Your First Customer - How to Close the Deal

After 3-5 conversations, you'll have a sense of who's genuinely interested. Someone will say "This sounds like exactly what I need" or "I've been looking for something like this." When that happens, it's time to make a real proposal.

This chapter covers everything from crafting your first proposal to handling objections, getting the agreement in writing, and collecting your first payment. By the end, you'll have a complete system for converting interested prospects into paying clients — without feeling sleazy, pushy, or uncertain.

Recognizing Buying Signals

Before we get to the proposal, let's talk about how to know when someone is ready to be proposed to. Not everyone who takes a call is a buyer. But some people will give you clear signals that they're ready to move forward. Here's what to look for:

Strong buying signals:
- They ask "How much does this cost?" — When someone jumps to pricing, they've already decided they want it. They're evaluating affordability, not interest.
- They say "When could we start?" — This is as close to a yes as you'll get before making a formal proposal.
- They describe their timeline: "We need this solved before Q3" or "Our board meeting is in six weeks and I need to show progress."
- They introduce you to a decision-maker: "Let me loop in my VP of Operations — she's the one who would sign off on this."
- They ask detailed questions about your process: "How many hours a week would you need from our team?" or "Would you need access to our systems?"

Moderate buying signals:
- They say "This is really interesting" or "I like what you're describing."
- They nod frequently during your idea section and take notes.
- They share internal details they wouldn't share with a casual contact — budget ranges, political dynamics, failed past initiatives.
- They say "Let me think about it" but follow up with specific questions via email within 48 hours.

Weak or absent signals:
- They say "That's interesting" in a flat tone and don't ask follow-up questions.
- They redirect the conversation away from your service area.
- They don't commit to a follow-up meeting.
- They say "I'll pass this along to my team" without specifying who or when.

When you see strong buying signals, make the proposal within 48 hours. Momentum matters. Interest fades. The person who was enthusiastic on Tuesday may be buried in other priorities by Friday.

Making the Proposal

Keep it simple. Most first proposals should be one paragraph long, not a 10-page deck.

"Based on our conversation, I'd suggest we work together for three months, starting [date]. Here's what I'd do: [brief description of what you'll deliver each month]. My fee would be [price]/month, billed monthly. We can reassess at the 90-day mark and decide if we want to continue. Does that work for you?"

That's it. That's a proposal.

Why Simplicity Wins

You might feel like a one-paragraph proposal isn't "professional enough." You might think you need a slide deck, a scope document, a timeline with milestones, and a legal contract. You don't. Not for your first client.

Here's why simplicity wins:

It reduces friction. A 10-page proposal requires a 10-page review. A one-paragraph proposal requires a one-minute review. The faster they can say yes, the more likely they will say yes.

It builds confidence on both sides. When you present something clear and concise, it signals that you know what you're doing. Complex proposals often signal the opposite — that you're hiding uncertainty behind layers of detail.

It's honest about what you know. At this stage, you haven't done the deep diagnostic work yet. A detailed scope would be speculative at best. A simple proposal that says "Let's work together for three months and figure out the specifics together" is more honest than a 15-page document that pretends to have all the answers.

It's easy to adjust. If they push back on the timeline or the price, you can adjust in real time during the conversation. If you've sent a formal 10-page document, adjustments require redlining and revision cycles.

The One-Paragraph Proposal Template

Here's the template you should use, customized for your situation:

"Based on our conversation about [specific problem they described], I'd suggest we work together for [term — typically 3 months]. Starting [proposed start date], here's what I'd do:

Month 1: [What you'll do in month 1 — usually assessment, audit, or discovery]
Month 2: [What you'll do in month 2 — usually implementation or development]
Month 3: [What you'll do in month 3 — usually optimization, training, or handoff]

My fee would be $[price] per month, billed at the beginning of each month. We'd have [frequency] check-in calls, and I'd be available via email and [Slack/Teams/phone] between calls.

At the end of 90 days, we can review results and decide whether to continue, adjust, or wrap up. Does this sound like a fit?"

Pricing Your First Client

Pricing is where most new consultants freeze. You don't want to price too high and scare them away. You don't want to price too low and undervalue yourself. So let's settle this.

The anchor: What were you paid per hour in your corporate job?

Take your last annual salary and divide by 2,000 (approximate working hours per year). If you made $120,000, your corporate hourly rate was about $60/hour. Your consulting rate should be at minimum 1.5x to 2x your corporate hourly rate. That puts you at $90 to $120/hour.

Why higher? Because as a consultant, you're covering your own benefits, taxes, unpaid time between clients, and business expenses. The loaded cost of a $120,000 employee to a company is typically $160,000 to $180,000 when you include benefits, office space, and overhead. Your rate needs to reflect your true cost, not just your salary.

For your first client specifically: I recommend pricing slightly below your target rate — maybe 10-20% below — to reduce the friction of getting that critical first yes. Your first client is worth more than the revenue they generate. They're worth the testimonial, the case study, the referral, and the confidence that comes from having a paying client. Once you have that, you raise your rates for client number two.

Monthly retainer vs. hourly billing:

For most consultants, monthly retainer is better than hourly billing. Here's why:

• Retainers create predictable income for you
• Retainers feel simpler to the client (one number per month)
• Retainers encourage you to focus on outcomes, not hours
• Retainers avoid the "clock watching" dynamic where clients feel like every question costs them money

A typical first retainer for a consultant with 8-15 years of experience ranges from $2,000 to $5,000 per month, depending on the scope and industry. If you're working with larger organizations or solving high-value problems, $5,000 to $10,000 per month is appropriate.

How to present the price: State it simply and then stop talking. "My fee would be $3,500 per month." Then wait. Don't justify it. Don't immediately offer a discount. Don't say "But we can negotiate." Just state the number and let them respond.

The silence after you state your price is uncomfortable. That's okay. The person who speaks first after the price is stated is the person who has less power in the negotiation. Let them speak first.

Addressing Objections

Some potential clients will have questions or push back. This is normal and healthy. Objections aren't rejections — they're requests for more information. Here are the most common ones and how to handle them:

"This feels expensive"

Your response: "Compared to what?"

This is the most powerful question in sales. It forces them to articulate what they're comparing your fee to. Usually, they're comparing it to nothing — they haven't actually evaluated alternatives. When they try to answer, they often realize your fee is reasonable compared to:
- Hiring a full-time employee with your expertise ($100,000+ salary plus benefits)
- The cost of not solving the problem ($10,000+ per month in lost productivity or missed opportunities)
- What other consultants charge (often more than you)

After they answer, walk through the value: "If we solve the delivery delay problem you described, you said that's costing you roughly $15,000 a month in lost business. My fee to solve it is $4,000 a month. That's a pretty strong return on investment, even if we only get halfway there in the first month."

"I need to think about it"

Your response: "Absolutely — I want you to feel good about this. Is there anything specific that's giving you pause? I'd rather address it now than have you sitting with a question I can answer."

This response does two things: it respects their need for time while gently uncovering the real concern. Often, "I need to think about it" means one of three things:
1. They need to check their budget (legitimate — offer to follow up in a specific timeframe)
2. They need to discuss with a partner or decision-maker (legitimate — offer to join that conversation)
3. They're not interested but don't want to say no directly (probe gently — "Is this something you see yourself doing in the next few months, or is the timing not right?")

"Can I see some examples of your previous work?"

Your response: Share your work history examples from the exercises in earlier playbooks. Describe what you did and what changed as a result. You don't need a portfolio of consulting work — your corporate experience IS your portfolio.

Frame it like this: "In my role at [company], I led a project to [specific initiative]. The result was [specific outcome — time saved, money saved, revenue generated, problem eliminated]. That's the same type of work I'd be doing for you, applied to your specific situation."

If you have any documentation from your corporate work that you can share (anonymized case studies, presentations, frameworks), offer those. But don't let the absence of a formal portfolio stop you. Your experience and the quality of your conversation are your proof of competence.

"Can you do a small project first?"

This is a common request, and it can go either way.

If the small project is paid: Say yes. A paid pilot project is a great way to build trust and demonstrate value. Just make sure it's scoped clearly and priced fairly — don't do $5,000 worth of work for $500 to "prove yourself."

If the small project is free ("Can you do some spec work?"): Politely decline. "I appreciate the idea, but I've found that the best way to demonstrate value is through a short paid engagement — even just one month. That way we're both invested, and you get my full commitment from day one. Would a one-month trial make sense?"

Free work devalues your expertise and sets a precedent that's hard to reverse. If they want to evaluate you, a paid trial period is the right format.

"Your competitor quoted less"

Your response: "I appreciate you sharing that. Can I ask — what's included in their quote?" Then listen carefully. Often, the cheaper option includes less experienced people, fewer hours, or a narrower scope. Highlight the differences without badmouthing the competitor.

"It sounds like they're offering [X]. What I'm proposing includes [Y and Z, which they don't]. The price difference reflects the depth of experience and the hands-on approach I take. But ultimately, you should go with whoever you believe will solve the problem most effectively."

This response is confident without being arrogant. It acknowledges the competitor, differentiates your offering, and puts the decision back on the prospect.

Getting It In Writing

Once they say yes, confirm the agreement in an email or a simple one-page document that includes:

• What you'll do (scope of work — keep it to 3-5 bullet points)
• What they'll pay (monthly fee, payment terms)
• When it starts (specific date)
• How long the initial term is (3 months is typical for consulting)
• How either party can end the arrangement (e.g., "Either party can end this arrangement with 30 days' written notice")
• What's not included (this prevents scope creep — e.g., "This engagement covers strategic advisory. Implementation support would be a separate arrangement.")

You don't need a lawyer to write this for your first client. A clear, honest description in an email is legally sufficient for most consulting arrangements, especially early on. Get your own legal advice as your business grows and your contracts get larger.

Here's a sample email you can send after verbal agreement:

Subject: Our Engagement — Summary and Next Steps

Hi [Name],

I'm excited to get started. Here's a summary of what we discussed:

Scope: I'll be working with your team on [specific problem], specifically:
- [Deliverable 1]
- [Deliverable 2]
- [Deliverable 3]

Timeline: Starting [date], initial engagement of 3 months.

Fee: $[amount] per month, invoiced at the beginning of each month.

Check-ins: [Weekly/biweekly] calls, plus availability via email and [Slack/phone] between sessions.

Terms: Either of us can end this arrangement with 30 days' written notice. We'll do a formal review at the 90-day mark to assess results and discuss next steps.

If this looks right, just reply confirming and I'll send over the first invoice. Looking forward to working together.

Best,
[Your name]

Getting Paid

Invoice before you start. Send the invoice the same day they agree, and ask for payment before the first working session. This is standard professional practice. Most clients expect it.

Don't feel awkward about asking for money. You've offered something valuable. They've agreed it's valuable. Payment is the natural next step.

Practical invoicing tips:

• Use a professional invoicing tool. Stripe Invoicing, Wave, FreshBooks, or even a well-formatted PDF all work. Don't send a handwritten email that says "Please pay me $3,500."
• Include payment terms. Standard is "Net 15" (payment due within 15 days of invoice date) or "Due upon receipt." For your first client, "Due upon receipt" is fine.
• Set up automatic invoicing. If your engagement is monthly, set your invoicing tool to send the invoice automatically on the first of each month. This removes the awkwardness of having to manually ask for payment every month.
• Keep records. Track every invoice sent, payment received, and any outstanding balance. This matters for taxes and for understanding your cash flow.

If they hesitate at the payment stage, ask if there's something about the arrangement they'd like to discuss. Sometimes it's a timing issue (their accounts payable cycle runs on the 15th), not a value issue. Be flexible on timing, firm on amount.

One important note on your first payment: When that first payment hits your bank account, take a moment to acknowledge it. This is a big deal. Someone just paid you for your expertise — not because a company hired you and assigned you a salary, but because a person evaluated your skills and decided they were worth paying for directly. That's validation that no resume or job interview could ever provide.

What Happens If They Say No

Not every proposal gets a yes. That's normal, and it's not a reflection of your worth. Here's how to handle a no gracefully:

Ask why: "I appreciate your honesty. Can I ask what the main factor was? I'm still refining my offering and your feedback would be really valuable."

Keep the door open: "I understand. If anything changes in the next few months, I'd love to revisit the conversation. And if you come across anyone else dealing with similar challenges, I'd appreciate the referral."

Learn from it: Document why they said no. After a few rejections, you'll see patterns. Maybe your pricing is off. Maybe your scope is too broad. Maybe you're targeting the wrong level of decision-maker. Each no teaches you something that makes the next proposal better.

Don't take it personally. A no to your proposal is not a no to you as a person. It's a business decision based on their budget, priorities, and timing. Separate your identity from your business, especially in the early days.

Exercise: Build Your Proposal Kit

Write your proposal materials now — before you have a client. Having these ready means you won't freeze when someone says "yes."

Part 1: Your one-paragraph proposal template. Fill in the blanks:

"Based on our conversation about [problem], I'd suggest we work together for [term], starting [date]. Here's what I'd do:
- Month 1: [deliverables]
- Month 2: [deliverables]
- Month 3: [deliverables]

My fee would be $[price]/month, billed monthly. We can reassess at the [X]-day mark and decide whether to continue."

Part 2: Your confirmation email template. Use the sample email above and customize it for your service.

Part 3: Your objection responses. Write out your response to each of these in your own words:
- "This is too expensive."
- "I need to think about it."
- "Can you show me examples of your work?"
- "Can you do a test project for free?"

Practice saying each response out loud until it sounds natural. The goal is that when you hear one of these objections in a live conversation, you don't freeze — you have a ready, confident response that keeps the conversation moving forward.

Key Takeaways:

• Keep your first proposal to one paragraph — simplicity builds confidence on both sides
• Address objections directly: "Compared to what?" is the most powerful response to "that's expensive"
• Get the agreement in writing — a clear email is fine for your first client
• Invoice before you start, not after — this is standard professional practice
• Price at 1.5-2x your corporate hourly rate, and consider a slight discount for your first client to reduce friction