One year after my domain name was stolen, Google’s Chris Evans has published a blog article reporting the theft as a phishing scheme, whereby the victim is tricked into sharing their email login details.

Several news stories referenced a domain theft from December 2007 that was incorrectly linked to a Gmail CSRF vulnerability. We did have a Gmail CSRF bug reported to us in September 2007 that we fixed worldwide within 24 hours of private disclosure of the bug details. Neither this bug nor any other Gmail bug was involved in the December 2007 domain theft.

I’m sure Chris meant November.

Google’s blog post came in response to the more recent theft of MakeUseOf.com. Aibek, the MakeUseOf owner, has subsequently, and thankfully, had his domain name returned.

I like to think I’m cautious enough not to open a strange .exe email attachment, nor enter my login details on a fake website, but if that’s what happened, so be it.

I do, however, find it a little odd that a thief would gain access to my GMail account, then choose to add email forwarding filters rather than simply change my password, thus locking me out. I published what I believed happened in my previous GMail hack article.

Regardless, I’m glad Aibek of MakeUsOf had his domain name returned, and that Google have publicly acknowledged the previous Gmail CSRF vulnerability, even if it is over a year after the incident.

Aibek and I are two of the lucky ones. Many other domain theft victims contact me asking for help. Sadly, there’s little I can do except refer them to my account of what happened.

Related posts on this site

• An informal chat with Google (27)
• My rollercoaster relationship with Google (37)
• Collective effort restores David Airey.com (183)
• WARNING: Google’s GMail security failure leaves my business sabotaged (547)
• The real value of keyword-rich domains (36)
• Online marketing for logo designers (20)

Here in the UK it’s all doom and gloom — at least that’s what the politicians would have you believe. As a self-employed designer, however, I’m in a great position to take advantage of the credit crunch, and with the right preparation, you can be too.

In this article I share the thoughts of some talented designers who are discussing the pros and cons of today’s economic climate.

My advice to you: learn how to run projects, learn how to run a business, learn about and adopt uncompromising professionalism. Whether you’re a freelancer or an agency designer, there’s an opportunity here for you to leverage your online blog/portfolio reputation and build yourself a strong place in the profession.
Andy Rutledge

Andy writes a compelling piece on why we should be optimistic, and I find myself agreeing with much of what he has to say.

How do we go about replacing clients or gaining new ones at a time when people are at their most cautious? Does being a studio with premises give you an advantage over someone who works from home? Being a freelancer at this point could give you an advantage over a studio as you have fewer overheads, but studios have the physical presence which acts as a 24/7 billboard advert to draw in new clients.
Sarah Parmenter

Sarah goes on to mention how some of her clients are taking longer to pay, as they tighten their purse strings. My most common payment structure of taking 50% in advance, with the remainder upon completion — and just before original artwork is supplied — has meant I’ve not seen any of this, but I wonder if you’re experiencing anything different.

Image copyright Aaron Russell

The truth is, as freelance web designers we have good reason to be optimistic. With slashed budgets, marketers may increasingly turn to email, viral and web marketing as they seek better value for money and return on investment. And when companies begin to lay off staff, it is often the freelancer who benefits when they step in to complete the work that starts overflowing.
Aaron Russell

Regular readers of davidairey.com, Shaun Barnes, Brian Yerkes and Andrew Kelsall briefly share their own credit crunch experiences in the comments of Aaron’s article.

…though we are in a hard and trying time, I feel that it is the businesses that strive to be innovative and market their products well that will see through the current economic downturn. Whilst businesses that bury their heads’ in the sand and ignore the situation will fail.
Scott Mallinson

How the recession has affected me

I can increasingly attract logo design clients who place significant value on my service, but I believe this has more to do with improved online visibility, and less to do with the current financial climate. I receive one or two solid enquiries per week (completed logo design questionnaires). There are normally five or six short email approaches in the same time period, but the majority of those are looking for cheap(er) design.

The third and fourth quarters of 2008 have shown a significant upwards curve, and given the international reach of my online business, I’m quietly confident this trend will continue into 2009.

I am, however, remaining cautious, and not spending outwith my means — though to be honest, that’s my usual approach to finance.

Further graphic design-related articles about the recession

• Recession: simple advice for designers, part 1: new business // part 2: accounts // part 3: running a design firm // part 4: printing, from Noisy Decent Graphics.
• Tips for business development in a recession, from Rebecca Caroe.
• Design and marketing in a recession, from Rob Cubbon.
• Spend your way out of a recession, from Amanda Vlahakis.
• Why freelancers are best equipped to survive a recession, from Bruce Byfield.
• 10 best things about coming depression, a more humorous take on things, from Jeffrey Zeldman.

The recession and you

How have you been affected recently? Have you noticed a change in the way you or your clients are doing business? If you’re clever about your marketing, and don’t turn design into a commodity, you have much to look forward to, and can prosper in the tough times ahead.

Related posts on this site

• How 20 designers charge their clients - part 3 (18)
• The value of trustworthy subcontractors (81)
• Design pricing and when to talk money (41)
• Web development pricing (11)

Paul Howard Arden, advertising creative and successful writer, was born on April 7th, 1940, and died on April 2nd, 2008. This short blog post can, in no way, do justice to his creative influence. What it can do, however, is serve as an introduction to those who are unfamiliar, and as a brief reminder to the rest of us.

Do not seek praise. Seek criticism.

The following passage is an exceprt from the book It’s Not How Good You Are, Its How Good You Want to Be, by Paul Arden.

It is quite easy to get approval if we ask enough people, or if we ask those who are likely to tell us what we want to hear.

The likelihood is that they will say nice things rather than be too critical. Also, we tend to edit out the bad so that we hear only what we want to hear.

So if you have produced a pleasantly acceptable piece of work, you will have proved to yourself that it’s good simply because others have said so.

It is probably ok. But then it’s probably not great either.

If, instead of seeking approval, you ask, ‘What’s wrong with it? How can I make it better?’, you are more likely to get a truthful, critical answer.

You may even get an improvement on your idea.

And you are still in a position to reject the criticism if you think it is wrong.

Can you find fault with this?

Further Paul Arden reading

• Paul Arden: a true maverick — published the day after his death, on CR Blog
• Obituary in The Guardian — “He was crucial to the rebirth of design-led advertising.”
• www.paularden.com
• Paul Arden: “do not seek praise, seek criticism” — a few comments about the best-selling book, from Dutch blogger, Ernst Jan-Pfauth
• Former Saatchis creative chief Paul Arden dies — on Brand Republic
• Paul Arden on Wikipedia

In this Independent tribute, the following is said of Paul:

He became creative director, and was behind Saatchi’s best decade ever, with work such as the slashed purple material that signified Silk Cut cigarettes, The Independent’s “It is. Are you?” campaign, a British Airways ad that had a huge face made up of people from all over the world, and the Castlemaine XXXX campaign that claimed “Australians wouldn’t give a XXXX for anything else”.

I grew up with those ads in circulation, and remember them well. At the time, I wasn’t old enough to admire their effectiveness.

Now I am.

Paul Arden books

• Its Not How Good You Are, It’s How Good You Want To Be
• Whatever You Think, Think the Opposite
• God Explained in a Taxi Ride

As yet, I’ve only enjoyed the first one, but the others are on their way. If you’ve read any of Paul’s books, or indeed knew the man, please do share your thoughts.

Related posts on this site

• The Art of Looking Sideways (32)
• Marks of Excellence by Per Mollerup (32)
• What’s your favourite graphic design book? (32)
• Tips for buying domain names ebook (10)
• IDBI Bank: Book (1)

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.

Related posts on this site

• How 20 designers charge their clients - part 2 (14)
• Design pricing and when to talk money (41)
• Designing through a recession (35)
• How 20 designers charge their clients - part 1 (28)
• Using freelance graphic design contracts (34)
• The value of trustworthy subcontractors (81)

Following on from part one in the series, seven more top notch designers talk about how they manage their finances when dealing with clients.

Chris Spooner, of Spoon Graphics

How do you normally charge clients?
Once a range of information has been gathered about the project I estimate the costings based on the average number of hours, this is multiplied by my personal hourly rate and supplied as an overall cost.
This estimate is then sent over to the client for approval, when the client is happy to start work on the project an initial 50% deposit is collected. The project gets underway and design material is produced. Upon completion the final invoice for the remaining 50% is created, or total remaining balance if additional changes or features have been introduced during the project.

What methods of payment do you accept?
I accept Bank Transfers, PayPal, and cheques, with PayPal being the most common form of payment, particularly with overseas clients. The integrated payment system with FreshBooks invoicing app. also allows online invoice payments via PayPal, which can be handy in streamlining the process, immediately marking the invoice as paid.

Why would you recommend working this way?
Working on a 50% deposit is definitely recommended, from a designer’s point of view it acts as both protection and a deterrent against unscrupulous clients who may be tempted to skip payment. I have yet to find a client who has any issue with an up front payment, with most being more than happy and even expecting to pay up front. From the client’s point of view this also helps show how the designer values their service and work.

In terms of payment solutions, Bank Transfers are my favourite method of payment given the speed and ease, unfortunately this becomes a little tricky when overseas work is involved. This is where PayPal steps in, although the fees do tend to be a little depressing! - But I suppose these are relative when considering the benefits.

Visit Chris’ website here: Spoon Graphics.

Antonio Carusone, of AisleOne

How do you normally charge clients?
I charge mostly by an hourly rate. I try to estimate how many hours I will work on the project that way I can ask for a percentage of the charge upfront before I begin work.

How do you accept payment?
Pretty much always a cheque.

Why would you recommend working this way?
Charging hourly seems to yield a more realistic payment over say a flat rate, unless of course you work less than the total flat rate, which almost never happens. Also it’s a good idea to ask for a percentage of the payment up front just in case the client decides to bail on you. And cheques are easy to deal with and are more professional than asking for cash.

Visit Antonio’s website here: AisleOne.

Leslie Tane, of Leslie Tane Design

How do you normally charge clients?
For new clients / projects, I always charge by project (versus by the hour). I ask for either 1/2 up front and 1/2 at completion or or 1/3 up front, the second 1/3 at design approval and the final 1/3 at completion. I usually split the cost in thirds for projects over $5000, both for the client’s convenience and, since the larger projects usually span a longer amount of time until completion, so that I have a more steady stream of money coming in through the course of the project.

What methods of payment do you accept?
I accept cash, cheques and credit cards (through PayPal). The easier it is for clients to pay, the more quickly they tend to do it. I also always enclose a SASE (self-addressed stamped envelope) with my invoices for my client’s convenience.

Why would you recommend working this way?
Working this way has developed over time, and I definitely recommend it. I’ve found that charging by the project versus by the hour leaves much less room for confusion and misunderstandings. There is a clause in my contracts (which I ALWAYS use) stating that additional work not covered in the contract will be billed for separately and will not be commenced until the client gives approval. That way I don’t get stuck doing a lot of extra work that’s not billable. Charging by the hour seems counter-intuitive to me, since you make less money if you work quickly and efficiently.

I absolutely recommend getting the first payment up front. This really weeds out people who are not serious about the work. I used to start on projects as soon as I got the verbal go ahead, but I don’t do that anymore. Signing a contract and making an initial payment show that the client is committed to the project. It’s amazing how many clients disappear between the “go ahead” conversation and the submission of the contract and payment. I don’t think it’s in bad faith, exactly, but I do think that clients sometimes don’t realize how much prep work, research, and forethought go into the beginning of a project, so they don’t consider that you’re really “working” until they see some comps.

Visit Leslie’s website here: Leslie Tane Design.

Gino Orlandi, of You the Designer

How do you normally charge clients?
I usually charge a flat fee with a downpayment of half before I begin work. I also do not send final files until rest of payment has been sent.

What methods of payment do you accept?
I usually take payments via PayPal, because its fast.

Why would you recommend working this way?
PayPal allows me to being projects quicker and have access to funds faster, and the dowpayment and requiring the final payment before final files are sent ensure you do not get cheated.

Visit Gino’s website here: You the Designer.

Brian Yerkes, of Brian Joseph Studios

How do you normally charge clients?
I provide a full project estimate and present it to the client along with a proposal. I then charge the client 50% of the project total up front to be paid before the project commences. The final 50% is required once the project is completed.

My estimates are based on two factors:

1. My hourly rate
2. Competitor’s rates

Knowledge is power, and knowing what your competitors are charging is vital to ensure that you are able to place your company at the price point you want to be at, whether it is at the high end or the low end.

For smaller pieces of work, like a few updates to a website page and if it is less than $1,000, I require 100% up front.

What methods of payment do you accept?
We accept cheques and credit cards. I am slightly torn on whether or not to continue excepting credit cards as you obviously lose that 3% of each transaction. It is a good thing for your clients however, especially those with tight budgets. It allows them to pay for your services and put it on credit rather than having to have the money in available cash at that time.

For larger projects, we require that the client pays the initial 50% by cheque. This seems to ensure that the client at least has a decent amount of money at their disposal, and it gives us more of a secure feeling that we will receive the final 50% when the project has been completed.

One negative aspect of receiving cheques is that you have to wait to receive it in the post. If you have a client in another country, this process can take a few days. This is where bank transfers, and PayPal can help a lot.

Why would you recommend working this way?
I would recommend requiring 50% up front because it asks the client to put commitment into the project. At a certain point during the project, you are working over what the initial 50% will cover, so for the remainder of the project, you are then showing your commitment to the client, as you work towards the final payment. This keeps the playing field level for both of you and provides a nice basis for a working relationship.

Visit Brian’s website here: Brian Joseph Studios.

Anthony Zinni, of Positive Space Blog

How do you normally charge clients?
Normally I charge a flat fee for typical projects with 50% due upfront. However if a project is large this percentage may be as low as 25%. I will then periodically send an invoice when either milestones have been completed or a significant portion of the project has been completed.

Lately I have been working on a lot of large websites where the details are hard to cement upfront. In these cases I try to obtain as many details as possible and then provide an estimate with variance applied for the unknown areas. In this situation I take 33% - 25% of the lower end of the estimate.

About a two years back I had 3 clients that were on retainer. Ultimately I found this type of work to suck up too much of my time and kept me away from bigger more interesting projects. Even though I may have been billing only 2-3 hours a day to these clients all of the back and forth communication was sucking my billable hours. No I only consider retainer based work on a client by client basis, and when the client in very organized.

What methods of payment do you accept?
I have only ever needed to accept cheques, however bank transfer would be ok as well. I find that PayPal is only a necessity when the time line is extremely short. I choose to avoid these projects because I am more interested in projects that give me the opportunity to do my best work, so this has never been an issue.

Why would you recommend working this way?
I would recommend a pricing strategy similar to mine because the goal of it is to deliver work of the highest quality. After making sure to mitigate any potential risk, my billing processes are based on mutually beneficial relationships with clients. They allow me to deliver the highest possible quality and hopefully create some ROI for my clients.

Visit Tony’s website here: Positive Space Blog.

Lauren Krause, of Creative Curio

How do you normally charge clients?
I collect a percentage up front and at major milestones (determined in advance, like delivery of initial creative, if it’s a website then delivery of first level pages, etc). Usually something like 30% up front, 30% at milestone 1, 30% at milestone 2, 10% upon completion. At each stage, I send a separate invoice. A proposal up front will break down the cost. I calculate the total price with my own “secret” hourly rate (in other words, the client never knows the hourly) and how many hours I think each step will take me. Always remember to include extra hours for meetings (including drive time), email, phone calls and unforeseen problems — I never seem to include enough for this! I created an interactive form / worksheet for Tara a while ago for calculating an appropriate hourly rate.

What methods of payment do you accept?
I don’t have any international clients, so I always ask for a cheque. It’s not been a problem so far and I haven’t had a need for any other kind of payment.

Why would you recommend working this way?
It’s always best to have an initial down payment; it shows that the client is serious and it gives you incentive to take the project seriously, too. The down payment and milestone payments also help offset your costs while working (you’ll probably have to pay rent or buy food before the project is finished!) and you get a reward for major accomplishments during the project.

Visit Lauren’s website here: Creative Curio.

Thanks again

Thank you once more to everyone who has contributed. I’m enjoying your financial insights, and I’m sure others are benefiting from your experience.

Third and final part coming next

To round up this mini-series, the third and final part will feature answers from other successful designers, such as Jonathan Selikoff, Adelle Charles, and Graham Smith. I’ll also be mentioning some further resources, which are definitely worth a read.

For those of you not reading via RSS or email subscriptions, why not subscribe now? It’s free, and I promise not to knowingly spam you, nor give your details to anyone else, ever.

UPDATE: All parts now published.

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

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• How 20 designers charge their clients - part 3 (18)
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I asked some of my graphic design contacts three questions about their financial practices: How do you charge clients? How do you accept payment? Why do you recommend working this way?

Here follows the first of a short series, offering an excellent insight into how graphic designers manage their finances.

Jeff Fisher, of LogoMotives

How do you normally charge clients?
With smaller identity clients I usually estimate projects at a flat fee rate. With large corporate clients my fees are most often based on an hourly rate – simply because the corporate approval process usually is much more time-consuming, involves many usually unnecessary meetings, and requires so many levels of approval. Basically, design-by-committee = higher project cost. Time is a limited and valuable commodity for me, and I want to make sure I am compensated for all expended on any job.

For years my project agreement has required a 35% project estimate deposit in advance prior to beginning work on a project. At the first of the year I will be raising that advance to 50%, simply due to clients seemingly getting slower and slower to pay project balances in these economic tough times.

Years ago I offered a 5% discount to clients for paying upon delivery of the completed project. I thought it would encourage smaller businesses to pay more quickly. Instead, the larger corporations – with much larger project invoices – would jump at the opportunity to save the money. I ceased the practice about ten years ago – it was costing me too much possible profit.

In the past I have had retainer agreements with long-term clients requiring a great deal of work on a regular basis. I now have only one client for which I execute design work on a monthly basis – and I just provide them an invoice every 45-60 days, depending on the amount of work done.

What methods of payment do you accept?
I’ve never accepted credit cards or PayPal, as I might get one or two requests a year. Most of my clients pay by bank cheque. With international clients, I have used bank wire transfers and international money orders.

Why would you recommend working this way?
My methods have worked for me and my clientele for 30 years now. If a number of future clients requested other options they might be considered. I would recommend that others make use of the methods most effective in resulting in efficient and timely payments to their own business.

Visit Jeff’s website here: LogoMotives.

Steven Snell, of Vandelay Design

How do you normally charge clients?
I usually charge a flat rate based on the project, although I do have a few ongoing clients that usually get billed by the hour. Issues like charging in advance vary somewhat. If I’m working with an ongoing client then I just charge after the work is done, but with a new client I’ll typically charge part up front, but the percentage isn’t always consistent. This is something I should probably do a little better is to develop more consistency.

What methods of payment do you accept?
I either get paid by PayPal or by cheque. Clients who are friends, family or referrals usually prefer to pay by cheque, but people that find me online and live in various parts of the US or the world typically pay with PayPal. I prefer PayPal.

Why would you recommend working this way?
I recommend having some flexibility with accepting payment because clients have different preferences. I also recommend charging upfront, although as I mentioned I need more consistency in the percentage. When I first started freelancing I got into some difficult situations that could have been avoiding by charging up front. I had one situation where I didn’t get paid for several hours of work and a few other situations where it would have been helpful to get more up front to get more commitment and urgency from clients.

Visit Steven’s website here: Vandelay Design.

Alex Peterson, of Pixel Air

How do you normally charge clients?
For large web design projects I quote a total amount based on an estimate of days required to carry out the work, which is presented to the client in a full proposal. The more a project costs the more detail I usually have to provide about what all their money is paying for. I’ll then ask for a 50% deposit or £1000 if the project is high value. If it’s quite a lengthy project I’ll even ask for monthly installments to tie me over as we all know cash-flow is very important in the freelance game.

For clients that have existing websites and require maintenance work in the form of minor updates, new features and ironing out bugs I charge £40 per hour and round down to the nearest 15 minutes which suits a lot of clients rather than rounding up to the nearest hour.

I also try an offer packages like SEO, where I’ll offer a full site review and written report explaining what areas of their site the client could improve on with regards to search engine page ranking. I usually charge per hours for this – the SEO report outlines the areas of work recommended in hours.

What methods of payment do you accept?
My favoured method is BACS, but more often than not I receive cheques. I do offer paypal for convenience but this is one of the slowest methods as I then have to then transfer the money from my paypal account into my business account which takes 3 days. (Not to mention the 2% paypal commission I get charged.) I find myself chasing late payments more and more so only yesterday was have a conversation with a colleague about offering a discount for early payment or payment by BACS.

Why would you recommend working this way?
I think it’s always good to give clients as many options when it comes to charging for projects. And most importantly you have to be as clear as possible to let then know exactly what they’re paying for and in as much detail as possible so there are no nasty surprises or disagreements later. Payment options are more for my own convenience really but no harm in making your preference known to the client.

Visit Alex’s website here: Pixel Air.

Yael Miller, of The Dieline

How do you normally charge clients?
On smaller-mid sized projects I require a 50% deposit and the balance prior to release of production-ready files. On larger (longer-term) projects with several stages of deliverables, I require the same 50% deposit prior to starting any work, but break up the fee schedule based on deliverables. A retainer is usually applied to the end of the project, too.

What methods of payment do you accept?
I accept wire (bank) transfer for overseas clients, paypal when a client prefers this or is in a rush, and most often for US based clients - a cheque by mail. I usually charge a small fee to cover the wire transfer and paypal payment methods.

Why would you recommend working this way?
This works for me. It spreads the risk yet gives the client (who may be a first time client in many cases) the option of not paying everything at once to an unknown designer / studio. It’s a pretty fair process. The only added advice is that even if a client has ‘proven’ themselves to be trustworthy by having paid your deposit and even subsequent payments, you must not continue to provide work into future phases of a project before getting payments as per the signed agreement / fee schedule. I have learned this the hard way. Trust me - it’s worth swallowing your pride and overcoming any fear of confrontation and not moving forward on a project until you get payment as per your mutual agreed-upon contract. Many unexpected things can come up - even personal emergencies or as we now know - catastrophic economic upheavals - that can upend even a trustworthy and fair client’s willingness or ability to pay you.

Visit Yael’s website here: The Dieline.

Aaron Russell, of aaronrussell.co.uk

How do you normally charge clients?
I have different relationships with different clients. I have a handful of clients who I work for on an ongoing basis and for whom I charge an hourly rate. As I have a long term level of trust with these clients I just bill them at the end of every month for the hours completed.

I also do lots of project work where I provide a quote in advance of the project. Early in my freelance life I learnt the hard way about doing work without any up front payment. Having been stung once, all new clients now must pay a 50% deposit up front. As my relationship with clients develops I am a lot more flexible about this, but certainly with new clients there is a huge risk involved - even more so when you are dealing with overseas clients and you don’t understand how the legal system can protect you.

What methods of payment do you accept?
The majority of my clients are UK based, so the best way for me to accept payment is through electronic bank transfer as it’s free. However for my overseas clients I generally accept payments through PayPal and I will pay any fees associated with that. One overseas client of mine is uncomfortable using PayPal so they insist on paying via international bank transfer.

At the end of the day, I don’t really mind how the money gets to me - as long as it works for my client and gets to me in good time.

Why would you recommend working this way?
Clients come in all different shapes and sizes and there won’t be any one-size-fits-all approach. It’s part of my ethos with how I deal with clients to be as flexible and accommodating as I possibly can be, and that includes how I take payment. It’s essential to protect yourself when dealing with new clients - and I learnt that the hard way. But all my long term clients are fantastic and always pay on time without issue, and I think that can party be put down to dealing with them with flexibility and understanding.

Visit Aaron’s website here: Aaron Russell.

Jacob Cass, of Just Creative Design

How do you normally charge clients?
I always charge clients with a 50% deposit however from there it is different from each project… For a web design job I take another 25% before coding and then get the final 25% before delivery of files. For logo designs I charge 50% upfront then 50% before delivery of files.

What methods of payment do you accept?
PayPal only and the client pays for the fees - I include a 3.5% processing fee on all quotes & payments. For Australian payments I allow bank deposits.

Why would you recommend working this way?
I would recommend working this way as there is less risk for you and the client and I would recommend getting your clients to pay the PayPal fees as it sure does add up in the long run.

Visit Jacob’s website here: Just Creative Design.

Michael Martin, of Pro Blog Design

How do you normally charge clients?
I charge a flat rate, but make it clear that if the client requests more advanced features or extra revisions during the project, then there will be extra charges (So that they know the original flat rate isn’t always the end cost). I then ask for a third of that payment upfront, a third at a milestone about half way though, and the final third at the end.

What methods of payment do you accept?
I use PayPal for everything. I’ve tried working with cheques, and not only were the charges ridiculous, but the hassle was unbelievable! Seems that a bank can simply not reply to a request for a cheque to be cashed when they’re in another country (Or at the least, delay their reply for a long, long time!), so you can spend months waiting on your money. That may not happen too often, but with PayPal, it never happens. And because I ask for a second payment part of the way through the design, I don’t carry on to the final stage until I have that payment. PayPal is instant, so it means we don’t lose any time waiting around for money to be transferred.

Why would you recommend working this way?
I work mostly with bloggers and small business owners. Larger companies may be used to awkward, tedious billing processes, but I don’t want them and my clients don’t tend to either. A flat rate and payment in thirds makes things very simple, so the client (and myself!) know exactly what to expect and when to expect it. Before we even begin, they can get ready to set aside money for the second payment. I’ve never had any trouble getting paid on time this way (And I don’t go onto the next stage of the project without being paid whatever was owed to this point. Great incentive to pay on time!).

Visit Michael’s website here: Pro Blog Design.

Part two coming very soon

Part two of this series will be published towards the end of the week, and features more other skilful designers, such as Chris Spooner, Gino Orlandi, and more. Grab your free subscription to davidairey.com so you don’t miss it.

Thank you!

Thanks very much to all the designers who answered my questions. I greatly appreciate your time, and hope you enjoyed reading the answers from everyone else.

For those of you curious about the image at the top of the post, it’s a commemorative £5 bank note for the late Northern Irish footballer, George Best. There’s a saying in this country, that Northern Ireland is known for two things; the Titanic, and George Best. One was a disaster. The other one sank.

UPDATE: All parts now published.

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

Related posts on this site

• How 20 designers charge their clients - part 2 (14)
• Design pricing and when to talk money (41)
• Are freelance designers really suckers? (75)
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• 12 money-saving questions to ask before printing your promotional material (46)
• How paper can critically affect the colour of your printed product (6)

The addition of a FAQ page to your website will not only save your time, but also that of your potential clients. When you’ve been offering the same product or service for a while, you’ll become accustomed to the standard questions clients ask. Why keep typing the same responses into email after email?

Before choosing a logo designer, I recommend you ask questions. The decision shouldn’t be taken lightly, and to save you time, here I address some of the most frequently asked questions I receive.

I have added a new page to the top navigation menu of my website. It lists a number of frequently asked questions, and shows my answers beneath each. Read the full list of Q&A here: FAQs about hiring me.

Now, when I’m approached by a potential client, I can simply direct them to my FAQ page, hopefully answering their questions before even asked.

Do you have a similar page on your website? Can you recommend additional questions I should answer? If so, please do let me know.

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ARC Representation

Business: Photographers’ representative, USA
Logo designer: Marc English Design, 2004

SHN

Business: Theatrical entertainment company, USA
Logo designer: Addis Creson, 2005

Vision

Business: Journal of morals and ethics, USA
Logo designer: CDT, 2005

Blink

Business: Tile design studio, UK
Logo designer: Kino Design, 2005

Crop

Business: Image catalogues from Corbis, USA
Logo designer: Segura Inc., 2004

Science et Cité

Business: Foundation to encourage debate between society and the world of science, Switzerland
Logo designer: Atelier Bundi, 2004

Urban Strategies Inc.

Business: Planning and urban design firm, Canada
Logo designer: Hambley & Woolley, 2005

Denk Art

Business: Personal development and counselling agency, Switzerland
Logo designer: Atelier Bundi, 1998

cutcost.com

Business: Business procurement website, UK
Logo designer: Thomas Manss & Company, 2001

I remember when I was just starting out in self-employment, my first personal logo design used cropping, to signify a new dawn. You can see the idea on my archived New Dawn Graphics website, and I’ve also documented my graphic design portfolio evolution here.

Do you know of any other cropped logos?

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Dominique Berthier, Managing Director at Berthier Associates, approached me to redesign his company’s identity.

Berthier Associates Co., Ltd. was launched in 1987, specialising in the planning, design, installation and maintenance of modern workspaces. The company is based in Tokyo, but provides coverage throughout Japan, and the client list includes Air France-KLM, Ferrari, Citroen, Carrefour, Aozora Bank, Saudi Petroleum, and Vale.

Inside the company brochure (prior to the logo project):

Logo design brief

Dominique wasn’t satisfied with the old Berthier logo design (below).

I asked what the new identity should say about the company, and the following key words and terms were listed: fresh, attractive, livable, reliable, concern of the users, modern, innovative, flexible, on time, perfection, professional, total management, high quality, multinational, planned efficiency, conceptual, detailed, cost saving.

I was glad when Dominique added, “The above key words should be called to mind, not shown explicitly.”

A ’simple, yet powerful’ logo was called for, text only (known as a logotype), to be incorporated into a visit card design (visit cards are the Japanese equivalent of business cards).

The final design needed to work as a watermark, inverted, monochrome, grey and in small sizes.

I expect, on top of good taste, a flawless graphic work, with fonts carefully selected and juxtaposed … a detail — preferably genius one — should express our creativity and modernism. Overall, kindly keep in mind that our selling points are not products but solutions resulting from intellectual activities.
Dominique Berthier

Mind-mapping and logo sketches

A vital part of any design project, sketches allow for a free flow of ideas, un-restricted by computers.

Various logo options

This option (above / below) was deemed too organic, when the service offered by Berthier is more functional and precise.

The following images show a little of my exploration into customised letterforms — one aim was to find the right balance to work beside Japanese Kanji (Chinese characters used in Japanese writing).

Black and reversed logo options

It’s important to have an adaptable logo design — one that works on light or dark backgrounds.

The logotype was formed by customising Gotham — a superb type design from Hoefler & Frere-Jones) — and here I highlight the individual characters that were amended.

I like Gotham. It is an elemental, no-nonsense font, therefore a good match for any architectural firm. The work you did on this font has also the advantage to give it a more refreshing touch than the original.
Dominique Berthier

Berthier visit cards

Once the logo was finalised, we began the visit card design.

Dominique kindly sent some of his printed cards from Japan, which I took a few photos of (below). Plike was used as the card stock, which is also what my own business cards are printed on. It gives a very distinctive feel, and I was more than happy to recommend its use.

You’ll notice in the photo above how the Berthier logo wraps around onto the reverse side, and appears in a very subtle white ink.

Berthier logo online

At the time of writing, the Berthier website is almost 100% Flash-based — not ideal for search engine optimisation. A new website development is in the pipeline, which I very much look forward to seeing.

Logo design testimonial

“We had been in quest of a graphic designer for several months but the few ones I got in touch with never seemed able to meet our taste. Finally, when I discovered David through a Google search, it appeared likely that such a passionate designer would be the partner we had been looking for — which became obvious as soon as we started working together. After reviewing our requirements, David sent us a few proposals and, taking great care, created numerous modifications. We were plainly satisfied. Most importantly, each modification introduced that special detail that makes all the difference. Needless to say we are extremely satisfied with the results. Thanks David.”
Dominique Berthier, Berthier Associates Co., Ltd.

Have your say

How do you feel the new logo works on the Berthier visit cards and website? Would you have done anything differently? I value your input.

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The Art of Looking Sideways. A visual feast of a design book by the late, great, Alan Fletcher — who left this world back in 2006. It’s over 1,000 pages long, so not ideal for reading on the bus. More of an inspiration catalogue than anything, The Art of Looking Sideways can be opened at any page, with no need to thumb in order.

What is it about? Alan Fletcher offers a brief answer to this question using the jacket of the book, which must be read sideways.

It contains different spreads about different subjects, brought together from throughout the ages. In the words of Alan Fletcher, “It’s a cross between a collage and a box of goodies.”

This book attempts to open windows to glimpse views rather than dissect the pictures on wall. To look at things from unlikely angles. References to sources are occasionally provided to keep you going. The book has no thesis, is neither a whodunnit nor a how to do it, has no beginning, middle or end.

Below is a YouTube video showing a 10 minute interview with Alan, about the launch of his book. If you can’t see the video, visit YouTube here.

Richard Ben recommends it too.

If you’re looking for a logo design book, here are two I recommend:

• Logo, by Michael Evamy
• Marks of Excellence, by Per Mollerup

The Art of Looking Sideways is available to buy from Amazon.com for around £17 (GBP) or $26 (USD).

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