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How to get your first high paying client (step by step)
Hey there guys and gals of the
If you got yesterday’s email, then you know I was blown away when I discovered that my designer friend was charging more money for 2 days of work than what I got for a full time position.
I was set up to try and create that for myself.
This email is not about telling another story, but rather explaining to you EXACTLY what I did to get my first client to pay me the same.
Pay attention, because these strategies can really make a difference in your freelance business:
The Meeting
There’s a lot of psychology going into meeting a potential client for the first time, much like
Here’s what I did:
I set the meeting on my own terms: I told them I can only meet on a certain day and time for 30 minutes, and mentioned the location where I can meet them. This created the impression that I was so busy and therefore probably very good and expensive.
I asked most of the questions: I did not let the client lead the meeting and interview me. I came prepared with a set of questions and I interviewed them. This is much more professional and creates the impression that I have to PICK THEM, rather than the other way around.
I told them I will get back to them: after I got everything I needed to know about the project, I did not tell them how much it would cost right away (even though they wanted to know), I just said: “let me think about it, and see what I can do for you”. Again: the ball is in my court.
The Proposal
The client was a startup that needed help designing their app.
I realized that if I gave them a proposal for the project they just asked for, I will probably lose 90% of the design work in this project, since all the work is going to happen AFTER the app actually launches.
Here’s what I did:
I created a project
gantt : I broke down the work into weeks so that I could show them how we’re going to meet their deadlines, and what’s going to happen each week. I did this for 12 weeks - the next 3 months.I created a retainer program: I told my client that I will charge them $5,000 a month, and that we can end the relationship at any time if we are not happy together. That means that for the entire project (total of 3 months) they will pay me $15,000.
I showed them what we can do next: I created an additional list of things I thought the startup could benefit from - new branding, a marketing video and a new website, among others. I showed them how we can fit some of them in before the launch, and as for the rest, we’ll continue working
on them should the first three months prove successful.
It took the client about 2 days to think this over (and
While other designer’s just gave them a price tag for the app design, I showed them how we can work together as a team, for the long term and I was invested in helping their company succeed. I showed them more than they’ve asked for and I helped them imagine what a great brand and design will do for their business.
Here are the key takeaways:
Negotiation starts before you even discuss money. If your client desperately wants to work with you because you are a superstar designer, they will be willing to pay. Present yourself as that superstar designer (without being a
douchebag of course.)Don’t give the client a proposal for what they asked for. A lot of times clients are not even sure what problem they are actually trying to solve. Do some thinking and then propose to them the best thing for their business. And guess what - the best thing for their business is in many cases to work with a designer on a regular basis.
Make it easy to say “YES!”. Your proposal needs to address your client’s fears and also to fulfill their dreams. It’s not only about the money - it’s about what that money buys.
I hope you think about this the next time you are about to meet a potential client.
There’s no reason why you won’t be able to make them happy with a proposal like this.
Now go kick some ass!
Ran.
PS
Yesterday I
5 Tips to Manage Your Freelance Career with Evernote
Whether you’re an author, designer, filmmaker, or any other type of freelancer, Evernote is the perfect tool to help you manage projects and keep you creatively thinking about future ones.
Here’s five tips to manage your freelance career with Evernote:
1. Organize Projects
Evernote is a perfect hub to store all the materials needed for any project and manage the many moving parts, deliverables and deadlines. Create a note for each individual project including plans and documentation. By creating tags for each, you can easily find notes related to projects quickly. Add Reminders with due dates to track milestones and deliveries.
2. Share the Knowledge
Whether you work alone, or with a team, Evernote makes it easy to send important information to colleagues or clients with Shared Notebooks.
3. Research
Collect all the elements of your research into one place. With the Evernote Web Clipper, you can easily transfer the information you find from the web directly into Evernote. In addition to saving the interesting things you see online, you can now switch into a reading view, add shapes and annotations to your clips and share your clips on social networks.
4. Record
Use Evernote to record audio conversations, important interviews or feedback sessions with clients. Audio Notes let you focus on what’s happening on the conversation. Afterwards, you can reference the material easily, and share it with others.
5. Never Forget Big Ideas
Freelancers are always looking for their next big project. Evernote is a perfect repository to capture those ideas. Try to save them into Evernote and tag them as ‘story ideas’ so you can rediscover them later. It’s perfect to capture photographs, quick notes and even audio recording, on the go. You never know when your next idea may be your next big pitch.
Evernote Tools You Can Use Right Now
The ScanSnap Evernote Edition Scanner for going paperless.
Skitch for communicating ideas and pointing out what’s important.
Evernote Business Notebooks for sketching ideas and writing notes by hand.
Post-it® Note Camera for capturing inspiration and ideas.
Evernote Web Clipper for capturing research and inspiration from the web.
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What You Should Know About Taxes When You're a Freelancer
Becoming a freelancer doesn't just change the way you work; it also changes the way you manage your money. One area that requires special attention when you're self-employed is your tax filing.
This post originally appeared at MyBankTracker.
To be successful as a freelancer, you have to treat it like a business in terms of marketing yourself and how you treat clients. The same idea applies to your taxes, since you're solely responsible for making sure the IRS receives the right information. When I first started freelancing, taxes was something I only paid vague attention to since I wasn't earning that much to begin with. Over time, I learned more about how freelance taxes work and what follows are 10 rules every newbie needs to keep in mind.
You Can't Always Rely on 1099 Info
When you're working for a company as a paid employee, they're responsible for tallying up your earnings for the year. These are reported, along with the amount of taxes you've paid, on your W-2. As a freelancer, you're considered an independent contractor, which means you'll be issued a 1099 at the end of the year.
If you're relying solely on 1099s to tell you how much money you made, you're taking a big risk. It's always possible that a client could omit a payment or make a mistake in their calculations. If you file your taxes based on incorrect information, you could be in for a nasty surprise if the IRS determines that you actually owe more money. Keeping your own records is a smart move to avoid errors.
I use a basic spreadsheet to track my income throughout the year. Specifically, I make note of what the project was, which client it was for, the amount, the date it was invoiced and paid and my net earnings after any PayPal or bank fees are deducted. It's a fairly simple system, but it's proven effective. I once had a client send a 1099 that was short by several thousand dollars and thanks to my spreadsheet, I was able to pick up on the error right away.
The IRS will Know if You Don't Report Income
Underreporting or omitting income on your tax return is a major no-no and it's a mistake to think that the IRS won't catch on. For one thing, when a client mails you a 1099, they also send a copy to Uncle Sam so if you leave one out at tax time, your records aren't going to match up with what the IRS already has on file.
Even if you've got a client who's less than diligent in their record keeping, that doesn't mean you should take a gamble on not reporting your income. One year, I had two different clients who never issued a 1099, even after I contacted them about it. It added up to a nice chunk of cash and while it was tempting to just forget about reporting it, I made sure it showed up on my return.
Separate Accounts are the Way to Go
If you've been freelancing for a while and you haven't set up separate bank accounts for your business and personal spending, that should be at the top of your to-do list. For one thing, it simplifies your record keeping. You can easily see all of your income for the year and any expenses you incurred for the business without having to weed out what you spent on groceries or dinners out.
The other reason to split things up is to protect yourself in the event of an audit. If something on your taxes raises an eyebrow with the IRS, having separate bank statements for your business makes it easier to backup the information on your return.
You May Have to Pay Estimated Taxes
When you're getting a regular paycheck, your employer is responsible for making sure that the appropriate amount of tax is withheld. As a freelancer, you may have to make estimated payments four times throughout the year, beginning in January. These payments are designed to cover your projected tax liability so you don't end up with a big bill when April 15th rolls around.
Generally, you're not required to make estimated payments if you didn't owe any taxes during the previous year, you expect your total tax due for the current year to be less than $1,000 or your prior year's federal withholding is equal to 90 percent of what you think you'll owe. Be aware that if you don't make estimated payments through the year and you end up owing taxes when you file, you could get hit with a penalty for underpayment.
Your Tax Liability is Calculated Differently
Freelancers are responsible for paying income tax but you're also on the hook for self-employment tax. This is an additional tax that's designed to cover the Social Security and Medicare amounts that would normally be withheld by a traditional employer. For the 2015 tax year, the self-employment tax rate is 15.3 percent for up to $118,500 in income. The most you'll have to pay in self-employment taxes for the year is $14,694. That's on top of whatever you'll owe at your regular income tax rate.
There are Clear Rules for Deductions
The IRS has very clear rules on what you can and can't include as a deduction on your taxes. Calling the corner of the living room where your laptop is located a home office probably isn't going to cut it.
Generally, in order for something to be considered a deductible business expense it must be both reasonable and necessary. This can apply to things like a new laptop, business cards or travel expenses as long as they're incurred as a direct result of your freelance work. If you're in doubt about whether some qualifies, your best bet is to get advice from a tax expert or just leave it out altogether.
Records are a Must
Any time you plan to deduct something on your taxes, you'll need a receipt or other documentation to back it up and that's especially true when you're running a freelancing business. Collecting all your receipts in a shoebox is a way to keep your physical receipts in one place, but using a program like Quickbooks cuts down on the clutter.
The software has a lot of features that are appealing to freelancers, including the ability to sync it with your bank account, track your expenses, create customized invoices and pay your bills. The most basic version costs $13.99 a month but if you don't have the extra cash to spend, you can still keep tabs on what you're spending with a free app like Expensify.
Your Audit Risk May Increase
The words "tax audit" are enough to send a shiver down anyone's spine and while they typically only affect a small percentage of the population, freelancers may be more susceptible. Statistically, filing a Schedule C on your taxes makes you two to four times more likely to get hit with an audit. The odds of being targeted increase by how much money you make so that's something to keep in mind as you expand your freelance business.
You Have Retirement Options
Being self-employed has lots of perks but unfortunately, a retirement plan isn't one of them. Fortunately, there are several options out there that can help you build your nest egg while earning you some tax benefits.
For example, as a member of the Freelancer's Union, I'm eligible to participate in a solo 401(k), which offers higher annual contribution limits than a traditional or Roth IRA, along with the ability to deduct the money that goes in from my income. There's technically no employer match but I can chip in cash as an employer and an employee to the tune of $53,000 in 2015. Not only can I save for the future but I also score a tax break in the mean time by claiming the deduction.
Sometimes it's Worth Hiring a Pro
Filing your taxes can be complicated enough when you're dealing with W-2s and the standard deductions. When you throw in business expenses, estimated payments and self-employment tax, it can be even more challenging. If your freelance business has really taken off or you haven't been keeping the best records so far, paying a tax expert to handle things for you may be a wise investment.
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My Freelance Tools
There are a lot of resources for freelancers and believe me, I have tried them all. After many years in the business, these are the tools that have floated to the top of my freelance tools.
Save Time Billing
FreshBooks customers spend less time on paperwork, freeing up 2 days per month to focus on the work they love. What would you do with that extra time?
Grow Your Business
FreshBooks is built to support the needs of growing businesses. On average, FreshBooks customers double their revenue in the first 24 months. Woot!
Get Paid Faster
With FreshBooks, you can easily invoice clients from your desk or on the go. In fact, FreshBooks customers are paid an average of 5 days faster.
EVERNOTE BUSINESS
Where great ideas converge
- Secure, flexible sharing
- Room for projects to grow
- Access to everyone's knowledge
Powerful CRM
Manage contacts, organizations, partners, vendors and suppliers. See everything from background, email history, events, projects or opportunities. More
Project Management
Make sure you’re on top of your project at every stage – track project activity and performance against milestones. More
Powerful Integration
Integration with email, Box, Dropbox, Evernote, Google Apps, MailChimp, QuickBooks Online, QuoteRoller, Torpio, Zapier, and more. More
Macro or Micro View
Look at your business any way you want with task dashboard, activity sets, reports and more. More
Go Mobile
Supporting iPhone and Android phones and popular tablets, the Insightly mobile app has you covered. More
Social CRM
We’ll detect virtually every social media profile related to a contact’s email address. More
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THE PSYCHOLOGY OF REQUIRING A DEPOSIT
Two important things happen when you say to your client: “I’ll need 50%, up front, to start the work and the balance is due when the work is completed.”
- You are viewed as professional: Your client now sees you as a person who has payment policies in place. They respect you, and they are clear on what you expect and how it’s going to go.
- A commitment is formed: Your client is fully committed when they pay a deposit. When some one pays a deposit towards something, they are making a commitment to the project. It’s a psychological thing. Without a deposit, there is no real commitment from your client. It’s like buying plane tickets. My trip to Chicago last year was just talk until I plunked down the $500 for plane tickets. Once that money was paid, it was a reality. We were fully committed.
Don’t begin the work without a commitment from your client in the form of a deposit
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Freelance Hourly Rate Calculator
Freelance Hourly Rate Calculator
A simple calculator to help you find out how much to charge as a freelancer.
How This Calculator Works
The Freelance Hourly Rate Calculator will help you determine what you need in order to support the lifestyle that you desire.
By entering information into each field, you can calculate an hourly rate based on your costs, number of billable hours, and desired annual profit.
Section One asks about your desired lifestyle. This includes how much profit you would like to make annually, how many hours a day you will be working, and how many days a week will be on your schedule.
Section Two asks about your daily and monthly personal expenses. This includes rent/mortgage, and occasional expenses.
Section Three asks about your monthly business and logistical expenses. This includes office rental fees, software subscriptions and communication costs.
Based on this information, you will be given your minimum necessary hourly rate, and total annual salary. Try it out, and see what it will take to live the lifestyle of your dreams!
Charging for Freelance Work
Here at Motiv, we believe that your preferred lifestyle should be the number one factor in selecting your rate, and settling on your annual salary as a freelancer. This tool will assist you in finding this information. All it takes is a little planning on your part.
Take a mental snapshot of the way you want your life to look in a year, five years and ten years.
Once you have a clear idea of your coming goals, you can begin to fill in the blanks.
The calculator is going to factor all of this information in your final result. Knowing what goals you hope to reach will give you the blueprint you need to work the way you want to.
Your dream lifestyle is within reach!
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How Much Should I Charge?
A potential client wants a proposal for a design project? Awesome. Answer 5 questions, and know how much to charge to make this project profitable.
Freelance designers are victims of a haphazard pricing structure—without set industry guidelines, designers must rely on past project pricing, colleague recommendation, or generic pricing lists to conjure a “fair” price for the work. Prices are difficult to match to inflation or utility costs, and little consideration is given to the relationship between designer and client.
Aiming to simplify this ambiguous pricing model, learning platformnuSchool developed “How Much Should I Charge?,” a web tool that suggests a freelance base rate and negotiation window, dependent on a designer’s salary goals, costs, and enjoyment of the project.
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What Do I Charge for 3D Design Changes?
I am pretty relaxed with the changes, but after a point I'll bring it to my client's attention. I am more concerned about producing a product that my client loves and the relationship that might come from the project.
At the start of any project I try to ask pertinent questions with my project survey. My project survey is short, simple, and effective. Spending a few minutes at the beginning can save hours later.
After the initial 3d model is complete, I send a gray scale for approval on the modeling. Sometimes, the 3d model is the first time they really see their project, and it initiates design change, which I enjoy being part of that process.
Gray Scale 3d Models
The gray scale model serves several purposes. First, and foremost, it allows the client to see their project for the first time. Sometimes, more times than not, it's not what they were expecting. Or, it's the Architect's or Designer's client who is surprised. At the gray scale stage, I allow changes as long as they are not extensive. However, I could justify the extra charge at this stage, considering what it would cost to make these changes with a sledgehammer.
Also, at the gray scale stage, you'll be able to see the camera view and lighting scheme. The view and lighting, other than the design, is the most important part of any architectural illustration. Composition is key!
After the client approves the grayscale renderings, and any changes are made, I move on to the color (texture and materials). Like the view and lighting, textures and materials are important, too. Here, I can spend 1/3 of my allocated time building proper textures and materials. It takes a lot of work to avoid the awful tiling you see in less well-executed architectural renderings. At the beginning of any project, I request color samples. A large wall with small stone might take me a few hours to create when a painted concrete wall might take a few minutes. Having said that, a concrete wall that turns into a rock wall later in the design might occur an hourly charge. At the least, I'll make my client aware of the extra time it'll take so they might have to deal with a delayed deadline.
Render times can be extensive, so after things are colored I'll send a lower resolution color proof. The resolution is high enough to see detail, but low enough to avoid long rendering times. Once the lower resolution is approved I'll fine tune settings, for a clean render, and render the final output. If last minute changes are made, after the lower resolution rendering has been approved and the deadline is looming, I might need to use a render farm service. Render farm services come at a cost, a cost that I'll have to pass on to my client.
Final renderings can take from 2 hours per still all the way up to 6 hours per still. I am very sensitive to my client's deadlines, and I'll try to do what it takes to meet them, but last minute changes might need to be curbed. I have, and I will continue to, pull all-nighters to meet deadlines, but I try to avoid them. If the looming deadline is in jeopardy because of my doing, I will pull all-nighters.
Please, if you have other questions, feel free to comment on this thread or email me with your questions.
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4 Reasons Not to Outsource Your Architectural Renderings
Outsource Your Architectural Renderings
Many problems come to the forefront when outsourcing work to foreign countries.
First, the difficulty lies with the difference in time. Shanghai, China is thirteen hours ahead of Dallas, Texas while India is ten and a half hours ahead. As a patch, some of these companies have a representative in the United States. This does solve the problem. Their representative is only around to answer phones and does not do any of the work. Now you are involved in a game of passing information from one person to another before it is received by the person that is assigned your work.
Another issue rears its ugly head. You are probably thinking that since we are off cycle, things will be completed faster. Instead, they take additional time. One day turns into two and before you know it, you are weeks behind.
The second issue is the language barrier. There is no question that the representative speaks English. There are still difficulties to overcome when attempting to have your 3d rendering completed. Edits and changes have to be translated. As we all know, the true meaning can easily get lost in translation. Forget about the direct meaning of the words you speak. What about the delivery? Have you ever made a wise crack or sarcastic comment to a foreign customer service representative only to have them take you seriously?
Third, their culture is different. All of the pictures in the world will not change that fact that your outsource work will be completed by somebody from a completely different culture. Styles are difficult enough to keep up with when living in the Continental United States. Your architectural visualization piece may be accurately represented, but the landscaping package will have a peculiar look. Now you are relegated to driving neighborhoods and photographing exterior architectural visualization groups.
Finally, how much time do you have? It takes time to manage a team from a foreign country. I bet your time is worth more than any potential savings could possibly make. Imagine saving $200 and spending an additional three to four hours. That is imagining also; odds you are not even going to save $200 on an architectural rendering. Your 3d illustration will require a lot of time and effort to complete.
Delays caused by the difference in time zone, lack of English as a primary language and language translation for the working staff eliminate any perceived value. Add in time delays and now you’re starting to have a problem. You will have to save a lot, because, the extra management time will make the project time consuming and difficult. You will have to work hard for every nickel you save, if you save any money at all. Take any difference in fee structure and couple it with the extra management time and aggravation and you suddenly have a project that is more expensive to implement. In many cases, the time delays alone are substantial enough to create difficulty.
Fulfill your architectural visualization needs of a company that resides within the United States. You will benefit with reduced management, time and aggravation. Your architectural illustrations can be completed economically without outsourcing.
Save time, money and aggravation by having your architectural visualization project completed within the United States.
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Negotiate Your Hourly and Project-Based Pricing
If you’re an architectural illustrator, doing freelance by the hour, you are going to have to determine your pricing structure. For example, do you charge by the hour? What’s a reasonable rate to ask? Are you better off charging clients on a project basis?
Here are some tips for calculating your hourly and project rates and how to negotiate pricing with your client.
1. Determining Your Worth
Before you submit a quote for any work, ask yourself these questions:
What is the market rate for architectural illustrators in your location?
How experienced are you? Not just as an architectural illustrator, but as a home based business? Being awesome at architectural rendering is good, but being able to meet deadlines, exceed expectations and above all, being reliable, are essential qualities for an architectural illustrator.
What rate are you willing to accept?
2. Calculating an Hourly Rate
If you’ve been a salaried employee all your life, making the switch to self-employment requires a change of thinking. Some companies may be tempted to coerce you into a rate that reflects what they’d be willing to pay a salaried employee. But self-employment brings its costs and credit to you. Your rate should reflect this, as well as your expertise.
If you are used to being a salaried employee, here’s a good rule of thumb to follow when determining an hourly rate:
Divide your former salary by 52 (work weeks); then divide that number by 40 (the number of work hours in a week). Then mark it up 25-30%.
Your mark-up covers both your value and experience, but also takes care of our business costs such as networking, selling, and other administration, not forgetting your self-employment tax obligations and healthcare insurance costs.
3. Calculating Project Rates
Many clients will prefer to manage their costs and ask for you to rate your work as a fixed project fee. This can also work to your benefit if you price it right. However, it can also work against you, especially if your client is new, and the project scope creeps beyond your original expectations.
The best way to calculate project rates is to spend some time scoping out what you’ll deliver. Use your knowledge of your work methods and familiarity with the subject matter to structure your time commitment, for example:
Research: 2 Hours
Produce gray scale model: 8 Hours
Two rounds of edits: 2 Hours
Add color and lighting 8 Hours
Two rounds of edits: 2 Hours
Final render: 2 Hours
Total: 24 Hours @ $x hourly rate = $x
Remember, you don’t have to put this calculation in front of your client, but it gives you a useful framework for covering your costs and delivering within scope. Don’t forget to add a caveat to address that any work done over and above this scope of work will be charged at an hourly rate
4. Negotiating Your Rate:
Negotiation is hard to avoid and can often shed light on whether this is a client that you really want to work with for. If you are confident that your pricing reflects your value and the market rate, being haggled hard on price can get a relationship off on the wrong foot. Likewise, being locked in at a low rate can quickly devalue the relationship from your perspective.
So, when it comes to negotiating, be prepared to stand your ground but be willing to compromise. If you foresee further business here, try to be flexible.
5. What About Retainers?
If a client starts to send a lot of volume your way, retainer-based pricing can be advantageous, even if it’s at a lower hourly rate than your advertised price.
A retainer is a fee paid for a pre-determined amount of time or work (usually within a month) and is often paid up-front. A retainer agreement can deliver the benefit of predictable work and income while giving your client the reassurance of having you on “stand-by” and a clear view of monthly costs.
Many architectural illustrators charge the full retainer fee, even if they don’t work the entire hours allocated. If you value the relationship, steer clear of this; instead, roll unused hours over to next month.
Good luck!
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Pricing Yourself
Pricing yourself is one of the biggest hurdles every creative professional must overcome.
Why is money so scary? Is it because we don’t like it? Don’t be silly, of course we like money.
It’s because we don’t know our value.
What’s your income?
To come up with a price, look at what the market will pay you based on your education, experience, and skill set. If you don’t know, you can find the median salary within your industry and city at indeed.com/salary.
Here are some examples:
• Architectural Illustrator in NYC: $68,000
• Graphic Designer in Houston: $57,000
• Photographer in San Francisco: $30,000
Let’s say we’re the Architectural Illustrator in NYC making $68,000 per year.
Architectural Illustrator: $68,000 per year. He simply needs to slice off the last 3 zeros from his salary. If you could make $68,000 per year, just pitch $68 per hour as a freelancer. Again, this is a simple starting point, so you can just throw out a price off the top of your head. Always be prepared to negotiate.
As freelancers and creative professionals, we constantly have to negotiate our price. If you learn how to master the art of negotiation…it’ll help you in business and in life. Nothing is written in stone. Your “price” is not pre-determined by the Greek gods. You can pitch the high day rate first, which is $680. If they try to negotiate a lower price, now you know how low you are willing to go: $544. We’ll round up to $545. Don’t be afraid to ask for more.
“In business as in life, you don’t get what you deserve, you get what you negotiate””
Remember to have fun! Believe it or not, negotiating gets to be a lot of fun with practice.
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Fast, Good or Cheap. Pick two.
Below is The Designers Holy Triangle! When creating a project, clients must choose only two out of the three options. They can't have it all. It's a reality of life, clients must deal with it. Architectural Illustrators must deal with it.
Good + Fast = Expensive
Choose good and fast and we will postpone every other job, cancel all appointments and stay up 25-hours a day just to get your job done. But, don't expect it to be cheap.
Good + Cheap = Slow
Choose good and cheap and we will do a great job for a discounted price, but be patient until we have a free moment from paying clients.
Fast + Cheap = Inferior
Choose fast and cheap and expect an inferior job delivered on time. You truly get what you pay for, and in our opinion this is the least favorable choice of the three.
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Managing Nonpayment Situations
Once in a great while, polite correspondence between you and a client about an unpaid invoice stops being productive. You need to take a more aggressive approach to recuperate at least some of the money that you're owed. If things get really bad, I found that threatening letters from attorneys can be helpful.
Depending on the amount owed, your best option may be going to small claims court. You can get a judgment against your client if you are able to prove that you performed according to the contract, and that the client owes you money. This may or may not help you. Small claims court can pass a judgment in your favor, but that doesn't make cash magically appear. It does give you the leeway though to garnish funds from their bank account. Small claims court resolves disputes under $7,500.
Even if the client owes you $10,000, it's sometimes worth it to cut your losses and get a judgment for $7,500 through small claims court. In regular courts, attorney's fees and legal costs can mount up quickly. If what is owed to you is more than $10,000, my recommendation is to resolve the issue through binding arbitration in a city where you do business. These problems rarely happen to me because I'm really conscientious about the language of my contracts. But when they do, it takes persistence and professionalism.
There have been times when I've been persistent, and after two years, I was paid $20,000 that I was owed. But there have been a couple of times where I've had to let payments go that were under $1,000 because it just wasn't worth my time to collect them. Generally, being conscientious of your client's financial health at the beginning of a project is one of the best ways to determine whether you will be well-served to work with them. Following professional protocol and making sure you have signed contracts and approvals for your revisions should keep you out of trouble
Staying Motivated and Inspired
Successful freelancers are passionate about what they do. They commit to their clients and to the projects they work together on. To be inspired, you should be interested in where architectural rendering is going. It will help you craft a vision and a plan. Become voracious about architectural renderings. What work is being done that is transforming our industry creatively and economically? Knowing this helps you see where you can be most efficient in the work that you do. The best architectural illustrators keep great resource files, either digital or physical, to draw upon for ideas and inspiration.
One of the most insightful tools are architectural illustrator's journals and sketchbooks. They become rich documentation of a illustrator's evolution. They force you to become committed to your view of the world. I suggest joining and participating in cg rendering-related communities such as the American Society of Architectural Illustrators (ASAI). Meet fellow architectural illustrators and contribute your ideas. Become part of communities that are positive about the impact that architectural renderings can have for commerce and for social or environmental good.
Avoid the complainers. Commiserating with whiny architectural illustrators is a waste of time. Read forums such as Chaos Group, CGRamp, Evermotion, CGArena, and Computer Graphics Society; they will help you understand the greater impact that architectural renderings is capable of making. What you will learn will make your conversations with colleagues and clients much richer. It's great because you become a resource for new and innovative thinking. Understand the economy and culture of the city that you live in.
Even though we're in a global economy, most of the freelancers' work will come from large and small local sources. Stay relevant and clear. Clarity is necessary to make tough decisions faster. It's a required skill to navigate the peaks and valleys of our economy. Clarity is also required to access our intuition and our creativity. It's a necessary component for empathy, the successful Architectural Illustrator's secret weapon. As a freelancer you should ask yourself, is this work meaningful and lucrative? If the answer is yes, you have a great foundation for your work that can sustain your effort for the long term.
Enjoy yourself and take pride in the fact that you're in control of your own destiny.
Announce Your Availability
Let's say you're all set up and ready to go. You know where you'll be working, your office systems are in place, and you're ready to show your portfolio to prospective clients. Now it's time to find those prospective clients, and more importantly, to let them find you. In another video, I talked about building your professional network but cautioned at that stage not to hit them up for work. Now it's time to get a bit more aggressive. First, follow up on all past leads. Always keep track of whom you talk to, when, and why as you go. Make that a habit.
That's how you build your professional network over time. Once that's done, here are some things you can do to make yourself more accessible and attractive to clients going forward. The first is to beef up your website. In an earlier video, we talked about preparing your portfolio and, of course, that's going to become a substantial part of your site. But there are a few other elements it needs as well. First, a description of what you do. Put it front and center, preferably, on the homepage. This is where you express all the soul-searching you did earlier while sharpening your market focus.
It should define your business in terms of the skill you're selling, the industry you'll target and the type of customer you'll sell to. Other elements include information about your credentials. That is, why people should trust you with their projects. Finally, make sure it's easy to find a way to contact you and that it. You can also add other elements, and I recommend you start paying close attention to other freelancers' sites for ideas. But your website is not done yet. You'll also need a domain name and a place to host the site.
Your site will also need occasional maintenance. A website isn't just a set it and forget it kind of thing that won't take a lot of time. But you'll either need to get the necessary skills or hire someone who has them. In either case realize that benefits you get from your site are directly proportional to the attention you give to its planning, creation, and promotion. Your website is only one way to announce your availability online. You'll also want to have presences on the big social networks, such as Twitter and Facebook.
I recommend that you do a land grab on those services for a name that reflects your business, even if you're not ready to add any content yet. And don't forget to add yourself to professional directories related to your skill and location. But eventually you will start building out your social media homes. Twitter of course, is only as good as the regular post you make to it, but there is a little space for self-description. And on Facebook it's possible to display quite a lot about yourself. On both systems, as on other social sites, there are opportunities for responsible promotion.
Talking Money: General Tips
Be straightforward about money and how you charge for your services. Make sure that all the financial aspects of the project are clear in your contracts, then make sure your invoices match your Designer-Client Agreements, and any change orders you provide.
Financial consistency will facilitate, smooth sailing, and prompt payment from the client. Make sure to communicate financial information verbally, as well as in writing your agreement. There are two categories of money that you need to cover. Fees, which are the designer's compensation for their labor and expertise. Design fees are typically fixed and are only revised with the change order due to additional scope of work; and estimated expenses. These are the out-of-pocket cost for things purchased specifically for the project. All expenses are subject to the industry-standard markup of 15 to 25%.
Don't be afraid to ask for what you need. If you have issues talking about money, practice with a friend; describe the project, state your fee and then stop talking. Don't feel the need to fill the void with words, have confidence.
Here, some tips for dealing with clients regarding money.
State exactly what the price includes, define your payment terms by telling the client when you expect to be paid. For example, you might say net 30 days, meaning you require payment one month from the invoice date. Also, will you be invoicing half upfront and the balance upon completion, or will you bill progress payments at the completion of each phase. Make sure to also state the number of revisions included and then stick to that.
Another money related tip is to keep good records. You need to keep project related expense receipts in order to pass those costs on to clients. In addition, make sure to integrate the project schedule with regular cost reviews. If you review these frequently, you can communicate any problems or issues to the team and the client. Make sure you capture all time, for example, telephone conversation, travel time, admin, etcetera, get all required client paperwork and financial information in order upfront.
If it's required by the client, get a purchase order number and/or a vendor ID number, then put these numbers on all your invoices. Also, introduce yourself to the client contact person in Accounts Payable. Make sure to have anything related to money signed by the client. For legal reasons and also to prompt a detailed conversation about money before the work gets underway, then stay in communication throughout the process.
Signing Nondisclosure Agreements (NDA) and Work-for-hire Agreements
Whether working directly with the client or through an agency, a freelancer architectural illustrator may be asked to sign one or both. It's also possible that a client or agency won't require either.
Let's start with an NDA; a Non-Disclosure Agreement. It's common that an agency will ask you to sign an NDA. Often, it means that their client has asked them to sign an NDA and that everyone working on the project understands that the work is confidential.
NDAs is written by attorneys, so that language is dense and confusing. I'll explain the basic gist of an NDA. The document states the date and place of the agreement along with the party's legal names. It ensures that the project is confidential and restricts any disclosure about any part of the project for a particular amount of time. Sounds simple, right? Yes, and no.
You may be asked to sign a Work for Hire agreement. It states that you will not own any of the work reproduced, even work that wasn't used. Work for Hire agreements means that, for whatever fee, you retain no copyright to the work you have done. If you are employed or an architectural illustration freelancer, the law states that, by default, you're working in a Work for Hire agreement. This ensures that when an agency sells your work to a client that it's theirs to sell. If you're working directly with the client, your agreement can be different.
Work for Hire agreements are very restrictive and should not be entered into lightly. As a freelance architectural illustrator, you need to be aware of who owns your work and when copyright transfers. It's common that copyright transfers from the designer to the client or agency when the designer is paid. Architectural Illustrators have contracts that sell limited rights to these images as opposed to the image itself. If you are acting as an architectural Illustrators, you should have two separate agreements stipulating what the agency owns or does not own, at what point, and for how long.
My final recommendation is that if you're in any way confused about a document given to you to sign, ask the agency or client to go through it with you point by point, just to make sure you're absolutely clear what you're agreeing to. Under no circumstances should you sign a document if you're not clear about what specific actions you need to take.
Finding and Keeping Good Clients
A recent freelance industry report says that 30% of business comes from referrals and word of mouth, and less than 3% from social media. It's an important statistic to consider where to burn your calories to pursue more business. Recently, I tracked my business where it has come from over the last years.
I created a client family tree. More than 75% of my business over the last 20 years has come from an ongoing relationship with one smart, well-connected marketing director. She takes me with her when she makes career moves, and I usually retain business from an organization she's moved on from.
She's referred me to colleagues in various industries. I've been very, very lucky, but there are some things that I've paid close attention to that maybe other architectural illustrators might not have.
In the beginning of a relationship, whether personal or business, I often get clues as to exactly how it's going to go. It sounds a little crazy, but within the first 20 minutes of an initial meeting with a new customer, your intuition will tell you exactly what you need to know. For example, if an agency is disorganized, rushed, and indecisive, you can be assured that the project will be run that way too.
If a customer appreciates what you do, treats you with respect, and communicates with you in a calm, clears and inspirational way, they're probably going to be great to work with. So take off your emotional hat and put on one of objectivity and observation.
- Do you trust this person?
- Does what they do really interest you?
- Do you respect them?
- Are they hiring you for the reason you want to be hired?
The bottom line is doing good work for smart, well-connected clients is the best business development strategy for a freelancer. Staying away from task-oriented, anonymous, online projects will ensure the potential for more continuous meaningful business relationships.
The goal is to have clients describe you to others as a pleasure to work with.
Avoiding Freelancing Scams
Sad to say, some freelancing opportunities, won't be opportunities at all. They'll be scams designed to steal your time, money, or reputation. I can't give a canonical list of scams floating around out there because the criminal nature is to develop new techniques as people get wise to the old ones. But here are some warning signs the prospective job just isn't worth taking. The first kind of scam is one that makes the rounds a lot.
You get offered a job but with a non-specific amount of pay. For example, let's say they offer you a share of profits. Well, how will you know how much their profits are? Are their books publically audited? Probably not, which means they could offer you any amount or nothing at all, and you'd have no real recourse.
Tied to that one, is the offer to pay you in something other than money, most often in the company's products. Now that's great if you really want their products and they're being offered to you at a higher rate than cash would otherwise buy. But here again, the control is mostly in their hands. What if they stop offering the product you want, what if they go out of business, do the products even exist yet, what's mechanism for delivering them to you?
A variation on this is the promise that you'll get exposure or a great portfolio piece in exchange for your work. This isn't a scam per se. It's just that in my experience, jobs that pay well make much better portfolio pieces. Having said that, you might actually decide to take such work when you're first building your portfolio. Just be sure to appropriately value what they're offering. Now personally, I can't remember ever finding the value of such exposure to be high enough for the work required.
The third warning sign arises if your client asks you to do something illegal or immoral. As an architectural illustrator, a client will sometimes try to accompany my work with videos or graphics that they snagged online, and that they don't have the rights to. They've already shown they're dishonest or immoral. What makes you think they'll be honest and moral with you?
Another warning sign crops up when you get an offer out of the blue, but you can't really determine the name, location, or contact information for the source. The issue here is one of enforcement. If they mistreat you, you'll have no way to go after them.
Finally, we get to the classic work-at- home scam, where you're required to put in some amount of money to make the deal happen. Let's get something straight. You're going to have business expenses as a freelancer. But none of that money, and I mean zero dollars and zero pennies should go towards someone who is allegedly offering you work or to any other source that you don't choose. This can be tricky. Maybe the client requires that you get some sort of special kind of equipment, or certification but that it's only available from one source. Check it out. There's a chance that, the source is connected to your so-called employer and that you'll never see a penny of work in return.
It is possible that you'll take a job that has one or more of these warning signs, and it will turn out just fine. For example, start-ups sometimes offer equity or stock instead of payment. That stock sometimes ends up being valuable. But this list is based on the likelihood that something is a scam.
These warnings aren't absolutes. When you're deciding which jobs to take, you'll be playing the percentages. Just realize that jobs that have these warning signs carry a higher risk than those that don't.
Preparing your Portfolio
Every time you talk to prospective clients, they'll want to know why they should trust you.
Remember, it's not just money. If someone does a bad job for them, they might not have the time to get it done right. So, the stakes are high. Your past work is one of the strongest ways to show that you're right for the job. Collecting it in a portfolio is one way to convey this information.
Once you have all the pieces in one place, you need a way to display them. Nowadays, the usual place is a portfolio website. If your potential clients live more in the off-line world, or if you expect to meet a lot of them face to face, you might also want to have a printed version of your portfolio. I've assumed that you have work to show.
What if you're trying to freelance in an area where you don't yet? Frankly, I'd recommend you reconsider your choice because the lack of a portfolio is really going to hamper your efforts. One other option isto plan to start with forms of marketing that don't require a portfolio. For example, advertising.
Another is to do some jobs for low pay or even for no pay to build up your portfolio. This is a good opportunity to do favors for family, friends and non-profit organizations that you support.
Finally, it's a good idea to create two other pieces to complement your portfolio. The first is a brief text that summarizes your experience, maybe a hundred words or so. You'll use that in e-mails, applications and marketing materials. Eventually, you'll have several versions of it for various purposes. I personally keep a plain text file on my computer so that they're always at hand. You'll also want to create a resume. It'd be nice if others could intuitively sense that you're right for a job, but they can't. They need to be shown and nothing convinces as well as a clearly presented record of success.
That's what a well- prepared portfolio does for you.