I was working for a client for free as a favor to a colleague, to help flesh out an initial product idea this person had. The client would take me to lunch (and pay) every few weeks for our meetings. When the project got to a point where significant design and engineering work needed to be completed, I presented the client with a contract, if he would like me to continue with his project.

Client: “That is too much. I can’t afford that. You know, you’ll get a lot of money when the product sells millions.”

Me: “I’m sorry, but I can’t work on that speculation. I really can’t work further on your project without a contract in place, stating that I will get paid for my design and engineering work.”

Client: “It’s too much. But I would like to invite you to my house on Saturday.”

Me: “For…? Is there a special occasion?”

Client: “I just want to show you how poor I am, and that I have no money to pay your fees.”