Logo design, logo designer | How 20 designers charge their clients - part 3

Photo of James Joyce, source

The final part of the series — how 20 designers charge their clients. Here you’ll find more financial insights from talented designers, as well as some very useful resources from excellent websites.

Jonathan Selikoff, of Selikoff+Company

How do you normally charge clients?
Depends on the client and the relationship, but initially, all projects are on a flat fee, per project basis, with a defined scope. I usually ask for a third or 50% upfront, depending on the size of the fees. Hourly rates never benefit anyone. The client doesn’t get a true idea of the value of the work and risks getting overcharged. I prefer to deliver a desired outcome, not work for X amount of hours and hope for the best. If it takes too long to achieve the goal, then I underpriced it or didn’t work efficiently enough, but that’s not something I feel the client should suffer.

I do have one client on a retainer, which has worked well because they have a wide variety of projects that need to be done each month. Sometimes it’s a lot, sometimes not as involved, but for me to try to price each piece individually would waste time for both of us. In retainer work, I do work more on an hourly basis. Since the projects aren’t a defined X, Y and Z for the month, I need some basis for my fee for them. Also, I prefer to work on 3-6 month contracts when on a retainer, not month-by-month.

What methods of payment do you accept?
I take cheques only right now. The vast majority of clients expect to pay via cheque, so that’s my typical MO. I’ve looked into PayPal because a client requested it, but they are really set up to support sales of a concrete product, not a service like design. As I recall, they kept asking for proof of what I was selling with inventory and pricing lists, something I don’t exactly have. In the end, they actually turned me down. I found that amusing and frustrating at the same time. Guess I should be offering some widget for sale as well.

Why would you recommend working this way?
I go with what seems to work for me. I’m a solo practitioner, which often can give people the impression that I’m not very organized. I might not be, but I try to project a level of competence, and that includes having my contract and payment terms set up front. That being said, if a client asked for some other option that sounded reasonable, I’d certainly be open.

Visit Jonathan’s website here: Selikoff+Company.

Vivien Anayi, of Inspiration Bit

How do you normally charge clients?
It usually depends on a client and the projects I’m working on. If it’s a big project, I charge a flat rate, though usually I specify the amount of hours it would take, and mention the discount the client gets when going for a project rather than a small amount of work here and there.

Usually I split the cost of the project into two or three payments, the first one is always paid in advance, and the last one after the completion of the project. If it’s an ongoing work with the same client that takes place after the completion of the major project, then I charge hourly rate and send the invoice out every month. There can also be some exceptions, like with one of my clients, who split the cost of the project into several monthly payments.

What methods of payment do you accept?
Once again it depends. I used to accept cheques only, then I had a few local clients who were wiring me money via Email Money Transfer that’s supported by all major banks in Canada. Now I’m getting more international clients and find that PayPal works best in such cases.

Why would you recommend working this way?
I would recommend everyone to find what works best for them. I always try to accommodate every client I work with and find the payment option that’s mutually convenient.

One piece of advice I have for handling those clients who don’t pay on time: when preparing the invoice, after the total cost add a line that mentions a certain discount (say 5%) that the client would get if the invoice is paid by the due date, otherwise the client will have to pay the original total. It worked really well for me. I find this method more encouraging, rather than charging the client late fees. Who wouldn’t like to save some money by paying on time?

Visit Vivien’s website here: Inspiration Bit.

Adelle Charles, of Fuel Your Creativity

How do you normally charge clients?
I normally charge clients per project if it’s a large one. They get 2-3 mockups, revisions and then one final revision (all outlined in the contract). Anything after the final revision is billed per hour. Most clients I take on, I require a 40% deposit before any work starts. The final amount is billed after completion and I give 30 days.

What methods of payment do you accept?
For local clients I accept cheques and PayPal. For clients I have found through the web, or I outsource to, I use PayPal only, it’s quicker and easier.

Why would you recommend working this way?
Honestly this setup works for me and I know every creative person has a different way of handling clients. I think it depends on your workflow if “my” way would work for you or not. I like it because everything is stated clearly within the contract and if you stick to it, the work is produced quickly and efficiently for the client and if they have deadlines / approvals and payment that they are aware of up front you usually have less chance of “skirting around issues”.

Visit Adelle’s website here: Fuel Your Creativity.

Jon Phillips, of Spyre Studios

How do you normally charge clients?
I usually charge per project though I will sometimes charge hourly depending on the work that needs to be done and who I work for. I have some long term clients that I charge hourly and invoice at the end of the month, but in most cases it’s a flat per project rate. I usually ask for 50% in advance, but not always. I ask for 50% in advance if it’s a returning customer or someone I know fairly well.

What methods of payment do you accept?
Most of my clients are ok with Paypal but I also accept cheques. In the event my client wants to pay with a cheque I ask for 50% in advance and wait till the cheque clears at my bank before I start working. But in most cases Paypal is the #1 choice.

Why would you recommend working this way?
Well I’d recommend charging a flat per project rate (and ask %50 in advance, especially for new clients) simply because I find it’s a lot easier to give a quote for the whole thing rather than give an approximate price based on the amount of time a project may take. I know how much time this or that will take me, I just tell my clients what I can and will do and how much I charge for it. Clients know exactly what they’re paying for and what to expect. Like I said in my previous answer I also have clients that I charge hourly, but these are usually long time customers that need my services on an ongoing basis.

Visit Jon’s website here: Spyre Studios.

Brian Hoff, of The Design Cubicle

How do you normally charge clients?
I typically charge clients on flat rate; I provide them with an estimated quote in advance once I have the proper details regarding their needs. On large projects, I ask for a third up front, another third at the halfway mark, and the final payment before the delivery of the files. For smaller projects, especially ones that take less time, I ask for 50% up front since multiple transfers of money in short timeframe takes too much time and effort on both of our parts.

Once the scope and details of the project is detailed in writing, I nicely let them know, verbally and in writing, that the quote is just an estimate and other factors that play beyond the initial scope of the project will be compensated accordingly. Typically the quote is right on the money or falls within 10-20% of the estimate. Experience will help you gain a better feel for how long projects typically take, so my estimates are slowly becoming exact rates more or less.

What methods of payment do you accept?
I typically get paid by cheque or money order. I’ve been considering using PayPal for awhile now, so maybe I’ll finally make the jump!

Why would you recommend working this way?
Cheque or money order, through my interactions, have deemed to be more of the clients choice, but on the downside can waste more time while waiting for payments. PayPal for me seems more logical, but for some clients the idea of transferring money to someone online is a bit scary - that’s where trust comes in to play.

Visit Brian’s website here: The Design Cubicle.

Graham Smith, of ImJustCreative

How do you normally charge clients?
Typically I charge a flat or hourly depending on the job and also the client. Things like stationery, more predictable stuff will be flat rate. If the business card design is more adventurous, then I’ll usually charge hourly if I think the client is likely to be going backwards and forwards with ideas and revisions etc.

This applies to all other design work. If I am convinced a large design job will be relatively straightforward then I will usually try to negotiate a flat rate, but with a condition that if estimated time, proofs, extra word starts piling up then additional charges can be incurred. If however the job is more free flowing, more of a evolving over time type project, then a hourly charge applies. Obviously some indication of overall time in a ideal world is useful to give the client, but ultimately that comes down to how they deal with changes and revisions etc.

But moreover, I am not steadfast in my methods. A lot of it has to do with how I feel about the client, Im quite good at sensing positive or negative vibes, can they be trusted or not. And this so far has allowed me to be pretty flexible and chilled about payment terms which generally is appreciated. Personally, if you start blowing hot about insisting this and that, you can sometimes look like you don’t always seem to have much overall respect, and trust does come into that. As a designer you want to be trusted, but equally, clients also want to be trusted, it certainly is a two way thing that I often feel is not taken into account.

Im sure a lot of people would initially say Im probably way to free and easy with this and far to trusting. It’s actually quite rare for me to invoke the ‘contract’ maneuver when taking on new work. It’s just something I have not really ever done. I think part of this mentality has been because most of my professional life I have been an employee so am more used to clients being invoiced after work completed with nothing more than a sales order, certainly no contracts. Admittedly bigger companies, but also bigger clients and more costly jobs to risk.

I think the first and only time I took a retainer was for a big holiday brochure I did a few years back, but again, this was insisted on by the client, not me and was half the estimated project cost.

What methods of payment do you accept?
Cash is king. Paypal is also good. I have sometimes thought about the adding of fee’s on top of the overall cost if the client ‘wants’ to use PayPal, but so far I have not. Often for me though, I choose to be paid by PayPal as it’s the easiest form of payment for my overseas clients, of which I do have a few. Quick, easy and pretty cheap given the alternatives through the banks.

Don’t take credit card.

Often I don’t have any choice over how I get paid, as I might be doing work for a larger firm that use BACS or something, so I tend to keep my mouth shut at these times.

Why would you recommend working this way?
As I mentioned earlier, I like to portray a easy going way of working from the outset. It’s something that has worked for me for a while and not once have I been taken advantage of. Not to say it won’t of course, but so far so good. I don’t like laying down to many ground rules, especially with a new client, I find this can have a positive effect on the professional relationship.

If the client feels that they are trusted themselves it can really help open things up to a different level, and this can be so crucial in professional relationships as it sets the tone for possible future projects.

If I ever come across someone that I don’t get a truly good vibe about then I will cautiously negotiate a reasonable payment structure, but one that keeps things relatively flexible but not so flexible that I could end up with egg on my face or worse. So it is often on a client by client basis, but so far, most clients have been totally trustworthy which is fantastic. Just don’t drop your guard.

Visit Graham’s website here: ImJustCreative.

Further financial resources for designers

• Richard Williams, co-founder of award winning agency Williams Murray Hamm, shares his experience about running a design firm — part of Ben’s Recession: Simple Advice for Designers series.
• How to price freelance projects successfully, from Ben of Instigator Blog.
• Nine factors to consider when determining your price, from Collis of FreelanceSwitch.
• How much should you charge as a freelance writer? From Yaro Starak.
• 10 ways to convince a buyer that value-based fees are best, from Alan Weiss.
• Pricing your consulting services, from Megan Tough. Thanks Lauren.
• How do you rate? From Neil Tortorella on Creative Latitude.
• How much to charge for graphic design work, from design : talkboard. Thanks Sigurdur.
• First steps to graphic design pricing, here on davidairey.com.
• Hourly rate calculator, on FreelanceSwitch.
• What you should charge, on Positive Space Blog.
• How much is your time worth? From Ilise Benun.

How 20 designers charge their clients

1. How 20 designers charge their clients — part 1
2. How 20 designers charge their clients — part 2
3. How 20 designers charge their clients — part 3

That’s a wrap

That wraps up this mini-series focusing on the financial practices of graphic designers. I hope you enjoyed the insights shared by all 20 contributors, and will join me in thanking them for their time.

Thanks very much to all of you who offered your insights. I hope this feature has given you some alternative methods to at least consider, and at the same time brought a few extra visitors to your websites.

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Related posts on this site

• How 20 designers charge their clients - part 2 (14)
• Design pricing and when to talk money (41)
• Design agencies vs freelance designers (12)
• Designing through a recession (40)
• How 20 designers charge their clients - part 1 (28)
• Using freelance graphic design contracts (34)

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