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Old August 6, 2018, 04:21 PM
Dien Rice Dien Rice is offline
Onwards and upwards!
Join Date: Aug 2006
Posts: 2,437
Default Customers vs Clients... another example!

Originally Posted by GordonJ View Post
One guy caught us a little off guard, he being a successful consultant and all, one of the more successful ones in the group.

But, he admitted to being tired of CLIENTS, he wanted to get away from them and go to CUSTOMERS.

His difference definition: Clients you DO FOR, work with...Customers you sell to.

He is tired of trading his TIME for dollars, albeit they are significant dollars most of us would gladly trade for.

I think if you are just starting out in your business, whatever model you choose, it is OK to take on a few clients, but from what I know today, if I had to start over, I think CUSTOMERS, along the line of Harvey Brody's 100+ customers, who repeat buy (some for over 60 years) without all the slop and mess, is the way to go.

So, THINK customers over clients.

Then get picky. Customers with money. Repeat buyers. Buyers of quantities. A consumable. A basic desktop paper shuffling business which doesn't take up much of your time, ONCE you have it set up and running.

But if you have a different opinion, and love your clients, let us know, eh?
Hi Gordon,

As I mentioned recently, I have a friend who moved to Bali and has a business (actually, more than one business) there...

He has a business with clients - business coaching. And a business with customers - a bottled high-end fresh juice business (he sells the bottled juice wholesale to restaurants, who put it on their menus). (He has also created and run many other businesses in the past.)

His take was - you can make more money faster with a "client"-type business, where you are selling your time. So if you need more money fast, that is the higher-probability way to go.

However, with a product-based business - where you have customers - it is easier to get yourself personally "out" of the business. That means, get it to a stage where you need to spend very little of your own time to keep the business going.

In the case of his bottled juice business, he partners with local farmers who grow the produce that go into making the juice. He has employees who actually make and bottle the juice. He has restaurants who repeatedly buy the juice, over and over, every day. He's set it up so that now, he has to spend very little of his own time to keep it going. And it's profitable.

So, those are two insights I came away with... If you need money fast, a service-type business (with "clients") might get you there more quickly. But for the long term, a product-based business (with "customers") could be better for your lifestyle - you can get yourself "out" of the business more easily, which means you can keep it running on "autopilot" while you do other things (like build more businesses), or you can more easily sell the business.

So, I don't think there's a right or wrong... It might depend on your situation, and what you need at that point in time...

But I agree, for the long term, the "customer"-based business probably makes for a better lifestyle! More free time is good...

Best wishes,

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