Chance are you’ve heard the advice to keep a “FU Fund”…
As in… “expletive you fund.”
It’s a delightfully colloquial phrase used by freelancers and other business owners who work with clients.
The idea is simply to keep a stash of cash.
Something like 6-months to cover your necessities. So you eliminate neediness around taking on, or keeping, clients.
It’s money that you never touch. And is there for that one purpose.
Having it can give a massive confidence boost.
It’s empowering when you don’t have to be thinking about taking on a less-than-ideal client… or sticking with one who’s been a pain in your rump.
It’s not so easy if you DON’T have that fund as a backstop.
But it needn’t hold freelancers back from making principled decisions… even when they’re broke.
Take the example of copywriting master, John Carlton, who took on a client for a small fraction of his usual fee — because times were tough.
He’d agreed with the client for 50% payment up front. And 50% upon completion.
But when he opened the envelope for the first payment, there was only half of what he expected.
The note inside explained that the client thought John would “work better with more carrot on the end of the stick.”
Carlton promptly sent the check back.
Even though he desperately needed the money… he said he would not work for someone like him. And to never contact him again.
(There’s a “spooky” conclusion to this story when, the next day, multiple high-paying jobs just showed up!)
Point is… not everyone is willing to take such a risk. And that’s why an “FU fund” can serve as a massive confidence-booster at times like this.
If someone doesn’t have an income… then getting that flowing has to be first priority.
But when there is a stream of income… building up your fund can be as simple as carving off a percentage (say, 10%)… and letting it grow to a suitable size for your needs.
Now…
Having the fund doesn’t mean you need to get all mean… and literally tell clients to F-off!
That might not be the best reputation builder!
I like expert negotiator, Jim Camp’s, approach.
Jim was the “go to” person for the FBI for many years. And has led many hundreds of millions of dollars worth of business negotiations.
His way of looking at it is… when you have a backup fund like this…
You can use it to let your humanity come out.
You don’t need to whack clients on the backside and send them running.
Instead…
You can simply say…
“Sorry, I’m not the best person to be working with you.”
It might not be as catchy… but perhaps we should rename the “FU Fund” to the “Be Human” fund. 😄
Of course… building up your “Be Human” fund… needs to happen somehow.
Ready to build your email list? Go here…
EmailForTheWin.com
Chris Milham