[andi*pandi]

I work full time and don't do a lot of freelancing, but I just agreed to do some contract work for an old boss. We met and he basically has his "design" set, just a lot of text pouring and photoshop image cleaning. The photoshop is the meat of the project, a bunch of flyers and fact sheets. It is in no way a design job, no concept, he has sketched everything out on paper. Literally, there are pencil sketch blueprints. Which of course he will change 5 times, but at an hourly rate I don't care as much as if I were inhouse and it was my own deadline. Sadly, he began the project on a PC that his son set up, but at least they're using InDesign and the son doesn't seem too incompetent.

I should have done a bit more research before setting a rate, but I know that he is a millionaire skinflint and would not go for the Art Director Approved Rate™.

What I do want to make sure I got concrete was some terms of payment, when he should pay me, when I will do work, etc.

I told him I would bill at 10 hours or 2 months, whichever came first (this learned after my last client nickel and dimed me for 1/2 hour here, 1/2 hour there, so that it never seemed worth it to send a bill for 1/2 hour, when it takes 1/4 hour to set up an invoice). Does that seem reasonable?

How to handle items such as supplies? Since I'll be using his computer for the most part (taking the photoshop home to my Mac) at least I won't have to do the color outputting... but there will be CDs burned, faxes (I have a fax).

Can I bill for my travel time to his office? Gas is getting darned expensive.

I am unsure how to handle an initial payment. I like the security of it, but not sure how that would work. Is it like a retainer? If he balks, should that be an indicator that his new business is cash tight and I should run run run?

Anyone have any links to sample invoices?

And since I just spent time searching here and didn't find it, here's the link to the AIGA contract article and PDF. A bit bulky and outdated (photostats!) but a good base. Anyone have any newer links?

[himself]

You explained earlier that you would be paid at an hourly rate... does this mean you will charge him as the project goes along?

Typically, I try to estimate as best as I can how much time it would take for me to complete a job (in hours), and multiply that by my hourly to set my fee. An urgent turnaround project goes at my "rush work" rate, which is a bit higher. I'll ask for a fraction of the fee upfront, usually one-half, one-third or one-quarter, depending on how bit the project is and how long it will go on. This pretty much makes sure my time is covered in starting the project, and it serves to ensure each side is committed as well. The rest of the fee is collected at intervals, or when the project reaches pre-determined milestones, with the final fraction of the fee collected once the project is completed.

I invoke additional hourly charges when the client asks for revisions beyond a certain allowance (for me, it's four revisions before I charge for changes by the hour). This discourages the nickel-and-diming like your previous client subjected you to. Also, depending on the project and client, my minimum is 2-4 hours. So i the case where your previous client nickel-and-dimed you for a half hours work, I would have rounded that up to a full hour charge each time.

As for out-of-pocket expenses (travel, cd's printing and other reimbursables), you could either try to to estimate that cost ahead of time and include that in your fee, or you can exclude at the start and add it on at each billing. Or, you could eat that expense if you think your fee will cover it.

I have a short version of the contract you linked to on the AIGA site. For some reason, they don't have it up anymore (or it is just well hidden). I could send you a version if you like. Invoices can be relatively simple: It can be printed on your letterhead with your clients contact and project information, The total cost of the project, the balance, the amount due at the current invoice, plus any additional expenses like out-of-pocket costs, revisions, etc (usually itemized), and any taxes, if applicable.

[Westbo]

Originally Posted by andi*pandi

I work full time and don't do a lot of freelancing, but I just agreed to do some contract work for an old boss. We met and he basically has his "design" set, just a lot of text pouring and photoshop image cleaning. The photoshop is the meat of the project, a bunch of flyers and fact sheets. It is in no way a design job, no concept, he has sketched everything out on paper. Literally, there are pencil sketch blueprints. Which of course he will change 5 times, but at an hourly rate I don't care as much as if I were inhouse and it was my own deadline. Sadly, he began the project on a PC that his son set up, but at least they're using InDesign and the son doesn't seem too incompetent.

I should have done a bit more research before setting a rate, but I know that he is a millionaire skinflint and would not go for the Art Director Approved Rate™.

What I do want to make sure I got concrete was some terms of payment, when he should pay me, when I will do work, etc.

I told him I would bill at 10 hours or 2 months, whichever came first (this learned after my last client nickel and dimed me for 1/2 hour here, 1/2 hour there, so that it never seemed worth it to send a bill for 1/2 hour, when it takes 1/4 hour to set up an invoice). Does that seem reasonable?

How to handle items such as supplies? Since I'll be using his computer for the most part (taking the photoshop home to my Mac) at least I won't have to do the color outputting... but there will be CDs burned, faxes (I have a fax).

Can I bill for my travel time to his office? Gas is getting darned expensive.

I am unsure how to handle an initial payment. I like the security of it, but not sure how that would work. Is it like a retainer? If he balks, should that be an indicator that his new business is cash tight and I should run run run?

Anyone have any links to sample invoices?

And since I just spent time searching here and didn't find it, here's the link to the AIGA contract article and PDF. A bit bulky and outdated (photostats!) but a good base. Anyone have any newer links?

Andi

I read and re-read your post a few times and am still trying to figure out what you are looking for. For example, I don't know what "Art Directors Approved Rate" is. So let me offer the following.

1. FEES: If you are charge by the hour, be competitive. On the average, hourly rates can vary from $25-$40 hr for production work. $50 - $75hr for design and art direction. Rates are based on experience and ability. It's OK to state that your minimum time is say 00 hours. Once you agree to the hourly rate. Charge for your time. Generally, time is calulated minimum 15 minute increments. Per diem rates are traditionally 8 hrs. (lunch on your own time). If you wish to be paid by the project, negotiate a flat fee that includes say 1 round of revisions. Additional rounds, charge by the hour. I suggest as it would most likely be after hours, work out a flat fee.

2. PAYMENT TERMS: Invoice at the end of the project. If you are concerned about getting paid, on a project basis, charge 1/3 at the start, 1/3 on approval, 1/3 at completion. On an hourly rate, charge weekly or monthly. You can set payment terms to be COD, 30 days- whatever.

3. EXPENSES: Pay for you own gas. I would not charge for travel time. Keep track of the mileage and write it off on your tax return (IRS allows 35¢ per mile deduction) Charging for CDs is nickel and diming. CDs are so cheap. However, you should charge for the time to burn (assuming minimum 1/2 hr).

Work up a formal estimate with payment terms IN WRITING, have your client sign to agree. Also, agree on a schedule.

Hope this helps. Good luck

W2

[andi*pandi]

Westbo, "Art Director Approved Rate" refers to a member here, and another thread where he mentioned a $100/hr rate. Also been lots of threads about low rates contributing to low expectations for clients for rates, so I felt a little guilty about not asking my client for a higher rate. I'm in the middle of your range for design, and hopefully this will be production-esque.

himself, if you still have that shorter contract PM me!

[Westbo]

Originally Posted by andi*pandi

Westbo, "Art Director Approved Rate" refers to a member here, and another thread where he mentioned a $100/hr rate. Also been lots of threads about low rates contributing to low expectations for clients for rates, so I felt a little guilty about not asking my client for a higher rate. I'm in the middle of your range for design, and hopefully this will be production-esque.

himself, if you still have that shorter contract PM me!

Hey Andi

There's always gonna be someone who will do things cheaper. $100 hr for art direction is a bit steep- even here in the NE. Agencies and studios traditionally charged $125 - $200 but that included overhead, staff etc. Back in the 1990's at my agency, our creative rate had a 3.0 mark up. If a freelancer charged us $50 hr, our client paid $150. If a photographer charge $1,500 for a shoot, we charged $4,500. The times have certainly changed. Creative services have now become a more a commodity. It's important to stay competitive but at the same time don't sell yourself short. Clients don't want to pay extra for experience. However, they seem to expect it as "value added". And in an era of "you're good as your last job", being value added doesn't hurt.

Good luck.

W2