I was working on a freelance project for a set hourly rate. But the client switched to a flat fee and a royalty for the last part of the job.
It’s turning out to be nightmarish - hours of work for way too little money and who knows if the royalty will happen or not.
The client says his budget is small and doesn’t want to continue at an hourly rate. I can’t continue working for the flat fee - it’s gonna kill me.
Advice much appreciated.
I have clients demanding a flat rate as well. I tell them that I need a very specific design guide of a project before I start. I give back my quote with exactly what I’m going to give for a deliverable. I usually allow one minor revision per quote (“minor” is defined beforehand), anything else is extra. Additional views are extra, photographic-level models extra, etc… It actually hasn’t been that bad, but it requires more time upfront, revising quotes, more admin work. It’s taken a couple of projects to get in sync with one another. My biggest issue right now is that one of my bigger clients, a design firm, is trying to make me sign a contract that states that I won’t be paid if the firm doesn’t get paid by the client. It also states that I’m legally responsible for products I design (safety, manufaturing issues, etc…), even if I just do blue line sketches for it or sit in on a brainstorming. Now that’s B.S.
I charge a weekly rate, no more than 40 hrs of work. less than that, and they still have to pay the week rate. clients will take what they think they can get away with, so i’m certain to open the dialogue up front. i acknowledge that they have budget restraints and encourage them to be realistic. i also remind them that i am a one-person business, and that i will be sure to let them know when the workload is unrealistic for the time frame so that they can adjust their due dates or deliverables accordingly.
if i see a train wreck coming, like the situation you’re in, i warn them that i have no obligation to put in extra hours and then i go home on time. I’ve never lost work because of this policy, and hopefully i’ve avoided working for the wrong people by sticking to my guns. there is a way to do this professionally, being stern and respectful.
I never under any circumstances sign anything assuming liability, but you know that! it’s tough to freelance, but i find that when you talk to people early and often they’re less likely to feel comfortable screwing you over. We’re all just people trying to make a living, and remember that they know when they’re being unfair to you.
I charge a weekly rate, no more than 40 hrs of work. less than that, and they still have to pay the week rate. clients will take what they think they can get away with, so i’m certain to open the dialogue up front. i acknowledge that they have budget restraints and encourage them to be realistic. i also remind them that i am a one-person business, and that i will be sure to let them know when the workload is unrealistic for the time frame so that they can adjust their due dates or deliverables accordingly.
if i see a train wreck coming, like the situation you’re in, i warn them that i have no obligation to put in extra hours and then i go home on time. I’ve never lost work because of this policy, and hopefully i’ve avoided working for the wrong people by sticking to my guns. there is a way to do this professionally, being stern and respectful.
I never under any circumstances sign anything assuming liability, but you know that! it’s tough to freelance, but i find that when you talk to people early and often they’re less likely to feel comfortable screwing you over. We’re all just people trying to make a living, and remember that they know when they’re being unfair to you.
Flat rate can be an advantage.
Sometime the client just want to know upfront what their getting in to. It is not an sign that they want to pay less. It is possible to charge more than if you had charged by the hour.
Sell the value of your design not the time. e.g. a Pollack painting could be created in an hour but it can be sold for millions. Because it is worth that much to the buyer
That is 10 min of your work can be worth $1000. Instead of thinking in order for me to make $1000 I need to charge $100 for $10 hrs. Use the other 590 mins to enjoy life like drinking a Corona by the beach.
Flat rate can be an advantage.
Sometime the client just want to know upfront what they are getting in to. It is not an sign that they want to pay less. It is possible to charge more than if you had charged by the hour.
Sell the value of your design not the time. e.g. a Pollack painting could be created in an hour but it can be sold for millions. Because it is worth that much to the buyer
That is 10 min of your work can be worth $1000. Instead of thinking in order for me to make $1000 I need to charge $100 for $10 hrs. Use the other 590 mins to enjoy life like drinking a Corona by the beach.
the client switched to a flat fee and a royalty for the last part of the job.
What did you have to say about the clients’ switch? Apparently there was no work agreement between you and the client regarding payment and billing.
It is a two-way street. If you can’t make a living working flat-rate for the guy … explain that you wished that you could be of further service, but regret that you can not work in this manner. Suggest another designer who may be able to help (strictly a courtesy).
In your mind, forget the royalty; it can’t pay your rent right now.
Time to cut your losses.
unless they will show you the business plan (have someone else review it who knows about these things) AND they have a good route to market, forget about it. You will probably never make your money back. They have admitted they have no money. Cut your losses and find something else don’t work for free!