For Branders: Should I Work with Clients' Competitors?

Hello! Welcome to Work Your Biz Like A Boss! I am your host, Sherri Wilson, and I decided this episode to talk to fellow branders one on one, which is not something I’ve done before. And I wanted to start with a very important question that you must answer—should I work with my clients’ competitors? I don’t want to answer with a “yes” or “no.” Instead I’ll give you some thoughts and what I did.

LOYALTY AS A CORE VALUE

Here is one thing you must keep in mind when working with other business owners and entrepreneurs—loyalty. Think about it. Loyalty is one of the core elements of doing business with each other, especially local businesses. And certain things create loyalty—great customer service, great product or service, the little things a business does that weren’t asked for but make us happy. Often, price comes last. If you treat people well, you can actually charge more and even offer an inferior product and they will probably keep coming to you. At least that’s what the research says.

On the other side as a business owner, loyalty is very important to our success. Think about the last time one of your clients went to someone else. It doesn’t feel good. And it feels disloyal. Now a lot of this is the general nature of humanity. We like loyalty and people we can trust and that trust us. It’s also a “lifeboat ethics” mentality, which is the idea that if someone goes to a competitor, you might experience lack. The reality is that there is plenty of business to go around and if you have a great business model, product/service, and customer service, you will be successful. But keep in mind that when you’re seated across a new potential client, one of the things on their mind is, “Are you going to be working with my competitors?” They want to know that you are 100% for them, which is impossible if working for a competitor. You might think you can brand and cheerlead both equally but the reality is that promoting both businesses means one of them won’t get that customer.

The Two Things

Early on, I decided that I would NOT work with my clients’ competitors because it just felt weird. Loyalty is DEFINITELY a core value for me. But an experience of my new client sealed it for me because I just wasn’t quite sure. I mean that’s a lot of business I could miss out on (don’t worry…I have an idea for that).

I had just sat down with two of a local bank’s board and was hired to create and manage social media content. I had fallen in love with all of them immediately. The two older gentlemen remind me of Doc from Gunsmoke and the other John Wayne. :D I liked the patriotism of the bank and the “at home” feel. And I understood that loyalty would be important to them so I told them, “I don’t work with my clients’ competitors.”

Both of them appreciated that and let me know that they just don’t know how a marketing firm that represents them can fully represent them when they also work with their #1 competitor. Is this firm giving both 100%? I don’t know. They might be. But as stated, only one bank will be picked out of the two or more they represent. But here is what got me—that underlying question of whether they were being under favored compared to the other bank. I never want a client to feel that I’m playing favorites; therefore, I only have one favorite, the client I’m working with in that industry. And I’ve had to turn down businesses. One hurt a little because I love the owner! But for me, it was the right thing to do. I’ve not regretted it at all. Now, if one of my clients fires me, game on. I will contact that last competitor and let them know that I am available.

Warm bodies = more warm bodies

So what do you do if you don’t want to lose that business? Hire an independent contractor to manage and create social media content for any competitors of your existing clients with the understanding that his or her single focus is to promote those businesses as if no other exist. It’s like personal trainers. We all create loyalty and relationship with our personal trainers, hair dressers, etc. There will be a loyalty between the two. But you definitely don’t want that loyalty to be so strong that the independent contractor steals your clients. That is the risk. For that reason, a non-compete clause must be in there as well as correct ownership of all content. My contract clearly states that all content is my clients. If a contract is terminated, all content is handed over to them within a certain timeframe.

What if I want to work with competitors?

Do it! The choice is yours. If you go in with your eyes and ears wide open and do a fabulous job, you can assure your clients that everyone receives the same attention, excellence, and promotion. No favorites with you! And if you have a client that brings up their concerns of working with competitors, then you can decide in that moment whether to only work with them or assure them of your commitment to their branding.

If you think about it, branding is very unique to each business (even among competitors) because branding is translating the personality of that business or business owner and the unique experience they provide to potential customers. If you decide to brand competitors, I definitely would not be cookie cutter in content. Don’t copy one post and use across the board or use the same copy (text).

This Seals It For Me

I only work with clients that I want to work with and believe in their product or service. This means that I am invested in their success and extremely loyal. The only way my clients will get rid of me is if I die or they fire me. And then I might stalk them. Lol! And the reasons might differ. I had one client I wanted to work with for two years because they are a landmark here, a generational business that has stood the test of time. Another client is a favorite because we do more than branding. He trains me on the kettlebells. We both have a podcast. And we conduct a coaching intensive. Another client I just got does THE best plumbing work in town. I love his work ethic and how thorough he is. I have many reasons for working with my clients. For me, working with their competitors just seems…disloyal.