I'll keep this short.
Things are weird right now, but you have two options:
Keep playing or quit.
You might fail if you keep playing, but I guarantee you will fail if you quit.
Get in the game.
In my last article, I touched on the fact that I don't bill by the hour. In summary, hourly billing is a loose-cannon way of determining the value services bring to the table and one that favors things taking longer rather than being done efficiently and strategically.
It begs the question though, how do you structure payment for such services? The way I see it, there are three options:
Pay for design services up front
This is the most common method of paying for design services. It's pretty straightforward, client and designer decide on a price based on the value created through the services, client pays for the work, and the designer does the work. Usually the payment is made upfront or on a specific cadence like 50% to start and 50% after 30 days or before deliverables are transferred.
Lease the design work
It's no secret that good designers charge a pretty penny for their work. At least, they will charge a pretty penny to part ways with ownership of it. This is where leasing becomes a viable option to get quality work, but without the initial upfront cost of buying the rights to the work out-right. For example, let's say an identity package of a new logo and style guide will cost $6,725. Rather than paying for the entire thing upfront, the client could pay 8% of the total cost per month to get up and running. If the client decides they want full ownership of the work, there is a clause within the contract stating how much the buy-out fee will be in addition to the lease payment.
If the client is willing to share profits based on the impact the design work has had on the business, then a third option becomes available. Similar to trading equity, profit sharing or performance-based compensation puts everyone's time and resources on the line. The designer and client establish the key metrics they are looking to improve and then share profits based on the value generated from the change.
When it comes to pricing design services, the key is to be as creative and nimble with pricing as would be expected in the actual work. The next time you speak with a designer and you want to work with them, but can't afford to pay their fees, see if they are open to these alternative pricing structures.
I was shopping at Smart and Final yesterday. While standing in line, I looked down at the placements stickers for social distancing. They said two things: "please stay six feet apart," and "we know you have many options, thank you for choosing us."
Next, when I was in line, the cashiers had done their job so well that they had eliminated a lengthy line entirely. Their manager came out and congratulated his team.
What's the big deal?
For one, this store took things that seem small and superfluous and made them something special. This could also be done with the welcome letter for a newsletter subscription, or cards sent to say thank you to clients, or phraseology around being open or closed. The point is that they put an authentic spin on it to make it memorable and relevant to this brand, when they could have just passed over it without much care.
The devil and the angels are in the details.
You choose who it is.