Business Management
Graphic designers contract
Standard 27) Describe the components of a basic contract document for design work by analyzing an example contract. Drawing on textbooks, news articles and other resources, explain the benefits of utilizing written contracts as opposed to oral agreements. (TN Reading 2, 3, 4, 6; TN Writing 4, 5,
8, 9)
What I want you to know:
The basic components of a design contract
The meaning of the term “work for hire”
Who owns the artwork created under a work for hire agreement
Assignment:
Read the sections below, and answer questions 1-6
Work: The Designer agrees to produce project materials (the “Work”) at the request of the client for fees agrees upon in advance and delivery of the Work by an agreed-upon deadline. Designer agrees that he will be the sole author of the Work, which will be original work and free of plagiarism. Designer will cooperate with Client in editing and otherwise reviewing the Work prior to completion and launch.
1. Do you think there should be a limit placed on the number of times the designer should be required to edit, review and revise the work?
2. If you said yes, what do you think the limit should be?
Confidentiality: Designer acknowledges that he may receive or have access to information which relates to the Client’s past, present, or future products, vendor lists, creative works, marketing strategies, pending projects/proposals, and other proprietary information. Designer agrees to protect the confidentiality of the Client’s proprietary information and all physical forms thereof, whether disclosed to Designer before this Agreement is signed or afterward. Unless strict confidentiality is requested by Client in advance of the establishment of this contract, Designer can display materials and final work created for Client on the Designer’s website (http://[yourwebsite]).
Compensation: Client agrees to pay Designer 50% of the total project cost before any services are provided, and the remaining 50% is to be paid before any workable files are delivered. If the parameters of the Work change, or if it involves more time than estimated, Designer will inform Client and they can renegotiate the Work’s cost. Designer is responsible for the payment of all federal, state, and/or local taxes with respect to the services he performs for the client as an independent contractor. The Client will not treat Designer as an employee for any purpose.
Client Approval: Upon acceptance of the Work, Client accepts responsibility for any further processes in which this work is used (e.g. film outpost, printing, etc.) Designer is not responsible for errors occurring in this work or projects related to this work after acceptance of the Work by the Client.
3. How could you legally prove that your client has accepted the work?
Cancellation: Both parties understand that Client or Designer may terminate the service at any time if, for any reason, the relationship is deemed unsatisfactory by either party. Upon written or verbal cancellation, Client is responsible for payment for all expenses incurred and any work done towards the completion of the project based on the percentage of the project completed that is determined by Designer. Should Client cancel the project following its completion, Client is responsible for full payment as per the agreed upon estimate plus all expenses incurred. In the event of cancellation, Designer retains ownership of all copyrights and original work created.
Acceptance of Terms: Client promises to pay for the services rendered by Designer for the Work as agreed upon. By signing below, Client agrees they have read, understood, and are considered legally bonded to these terms.
Client signature & date:
4. Does this agreement specify who owns the copyright?
Write 5 and 6 on your response sheet
5. Research and critical thinking: What is the meaning of "work for hire"?
6. Who owns the copyright to a "work for hire" design?
End of assignment
Standard 26) Explore how design professionals and companies calculate profit. Relate the profitability of a business to pricing and cost. For example, create a list of expenses incurred by a freelance designer and calculate the price and amount of work that must be accomplished in order to earn profit. (TN Reading 2, 3, 4, 6, 9; TN Writing 4, 9; TN Math N-Q)
What I want you to know
The costs and expenses a freelance designer may incur.
How design professionals calculate profit
Assignment
Complete the Design for Survival Pricing Worksheet
http://www.richardbaird.co.uk/2011/10/04/the-price-of-good-design/
The Designer’s Guide To
Pricing
A guide to help new designers manage money and price their services. Advice provided by international industry professionals, edited and curated by Richard Baird.
Tailor your prices to specific projects
Never mention pricing in your first contact with a potential client without knowing the specific problem, target audience, etc. Not only because it’s unprofessional but also because you need to establish a valuable dialogue with a prospect in order to become a client. A personalised proposal will set the right tone and show that you are interested in both a well visualised and strategic resolution and not just about making money.
Clients are curious about what you can offer them and it’s your job to keep this curiosity and enthusiasm alive. Price should always be considered second to providing the right solution to their problem, any client who makes this their primary focus is unlikely to be interested in a creative and engaging result.
Provided by @gertvanduinen
Contracts
It is very important to have a contract with a fixed price, whether that be a total cost or a per hour rate (with an upper limit). This prevents any confusion down the track as both you and your client have agreed on price. If your client wishes you to take on additional work then I would recommend agreeing to a secondary contract instead of renegotiating the original price.
Provided by @joshuanhibbert
Be confident
Stand behind what you charge and don’t be afraid that you’re too expensive, there are always other designers who will work for less. Don’t get into an aggressive negotiation situation, stand firm, it’s better to have a single well payed job that two low-paid.
When your rates are too low you will often attract a certain kind of client, these are often out for a quick and cheap design and have little appreciation for your craft. Make sure your price is reflective of the value you can add to a business and go that extra mile, make sure people remember a positive, inclusive and collaborative experience not the price.
Provided by @hugodenouden
Raising your fees
As you gain confidence and experience there will be a point where you will feel that you can justify raising your prices. This can often be a difficult and uncomfortable process, will your clients be happy to be charged more or will they leave? From my experience if you are realistic about your abilities a client will gladly pay a bit more, they are business people themselves and understand you have to pay for good people but don’t get greedy or arrogant.
How and when to raise your prices
Keep it consistent, I review my fees each year and provide my clients with a formal e-mail outlining the new charges in a polite and honest way. Don’t increase your price immediately and out of the blue, give the client a month or implement the increase at the start of a new year.
Provided by @richbaird
Pricing
This is one of the hardest things to manage when starting as a freelance designer. It can be difficult to gauge the price of your abilities and get a good idea of the market. A number of designers have been very kind and provided their basic logo design fee so it’s possible to get a rough idea of skill vs price, click on the images to view their portfolios.
@RokasSutkaitis – View Portfolio
$350 – 400 – Two concepts and three revisions.
@d0wsoncreative – View Portfolio
$1,670 – Three to five concepts, $335 – $470 for each additional concept.
@gertvanduinen – View Portfolio
Unit fees
Charging by the hour or by the day is best suited to projects that you feel may go on for an extended period of time and likely to include lots of revisions. Make sure your client is continually made aware of the costs incurred on a weekly basis and provide a breakdown of the hours you have spent for each day on the invoice. This will avoid any uncomfortable surprises at the end of the project.
Project fees
Project fees are best suited to designers who can confidently gauge how long it will take to complete a job and provides a greater opportunity to increase income through efficient time management. Make sure you outline what will be include as part of the price and any costs that will be incurred beyond the project proposal.
Provided by @designsurvival
Never work for free
As a rule of thumb you should never work for free. If you know the client really well then the odd small revision may help strengthen your business relationship but know when to draw the line. Charging for these revisions can often help the client focus on what they really need doing rather than constantly trying new things at your expense.
In the end it’s a case of being accommodating but ensuring you keep your mind on the business aspect of freelancing.
Provided by @heinrichdsf
A detailed brief leads to accurate pricing
Make sure you get a detailed brief from the client, finding out target market, what they want to get out of the proposed work to be done etc. This way, you won’t be underestimating the design price for something.
The small things count
Always think about how long it is going to take you to do the design. If you know the client well, you might know that they’re the type of client that requests a lot of revisions to be made. Make sure you take into account the time you would spend on the numerous revisions, in order to include it in the final proposed price.
Hourly Rate or Fixed Price
There’s two ways of pricing a job. For example, you would always know how much you would want to charge for an hour. If the job will take you an hour to do, charge your normal hourly rate, If you’re not sure how long it’s going to take, and can only give a rough estimate, do it on a timesheet basis, at your hourly rate. If you know it’s going to be a big project, work out how many days/weeks it would take then to complete it, including revisions, then work out the price again, based on your hourly rate.
Provided by @ellishollie
Know you’re worth
If you’re serious about design, and serious about making it your career, then be serious about what you’re worth. A $300 identity project might seem tempting if you’re going through a freelance drought, but stop and think for a moment to be sure it’s the right move for you. If you know a project is worth more than you’re about to charge, you’re not only cheating your skills and your talent, but you’re also cheating the design community. As long as folks out there know they can hire someone to spend 30 hours on a project [including redesigns] for $300 – which comes out to a measly $12/hour – they will rarely give the $1500 quotes a look. Be smart and stick to your guns.
Provided by @alanariley
Recommend reading
The Dark Art of Pricing by Jessica Hische
Why I Charge More – An open letter to clients by Blair Enns
Provided by @gertvanduinen
Standard 27) Describe the components of a basic contract document for design work by analyzing an example contract. Drawing on textbooks, news articles and other resources, explain the benefits of utilizing written contracts as opposed to oral agreements. (TN Reading 2, 3, 4, 6; TN Writing 4, 5,
8, 9)
What I want you to know:
The basic components of a design contract
The meaning of the term “work for hire”
Who owns the artwork created under a work for hire agreement
Freelance Graphic Design Contract [SAMPLE]
Client: Name & Email
Project: Project Name & Type
Date: 00/00/00
Designer: Your Name & Email
This agreement (the “Agreement”) is made on “Date” by and between the “Client” and the “Designer.” In consideration of the mutual agreement made herein, both parties agree as follows:
