{"id":4245,"date":"2019-06-03T18:17:29","date_gmt":"2019-06-03T22:17:29","guid":{"rendered":"https:\/\/www.ceros.com\/inspire\/?p=4245"},"modified":"2021-03-10T11:48:10","modified_gmt":"2021-03-10T16:48:10","slug":"freelance-designers-need-know-money","status":"publish","type":"post","link":"https:\/\/www.ceros.com\/inspire\/originals\/freelance-designers-need-know-money\/","title":{"rendered":"What Freelance Designers Need to Know About Money"},"content":{"rendered":"Reading Time: <\/span> 6<\/span> minutes<\/span><\/span>\n

Just because the word \u201ccreative\u201d is in your job description doesn\u2019t mean you can afford to neglect the \u201cbusiness\u201d side of your professional life. Designers can talk grids, fonts, and color palates until they\u2019re Palladian Blue in the face, but often come up short when it comes time to discuss money. If you still take some artistic pride in struggling to make your rent, it may be time to add some commercial chops to your portfolio. We\u2019ve got a guide to what every freelance designer should know about money: how to ask for it, how to get paid, and how to deal with clients who don\u2019t hand it over. <\/p>\n\n\n\n

Contract Negotiations<\/h2>\n\n\n\n
\"A<\/figure>\n\n\n\n

Dealing with clients is laden with potential landmines, even before money enters the picture. But it\u2019s essential to feel that you\u2019ve struck a fair deal before you get started on your work. Any lingering ill-will is certain to bubble over when your client inevitably says the wrong thing<\/a>. Here’s how to settle on an agreement everyone can be happy with.<\/p>\n\n\n\n

Develop a rapport before opening negotiations.<\/strong> <\/h3>\n\n\n\n

If possible, develop a strong line of communication with your client before you start negotiating. When both parties feel there\u2019s a familiarity and a level of trust, it\u2019s easier to reach an understanding.  <\/p>\n\n\n\n

Don\u2019t be shy.<\/strong> <\/h3>\n\n\n\n

To paraphrase one of Hollywood\u2019s go-to aphorisms<\/a>, you\u2019re running a design business<\/em>, not a design friendship<\/em>. There\u2019s nothing wrong with driving a hard bargain or holding your ground to ensure you get the terms and compensation you deserve.  <\/p>\n\n\n\n

Clarity counts.<\/strong><\/h3>\n\n\n\n

Make sure that everything in your contract is clearly delineated. Every deliverable, every due date (for work and payment), and every revision should be set in stone. That doesn\u2019t mean you can\u2019t be flexible\u2014it just means you should build buffers into your contract should the work suffer from mission creep. <\/p>\n\n\n\n

Nothing for free. Ever. <\/strong><\/h3>\n\n\n\n

You\u2019re a professional. Don\u2019t give it away, unless we\u2019re talking about a logo design for a charity for orphans. Even then, make sure you\u2019ve checked that orphan non-profit status before you agree to anything. In the immortal words<\/a> of designer Mike Monteiro, \u201cFuck you, pay me.\u201d <\/p>\n\n\n\n

Build a basement. <\/strong><\/h3>\n\n\n\n

It\u2019s perfectly reasonable to walk away from contract negotiations if what your prospective employer is offering falls well below reasonable expectations (see \u201cKnow the marketplace\u201d above). “If you don’t go in with one, in a weak moment you can find yourself agreeing to something you later regret,\u201d recruitment consultant Ted Leonhardt said<\/a>. \u201cOur brains flick between emotional and rational responses\u2014the rational mind is the slowest part.”<\/p>\n\n\n\n

Design a Payment Structure<\/h2>\n\n\n\n

So now you\u2019ve got a semi-thriving design business\u2014nothing more to worry about, right? You know the answer to that one. The perils of small business don\u2019t end the second you\u2019ve got enough money to move out of your home office. Get ready to start spending a lot more time than you\u2019d like on tax compliance, health care, and lead gen. You\u2019ll also need to get a lot more professional in how (and what) you bill your clients. Read on for some tips. <\/p>\n\n\n\n

Your rates are subject to change. <\/strong><\/h3>\n\n\n\n

Just because you started working with a client back when your hourly rate was half of what you charge now, that doesn\u2019t mean that particular client gets some kind of early bird special. You change, and your freelance rate can change with you, reflecting new skills and an increased demand for your work. If they object, make it clear that you\u2019re running a business, and business expenses change over time. That said, be realistic in setting your new rates\u2014don\u2019t assume that once you\u2019ve got clients hooked you can start gouging them. <\/p>\n\n\n\n

Keep time sheets. <\/strong><\/h3>\n\n\n\n
\"A<\/figure>\n\n\n\n

When you decided to go freelance you thought you were freeing yourself from paperwork for a life of liberty. Hah. Even if you\u2019re not charging by the hour, keeping a log of your time can prove an excellent safeguard against spending too much time on one project. Time is your most valuable resource, and if you\u2019re not allocating it well, you\u2019re losing big. As Danny Brooks and Natasha Zlobec of the British design agency Phage told The Design Council<\/a>, \u201cTime sheets make costing quicker and easier because you can base your quotes on similar previous projects….Over time they will also provide insights into which types of work (and clients) are the most profitable and help with your future planning.\u201d <\/p>\n\n\n\n

But that doesn\u2019t mean hourly work is the answer. <\/strong><\/h3>\n\n\n\n

Some clients seem to think that an effective logo design should be done in 90 minutes max. Unless your client has a clear understanding of the time that will be involved in each stage of design creation and exploration, hourly work can prove a problem. It\u2019s often a better idea to charge a flat fee for a certain number of deliverables, and, if necessary, contractually stipulate an hourly fee for any time or revisions over and above the initial work. There\u2019s another good reason to avoid the hourly slog, as illustrator and author Jessica Hische explains<\/a>, \u201cPricing hourly punishes efficiency.\u201d<\/p>\n\n\n\n

Pay yourself a salary. <\/strong><\/h3>\n\n\n\n

This one might require some math, or even hiring a good accountant, but trust us, your mental well-being will be all the better for it. Aside from anticipating the inevitable peaks and troughs of freelance gigging, going on a vacation will no longer feel like you\u2019re simply draining money from your bank account. <\/p>\n\n\n\n

Getting Paid<\/h2>\n\n\n\n
\"A
close up of a reciept reading paid in full<\/figcaption><\/figure>\n\n\n\n

Frankly, it\u2019s unclear how the global economy seems to chug along with such ease when the simple task of getting paid a few thousand dollars feels like running a never-ending gauntlet. But here we are. If you\u2019re experiencing trouble getting a client to pay up, or if you want to prevent that scenario from ever playing out, there are some simple tools and tricks you can use to protect yourself. <\/p>\n\n\n\n

Don\u2019t wait until the project is complete to invoice. <\/strong><\/h3>\n\n\n\n

Rather than anticipate full payment upon completion of your work, set up a payment plan where you can invoice in stages. Because let\u2019s face it\u2014the work has a tendency to linger long after we thought it was going to be over. Set up benchmarks where you will invoice for a certain fraction of the total cost and put it in your contract. <\/p>\n\n\n\n

Give clients an incentive to pay in advance. <\/strong><\/h3>\n\n\n\n

We know, we know, you\u2019re not running a used car dealership. But dangling small discounts for advance payment can actually prove incentive enough for price-conscious clients to take you up on the offer. We picked this tip up from digital art director @RichardMixinn on Twitter<\/a>. We\u2019re not talking about anything significant. Offer to knock 2-3% off the full price, and think of as a hedge against the time you\u2019ll waste trying to track down accounts payable later.  <\/p>\n\n\n\n

Keep an arbitration clause in your contract.<\/strong> <\/h3>\n\n\n\n

Inevitably, things will go wrong. Very wrong. And while the courts can often provide remedy to those problems, that lawyer you\u2019ll need to hire will likely drain any profit you were planning to see. Including an arbitration clause in your contract can keep your work safe without the mind-boggling legal fees or epic timelines of court cases. The clause allows you to resolve financial disputes outside of court, relying instead upon a neutral third-party to reach a binding decision. Keep in mind that arbitration clauses are not a one-size-fits-all legal remedy\u2014they\u2019re best saved for (relatively) simple contract disputes that could be resolved in a day.   <\/p>\n\n\n\n

Get tough.<\/strong><\/h2>\n\n\n\n

If you\u2019ve been burned too many times before, it\u2019s time to get tough. Of course, you don\u2019t want to start acting like a demanding client yourself and diva yourself out of work, but there are any number of hard-edged practices that can protect you. Designer Mustafa Aslan<\/a>, for example, only provides clients with low-res previews of his work before payment is made. Only once the account is up-to-date will Aslan release the original file. <\/p>\n\n\n\n

Presumably you didn\u2019t get into the design business because you dreamed of seven figure paychecks. But that doesn\u2019t mean establishing a few best practices around the way you deal with money in your design practice aren\u2019t out of place. At the end of the day, the best you can ask for is finding what works for you, doing your best work, and getting paid fairly. <\/p>\n","protected":false},"excerpt":{"rendered":"

You really wanna be a starving artist? We didn’t think so. You need money! Here’s how to ask for it, collect it, and deal with clients who won’t hand it over. <\/div>\n

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