LooseSuits

What kind of work are you doing that you would not just collect a set payment?

I would talk to you lawyer about potential courses of action. Afterwards I would have a discussion with the client, and see what you can do before it gets to legal measures. If they still do not budge, then I would mildly threaten legal action.

I would think that you are better off this way. If you give in this time to their demands, you are assured that they will repeat these actions in the future on any other work they may send you. If you lose the client then it is for the best, use your time to market your business and find better clients who value your services.

Sounds very cut and dry. Tell them that's a breach of contract and you'll have to pursue them legally for lost revenues.

You have a contract. Great! That's legally binding. Maybe give them a counter offer "ok, well I had figured this to cover these costs... (total up, punch a calculator some,) that'll mean you need to pay $$$,$$$,$$$,$$$ (you get the idea) up front to compensate."

I can't help but think that if you are normally working out revenue sharing programs with your clients, that it may be a flawed business model if they are continually trying to negotiate the contract down....

That's their fault for not knowing how their own business operates.
They break the contract then persue them for the money.
Just because they're a big (and sounds like a pain in the ass) client doesn't mean they can set their own rules.

And honestly, if they're giving you this much trouble, are they really that good a client?

Im not entirely sure on the basis of the contract but if you're providing the website for a share in the revenue the tell them to get stuffed.the website is a tool for taking revenue, even if a call center makes the referal. But as I said I don't know enough about the whole situation.

I can't help but think that if you are normally working out revenue sharing programs with your clients, that it may be a flawed business model if they are continually trying to negotiate the contract down....

Actually I'd say it's the complete opposite. If they're trying to negotiate the contract down (after signing) then the author is a great negotiator and is making some really solid money for his company.

Every client wants to pay less for the work they get, it has nothing to do with having a "flawed" business model.

I have a contract with a client that's based on revenue share: A percentage of all revenue reported via Google Analytics.

They just came back and said they're changing it, because they discovered some of that revenue is coming from their call center. That eliminates about 25% of my earnings from the contract.

Hmm...well, your description is very vague but if they are paying people to handle support/sales issues (for example) and those employees are the ones generating the sales lead (or whatever reason they are going to the site) who deserves the bonus? The person that maintains the site or the one that referred the person to the site?

Where the traffic comes from definitely makes a difference (IMO) but that should have been properly negotiated in the contract...from both sides. If the scenario is close, from their standpoint so they aren't double-paying and from yours so you are guaranteed revenue based on X traffic (if I'm understanding that properly).

@Mike

Actually I'd say it's the complete opposite. If they're trying to negotiate the contract down (after signing) then the author is a great negotiator and is making some really solid money for his company.

Every client wants to pay less for the work they get, it has nothing to do with having a "flawed" business model.

I would have to argue that you have the wrong mentality. I typically would rather have the client be happy. This leads to referrals and repeat business. However if they are attempting to overstep their bounds, or are just unrealistic then it is usually just best to cut them free.

If all your clients try to renegotiate their contracts because they feel cheated, then you can be sure that they will never call you again, and could be spreading the negative comments about your business.

If the clients feel cheated, they should not sign the contract.

Trying to change it after the fact just indicates they were negligent, or are trying to cheat you.

If the clients feel cheated, they should not sign the contract.

Trying to change it after the fact just indicates they were negligent, or are trying to cheat you.

I totally agree with that statement, this is just a bad situation to be in and there is probably no way to get out of it with everyone being completely happy...

Its just too bad for for the original poster, because this is most likely just going to be a ton of headaches for him and his company.

After a few days of arguing, the client relented.

I actually went to law school, etc. etc.. Now I run a marketing company (loved law that much). But if there's one thing I've learned, it's that anyone can breach a contract if they really want to.

In this case, our direct contact was messing with the contract. The CEO stepped in and stopped it...