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There are numerous articles on the web that talk about the pros and cons of hiring a large graphic design firm vs. a freelance graphic designer. But what about the difference between hiring a small design firm (more than 1 person) vs. a freelancer? As long as both have high-quality portfolios, it’s virtually the same. So why then, are there such huge discrepancies between what freelance designers are charging vs. small design firms?
I recently asked a partner in a small design firm what she charged for a recent design project: for the website, around $25,000; for the logo, around $20,000. I have been charging my clients roughly 10 times less for the exact same scope of work (and frankly, much better quality too). Unfortunately, I’m not alone. Many of my freelance design peers are in the exact same boat: undercharging and feeling undervalued.
Here’s what makes sense: the small design firm has to pay overhead, rental space, and salary for more than just one person. The freelance designer working from home has less overhead. Here’s what doesn’t make sense: if the quality of work and scope of work are the same (i.e. you’re working JUST as hard), shouldn’t we as freelancers be charging nearly the same amount if the end products are the same? The answer: hell yes.
So the question is, why the heck aren’t we? Here are the top ten reasons why freelance graphic designers are charging too little:
1. My clients just aren’t willing to pay that much.
2. My rates need to be really competitive because there are just too many designers willing to do the same work for less.
3. I’m afraid to ask for too much and risk losing current or potential clients.
4. I don’t know how to justify the higher rates to my clients.
5. I don’t know where to find the clients that are willing to pay more.
6. The economy is tight and I’ll take what I can get right now.
7. I’m charging less on this project because I’m hoping the end results will bring lots of referrals.
8. I lack the confidence or self-esteem to ask for higher rates.
9. I don’t want to offer prices I couldn’t afford to pay myself.
10. I feel intimidated competing against a design firm (even if they are small) for a client’s work.
Do any of these rationales sound familiar to you? You’re not alone. But this should (hopefully) make you feel better: do a quick Google search for small design firms in your area. Open up their website portfolios and compare them side by side on the screen with yours. Is your work better, the same, or worse? If it’s the same or better than that should pretty much knock off all the doubt/confidence concerns from the list (if it’s worse…sorry, but your lower rates may very well be justified at this time). For where to find those higher paying clients, see my previous article, How to get graphic design and copywriting clients: Drop the mouse and step away from the computer.
And finally, make a deal with yourself: if your clients aren’t paying what you want, then stop accepting the small jobs! Push the fear, lack of confidence or whatever it is into the garbage disposal and start charging what your time, energy, expertise, and creativity are rightfully worth.
| Stephanie Orma welcomes comments, tips, suggestions, topic ideas, and pitches. Contact Steph: sorma [at] ormadesign [dot] com Visit Steph's sites: Orma Design & She's SO Creative Connect: LinkedIn Follow: Twitter.com/stephanieorma Read Steph's Blog: O' What a Creative Blog! Become a fan: FaceBook |
Comments
Really good post. I feel the same but basically don't have the nerve when it comes to money matters. Just recently got a good on-going design contract and I'm kicking myself now for not asking for more.
I'd love to hire a salesperson to let them do the negotiations. I'm confident about the work being good quality but basically am a crap business woman. Something to think about maybe.
Thanks for your comment Jennifer! I think you make an excellent point that if negotiations aren't your thing, than designers should definitely consider teaming up with a marketing/sales partner (one who likes and excels at getting clients and handling the rates).
Love the article Stephanie! Chicago is filled with small studios and freelancers, and I agree there is a huge variation in price tags.
Thanks for the insight-
Lisa
Would love a 'sales' person as well! I'm terrible about getting a fair price. This article was a great confidence boost - thanks for posting!
Greetings from a fellow Examiner (though on a different topic), Stephanie!
You raise an interesting subject for a tight economic climate. Ten $100 jobs take much more effort than one $1,000 project. The key is finding the ONE!
Our client base tends to be entrepreneurs and new businesses. This economy makes it more challenging to convince folks that they a really are better off with a design rofessional than with the $99 logo or $499 web design factories they find online. (Or with their high school-age nephew and his iMac!)
A design blog I follow recently advocated making the world (or at least your little connected part of it) your sales staff by offering commissions or referral fees much the way realtors do. I'm considering it, but as a two way street. I'd be willing to offer a commission if I was also given a commission for the work I refer (to photographers, event planners, printers and other related professionals).
Might be an idea for another column!
Cheers from
Very nice to bring in this subject. In my opinion their is an other difference. Studios and small agencies suggest they offer the whole package where freelance designers mostly offer their specialism. Most clients do'nt want to spread all kinds of work at several pro's. A small agency is therefore the solution - they think!. You are absolutely right that most freelance designers are better!
Nowadays my company is not longer working with employees but I select freelancers to work with for each specific project, and it works perfectly! The best of both world competing succesfully against small/middle and even big compagnies. The solution for freelancers is to combine disciplines, make your creation network complete and you win!
Great post. All valid points. I think this is something everyone, even the small design firms, is struggling with right now. Here at my upstart small agency, we're taking jobs for those freelance rates. Nobody has any budgets right now, so you end up taking on more than you can handle to make ends meet. Plus, I'm putting in more time than I'm estimating.
What a great article. I've actually seen similar opinions expressed over the years, but you really encapsulated it beautifully. For the record, we too are experiencing much of what the other responders said above, i.e. taking on startups and small jobs to make ends meet, putting more time in than we can bill for, etc. But though we have a home based office, I not only use freelancers based on budget and on the needs of the client, I also hire art college students as part-time designers (NOT interns) -- and pay them better than most other part time jobs they could get. This works out great. Not only do they help me with grunt work and production, they also get to work on actual design jobs, go to press checks, sit in on client meetings and phone calls, learn about how we price our work, etc. It's a win-win for us and for them -- and I end up really mentoring them and becoming close to them personally.
Of course, I would love to have a salesperson too. Working on that--hopefully soon
Very simply...Web Design is not rocket science. There are millions of web designers just as there are millions of house painters and maid services. Face the reality of it.
Any high school or college kid with some savvy for some basic Adobe programs, some Wordpress or other platform, and a little spare time, is a potential web designer.
It is really very much like those summer jobs for college kids painting houses - a few good brushes, rollers, ladders, rags, and tarps...and presto, Johnny is a professional house painter.
So the only thing left is to canvass the right neighborhoods if you want the the best paying jobs.
There is Ghetto, Suburb, and Lake Shore Drive. Or those mysterious Gated Communities...You may reap what you sew, but it really depends more on the quality of the soil rather than the seeds or seeder.
Imagine then, what a horrible time to start freelancing!
a great article!
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