My Project Broker Experience
Self-employed people are consistently searching for new and
innovative methods to get clients. Inevitably, one comes across
a company or service that offers to serve as a project broker
for free agents, independent consultants, contractors, and
clients. This article explains how these services work, the
experience I had, and items to consider when evaluating these
companies and services.
Why are independent consultants, free agents, and freelancers
drawn to these companies and services? There are two main
reasons.
First, these people either do not know how or do not like to
market their services to others. The idea of potential clients
coming to them is very enticing since it requires little effort.
You just have to sit back and wait for the assignments to be
posted. When you see an assignment that fits your experience and
expertise, all you have to do is submit a proposal and then wait
for a decision.
Second, these companies offer a means to broaden your exposure
in the marketplace. The thinking goes that if enough people are
aware of the services I offer, I'll get a client.
Now, let's talk about how these services work.
In order to view a list of projects, submit proposals, and
ultimately get clients, you need to "join" or "sign up" with a
particular company or service. Generally, this process requires
3 things:
1. You provide detailed information about your expertise and the
services you offer. This information is placed on a web site and
is accessible to potential clients and other free agents looking
for joint venture partners or subcontractors.
2. You pay a fee that is billed either monthly or annually. This
fee gives you access to the database of projects that are
currently listed. For each assignment you get through the
company or service, you may have to pay a percentage of your
project's total cost as a "finder's fee."
3. You provide references that potential clients can contact to
inquire about your work. The company or service you join may
want to verify your references to make sure you're as competent
as you describe. There is a possibility your references may have
to fill out a questionnaire or participate in a phone survey
regarding your work and professionalism too.
Once you've provided all the relevant information about your
expertise and services, your references are verified, and you've
paid the appropriate fees, the "sign-up" process is complete.
You are now free to search the current project database, submit
proposals, and hopefully get clients!
Some years ago I signed up with one of these services for one
year. I will not disclose the company's name but here's what I
learned:
1. You can sign up with these services or companies even if you
don't meet all of their stated requirements. When I was
contemplating joining a particular company, I didn't have enough
previous clients the company required. However, when I explained
my situation, I was permitted to join. Remember, the
organization doesn't make money if they turn you away.
2. Don't be fooled by the advertising hype touting thousands of
available projects. If 95% of the projects listed are not in
your area of expertise or industry, that sure doesn't help you
get a client.
3. You may not get any clients. During my year's time, only one
project somewhat fit my skills and experience. I had to partner
with another consultant in order to meet the project's
requirements. Together, we submitted a proposal but didn't get
the project.
4. For each project, you compete against a group of people that
provide similar services. This competition further reduces the
probability you'll get the project. However, if you get clients
through people you know or through a friend-of-a-friend, the
competition doesn't exist.
5. It can take a long time to get a project. The person I
partnered with on my lone proposal said it took him 3 years to
get a project through this company. While his project more than
made up for the cost he incurred up to that point, he was
strongly considering not renewing his account.
6. Some of the projects submitted are only ploys to test the
marketplace for a particular kind of service. Others are a means
to satisfy a company's policy that requires "competition" for
each project. The reality is a free agent was selected before
the "competition" search began. However, this should not deter
you from submitting proposals. You never know if you'll get a
project unless you submit a proposal.
Here are some thoughts to consider when evaluating the various
project broker services:
1. Are there a sufficient number of projects listed in your
industry that match your skills and experience? If a large
portion of the projects involve unfamiliar industries, be
cautious.
2. Can you get your money back if you are not completely
satisfied within 30 days?
3. Is there a clause that you get your money back if you don't
get a project within the first year? This way you can't lose.
The worst that happens is the company uses your money free for
one year.
4. Does the company or service perform marketing in the offline
world? Just because you are in cyberspace doesn't mean your
potential clients reside there too. Exposure in the real world
through press releases, magazine ads in appropriate industry
publications and trade journals are a good indication the
company is getting the word out.
If you are a new free agent or if you haven't had many clients,
it is best to spend your time strengthening your local
relationships. These contacts are an excellent means to get your
first few clients. Consider joining these services when you
become more experienced, have an adequate client list, and can
afford the risk.