Just Creative Design

Great Business Tips for New Designers

This is a guest article written by Nicole White*. Image courtesy of Shutterstock.

Stepping out of college and into the world of design can be a big change for many with little real-world experience in the field. Learning how to deal with clients, manage projects, and find work can be challenge for the rookie designer, especially with freelance work. These basic business tips can help prevent major disasters and set the stage for future success in the field.

1. Always get a contract.

It isn’t uncommon to get hooked up with a friend of a family member and in these cases you may not feel it’s necessary to ask for or get a contract, after all, you know the person. This is where trouble can start. Always lay out what the expectations for the client are and your fees ahead of time so there can be no question later as to what the agreement was.

• 12 points to incude in your design contract
  
• Graphic design contracts & agreement forms
• How to write a killer contract
• How much to charge for design work?

2. Ask for a down payment.

Inevitably you will have clients who are reluctant to shell out for the work that you’ve done for them, offering a myriad of excuses. Getting half the money up front will ensure you’re not left penniless while trying to get what you’re owed and that the client won’t leave you hanging partway through. 25-50% is a fair amount.

3. Limit revisions.

As with any creative project, there are a limitless amount of revisions that can be made. Some clients will be very picky and involved in the process and want to see numerous revisions of an idea. While there’s not necessarily anything wrong with wanting the best, make sure you’re getting compensated for it by placing a limit on the number of revisions or charging if they go over a certain number.

4. Get organized.

It will be incredibly difficult to manage one project, let alone multiples, and your life to boot if you don’t get organized now. Set up places to file important paper, organize your email inbox and make sure you’ve got plenty of room to store all your client work.

• 35 Online Tools That Make Your Freelance Career Easier

5. Work your network.

Finding work can sometimes be the hardest part of working freelance. When you’re first starting out, try using your personal connections to find yourself some work. Ask family, friends, classmates and associates if they know anyone who could benefit from your services. Most of the time, this will turn up at least one lead and get you started working.

There is no guarantee of entrepreneurial success in any venture, but taking steps to plan for the future and better manage work today certainly won’t hurt even the most experienced designers and can be a great way to start a career for newbies. Start to market yourself.

Recommended Reading

• One Year Out Of Design School: 10 Valuable Lessons
• 16 Designer Job Descriptions
• 10 Things They Don’t Tell You In Design School
• Advice For Design Students
• How To Get Your First Job
• How Much Does A Graphic Designer Earn?
• 15 Signs You’re A Bad Graphic Designer
• Top 10 Design Questions from Students
• A First Hand Guide On How To Start Freelancing

Have you got any other great business tips to share?

*Nicole White can be found on her website Web Design Schools Guide where she writes about online web design degrees.

Pay The Creator

Image courtesy of Shutterstock

“Those who stand for nothing fall for anything.”
~ Alexander Hamilton

Getting paid the fair amount is something that a lot of creatives have to stand up for and in some cases, fight for. Doug Cloud, a friendly designer who I had the pleasure of meeting back in early 2008  (& later interviewed) recently left this comment on the article Why logo design does not cost $5.00?:

I always get emails from people wanting design work from me either for free or next to nothing. This is quite an insult, since I am a professional designer. Personally I think a lot of people really don’t understand what a graphic designer does, because what we produce isn’t a tangible object you can hold in your hands (like say groceries or a new HDTV) and so it’s easy to assume that it doesn’t have much value or that it’s easy to do. My hope is that people will read Jacob’s article and come away with a better understanding of the designing process and the people who make such designs.

A few hours later Eagle Imagery replied:

Doug C. Next time you get one of those, send them this.

The moral? Pay the creator what they deserve.

Update 23/08/09:

The Vendor Client Relationship Video (Thanks to Billie for the link.)

PayPal Fees | Should You Charge Your Clients?

To charge or not to charge, that is the question.

When accepting payments via PayPal, PayPal takes a percentage of what ever you are paid and this fee usually ranges between 1.9% to 3.9% - think of this fee based over a year - if you are earning $50,000 a year, you are losing $1750 worth of your hard earned cash. Times that by 5 years… well you get the point.

I have listed some reasons for both sides below.

David Airey also posted an article on how designers charge their clients which outlines various alternative methods of payment along with further discussions on the subject.

Reasons To Charge Your Clients

• More profit - The most obvious reason to charge your clients PayPal fees would be to keep your cash rather than PayPal take it which in turn, improves your cash flow, profits, etc.
• It is an acceptable practice - many small businesses charge a fee to use their credit card services and for a good reason… it really does add up. As freelancers, we generally work as sole traders so we also classify as small business, thus making it acceptable.
• It is a small price to pay for a client - 1.9% - 3.5% is a very low fee to charge for a client in comparison to your earnings.

Reasons NOT To Charge Your Clients

• Higher fees for the client - Your services become more expensive which may lead to your clients going elsewhere. Generally, these small fees are not a huge problem unless you have large or repetitive projects.
• Poor cash flow - When clients pay by cheque it can take longer to receive your payment which decreases cash flow. You also have to take into consideration the 3-4 days it takes to withdraw your money from PayPal.
• Loss of clients - If you have recurring clients, the fees can add up over time and they may go elsewhere to find someone who does not charge PayPal fees.
• PayPal is risky - There has been instances where the client has claimed a dispute with PayPal saying that they never received what they paid for. This means your money can get held up for weeks on end.
• Can be seen as unprofessional - Some clients may consider charging fees unprofessional and possibly unethical.
• Against PayPal Terms Of Service - Someone mentioned that charging your clients PayPal fees is against PayPal’s terms of service however I have not seen any confirmation of this. Confirmed - it is against PayPal’s TOS.

Poll

I also ran a poll on Twitter (follow me) to see how many people charge clients PayPal fees and how many do not. Cast your vote to see the current results.

Update: Steven also did a great write up about PayPal fees here.

Comment Below

1. What is your opinion?
2. Have you got any more reasons for or against charging clients PayPal fees?
3. Do you show that you have incorporated the PayPal fee into your price or not?