Marketing Outsourcing Danger #6
Can you get references?
This can be a tough one.
References are a great source of recommendation as to whether you
wish to do business with a new vendor. Sometimes, you might
end up with a great deal simply because the company has few or no
references. In such cases, you are the prize possession of
that vendor and they will bend over backwards so that you become a
valuable reference.
On the other hand, companies that
make up excuses for not having references should not be dealt
with. Several common examples of refusal to provide
references are (a) We are under NDA (non-disclosure agreements)
and cannot reveal our clients, (b) We're in beta (c) We honor our
client's privacy and do not release that information.
If a company has been around for
very long, they have references. But when they refuse to put
any out, it's more likely that the references aren't good
ones.
Also be sure to ask for
references from former clients. Current clients may give
great references because their business dealings have been limited
or very recent. It's also easy to cherry-pick your current
customers to give great references.
Any company that has been around
awhile has former clients, simply because the customer has no need
for the service anymore. These will still gladly give good
references. If the company cannot come up with former
clients with good references, there might be a good reason for
it.