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Conflict of Interest: When Two Clients Mean Double the Headache

Constantin Potapov
7 min

A story from 2015 when two certification companies—Russian Register and ProffExpert—approached me simultaneously. A lesson about why working with clients who pinch pennies is a bad idea.

When There's No Money at All

  1. I'm broke. Completely broke. In that situation, when you take any work just to avoid running out of money, the client selection criteria are simple: have money — don't have money.

And at that moment, two companies in standardization and certification approach me.

Russian Register — a relatively large organization, federal level, working with serious clients.

ProffExpert — local players, smaller, more modest.

Both did roughly the same thing: quality management system certification, ISO standards, audits. Both wanted to automate internal processes. Both were ready to pay... conditionally.

First red flag: When a client starts the conversation with "we have a modest budget," "let's see what we can get for the minimum amount" — it's not always bad. But when both clients behave like this — that's a signal.

Conflict of Interest: Work for Both?

I realized I was sitting between two chairs pretty quickly. On one hand, neither company paid enough for me to afford turning down the other. On the other hand, they were direct competitors in the same niche.

Legally, there were no NDAs. Formally, I had the right to work with both. But ethically — it was a questionable situation:

  • You see the internal processes of one player and might accidentally (or intentionally) apply that knowledge when working with the other.
  • If either of them finds out you're doing a project for their competitor — trust evaporates instantly.
  • Priorities constantly conflict: who gets more time, who comes first in the feature queue.

I took both.

Because the alternative was to be left without work at all.

Mistake #1: Taking orders that put you in a conflict of interest is like building a house on a swamp. It might stand for a while, but sooner or later, everything will sink.

The Less Money, the More Headache

Working with both companies confirmed the iron rule of freelancing:

The less a client pays, the more they demand.

It's not logical, but it works like a law of nature.

Russian Register (larger budget):

  • Clear technical specification
  • Reasonable deadlines
  • Understanding that development is not magic
  • Payment without delays

ProffExpert (smaller budget):

  • "Let's first see what you come up with"
  • "Can you change this? And this too? Why is it taking so long?"
  • Endless revisions, each "just a small one"
  • Payment: "We'll definitely transfer it next week"

I spent three times more time on ProffExpert than on Russian Register, although they paid half as much.

The math is simple: the hourly rate turned out to be laughable.

Law of freelancing: Clients with small budgets often compensate for the lack of money with an excess of demands. They think: "Since we're paying little, let's at least squeeze out the maximum."

The Climax: When Everything Was Revealed

Of course, the secret didn't last long.

One of the companies (I don't remember which) accidentally found out that I was working for their competitor. I don't remember the details — maybe someone from mutual acquaintances spilled the beans, maybe they just figured it out from some indirect signs.

The reaction was predictable:

"What? You're working for them! This is a conflict of interest!"

Formally, I hadn't violated anything. But trust was undermined. One project was closed early. I finished the second one, but with the feeling that I was now perceived as an unreliable contractor.

No catastrophe happened. Just an unpleasant aftertaste and the understanding that I had gotten myself into this situation.

Conclusions: Three Lessons from 2015

1. Don't Work with Cheapskates and Penny-Pinchers

Clients who haggle to the last penny and ask for discounts — they're not your audience. They will squeeze the maximum out of you for the minimum, demand revision after revision, and delay payment.

Better to have one client with a normal budget than three with a pittance.

2. Learn to Generate Clients Yourself

In 2015, I worked on the principle of "whoever approaches — I work for them." This is a reactive position. You don't choose clients — clients choose you.

The right way: form your own client base, work with warm leads, filter out the problematic ones at entry.

This means:

  • Building a personal brand (blog, social media, speaking engagements)
  • Maintaining a CRM and working with a sales funnel
  • Learning to say "no" to bad clients

3. Avoid Conflicts of Interest

If two clients are competitors, choose one.

Even if everything is legally clean, ethically — it's a minefield. Sooner or later, you'll have to explain yourself. And even if you do explain — the aftertaste will remain.

Better to turn down one project and preserve your reputation than to lose the trust of both.

Main lesson: Desperation is a bad advisor. When you take any work because of a lack of money, you lose control over the quality of your clients. And bad clients are the worst thing that can happen.

What Has Changed Since Then

Nearly 10 years have passed since 2015. During this time, I learned to:

  • Filter clients at the first conversation stage. If a person starts with haggling — that's a red flag.
  • Work with the client base proactively. Don't wait for them to approach, but build the funnel yourself.
  • Say "no" to inadequate conditions. Better a week without work than a month on a project that drains your energy.
  • Value your time. The hourly rate is not just a number. It's a measure of self-respect.

Now, looking back, I'm grateful for that experience. Because pain teaches better than theory.


P.S. If you're currently in a similar situation — broke, ready to take any work — stop for a second. Think: are you digging yourself a hole?

Sometimes it's better to hold out for a month, find one normal project, than to get stuck in three bad ones.

Your time and nerves are worth more than you think.