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'm a huge Jordan Peterson fan. I've read his books, I listen to his podcast, I watch his YouTube videos, and I seek him out on other people's podcasts as well.
I've even caught myself repeating some of his phrases to others. Things like "set your house in order before you judge the world," "hierarchies are built on conscientiousness and competence," "tell the truth or, at least, don't lie," and "walk the line between chaos and order, that's where you find fulfillment."
You might think it's impressive on my part (and if you do, stop it, you're making me blush), but it's impossible to forget those ideas if you listen to the guy more than once. Truth be told, he doesn't deviate a whole lot from a few central tenants, which makes them easy to recognize and remember. It's these central ideas that become the pillars for all his other ideas to stand upon. Even when he does deviate, you can link it back to his core beliefs.
What does this have to do with branding?
Beat the hell out of one idea and let your brand become known for it, that's how you gain brand authority.
If you aren't getting tired of touting your idea about how the world should be different, then you aren't sending your message enough.
An anecdotal example: I've tried to become synonymous with the word "rebel," I've been using it for over a year. It wasn't until a couple months ago that I started having others say the word to me. Point being, it took more than a year of getting that idea out there to have others recognize it and associate me with it.
Say your idea. After that, say it again. Finally, say it again to my face. Eventually, I'll remember it.
Gonna cut straight to the chase on this one: without a potent, different name for your startup, your logo will fall short of its true potential. I'll give you an example using two, famous companies.
Apple. Would the iconic, minimalist icon representing an apple ever exist had it not been for the name? No. That name gave them an advantage over their competitors trapped in acronym oblivion (IBM, HP) and inspired the mark.
Nike. Before the swoosh ever existed, Nike was extremely close to calling itself Blue Ribbon Sports. Compare that to Nike. Blue Ribbon sounds like the name for a freaking mom and pop bakery. There is no way something like the swoosh would have held its weight had it not been for the name it represents.
It seems prevalent that startup founders don't seem to consider the gravitas the name of their company holds. Think about it, when people say "word of mouth" advertising, what do they mean? They mean people repeat the name of the company they are referring to. Can you imagine how many times the name of a company (large or small) is used within six months? Thousands. Maybe even tens of thousands.
It's in your URL, it's on your social pages, it's on name tags, it's on email addresses, it's on all your marketing collateral, and it's on your tongue.
Get your name right before you jump into a logo or risk doing the whole thing over when you finally realize your name sucks. Your designer will thank you.
Here is my favorite book on naming:
Don't Call it That by Eli Altman.