Posted by: Catherine Wentworth
Category: Designers Working With
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Designers and writers charge mostly by project, based on hourly estimates and external expenses. Photographers have other details to consider, but what exactly are they?

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Bill

By the project. Time is only one consideration. The technical difficulty of the photography; the amount of equipment, assistants and stylists needed for the project; and the usage rights to be licensed are all other factors that go into the price.

Bill Wisser | Advertising and Editorial Photographer
Bill Wisser Photo.com | The Naked Eye

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Bruce

I charge based on the scope of the project and copyright use. Production costs are as detailed as needed and the creative fee is separate from copyright fee. The trend these days is to lump creative fee and copyright but I prefer they stay separate since copyrights purchased can change mid project – it just seems easier and more transparent to keep it separate. That said, if there is one thing my 25+ year career has taught me it’s to stay flexible. Especially since I’ve been on the client side, I understand how frustrating cost structures can get.

Bruce DeBoer | Photographer
DeBoerWorks Photographic Productions

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Dave

By the piece.

Dave Beckerman | Photographer / Owner
Dave Beckerman Photography | Black and White Photography

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Jeffrey

I base my fee on how the image will be used, complexity to execute and production costs. I have a base fee then add the usage based on the distribution or media buy. That way I don’t have to regulate my creativity based on money and if a simple local campaign expands regionally or nationally then my fee expands. I feel this is a very fair way to price assignments and it inspires me to always take the project to the next level regardless of the original fee. Besides, the better the image the better my client will look to their client, which brings them back, I maintain my reputation for providing quality and I have the potential for residual fees. The better the image the higher fee it commands in the after-market as stock imagery so it is always a win win. Beware of the bargain-basement creative you often don’t even get what you pay for.

Jeffrey Jacobs | President
Jeffrey Jacobs Photography Inc.

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Jon

Like all good professionals :) I charge on usage. How the image is used, where, when and for how long. This way the client gets exactly what they need and can re-licence should the images be a success and further or extended use is required. The client is actually buying the USE of the image and the costs of its production.

The estimate will include the base usage (normally 1 year one country in two types of media - or 2 years one country in one type of media). As per the Association of Photographer’s guidelines I include the initial usage in the estimate and further uses as a % of the initial estimate Base Use Rate (BUR) figure. This gives the client the ability to budget further uses.

AoP Example: You have commissioned a shoot for use in the UK, in press and posters for 1 year. You now want to expand the media coverage to point of sale. BUR has been negotiated at £2000. Extending the licence to point of sale in the UK for 12 months should be 25 - 50% of the BUR (see AOP Re-Usage Guidelines) depending on the amount of coverage, therefore the cost of the additional licence would be £500 - £1000.

So as you can see, it’s like menu driven pricing - or like hiring a car. You pay for the amount of miles you drive and the petrol used! For further reading see www.copyright4clients.com which covers the licencing of professional imagery.

Jon Boyes | Advertising and Editorial Photographer
Jon Boyes

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Patrick

In most cases by the shot.

Patrick Chuprina | Photographer
Chuprina Studios

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Rochelle

I typically use contracts, and the size and length of a job determines if I take a percentage up front. I charge by the hour or by project for my photography and video production services, since my jobs can range from providing untouched stock photography to a complete video production (to me, video is a three-dimensional version of photography).

Rochelle Dahl | Photographer & Designer
Rochelle Dahl Designs

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Tom

I like the tried and true method of developing a proposal for each project. In photography there are a lot of X factors that can affect the project and the outcome. I have a day rate (or studio rate) which is always the base price for projects. Then I consider the usage of the pictures and their overall worth and apply that to the price. Finally, I add in the extras which are involved in the project, whether it’s time behind the computer, assistants, rental equipment, etc.

Tom Smalling | Photographer
Tom Smalling Photography & Design | Tom Smalling’s Photography Blog

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Will

I’m guilty of being an artist here. If the subject of the project appeals to me a flat rate, otherwise I provide an hourly quote.

Will Williams | Photographer and Designer
Perspective-Images.com

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For more, check out How do photographers charge?, Understanding the Estimate for a Photographic Assignment and Controlling the Cost of a Photographic Assignment. (Thanks Jon!)

until the next
Designers WW,
cat

Posted by: Catherine Wentworth
Category: Designers Working With
Bookmark on: del.icio.us

Designers charge by the hour as well as by the project, asking for payments in increments, etc. When I put the same question to writers, amongst everything else (by hour, by project, etc), I even threw in charging by the word. As you’ll see, none came back with that specific answer.

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Cheryl

by project, based on estimating hours

Cheryl Stephens | Mentor/Muse
plainlanguage.com | Building Rapport | Building Rapport : CafePress.com

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Liz

I prefer to charge by the flat fee whenever it is possible. My thinking on goes like this. I figure what a job would cost to do at the hourly rate the very first time through. If it is a repetitive task, such as several write ups or many answers to questions, I figure by the third unit (I will have hit my stride and the communication “bugs’” will have been ironed out). The reasons I prefer a flat fee is because when you work hourly, a writer tends to get better and faster at the task, so he or she is actually making less money per hour when paid hourly.

In the case here a task is undefined, cannot be defined, I place an hourly fee higher than the hourly rate on which I calculate my flat fee. That’s because the lack of definition means that I will be spending large chunks of time chasing details and following up things that I don’t particularly like doing.

Any writing tasks that I really don’t like to do, I price really high. Then if a client still wants me to do them, I don’t mind.

ME (Liz) Strauss | Writer | Career coach | Strategic planner
Successful Blog | Letting Liz Be | Liz Strauss.com | The Blog Herald | Performancing.com | Write With ME

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Louise

I don’t charge for the initial consultation if it’s a new client. If I’m offered the work, I charge by the hour, although I’m happy to work within a set budget for a fixed fee. If that is the case, the client (or the designer, if they are paying the bill) needs to understand that they may get less work from me than they want if the budget is very tight. I usually bill the client directly although I will occasionally arrange to invoice the designer if that is the client’s preference.

Louise Bolotin | Writer, consultant
PlainText Editorial Consultancy

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Nancy

On a project basis.

Nancy Friedman | Chief Wordworker
Wordworking | Away With Words

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Roy

As a writer, I have worked on salary. As a consultant. As a freelancer. On book projects, I’ve received advances and earned royalties.

Roy Peter Clark | America’s writing coach
Poynter Online - Writing Tools | Book: Writing Tools: 50 Essential Strategies for Every Writer

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Tom

On a project basis. Hourly simply doesn’t make sense to me.

Tom Chandler | copywriting : online/blogging : marketing plans
Chandler Writes. You Profit. | The Copywriter Underground

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tom

Day rate or project rate

tom mullen | writer & proprietor
EXIT3A.com | ANONYMOUS, JR

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The final question in the writers section of the DWW series is How can a designer improve their skills in your industry?

until the next
Designers WW,
cat

Posted by: Catherine Wentworth
Category: Been BoDo’d
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Have you Been BoDo’d?

Welcome to our first Been BoDo’d. So, what’s this ‘Been BoDo’d? In a nutshell, it’s where we select a noted veteran or up-and-coming designer to share thoughts, insights and experiences about the business side of design. You can see more of an explanation in our sidebar under Being BoDo’d.

For our first You’ve Been BoDo’d, we went in search of someone experienced in design, business and more. With Andy Budd (popular author, blogger, web guy), we got the ‘and more’.

A bit about Andy

Andy Budd is the Creative Director at Clearleft, a noted team of web design and interaction consultants. He’s also an internationally known user experience designer, web standards expert, frequent speaker at major design conferences and beer drinker extraordinaire.

Tapping into Andy’s design experience and knowledge, he is often requested to judge various web design awards. He also sits on the advisory board for .Net magazine, the UK’s leading web development periodical.

Andy is also the author of CSS Mastery: Advanced Web Standards Solutions, where he shares his years of experience in creating attractive, standards compliant websites. I have a copy, and even though my CSS skill are cacca (not the books fault as I cheat by yelling for Jay), as a fan of CSS Mastery, I highly recommend it for your CSS library.

I’m also a long time fan of Blogography, Andy’s blog. Years before I knew anything about blogs, Blogography was one of the first I kept going back to. And still do.

A bit about the Designers Working With Series

Last month we started the Designers Working With Series (DWW) to get real people advice about running a design company. Starting with designers, the DWW series focuses on how designers work, and how other professionals (writers, photographers, marketeers, printers and pre press specialists, etc) work with designers.

Andy participated in the first round, the designers round. It’s where we asked seven questions with a design industry bend. Below are Andy’s answers, all in a row.

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As a professional designer, what are the main points that you’d expect / want clients to know before contacting you about a project?

Ideally the client will have done some preparatory work and have a rough idea of the project goals, budget and the type of design services they are looking for. However as a professional consultancy, it is our job to guide clients through the process no matter how prepared or experienced they are.

When working with clients, what do you see as the top problem areas?

The two main client issues I see occurring on a regular basis are unrealistic or inflated expectations, and the tendency to offer solutions rather than outline problems.

The majority of clients have little or no experience in building a website which is why they come to design professionals for help. There is a popular misconception that web design is easy, and this is something that has been propagated by tools manufacturers and educators over the years. Because of this, many clients have unrealistic expectations when it comes to budget, timeframe and features.

As web professionals, it is our job to manage our clients’ expectations and make sure they understand exactly what they will be getting as a result of the design process. Unfortunately in the rush to sell services and win pitches, agencies often over promise and under deliver. This may win clients in the short term, but in the long term they will be left feeling short changed. I think it is much wiser to under promise and over deliver. That way clients will always be delighted with the work you produce.

Good communication at the start of the project is vital as it allows you to manage client expectations. It is also an opportunity to set some ground rules and explain to clients exactly how the design process will work.

Design is all about creative problem solving. In an ideal world your clients will define the problems they are facing, and then you will come up with the best solution to solve those problems. However people are naturally helpful and clients really enjoy getting involved with design projects. As such, rather than coming to you with a problem to fix, clients will often come to you with one of several possible solutions and ask you to implement them. Examples of this could be anything from a client suggesting that a button needs to be made bigger, through to recommending functionality like a blog or a forum. In these situations, it is important to understand that the client recommendation is just one possible solution to a much deeper problem, and it is your job to examine what that problem is, look at all of the available solutions, and then suggest the best one for the job.

To avoid these situations, it is important to explain the design process up front and make sure your client is explaining what the problems are rather than simply offering one of several solutions. That way your client will get the most out of your design knowledge and the project has a much higher chance of success.

How do you work?

At Clearleft we employ a relatively flexible process that can be scaled up or down depending on the needs of the project. This flexibility is vital as every client and every project is different, so what works for one may not necessarily work for another.

Where time and budget allow we like to start our projects with some initial stakeholder research. This could be anything from a few quick user interviews through to a more structured program of contextual inquiry. This information is then used to create a series of personas, scenarios and user tasks that guide the rest of the process. If we were dealing with an existing site we would normally perform a content inventory, whereas with a new site we ‘would run a competitive analysis so see what the marketplace was doing.

Using this information we would normally arrange a series of planning workshops with the key project stakeholders. We would use these workshops to uncover the required site functionality and content, and then create a content plan, features list and site map. Once the client approves the proposed functionality, we create a series of wireframes that are tested on real users. Once everybody is happy with the overall user experience, the user interface is designed and page templates are developed. These are then integrated into the back-end system, tested and deployed.

We don’t have dedicated project managers so each team member is responsible for their own part of the project. This means that our clients have direct access to the people working on their projects and requirements don’t get lost in translation. We use Basecamp to manage our written communications and make liberal use of Skype and IM throughout the process. We like to build relationships with our clients so face-to-face meetings are good. However with around half of our clients coming from overseas, it’s not always possible or practical. An average project will take around 4 months and we usually have several on at any one time. We are in fairly high demand at the moment as there aren’t many agencies offering the range or depth of service that we do. As such, we usually need a couple of months notice before scheduling new projects.

How should a company or individual in your profession be chosen?

If you are looking to commission a design partner, you should spend a reasonable amount of time researching possible candidates. Look at the problems you are trying to solve and the skills you require, and then try to find a good match. For instance, if your main concern is branding, then you probably need to find an agency that specializes in visual design, whereas if you have a lot of information you need organizing, you’ll want an agency that that focuses on information architecture. If you are building a content oriented site, your partners will need a good understanding of content management. However if you are building a web application, interaction design and user experience will be key.

With so many agencies out there specializing in different ways, it often makes sense to commission different companies for different parts of the project. So you may want to hire a design and interaction specialist to design the user experience, and then a development company to program the application.

The best way to select an agency is to ask for recommendations from your colleagues or other web developers. If somebody you know has worked with an agency before or has heard good things about them, they are already pre-qualified. Look at sites in a similar field to yours. If any are particularly good, find out who designed them and add them to your list of possible partners. I also recommend looking at design galleries and noting any sites that are a similar size, quality and style to the one you are trying to produce. Create a shortlist of 3-5 agencies, send them a detailed brief and then base your decision on the result. Remember that you’ll have to work with this agency for several months, so choose a company that’s a good fit and you get on with.

At what point should your profession be brought into a project?

The sooner you can get a professional consultancy involved the better. A good way to start is to commission an initial discovery phase. This gives the designer an opportunity to learn about your company and the problems you’re facing, and come up with some initial recommendations. It also gives the client an opportunity to work with the designer on a smaller project to see how they get on. If both parties are happy with the outcome, you can then move forward with the main project confident that it will be a success.

How do you charge?

Like most professional services, we charge based on the time spent on a project. We will estimate how long each stage of the project will take in order to calculate the headline figure. We’ve been doing this for a while now, so our estimates are generally very accurate. However all projects are different and have their own unique set of influences. As such we always recommend building in a refundable contingency to cover unexpected expenses or additional functionality.

As the project progresses, we’ll track how much time we spend on the various components and keep our clients up to date with how the budget is being allocated. For fixed cost projects we will normally break functionality down into core, desired and deferred components. We promise to deliver all of the core functionality and as much of the desired functionality as the remaining time will allow. This lets clients to see exactly where their budget is being spent and allows them to make much better financial decisions.

How can a designer improve their skills?

You can continuously improve your skills by reading books, going to conferences and learning from your peers. Every project you take on should be an opportunity to face new challenges and learn new skills. If you are not getting this challenge at work, I highly recommend taking on a personal project to stretch your creative muscles.

Andy Budd | Managing Director | Web Designer | Author
Andy Budd::Blogography | CSS Mastery

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Thanks Andy!

until the next
You’ve Been BoDo’d
cat

Posted by: Catherine Wentworth
Category: Designers Working With
Bookmark on: del.icio.us

A common litany on design forums is the question “How do you charge?”

Those coming into the industry are unsure if they should charge by the hour, or by the project. Should they quote for the project, with any over-runs billed by hour? Should they ask for a percentage up front, or bill after their clients sign off on the job?

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Andy has it down

Like most professional services, we charge based on the time spent on a project. We will estimate how long each stage of the project will take in order to calculate the headline figure. We’ve been doing this for a while now, so our estimates are generally very accurate. However all projects are different and have their own unique set of influences. As such we always recommend building in a refundable contingency to cover unexpected expenses or additional functionality.

As the project progresses, we’ll track how much time we spend on the various components and keep our clients up to date with how the budget is being allocated. For fixed cost projects we will normally break functionality down into core, desired and deferred components. We promise to deliver all of the core functionality and as much of the desired functionality as the remaining time will allow. This lets clients to see exactly where their budget is being spent and allows them to make much better financial decisions.

Andy Budd | Managing Director | Web Designer | Author
Andy Budd::Blogography | CSS Mastery

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Anna charges by the hour

From past experience, we have found that charging hourly is the most fair way to work. Before we begin designing we try to have as clear an idea as possible of what the client is looking for, so that everyone is on the same page and we can more quickly come up with a design solution that everyone is excited about. When we were working with flat rates, we found that clients were much less likely to make decisions and to constantly change things around. With the hourly fee, everyone is encouraged to make decisions and push the project forward. We do ask for a percentage up front - as a retainer that is credited to the final payment. We get paid as we go, and also require payment in full before handing over the finished product.

Anna Corpron & Sean Auyeung | Interdisciplinary Design Practice
Sub-Studio | sub-studio design blog

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Brian gives advice

On many projects it’s fee-based, although some clients are on hourly fees, (and we are moving to add a monthly account services fee for overhead and client maintenance).

With new clients, we routinely ask for and receive 30% to 50% up front to initiate a project and or relationship. I’m pleased that many clients are very eager to send a check, and anxious for us to cash it!

Other terms depend on the project. Long term projects will be billed incrementally.

BUT: resist the urge to wait for that big check to appear at the end. Cash flow is key to any organization. A designer should invoice as much as possible every week.

Brian Sooy | Design Consultant
Brian Sooy & Co | Altered Ego Fonts

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Chris suggests 50/50 or thirds

It really depends on the client and the project. As a freelance designer, I’m going to run into a lot of small business owners who are usually unprepared for the true cost(s) of their project. I find out from them what the most comfortable payment solution is. I usually try to do it as a 50/50 or at least pay in thirds and no matter the payment schedule, it’s always outlined in my agreement exactly what the payment will be and what has been accomplished (in the project) for that payment.

Chris Tomlinson | Communication Designer | Printer
Gonink | Gonink blog

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Dag goes with project fees and by the hour

I charge two ways, set project fees and by the hour. It depends on the nature of the project. I have one client for example with whom I’ve enjoyed a great working relationship for many years. However a project rate with him wouldn’t have been feasible, so I charge an hourly rate.

Dagmar Jeffrey | Principal Arche-tech
NO!SPEC Brainstorming Team Member | Arche-BLogGER

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Daniel leans towards charging by the project

It varies by client. I tend to quote a project price, based on the needs and requirements, then by the hour for changes. I always ask for a percentage up front, a percentage when comps are approved, and a percentage upon completion.

Daniel Will-Harris | Communication Designer
Will-Harris House | Schmoozeletter

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Dan brings in a deposit with increments

A large percentage up front, as low as 33% up to 50% and then incremental monthly invoicing until the project is completed. I also include a overall project time frame and charge additionally if the client does not manage the project so that we can complete the project within the time frame. Finally, I include a kill fee if the project is stopped for any reason.

Dan Sturdivant | Communication Designer | Editor
TexasDesign.com

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Leslie agrees

I think designers should be paid in stages with an up-front absolutely needed. Also, they must be religious about marking up all their costs equally and then billing their clients the marked-up rates.

Leslie Burns-Dell’Acqua | Creative/Marketing Consultant & Coach
Burns Auto Parts–Consultants | Burns Auto Parts blog | Podcast | Book

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Metin keeps it open

Usually I keep track of the hours I’m spending on an assignment, and count up the hours to determine my price. But if an employer prefers a fixed price that’s no problem to determine.

Metin Seven | Communication Designer
Seven’s Heaven - design and illustration

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For Neil it depends

It really depends on the client and the project. Identities are billed by the project as are most print and web gigs. Small jobs are often billed by the hour. The same goes for site updates.

Neil (nt) Tortorella | Marketing Manager
Tortorella Design | The Marketing Mind | Creative Latitude | BoDo Team | Marketing Minute

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Roger keeps an eye on the clients

What works best for me–for design projects beyond 1-on-1 coaching–is an agreed-upon fee for the project, beginning with a significant deposit. If the project is going to spread over several months, there should be “benchmark payments as specific–and agreed upon–goals are met.

Time after time, I’ve found that if clients are unwilling to provide a deposit at the start of the project, the project is probably not going to work out for either party. Design services, once delivered, are very difficult to collect upon.

I quickly leave meetings with clients who make statements like, “I never pay full price!” or “Can you sharpen your pencil a bit more?” I charge fairly, and find that clients who immediately voice price objections, or who have little understanding of the limitations of design, are typically more problem than they are worth.

Roger C Parker | Designer | Writer | Marketing Consultant
Design To Sell Online | Roger C. Parker Design to Sell Blog | Design to Sell

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Scott puts forward an interesting suggestion

I try to keep my estimating and billing fairly simple being a one-person design resource (at the moment anyway) and things depend on the requirements of a project. In some cases, if I can accurately quote a project then I will quote the project based on that known scope. Anything additional gets quoted separately or charged on a n hourly basis.

In other cases where there will be more variables that could drastically change the scope or timing of a project, then I’m more likely to bill hourly. Typically I send invoices every two weeks, or in the case of some clients, once a month, mostly so the administrative tasks can be broken down into simple blocks of time. In talking with a friend the other day, he said he allows clients to buy blocks of time for projects - say 20 hours and they can do whatever they want with that time. I find that interesting and will probably try that in the future.

Scott Boms | Communication Designer
Wishingline DS

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Stefan goes with the 50% and more

Generally on projects with new clients we ask for 50% upfront and the remainder upon completion. If the client has a need for a payment plan, we will split it up generally over 3 different payments. If we have a project that requires multiple milestones, we will collect in full, payment at the end of each milestone. For clients that we have been working with for years, we usually require payment 30 days after completion. On some rare projects, however, we will take 50% upfront from an existing client.

Stefan Bean | President/Creative Director
Pulse Creative Partners, Inc. | BoDo Author | Bean’s Biz

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Summary

When I started out, I invoiced at the end of each project. At the time I lived in a small country where everyone knew each other, so it was a safe bet I’d get paid. And since I wasn’t tied to cash flow, there were no worries on that end. Enter the Internet and everything changed. The handshake became a contract and the payments came in thirds.

Next up I ask the question “How can a designer improve their skills?”

until the next
Designers WW,
cat