Creative Biz Note #19

Show Me the Money

If you're like me, one aspect of freelancing that usually feels odd is talking about money with clients. And if there's a lack of communication when a budget is concerned it can lead to a nightmare. I've learned my lesson many times. Actually, I've discovered that being upfront about money builds a successful relationship with our clients. 

Usually, a client has a budgeted illustration cost in mind. We usually try to take the initiative and bring the issue of money to the forefront. In the past, I would get sweaty palms and there was a nervous tone in my voice--I was even aware of it!! But after awhile I realized that it's all business. Getting squeamish over "money talk" is not worth it. Our numbers either work or they don't! The goal is about coming to an agreement--quite simple. 

Quote vs. Estimate--There is one big difference between a quote and an estimate. An estimate is a rough guess on how much the project will cost. A quotation is exactly how much the project will cost. Be careful with these words. Quoting over the phone is not good practice. Always get back to the client within an hour or two with an emailed written estimate. Think over all the possibilities. And make sure the form states that it is an "ESTIMATE".  

There's no bigger waste of time than having a first time conversation over the phone with a prospect and not determining whether their budget falls within the same financial realm as yours. Try mentioning a price range and listen to their reaction. Also, I've found that the back-and-forth of email can be a real time waster. Cutting to the chase and getting a glimpse as to whether the prospect is worth our time is now common practice for us.

If their budget does work, then push to get some actual numbers from them. You won't always get the response you want but it's worth an attempt. Try giving them numbers they can choose from--"Are we talking $2,000 or in the range of $1000?" This is a great way to get the"money talk" going. 

A Quick Story:
There are so many stories to tell on this subject. LOL  We always give equal interest to every prospect that comes along because you never know if a small project will become big. I've realized throughout the years that there is usually a way to make every budget work. I remember when I was working for a large ad agency and one of the owners had a friend doing a start-up and they needed a logo developed--as a moonlighting gig. Their budget was $700--way low. Not one full-time art director would take on the project because of pricing and because it was for a real estate company--uggh. Somehow the project landed in front of me and I said,"yes". I love a challenge. BUT because of the low pricing I would only develop three logos and the client would have to make a choice with no alterations. It would be presented as an end product. The client ended-up loving all three. With some simple negotiating I made everyone happy and I got a fantastic piece for my portfolio. 

The idea:
Try to get an idea of the client's budget right away. Always do an estimate. Talking "money" is one of the most important aspects of illustrating--find harmony with it!  ; ) Read as much as you can on the topic of negotiation to improve your skills.


Books to Read:   The Cowards Guide to Conflict   Getting to Yes: Negotiating Agreement Without Giving In

Next Creative Biz Note #20---The Three Options: Publications, Agencies and Organizations

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