM

Vernon September 19, 2011 at 8:30 AM

Great Post, laid back “inviting” style, yet so relevant!!!

Neil Patel September 19, 2011 at 11:26 AM

Caleb Woodard September 19, 2011 at 8:36 AM

Neil Patel September 19, 2011 at 11:29 AM

johnQ October 5, 2011 at 1:51 PM

Public relations implies a lot of interaction with customers so your wardrobe

Neil Patel October 5, 2011 at 9:04 PM

ron May 30, 2015 at 2:33 PM

@Caleb. Good information. What’s new with PR and the gig?

AngelInvestor8 September 19, 2011 at 8:50 AM

Neil Patel September 19, 2011 at 11:31 AM

Neil Patel September 19, 2011 at 12:29 PM

Dennis Jenders September 19, 2011 at 10:26 AM

Neil Patel September 20, 2011 at 8:33 AM

Thanks, anytime. Constantly bringing in new business is deﬁnitely tricky

Pete Stevens September 19, 2011 at 10:27 AM

Am looking forward to learning lots from my mistakes!

Neil Patel September 20, 2011 at 8:35 AM

Yair September 19, 2011 at 12:51 PM

Neil Patel September 20, 2011 at 8:58 AM

Toni September 19, 2011 at 1:44 PM

Neil Patel September 20, 2011 at 9:05 AM

I never promised them anything. I always provided estimates on what I think I

Wasim Ismail September 19, 2011 at 3:23 PM

Thanks for the points.

Neil Patel September 20, 2011 at 4:40 PM

Sandra Eamor September 19, 2011 at 5:12 PM

No problem. Happy to contribute to what you have already studied. It is important

Chad B September 19, 2011 at 6:55 PM

Very informative post! Thanks for sharing this

Neil Patel September 20, 2011 at 4:55 PM

You’re welcome, glad to do it.

Ramesh September 19, 2011 at 9:34 PM

Neil Patel September 20, 2011 at 4:55 PM

I hope it does! Thanks for passing it along.

Chris Vandepas September 19, 2011 at 10:02 PM

Ah consulting. It is an interesting business. I remember when I was once attending a

Neil Patel September 20, 2011 at 5:10 PM

sam @ goa carnival September 19, 2011 at 10:39 PM

Great post Neil,

Neil Patel September 20, 2011 at 7:55 PM

Casey Armstrong September 19, 2011 at 11:07 PM