Posted by: Catherine Morley
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 Morley
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

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

This is sometimes hit and miss with clients and even with some designers in the position of hiring those needed. Do you contact those involved in the early stages of a design project to give professional advice? Or do you wait until their part of the project needs to be done? Inquiring minds need to know … so I asked the question “At what point should your profession be brought into a project?”

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Andy

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.

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

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Anna

This is fairly subjective. We like to be brought in early, but after the client has thought through the project enough to know what they are looking for. We definitely don’t like to be brought in a week before the project has to launch - giving your design professional ample time to work through the design is essential. A rushed job never looks as good as it could have.

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

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Brian

When the idea is first discussed, so that the designer’s input and expertise can influence the scope and objectives of the project.

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

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Chris

I think contributing designers should be brought in when the scale/scope of the project demands their presence. In starting any project the person setting out goals and milestones should have a clear understanding when certain things will occur. For instance, let’s say a company is designing a very elaborate catalog/brochure that requires a lot of photos of products and those products are crucial in the layout. I think this would be a point where a PM would want to determine if the copywriter or their layout professional is needed more.

Chris Tomlinson | Communication Designer | Printer
Gonink | Gonink blog

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Dag

I hate to say “depends on the situation” all the time, but it seems to be the case. Not all projects are equal. Although I would hate to bat clean up there are times when someone didn’t provide the design services they were hired to do and someone fresh is brought in to fix/complete the job at nearly deadline. I dislike those situations because they tend to be tricky and stressful. And often you’ll find yourself building upon someone else’s existing framework and working with testy people. If the changes are to a mild degree that’s not a biggie, typesetters (retouchers, etc.) for example do it all the time, but extensive redesigns begs the question of who gets credit for the final output. If it’s a work for hire arrangement the question is relatively moot. If you’re taking over a project from a previously terminated arrangement on the other hand that’s where credit could potentially end up getting a bit iffy at some juncture.

I should also mention that normally typesetters and retouchers are brought in after the initial designs are made, to refine the work. Because of the massive myriad of dimensions in magazine ads for example, many firms outsource approved design layouts to press bureaus who have a design department themselves onhand to clean up and refine the piece. Although many are trained designers in their own right, they often do the majority of retouching and typesetting for all the ads it will end up in, a LOT of work. So in this instance, I would say that a typesetter/retoucher would ideally be introduced once the initial layout is done, to polish the layout (which can include changes to the elements), preflight it and often await for the final approval before sending it along to press. The initial designer of the layout has by this point moved on to other projects.

In the best possible situation, a designer would hope to be introduced/involved during the inception of the marketing and branding stages of the project. Sitting in, taking notes and being creatively inspired by the direction that the company wants to take with the project and product concepts. Branding and design go hand in hand, don’t ever let anyone tell you differently. To help effectively market the brand the design has to at the very least appeal to the target audience, after all. An effective design should have it’s beat on the pulse of the market whether it’s pandering off of existing styles or exploring a direction that the audience would find fresh and stimulating, based on their research.

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

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Daniel

Naturally as early as possible–sometimes even before they have decided “what” they are doing. They may think they’re going to launch a new product or service, but a designer can bring in a fresh POV, from outside their corporate and political structure, and help them refine their offering even before it goes to marketing.

I do a lot of what I call “Design Therapy,” where I help the clients be more focused on what they offer and who they are offering it too. It’s surprising how many companies aren’t really clear on what makes them different and unique.

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

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Dan

As early as possible which will help manage expectations (on both sides).

Dan Sturdivant | Communication Designer | Editor
TexasDesign.com

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Leslie

Earlier is better than later. Creatives aren’t worker-bees who churn out product–they are most valuable as concept-creators and so can bring ideas to brainstorming sessions you never even would have vaguely considered.

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

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Metin

Whenever there’s need for a visual addition to any project, such as an illustration that will strengthen a message.

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

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Neil

As early as possible. Bringing a designer on early can avoid problems later and the designer can usually make suggesstions at the beginning that will help develop a successful project.

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

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Roger

Designers should be brought into a project as soon as the project’s goals and objectives are defined. Waiting until too late results in “deadline madness” and expensive, wasted effort.

Designers who position themselves solely from an aesthetic point of view may be doing their careers a disservice. If a designer can only make something more attractive, or easier to read, their value proposition is not as strong as another designer who can help clients identify their strategic objectives and help them come up with a plan to achieve them.

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

A designer’s eye can be an invaluable resource at nearly any point of a project, but it depends on the nature of the project. For web sites or applications, having a designer and a usability expert on hand early on can help mediate decisions that are difficult to reverse later and can bring new ideas to the table earlier on in the process.

Design isn’t just something you slap onto a project, or at least it shouldn’t be. Design needs time to settle in and get the lay of the land. Design is about listening, understanding, and communicating. Rushing it is an easy way to lead to mistakes or a bad end result. For myself, being somewhat technically inclined as well, I like to get in on the ground floor of projects so I can provide input as early on as necessary to make sure that my job as a designer isn’t made any more complicated then it needs to be.

Scott Boms | Communication Designer
Wishingline DS

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Summary

It seems everyone is pretty much in agreement - bring in designers as soon as the scope of the project has been determined (if needed, sometime sooner).

Next up is the age old question, How do you charge?

until the next
Designers WW,
cat

Posted by: BoDo Team
Category: BoDo Niblets
Bookmark on: del.icio.us

So, you’ve had a momentary lapse of reason and decided to forgo the regular paycheck in favor of starting your own business. Welcome to the club. Being in business for yourself can be a WILD ride, so fasten those seat belts.

BoDo is here to (hopefully) make that ride a little smoother. We’ve all had our triumphs as well as tribulations. We plan on sharing all the ins and outs. The ups and downs. As well as the in betweens.

Quoting Creative Coach and visiting author Mark McGuinness from Wishful Thinking

To run a successful design business you need to be more than a great designer. You need to be an accountant, manager, negotiator, salesperson, marketer, presenter, networker, copywriter, debt collector, strategist, intellectual property developer and more. You need to be comfortable dealing with people, money, technology and sometimes even the law.

Take advantage of programmes on offer to help you develop these skills. Make use of resources like BoDo where you can learn from others’ expertise and experience. Read books, ask questions - do whatever it takes. Commit to learning these business skills - they are tools for turning your creative talent into creative success.

In our first series, BoDo Niblets: Starting Out and Setting Up, we will cover the bare basics. The series will be just a nibble, an intro, a bite of what BoDo will bring. Later posts will go into more detail on the running a successful design business.

We’ll also be introducing team members, visiting authors (like Mark), and a few odd friends who’ll stop by on occasion.

Below is the outline of the series. For each subject there will be joining posts, BoDo Experience. It’s where a few of us dig back into our start-up days.

Are You Ready?

Do you have enough experience (both with design and running a small business) to start your own design company?

Taking it Personally

Are you an independent self-starter, disciplined loner, superb marketeer, multi-tasking monk? Or do you feel more comfortable working mainly in-house, surrounded by living, breathing flesh?

Clients, Oh My!

How many clients do you need to get started?

Where’s the Money, Honey?

How much ready cash does it take to leap?

Location, Location, Location

Decisions, decisions … Will you rent office space, or work out of the home? Will you work on-site or via the Internet?

How Equipped Are You?

Can you start with the bare basics, or do you need the bells and whistles?

Who’s (ac)Counting now?

You’ve got the clients. You’ve got the projects. What kind of invoicing will you need?

A Recap of the Starting Out and Setting Up series

So, how’d we do?

Thanks for stopping by,
The BoDo Team
cat - nt - jay