Subcontracting can be a lucrative way to build your freelance business, especially when you’re working with experienced consultants who provide steady work. But what happens when that relationship starts to overshadow your own brand? When clients begin associating you more with your subcontractor’s business than your own?
This was the exact dilemma facing Garrett Claussen, founder of Benevolent Strategies, a nonprofit consulting firm in Austin, Texas. At 30 years old, Garrett has been receiving substantial subcontracting work from an older, more seasoned consultant. While the relationship is positive and profitable, Garrett is concerned about losing his business identity and being seen as just an extension of someone else’s brand.
Key Takeaways from this Episode:
- Test the market gradually before making major decisions—spend 3-6 months building your own client base to understand what you’re taking on.
- Transform subcontracting relationships into referral partnerships where you own the client relationship from day one.
- Address philosophical differences through open communication rather than letting them fester and compromise your business values.
The Hidden Danger of Subcontracting Success
When subcontracting work flows consistently, it’s easy to become comfortable with the arrangement. You get steady income without the stress of finding clients, managing the full sales process, or handling all the administrative details. But this comfort can come at a cost—your business identity.
As Preston points out in the episode, there’s a real risk of accidentally creating another job for yourself. When you’re always working under someone else’s brand, with their processes and their client relationships, you’re essentially becoming an employee without the benefits of employment security or business ownership.
At 30, Garrett is at a crucial inflection point. He’s established enough to have his feet under him professionally, but young enough to build something significant over the next decade. This makes it the perfect time to start thinking strategically about brand independence.
Test Before You Leap
The temptation might be to make a dramatic decision—either merge completely or cut ties entirely. But Preston recommends a more measured approach: test the market first.
Before making any major changes, spend three to twelve months building your own client base alongside your subcontracting work. This testing period will reveal crucial information:
- How much work goes into finding and closing your own clients
- Whether you enjoy managing the full client relationship
- If your pricing and profitability work when you’re handling everything
- What unique value you bring that’s distinct from your subcontractor
This isn’t about being secretive or competitive with your current partner. It’s about understanding what you’re truly capable of and what running an independent business actually entails.
Transform Subcontracting into Strategic Referrals
One of Preston’s most valuable suggestions is shifting from subcontracting to referral partnerships. Instead of working behind the scenes under someone else’s brand, propose that your partner refer clients directly to you for projects they don’t want to handle themselves.
This creates several advantages:
- Brand ownership: You’re introduced as your own business from day one
- Client relationships: You own the primary relationship with the client
- Long-term value: These become your clients for future work
- Win-win structure: Your partner can still earn referral fees while doing less work
The key is positioning this as beneficial to both parties. Your partner gets paid the same (through referral fees) while actually doing less work, and you get the brand recognition and client relationships that will fuel your independent growth.
Address Philosophical Differences Head-On
Garrett mentioned having “fundamentally different perspectives on business development” from his subcontracting partner. This is a red flag that shouldn’t be ignored, but it also shouldn’t be assumed insurmountable.
Preston emphasizes that communication helps in virtually every business and personal situation. Rather than letting philosophical differences simmer or assuming they can’t be resolved, address them directly:
- Schedule a dedicated conversation about business practices
- Be specific about what concerns you
- Listen to their perspective—you might learn something valuable
- Determine if these are deal-breakers or simply different approaches
If the conversation reveals fundamental ethical or moral differences that you can’t reconcile, that’s valuable information. It might indicate that neither subcontracting nor merging is the right long-term path.
Set Clear Boundaries
Whether you continue subcontracting in the short term or transition to something else, establishing clear boundaries is essential. This includes:
- Scope of work: Exactly what you’re responsible for
- Time boundaries: When you’re available and when you’re not
- Communication protocols: Who talks to the client about what
- Intellectual property: What belongs to whom
- Future work: How follow-up projects will be handled
Clear boundaries protect your business interests while maintaining a positive relationship. They also create space for you to pursue your own clients and projects without conflicts of interest.
Leverage the Relationship Without Being Defined by It
The goal isn’t to completely abandon a valuable business relationship. Instead, it’s about leveraging that relationship strategically while building your own brand and client base.
Consider your current subcontracting partner as a mentor and business development resource, but not as your primary business identity. Use the experience, connections, and credibility you’ve gained through the relationship to fuel your independent growth.
This might mean:
- Asking for introductions to their broader network
- Learning from their business development processes
- Understanding how they price and position their services
- Gaining insight into industry trends and opportunities
The Long-Term View
As Preston notes, this is a “good problem to have.” Being 30 with a steady pipeline of work and proven consulting skills puts Garrett in an excellent position regardless of which path he chooses.
The key is thinking long-term: Where do you want your business to be in five or ten years? Do you want to be known as someone else’s subcontractor, or do you want to build your own reputation and client base?
There’s no universally right answer, but there is a right answer for your specific situation, values, and goals.
Moving Forward Strategically
Whether you’re facing a similar situation or want to avoid it in the future, the principles remain the same:
- Test gradually rather than making dramatic changes
- Communicate openly about concerns and expectations
- Set clear boundaries to protect your business interests
- Leverage relationships without being defined by them
- Think long-term about where you want your business to go
Subcontracting can be an excellent way to build skills, gain experience, and generate income. But it shouldn’t become a permanent crutch that prevents you from building your own brand and client relationships.
The transition from subcontractor to independent consultant requires careful planning, strategic thinking, and often some uncomfortable conversations. But for consultants like Garrett who are ready to build something bigger, it’s a necessary step toward true business ownership.
Remember: you started your business to work for yourself, not to accidentally create another job. Make sure your subcontracting relationships serve that ultimate goal rather than undermining it.
