Working with International Clients | Pros and Cons | Best Practices

If you’re considering expanding your client base, expanding into new countries and territories can be great. Working with international clients can be exciting, and you can learn a lot, but it does come with its fair share of pros and cons.

This article will explore some of the key pros and cons of working with international clients that should be a consideration. This article will also look at tips to help you navigate working with global clients, including Wise Business to make it easier to work with a foreign customer and grow your customer base.

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Table of Contents

Pros and Cons: Working With International Clients Pro - More Clients Pro - New Markets/Less Competition Pro - Practice new skills Pro - Take on different projects Pro - Target markets where you can earn more money Con - You’ll need to change your working hours. Con - Communication can be more challenging Con - Cultural differences Con - Taking international payments Tips: Working with International Clients 1. Create a clear contract 2. Understand currency differences, including how much you’ll get paid at the end 3. Establish meeting times and boundaries that respect your time and theirs 4. Create/adapt a portfolio based on their industry and location 5. Use popular platforms in their region to attract clients 6. Look into taxes and legal requirements

Pros and Cons: Working With International Clients

Working with international clients brings a multitude of opportunities and challenges for independent contractors, solopreneurs, entrepreneurs, and freelancers. Working with global clients can be a great way to expand your reach, and diversify your revenue through a growing network. However, working with international clients can bring its fair share of challenges, which must be considered before fully exploring global opportunities.

Pro - More Clients

One significant advantage of working with international clients is the potential to access a larger pool of clients. Expanding your reach beyond your local area increases your chances of finding clients seeking your specific skills and expertise. This can lead to a steady stream of projects and a more robust client base since you rely less on clients in your current location. Ultimately, growing your client base across different countries and taking on foreign customers offers your business greater stability and growth opportunities.

Pro - New Markets/Less Competition

Engaging with international clients allows you to explore new markets and tap into regions where there may be less competition compared to your local market. This presents a unique advantage as you can position yourself as a specialized expert in a niche market, making it easier to stand out, gain customer trust and ultimately win projects. Plus, working with clients from different countries exposes you to diverse industries, trends, and business practices, broadening your knowledge and skill set - which further helps you stand out, solidifying your position in local and international contexts.

Pro - Practice new skills

Working with international clients often entails encountering different working styles and communication methods and understanding cultural nuances. Embracing these differences provides a valuable opportunity to enhance your adaptability and flexibility while allowing you to practice new skills. Working with global clients enables you to practice new skills, including communicating in different ways to clients, understanding cross-cultural communication, project management in diverse settings, and adaptability to varying client expectations.

Pro - Take on different projects

Collaborating with international clients presents a chance to work on a broader range of projects and gives you access to more variety than ever. Different countries may have unique industry demands and business needs, which can open doors to exciting and diverse project opportunities and enable you to grow your skill sets and be a part of new experiences. Working with a global client base enables you to expand project portfolios, showcase a broader range of capabilities, and increase your expertise. Ultimately, the new types of projects you take on can go a long way in attracting and retaining a more diverse client base.

Pro - Target markets where you can earn more money

Developing and building International client relationships can greatly diversify your income and gain new business streams. However, being strategic with the markets you target and the types of projects and skills you offer can help ensure you put your efforts in the right place.

For example, certain markets might offer higher compensation rates for specific services or have a higher demand for specialized skills due to a lack of skills in their local markets. Consider what skills and experiences you offer and which markets may be more receptive to them as you expand your business through an international client base.

Conducting thorough market research and identifying regions where your skills are highly valued can help you focus your efforts and optimize your income depending on your specialty and expertise. By strategically targeting markets that most need your skills or are up-and-coming in your industry or niche, you can increase your earning potential and negotiate competitive rates for your services.

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Why use Wise Business for International Business?

Many consultants use Wise Business to conduct business locally and overseas to save on fees and costs.

Businesses can pay a one-time fee for accounts details in global currencies, such as USD, EUR, GBP, CAD, so they can receive money without any additional fees.

Some other features Wise Business users love
Account Software Integration: QuickBooks, Xero, Sage, and Wave
Batch Payment Tools: Pay up to 1,000 invoice in one instance
The Most International Account: Hold 40+ currencies at once
Transparency: Wise Business is trying to get rid of all your business account fees

Wise Business aims to make cross-border payments easy, secure, and economical for consultants. It's an essential tool for international businesses aiming to build a global client base. With Wise Business, you can get paid in multiple currencies without worrying about huge fees. They provide the mid-market rate, meaning you get the fairest exchange rate possible, similar to the one you find on Google, and they charge only a small, upfront fee.

Their easy to use account makes it easy to manage invoices, track payments, and reduce the hassle of dealing with international transactions. Not to mention, setting up your account is a breeze.

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Con - You’ll need to change your working hours.

However, when thinking about working with a foreign customer, there is a fair share of cons that you may need to consider before moving forward.

Typically, working with international clients often means dealing with significant time zone differences depending on your and their locations.

While working with international customers opens up opportunities for global collaboration, it can also require adjusting your working hours to accommodate your clients' schedules or keeping different hours than you usually might, depending on the client's needs. This may lead to early morning or late-night meetings, disrupting your normal work-life balance and making it difficult to stick to a routine. Adapting to your client’s schedule and potential time differences can be demanding, requiring careful planning and organization to ensure effective communication and timely project delivery.

Con - Communication can be more challenging

Effective communication is vital for successful client relationships, but communication can become more complex when working with international clients. Language barriers, different communication styles, and cultural nuances can pose challenges and make it difficult to effectively convey what you are working on and what is required. Misinterpretations or misunderstandings may arise, potentially impacting project timelines and deliverables, and it’s essential to remain mindful of cultural differences, nuances, and expectations.

It's crucial to develop strong communication strategies, utilize translation tools if necessary, and foster a working relationship that relies on clarity and open dialogue to keep things going smoothly. You may also need to spend more time upfront, prior to engaging with international clients, to fully communicate the scope and services and agree upon what you are offering before moving forward.

Con - Cultural differences

Working with international clients means navigating diverse cultural backgrounds, which can be exciting but also comes with its fair share of challenges. Working in different markets can often lead to varying business customs, work ethics, and expectations as you take on more work in different regions.

These cultural differences may require a deeper understanding and adaptability on your part to ensure effective collaboration. That is why being open to new cultures and ways of working is key, and you should expect to spend a bit more time learning more about clients and how they work when starting a new engagement with a foreign customer.

Additionally, sensitivity to cultural norms, practices, and communication styles is crucial to build strong professional relationships and avoid misunderstandings. Investing time in cultural research and actively engaging in cross-cultural learning can help bridge these gaps and foster successful partnerships while ensuring that you communicate in a comfortable way for both you and your client.

Con - Taking international payments

Processing international payments can be a complex and potentially time-consuming task. Dealing with different currencies, payment methods, and potential financial regulations in your country or the client may introduce additional administrative burdens and potential transaction fees. It can be a lot of admin to manage and receive international payments, and you may end up losing money in fees and conversions.

When working with a foreign customer, it is vital to consider secure and efficient payment solutions to help you manage international payments and streamline the process. There are many solutions you can consider, such as online payment platforms where you can send and receive payments in multiple currencies and convert currencies with low rates and fees involved. Another option may be asking clients to send international wire transfers. However, wire transfers can end up being costly for both you and the client, so it’s important to factor in the fees involved. Ideally, you should be using financial solutions, including digital solutions, that will help you streamline the payment process and ensure that you receive payments in a timely and reliable manner without incurring massive fees and costs.

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Tips: Working with International Clients

Successfully navigating the realm of international clients requires a thoughtful approach and a keen understanding of cultural dynamics in the market you are trying to enter. There are also many different elements to be aware of as you navigate working with a foreign customer and ways to protect yourself and your business as you enter new territories.

1. Create a clear contract

When working with international clients, creating a clear and comprehensive contract that outlines project scope, deliverables, timelines, and payment terms is crucial. This helps establish expectations and protects both parties involved, especially when it’s a new style of working and a new culture to navigate. Ensure the contract is legally enforceable and includes clauses related to intellectual property rights, dispute resolution, and confidentiality to protect yourself in various ways. A well-defined contract can mitigate potential misunderstandings and conflicts early on. Plus, a solid contract ensures that you have a clear base you are operating when working together.

2. Understand currency differences, including how much you’ll get paid at the end

Currency differences can significantly impact your earnings when working with international clients, especially when conversion rates between the currencies are high and/or frequently fluctuate. It's essential to clearly understand the exchange rates, how they may affect your payment and any fees you pay upon conversion to ensure you know what to expect.

When working with an international client, make sure to research the prevailing currency rates and consider discussing payment arrangements upfront. The discussion should also cover whether you'll be paid in your local currency or the client's currency so that you can identify the right financial solution to use.

Additionally, factor in any potential transaction fees or currency conversion charges to ensure you receive the agreed-upon amount, and keep these fees in mind when deciding your rates and charges. You should also use a financial solution with minimal fees and costs for payments in different currencies so that you are more flexible in taking on international clients.

3. Establish meeting times and boundaries that respect your time and theirs

Working across different time zones requires setting clear meeting times and boundaries that respect both your time and the client as you work together. Timezones can be a challenge when working with an international client base. It is often tricky to keep and maintain client relationships when working in different time zones, so it is essential to factor it in when deciding on working with a client. Depending on what country the client is located in, diametrically opposite timezones can make working together considerably difficult.

Consider using online scheduling tools that automatically adjust meeting times based on time zone differences and establish clear blocks of working hours with clients so they know when they can reach you.

Clearly communicate your availability and preferences for scheduling meetings early on to avoid conflicts, and set expectations on how and when you will communicate to them during working hours and outside of those working hours.

Establishing boundaries is equally important to maintain a healthy work-life balance. Additionally, you should also set expectations regarding response times, availability outside of regular working hours, public holidays, and holidays of your choosing. Open and transparent communication about scheduling can foster mutual respect and smooth collaboration with global clients while also ensuring you have measures in place to support a healthy work-life balance for yourself.

4. Create/adapt a portfolio based on their industry and location

When targeting international clients, creating or adapting your portfolio to align with their industry or location is essential. This highlights your specific skill sets, expertise, and niche while also differentiating you from others based on your experience and talent.

When creating your portfolio, you should showcase projects and expertise relevant to their specific market, highlighting how your skills can address their unique needs and what you can offer.

Tailoring your portfolio demonstrates your understanding of their industry and increases the likelihood of attracting their attention. Customize your portfolio to include case studies, testimonials, or success stories that resonate with their target audience, emphasizing your ability to deliver results in their specific context.

5. Use popular platforms in their region to attract clients

To effectively reach international clients, it's crucial to leverage popular platforms and channels that are widely used in their region. Widening your reach is imperative, as is establishing yourself on different platforms to build trust with foreign customers.

Research and identify the platforms, social media networks, or online communities that are prevalent in their target market. Establish a solid online presence by creating a professional profile and actively engaging with potential clients on these platforms. Utilize localized marketing strategies, such as translating content or tailoring messaging to resonate with their cultural dynamics and preferences.

You can also look at the local talent in the market to see how they position themselves and tailor your messaging to match cultural context and add nuance. You increase your visibility and chances of attracting an international client base by meeting your target clients where they are.

Popular Platform Examples
UpWork
Fiverr
LinkedIn
TopTal
Freelancer.com

If you're not getting international clients through word of mouth, marketing, or upselling existing clients for their international markets, the above options could be the best to get the word out. For example, a lot of the above sites cater to freelancers. However, in my experience, many of these freelancer profiles are actually representing entire companies. Although, it's a bit misleading, it could give you initial access to new markets and ways of scoping out your offering in international markets.

6. Look into taxes and legal requirements

Working with international clients may involve tax implications and legal requirements specific to their country. Familiarize yourself with the tax regulations and obligations in both your home country and the client's country to ensure you cover all bases. You want to avoid being hit with unexpected expenses or fees, so doing the groundwork early on when it comes to taxes and legal requirements is crucial.

If in doubt, it’s always best to consult with tax professionals or legal advisors to ensure compliance and avoid any unexpected issues. Consider establishing a clear understanding with the client regarding tax responsibilities, such as who is responsible for withholding taxes or filing necessary paperwork if applicable. Being proactive and informed about the legal and tax considerations helps maintain a smooth working relationship and ensures compliance with applicable laws.

Try Wise for your Global Client Base

Wise Business aims to make cross-border payments easy, secure, and economical for consultants. It's an essential tool for international businesses aiming to build a global client base. With Wise Business, you can get paid in multiple currencies without worrying about huge fees. They provide the mid-market rate, meaning you get the fairest exchange rate possible, similar to the one you find on Google, and they charge only a small, upfront fee.

Their easy to use account makes it easy to manage invoices, track payments, and reduce the hassle of dealing with international transactions. Not to mention, setting up your account is a breeze.

Save on international business
transactions >>

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Sources:

1. https://www.trustpilot.com/review/wise.com