Tim Keefe ⋅ Washington, DC U.S. Army, Specialist ⋅ 6 years served

This was a lesson that I learned late in life, but redefining "payment" might be in order here.

You have two main, but finite resources, time and money. You can have one and not the other, or perhaps both -- though that's rare.

When I used to consult for non-profits several years ago, I worked in a kind of start-up atmosphere where I received a pittance in terms of financial remuneration, but the two years I spent there was invaluable in learning about how an organization was run and should have been run (key takeaway = it's rare for a non-profit to be well-run), as well as trying to solve a technical problem with the software and technology that was available at the time (e.g., static web pages, and no blogs). So, in a sense, I was working pro bono for the non-profits, yet I felt that most of it was time well-spent.

Now, in your case, you might consider "payment" more in terms of barter than in financial compensation. That is, if your buddy permits you to get involved with his venture and you can record videos and post them on YouTube, for example, to document your work, then this is a win-win for the both of you. He gets your labor and you get to document what you've done to show a future employer or possible investor. This is becoming more common and will document how you learn and how you do things to future interested parties.

But, if your buddy won't allow you to do this, then come up with something he can do for you other than get involved with his venture. Barter instead of money -- but make sure that it's a win-win.

Philip Steffes ⋅ Waterville, MN Cray Inc. ⋅ 37 years experience

There is a difference between pro bono and free. I've been accused (by a former associate) of doing work for free when I claimed it was pro bono. I recognize everyone has their own standards. I am willing to donate my services when I sincerely believe the recipients don't have the money to pay, provided I believe they have a legitimate need for legal services that they are unlikely to find another way. The situation you explained doesn't seem to fall into that category. If you want to continue to provide your services to your friend then I suggest you consider alternative means by which you will be compensated. Depending on the organization of your friend's business, you might consider stock, stock warrants, or other similar means of compensation. Providing work pro bono to deserving individuals is very rewarding. Providing work for free to individuals who could/should compensate you is just enabling someone who is using you (even if they don't realize it).

I think it is important to remember that if you don't value your time and work, you shouldn't expect others to. Eventually you'll just be taken for value.

Bob Molluro ⋅ Wilmington, DE Benchmark Consulting Services ltd. ⋅ 30 years experience

Here is a little formula that may help. Before you can expect someone to pay for your expertise you have to give them R.I.A. which stands for Results In Advance. No one will ever pay for your services until they feel you understand their problems and you can help. Once that hurdle is overcome then you need to revere what you do. I personally don't want to enter into anything that is paid for by the hour. I first make sure that we agree on the problem that is going to be solved and then the value in solving the problem. Then I charge fees that are advantageous to my client. Said differently," if I can provide you (the client) with a dollar that you would never have gotten on your own , is it reasonable for me to get 25 cents?". My client is getting three times the benefit than I get so they have more to gain than I have. That is a good deal if you are the person who can provide the solution. As part of my Coaching services I teach a workshop that enables my client to build a successful business. One that will double their revenues. I help them to build a business plan. My Coaching services are designed to assist them in executing their plan, remove the obstacles they face during implementation and make them self sufficient. I charge $500 per hour for Coaching and not one person balks because they realize that I already have been down the path they are going and I can get them to the place they are seeking. My solutions provide the certainty and repeatability that people are looking for. Many of my clients have said my fees are a steal because they couldn't have produced the results they have without my guidance. Clearly developing a business takes a lot of time, however if you don't value what you do who will. When it is free advice it rarely is taken seriously so only use the RIA to open the new relationship. Also keep in mind that your prospects will try to negotiate. They will try to put you into a category where others charge less. If you really do have something unique to offer , hold your ground and walk if necessary and possible. Never sell yourself short because someone is a better negotiator.

Jerry Welsh ⋅ Middleville, MI Master Military Transition Advisor/HPS GPO ⋅ 30 years experience

Good answers prior. I would look at two ways, 1) is this something that your could use as a reference for future work? 2) although you did not speak of a fee to start with, what is your "gut" on how the person would react if you brought up the fee situation. I provide tons of LinkedIn and career research advice daily, with the concept this is my passion and I am literally retired and losing money. If this is costing you money, i.e. lost wages some where else, you have to think about yourself and family. That could be the approach, I have financial needs that I am foregoing working on this project, would you entertain a proposal for a fee for service arrangement to cover from here on out.
I think next time maybe this needs to be laid out up front. For instance I speak on the transition process to companies and groups, my charge is travel expenses-which is lay down up front.

Barron Evans ⋅ Ann Arbor, MI Customer Experience Change Management ⋅ 30 years experience

Foremost, thank you for your service.

Couple resources at end that might be of interest as you formulate your own approach to 'pro bono' vs. 'fee'.

My one comment: always get a clear definition of project intent, objective, benefit to be realized on conclusion - as stated by THE BENEFICIARY. With that, you can better define guardrails around expectations, and probably most important - what you WON'T provide. Also, you can take this knowledge to SCORE Mentoring - score.org‎ - and have them help you design a pro bono framework for determining value, which can be written into whatever services contract you provide.

Finally, for credibility pro bono or fee: always spellcheck you work before going public; note your ACP blog headline - and the spelling of 'question.' Hope this all helps... BARRON

1) Backgrounder on the pro bono field: http://idealistcareers.org/pro-bono-work-career/
2) Guidance by Amer Bar Assoc to providing pro bono services to military
http://www.militaryprobono.org/newcases/item.3217-Information_for_Servicemembers_Seeking_Pro_Bono_Help_Through_the_Project
3) Guidance from Loyalty Poverty Law Center... ditto above RE: offering insights
http://www.loyno.edu/gillislong/pro-bono-policies-and-guidelines

John Green ⋅ Cary, NC Information Technology ⋅ 40 years experience

Hi Richard,

Nothing should ever be free , except if you are doing it for a charity.

What you are being asked to perform is "Professional Services" and you should submit a written contract/agreement which both parties sign.

Here is IBM's GSA IT Professional Services contract schedule, which gives you some insight into hourly rates and levels of experience. Granted that this schedule is for IT services, but your skill offering is no less needed and no more achievable on their own.

http://www.ibm.com/web/wcm/connect/connect/862414ac-11b4-4739-8a4d-488a3f9925ce/gsa_apndx_C_10012014.pdf?MOD=AJPERES

Your experience would probably fit in "B" or "C"

B. Up to 20 years of experience with large, complex systems, providing key leadership in a multi-vendor environment. Extensive experience with large systems modernization and business practice reengineering. $325 per hour.

C. Up to 15 years of progressive accomplishment as experts in large and complex information technology systems implementation. Expertise is applied across multiple information technology platforms and the integration of diverse architectures. $297 per hour.

Aside from this one opportunity, you should build a comprehensive business plan. You can get templates from here :

https://www.score.org/resources/business-planning-financial-statements-template-gallery

Since the Fed's are driving like a bull in a china shop towards full regulation of the drone industry, you are at the right place at the right time. Seize the business, take control of your destiny. There are lots of different applications for drones that used to be filled by manned aerial flight : traffic reporting, tv news coverage, oil pipeline inspection, forestry observation, etc. You are at the ground floor of this beautiful opportunity and should formalize your service offering expeditiously.

If you'd like help creating your written agreement or reviewing your business plan, PM me and I'll provide my email address.

JG

Emanuel Carpenter ⋅ Alpharetta, GA SDR Master Class ⋅ 20 years experience

Richard:

I highly recommend you read the book titled "But Are You Making Any Money" by Marley Majcher Here is a link to it on Amazon: http://www.amazon.com/But-Are-You-Making-Money/dp/1600377769/ref=sr_1_1?s=books&ie=UTF8&qid=1454581917&sr=1-1&keywords=but+are+you+making+any+money. It helped me a lot.

I hope it goes well for you.

Stacey Murphy ⋅ Denville, NJ Beacon Consulting ⋅ 18 years experience

All good answers here. I am a leadership consultant (self employed) and we always run into these sticky situations, especially when helping out others in similar positions in a collegiate way (here you are helping out another small business person like yourself). It's easier when you're selling your services to a larger entity, then you definitely shouldn't be doing 'pro bono' if they are deriving business value from your services. I love Bob's RIA acronym, it's a great reminder.

But now you're kind of caught in this sticky uncomfortable situation with this guy. I agree with Carmelo. Figure out what you can do leverage this person to help you build your business. Start with a shared perspective - Maybe say something like, 'hey, we really work well together, and we both have a lot of good value and expertise, and we both want to build our businesses and make money, lets figure out how we can both help each other advance our businesses." Maybe agree to write testimonials for each other, recommendations on linked in, ask him if he'd be willing to make introductions for you to connect you with some of his contacts. Offer to write a recommendation for him. If he seems to be really willing to help you succeed, continue the working relationship; if he's not willing and you feel like you're being used, gracefully pull away. I've been in positions where I've given a lot and gotten nothing; in other instances my investing personal time to help others has yielded projects that have lasted almost 20 years. The tricky part is figuring out who really has your back.
Good luck! And thank you for your service. Drone business, how cool!
Stacey

Jerome Wong ⋅ Scarsdale, NY BNP Paribas ⋅ 16 years experience

Thank you for your service. If he is getting paid for the work he is performing, then there has to be a very compelling reason why you should not receive even a discounted rate (if you want to provide a "nice guy" discount to build your reputation). Is your time or expertise worth nothing while he is being paid? Testimonials and recommendations are worth more if the provider actually paid for a service rather than receives something for free as he is saying you are providing value. Good Luck!

KIMBERLEY Latford ⋅ Daytona Beach, FL Sagacious Consultants, now Accenture ⋅ 19 years experience

Your first pro bono client's positive outcome or high opinion of your capabilities can be of great value in getting a business started. Ask him to respond to a few verbal or emailed questions about his experience with your services. Then use those quotes in any websites/social media business pages/print marketing collateral/Yelp.com Porch.com Angie's List.com type review you may put together to promote your business. Ask him if he'd be willing to be a telephone reference. Good luck to you. Drones will be big business soon!

Behzad Bigdeli ⋅ North Richland Hills, TX Exponential Advisor ⋅ 25 years experience

I offer free time to any non-profit organization that request consulting time and I charge all for profit businesses for any work that I do except when there is hope of getting more lucrative project from the same client.

FRANCIS TEPEDINO, ESQ. ⋅ San Diego, CA THE CONDOR GROUP ⋅ 30 years experience

I have founded two successful small businesses. I am now semi-retired after some 30 years.

What I have found is that if you are just starting out, with not any, or not much, "real-world business experience" sometimes - sometimes, it is fine to "strut your stuff" for free. I always felt it was a learning experience for me in what potential customers wanted or needed and how to adjust my thinking, my presentation skills, and my compensation demands or requirements, to address those needs.

Good luck.

FRANCIS TEPEDINO, ESQ. ⋅ San Diego, CA THE CONDOR GROUP ⋅ 30 years experience

I have founded two successful small businesses. I am now semi-retired after some 30 years.

What I have found is that if you are just starting out, with not any, or not much, "real-world business experience" sometimes - sometimes, it is fine to "strut your stuff" for free. I always felt it was a learning experience for me in what potential customers wanted or needed and how to adjust my thinking, my presentation skills, and my compensation demands or requirements, to address those needs.

Good luck.

Justin Discoe ⋅ Exeter, NH Schylling Inc ⋅ 18 years experience

I agree with the previous answers that 'pro-bono' work should be reserved for a charity or non-profit. I have done hundreds of hours of pro-bono work in public academia and with spin-out companies in academia which have led to paid work, but was never the intention. Something I have heard recently is 'low-bono', which is professional work done for a non-profit or start up company... I have done many projects for free or reduced rate simply because I liked the people, projects, cause or just because I like to develop new things. Your time is super valuable and there are only so many hours in the day in the end...

David Buksh ⋅ Seattle, WA Mission Road Pharmacy ⋅ 20 years experience

When approached to help improve anyone's business, try to negotiate a vestment or contingency contract to get compensated if your help results in success. Example. You get a 2% vestment in said company for your consultation. It's a gamble on your skills and the market, but can really pay off and get you some quick references and work.
The contingency contract can stipulate a form of payment over time for a successful launch of the business.
All of this is moot if the business is properly funded and they should just be ready to pay you a consulting fee straight up. But if you are riding along with them make sure you get some form of recognition and compensation.

Peter Billard ⋅ Glastonbury, CT Peter Billard Photographer ⋅ 34 years experience

There is little value where there is little cost. Is the individual you mention giving away his services for no cost? If not, then neither should you. All that you have learned and experienced, did it come at no cost? You describe, 'he's been quite friendly'. Are you interested in being friends, or are you interested in doing business together, each contributing value, each receiving tangible benefit (monetary payment, usually). If payment is made in promises of something yet to come, consider that an insult. I also suggest you initiate the topic of cost and compensation. First establish your value, know how to validate or back it up, then bring it up. You will have greater respect as an astute operator from him than if money/cost remains a wishy-washy taboo subject. Negotiation and persuasive language permeates all our interactions, it's a great skill to have! Go get 'em!

Glen Alleman ⋅ Longmont, CO Niwot Ridge LLC ⋅ 30 years experience

All great answers. Think of Pro Bono work, not as "giving things away" but the "cost of sales." You need to market your capabilities, and there is no better way then to show the client what you can provide by showing them what you can provide.
In our business - program planning and controls for DOD programs, we have "resource decks" and "white paper" that we can share with the customer, showing how to solve problems. These solutions are at a high levels, but the principles are always correct. The details of how to execute those principles are usually what is missing.

The value of showing what you can do, not just describing, but useable outcomes is a powerful message. When we teach courses are conference are primary Learing Objective is to have the student leave the course, take our information back the desk and put it to work solving problems. The next time there is a problem to be solved, they remember that course and the value they got from it.

This is the Pay It Forward school if management. It has never failed to gain new clients.

Also thanks for your service. C/159 ASHB, 101st ABD, Phu Bai RVN, 1969-1970

Jeremy Serwer ⋅ Woodstock, CT The Serwer Company, LLC ⋅ 30 years experience

Hello Richard --

While I recognize the four "Helpful Answer" responses are terrific, there's one caveat I'd offer here that they don't mention:

There are times when advising a person or company for free -- "pro bono", or free advice? -- makes sense.

First, if you're providing information they don't yet have but could ultimately get gratis from someone else, being the first to offer a helping hand might result in a quid pro quo some day in the future.

Second, I'm in retail real estate deal-making and consulting, and I've found that key people just starting with important brand companies may need a helping hand understanding certain nuances within our niche industry category. This can go a long way to enhancing your network, and typically is not forgotten when you need information from that person in the future.

Informal, yes, but all this can be very powerful for building one's base of knowledge and connections.

JS

Christopher Messina ⋅ Indialantic, FL Mannahatta, LLC ⋅ 22 years experience

I've seen a few things here, and will just add that "pro bono" is only done for charities, never for for-profit companies. The biggest lure (and lie) many companies offer is "Hey, I'll let you prove your worth by working for free for me and then I will be a great reference." Ignore that nonsense - your skills and experience have a market value and if you set your value at zero, that is what people will value you for.

Any time someone asks you to do some work for free, respond politely and ask them how much equity they are giving you for the work, if they are not giving you cash. AND GET THAT EQUITY AGREEMENT IN WRITING AND SIGNED before commencing work.

You'll be amazed at how quickly they magically "find" the cash they did not have previously....

Christopher Messina ⋅ Indialantic, FL Mannahatta, LLC ⋅ 22 years experience

I've seen a few things here, and will just add that "pro bono" is only done for charities, never for for-profit companies. The biggest lure (and lie) many companies offer is "Hey, I'll let you prove your worth by working for free for me and then I will be a great reference." Ignore that nonsense - your skills and experience have a market value and if you set your value at zero, that is what people will value you for.

Any time someone asks you to do some work for free, respond politely and ask them how much equity they are giving you for the work, if they are not giving you cash. AND GET THAT EQUITY AGREEMENT IN WRITING AND SIGNED before commencing work.

You'll be amazed at how quickly they magically "find" the cash they did not have previously....

Carmelo Carbonara ⋅ New Hyde Park, NY CPC Networking Inc ⋅ 35 years experience

Like you said ".. This could lead to performing work for him, and, as I see it, he could become an advocate for me. Your thoughts?.."

This can go along way in getting other clients/assignments by building a reference and testimonial list. I work in technology but nothing beats a word-of-mouth referral. If your "assistance" takes up alot of your time, work something out that will pay your bills and makes the investment in your public relations.

Good luck