Haggling over price is as old as commerce itself. But we still need to make a living. Thus, if we provided a discount every time one was requested, we’d go broke.

That’s why full price should be the norm for most clients. Doing things this way has several benefits.

For one, it keeps your bank account in good shape. Plus, it helps you predict future revenue and serves as a motivator. A case can also be made that it reduces stress. You’ll avoid becoming desperate for that next project to come along.

Still, that doesn’t mean discounts are never a good move. There are scenarios where it might make sense for your business. Here are a few times when a discount should be on the table.

Charity Website Projects

Many businesses offer discounts to non-profit organizations. For example, everyone from internet providers to banks provides money-saving deals. Some see it as a moral obligation. Others may look at it as a chance to gain some positive publicity.

For web designers, especially solo entrepreneurs, it can be more complicated. We don’t have the financial resources of bigger companies. Deep discounts can disrupt our revenue stream.

There is room for compromise, however. Perhaps discounts could be reserved for causes that are close to your heart. A local charity with a tight budget is a prime example. A food bank, a homeless shelter, or an animal rescue are possibilities.

In those cases, you might find building a website to be a true labor of love. As such, money shouldn’t be the main object.

It is important to be judicious about who receives discounts, however. You don’t want to get into a situation where you’re putting in hours of work without fair compensation.

Loyal Clients Looking for a Website Redesign

The truly lucky among us will have clients that stick with us for years. Not only are they a pleasure to work with, but they also pay on time and make referrals.

These folks help to keep your business going. Because of that, they deserve a special place on your client list. They are VIPs.

Providing a small discount on a website redesign is both good business and a way of saying “thank you.” If they’ve generated substantial revenue, any amount you can knock off the price is worth it.

This helps to continue building goodwill in your relationship. In turn, you’ll know that you can count on their continued patronage. And they’ll be happy to spread the word about your business.

During Tough Times

Inevitably, one of your clients will go through a difficult time. It could be part of a widespread crisis such as a pandemic. Or maybe something localized like a fire or bankruptcy.

Regardless, this might be an appropriate time to provide a discount. Again, it’s about helping to strengthen your relationship. This demonstrates that you have your client’s back.

There’s also some practicality involved. If you charge recurring fees for maintenance packages or web hosting, it may be difficult for your client to pay. Providing a discount or splitting up payments might make the ultimate difference in whether you get paid.

Not sure what to do? It may depend on your experience with a particular client. If they’re generally on time with payment and great to work with, this makes the decision easier.

When NOT to Discount Your Web Design Services

The scenarios above are the exception. Plenty of people will ask you for discounts. It’s usually better to say “no.”

Prospective clients are shopping around for the best deal. That’s their prerogative. But web designers will not benefit from a pricing war. It’s a race to the bottom that will leave you with regret.

Some proclaim that providing a discount now carries the promise of “more work” later. This is one of the oldest tricks in the book – don’t give in. Unless future revenue is guaranteed in writing, you’re unlikely to ever see those brighter days.

Existing clients are a bit more complex. As we mentioned earlier, it’s fine to provide discounts to your VIPs. They’ve more than made up for whatever deal you offer.

But some people simply don’t want to pay for anything. And they expect others to bend to their demands.

It can be a sign of a one-way relationship. One where your experience and expertise aren’t valued. It might be better to see them walk away in an angry heap than to feed their ego.

It’s Your Business, Your Decision

The lesson here is simple: just because someone asks for a discount doesn’t mean they should receive one. You might even make the case that the opposite is true.

Some people do deserve a break, though. For example, non-profit organizations and loyal clients. Their actions may move you to offer lower pricing without being asked.

It’s your web design business. Therefore, you get to make those decisions. Choose wisely!

The post Should a Web Designer Ever Provide Discounts? appeared first on Speckyboy Design Magazine.

This is harder than it sounds. Sometimes, we set pricing too low – undervaluing the worth of our expertise. But problems could naturally occur as our business evolves. After all, what made sense in the past may no longer be relevant.

Raising your prices may be necessary in these cases. Once again, that same balance needs to be struck. You’ll want to be fair to both your clients and yourself.

While it may be an uncomfortable subject, there are good reasons to raise prices from time-to-time. Beyond the obvious boost to your bottom line, you might find some other benefits as well.

Today, we’ll take a look at a few positive side effects that come with an increase in pricing.

You May Price Out Your Worst Clients

The cold hard truth of running a web design business is that clients come and go. Losing a paying customer is never fun. But sometimes it’s actually a positive outcome.

Think, for example, of that classic “cheapskate” client. You know, the one who always expects you to move heaven and earth for a bargain basement price. An increase in your pricing can be just the thing to push them out of your life for good.

These types of clients tend to feast on those of us who lack confidence. We let them walk all over us and they get exactly what they want.

So, how does a price increase help? It demonstrates assertiveness – which can be a major turn-off for someone looking to take advantage.

They may try and sweet talk you into a discount – but hold your ground. Once they see that you’re willing to stand up for yourself, they may set their sights (er, sites) elsewhere. At worst, they’ll at least be paying you fairly for your hard work.

It Will Make Clients Think Twice About Sending Nuisance Tasks

Charging too little can mean that some clients simply won’t place much value on your time. Therefore, they’ll inundate you with tiny, “nuisance” requests. Little things that they could easily take care of themselves (or include in a more comprehensive list of edits).

Sometimes these tasks are so small that you may not even want to charge for them. Or they may not be directly related to web design at all. This type of work can be frustrating, as it takes you away from projects that will actually make you money.

Higher costs could stop one of these taskmasters in their tracks. Knowing that they’ll now have to shell out, say, 20% more for something will give them pause. They may decide that it’s cheaper to just do it themselves (just like you trained them to do years ago).

That being said, you don’t want to discourage every request. But wouldn’t it be nice to avoid those little time wasters that might end up costing you money? Raising your prices may be your ticket to freedom.

The Potential to Avoid Less Desirable Projects

Another potential benefit of charging more for your work is in avoiding projects that aren’t a good fit for you. These include websites that tend to be more work than they’re worth. Whether that’s because a client is on a super-tight budget or they’re just difficult to deal with – you’ll be glad to say “Thanks, but no thanks.”

There is, however, a catch. Just because you have a particular pricing structure doesn’t mean that your contact form won’t be inundated with undesirable projects. Most web designers don’t make pricing publicly available, so there’s nothing stopping someone from inquiring.

If you’d rather not be bothered, consider taking a slightly more assertive approach. Somewhere on your website, mention your starting price for taking on a project. This will allow prospective clients to determine whether it’s within their budget while perhaps saving everybody’s time.

The idea here isn’t to be snobbish. Rather, it’s about attracting the types of clients and projects that are good for both you and your business. In that respect, higher pricing can help filter out the ones that don’t meet that criteria.

Make More Money and Streamline Your Web Design Business

When we think about raising prices, the first thought is usually of the extra cash it can bring in. That’s certainly nice, but it’s not the only benefit.

As we’ve seen, there is the potential to positively impact other parts of your business. This could mean saying goodbye to troublesome clients or avoiding them in the first place. Then there’s the possibility of freeing up your busy schedule by cutting out those little nuisance tasks.

The decision to charge more sets off a domino effect. That’s why it’s so important to do some critical thinking when going through the process. If you do it well, the end result will mean more money for you and a more streamlined business.

The post The Hidden Benefits of Raising Your Prices appeared first on Speckyboy Design Magazine.

But “small” is a relative term. A project can be small in terms of profit. Yet that doesn’t mean that it’s quick or easy. You may still need to perform a lot of work.

Why is that? These less-profitable projects tend to fall into two categories. The first involves clients who are on a tight budget. The other belongs to cheap clients that aren’t interested in spending money.

We need to be aware of the latter group. They offer opportunities for neither learning nor growth. Here’s how to tell the difference between cheap clients and those on a budget.

What Are Your Client’s Expectations?

The majority of people live within a budget. That often means settling for what we can afford.

Having realistic expectations are a part of the deal. For example, we wouldn’t expect to buy a new Lamborghini for the price of a used Chevy.

Clients often have similar budgetary restrictions. And most are reasonable in their approach. They’re willing to work within the parameters we set. If a feature is too expensive, they may save up to add it later.

But some clients don’t seem to grasp this concept. They expect enterprise-level features on their website. Yet they’re unwilling to pay the price to make it happen.

Instead, they haggle and harass. They question our ability to get the job done efficiently. And they scoff at paying for services like hosting.

Sometimes it’s a matter of educating a client. They may not understand what’s required to fulfill their requests.

But some people are unabashedly cheap. They’ll go to extremes to save money. This behavior hurts both the project and your relationship.

Cheap Clients Try to Pass Costs to You

Creating a website proposal follows a familiar pattern. A client tells us about their project. And they’ll tell us how much they’re looking to spend. We then provide an estimate based on their budget and needs.

In other words, we tell clients what they can do for the money. We may also advise them on how to get the most value.

Nothing here is set in stone, however. A client may decide to spend more or less. It often depends on the expected return on investment (ROI). If spending more gets a better return, some clients will gladly do so.

A cheapskate client may see the value of an expensive feature. But they’re likely to haggle about the price. They may want a discount – even if it hurts our bottom line.

There’s no harm in trying to reduce costs. But expecting their web designer to absorb the hit is unreasonable. And it renders their project goals unrealistic.

The rule of thumb is simple. If you can’t pay for what you want, make adjustments. It seems like the cheapest clients are incapable of this kind of change.

Be Careful of Who You Work With

Most web design projects come with a budget. That’s a normal part of working with clients. We do our best to deliver the most bang for the buck.

And working with clients on a tight budget can be worthwhile. Lower profits aside, the experience is valuable. It’s often the perfect introduction for new freelancers or small agencies.

Plus, there’s a chance that your relationship will grow. A client’s budget may increase in the future. That could mean more revenue when it’s time for a redesign.

These relationships are worth pursuing. But be careful. Not everyone is on the up and up.

Some people will try to take advantage of your generosity. They’ll ask for the moon and pay pennies on the dollar.

Accepting this type of project will make you miserable. A cheap client won’t appreciate your efforts. And your bank account will suffer. It’s time you could have spent working on something better.

There’s a difference between a cheap client and one on a budget. The former will expect you to bend to their needs. The latter will be happy to compromise where necessary. Make sure you choose wisely.

The post The Difference Between Cheap & Budget Clients appeared first on Speckyboy Design Magazine.

There are millions of designers and developers participating in some form of freelance work. And of those who are currently freelancing part-time (moonlighting), one in three are seriously considering going full-time in the near future.

It seems that economic conditions are right for an increased freelance workforce. The question, though, is whether your conditions are right for you to make the transition. Here are five questions to ask yourself before jumping into the full-time freelance lifestyle.

1. How Much Savings Do I Have?

Before venturing out on your own, evaluate your cash situation. Your on-hand cash situation. Chances are there is going to be a ramp-up period between working part-time freelance and working full-time freelance.

You won’t immediately be at maximum capacity, so you won’t be at your full earning potential either. You’re probably going to bleed a little cash at first.

Most financial advisors would recommend you have enough in your savings account to cover about six months of living expenses. But we’ve seen people venture off with as little as two months’ worth in the bank.

If you have less than enough to cover two months of living expenses socked away in savings, you’re not ready to make the transition.

2. How Much Do I Need to Earn?

It’s time to get realistic. If you’ve been earning a salary up until now, it’s easy to go on autopilot and stop thinking about what exactly you’re bringing in and what exactly you’re spending.

Venturing out on your own will not only mean that your income is more sporadic, but it also means you’ll need to earn more. Your income taxes will be higher. You’ll need to pay for your own healthcare, dental care, and vision expenses.

Plus, you will be running your own business — you’ll need money for business expenses: marketing, equipment, supplies, maybe even office space.

Figure out at least a ballpark amount for the actual dollars you need to bring in.

3. Am I Getting Referrals?

One of the best indicators I’ve seen for whether or not someone is ready to go full-time with their freelance work is whether or not they’re getting work through referrals.

Drumming up new clients takes an incredible amount of time, effort, energy and money. It’s work you’re not getting paid for. This is why most full-time freelancers get a significant amount of their work through referrals.

Their clients find them more clients because these freelancers are good at their jobs, and they know how to make their clients happy. If you aren’t getting consistent referral work, you might not be ready to make the leap.

4. Am I Getting Long-Term/Repeat Clients?

Similar to that last question, you should ask yourself, are my clients coming back for more? Are they offering me long-term projects that will keep me busy for a few weeks or a few months?

In an ideal situation, you could jump to full-time freelance with at least one long-term project waiting for you — that’s income you won’t have to pull out of thin air.

But getting recurring clients is important for another reason: It means you’re doing a good job. You’re communicating well. Your prices are good.

If your clients aren’t coming back, you need to figure out why before you’ll be ready to venture out on your own.

5. Do I Have My Business Organized?

You don’t have to be a business expert to make it as a freelancer, but you do need to be organized. More than ever, your time is money. Nobody will pay you to send out invoices, track expenses, follow up on payments.

So for your own sake, get a system. Keep things organized. Be extremely efficient when doing unbillable tasks. There are a lot of great tools out there to help freelancers with this type of stuff.

Whatever tools you decide to use, getting a system in place ahead of time will save you a lot of stress later on.

So let’s regroup. How are you feeling? What’s your confidence level? If you answered yes to most of the questions above, chances are you’re in a good position to make the transition into full-time freelancing.

Or at least you’re as ready as you’ll ever be. If you answered no to most of these question, don’t be discouraged. You might need a bit more time to hone your craft, build up your client list, or refine your business skills.

Even so, you could be just a few months away from the freedom, exhilaration and absolute terror that is the freelance lifestyle.

The post The Five Questions to Ask Yourself Before Going Full-Time Freelance appeared first on Speckyboy Design Magazine.

This can lead to an interesting choice for clients. Will they go with the team-based approach or choose to deal with a single person? The decision isn’t an easy one by a longshot. Each route has its own pros and cons – which we’ll dive into in a bit.

But for freelancers, it can feel like you’re severely outgunned when competing against larger companies. When you think about it, even a 2-person agency is (in manpower, at least) twice the size of a solo freelance business. As a side note, I am amazed by even the most basic arithmetic.

So, in a David vs. Goliath type of scenario, is this a fair fight? Let’s conduct a “weigh-in” and see who comes out on top.

Full disclosure, I write this as a longtime freelance designer. That’s the life experience I’ve had, and certainly this article will reflect that. But I also aim to be fair in the comparison. If that’s not the case, call me out in the comments. Now, with that disclaimer out of the way, here’s the opening bell!

Round 1: Breadth of Services

No matter their size, every business has a decision to make regarding which services to offer. For freelancers, it’s often a matter of figuring out what you’re best at and how each potential offering can affect your ability to do your job. If a particular service isn’t your forte or gets in the way of your core business, it’s probably best to avoid it altogether.

Agencies have the same vital decision to make, but their larger size means that they have a bit more leeway in this area. They often branch out into related services that allow them to offer a proverbial full suite. This tends to add a lot of convenience for larger clients who are looking for a one-stop shop for all of their needs.

For example, while a freelancer may decide to forgo such “extras” as SEO and email marketing, an agency just might have the resources to offer these services. In the right situation, that provides them with a definitive edge.

The best solution for freelancers isn’t to try and out-service larger competitors. Instead, focus on your strong points and sell your expertise. You can’t be everything to everyone, so just be you.

While agencies certainly have an advantage in the breadth and depth of what they can offer, it doesn’t necessarily mean that every client will want or need the whole package. But for those who feel more comfortable dealing with a single company that can provide ample resources, the decision may be a bit of a slam dunk.

Advantage: Agencies

Round 2: Cost

The varied pricing structures of the web design industry means that the same project can see wildly different cost estimates. And, while there are undoubtedly freelancers who charge high-end fees, it’s usually a safe bet that agencies will be among the most expensive options in an apples-to-apples comparison.

One of the biggest reasons for this is the mere fact that agencies need to pay multiple salaries. The more people you need to pay, the more that drives up the cost. Overhead costs, such as office space, are also a consideration here. But the move to “distributed” agencies, where employees work remotely from wherever they happen to be, can negate that a good bit.

Another potential price difference comes from the scope of services offered, as mentioned above. An agency that offers more services may add those extras into the overall cost. They might even make the argument that this provides more overall value – if the client requires these additional offerings.

Solo freelancers don’t have to worry about employees, although there is sometimes a need to bring in an outside contractor. Even so, the absence of paying someone else a steady salary every week, month or year should result in a lower price for the client. And those who work from home have yet another potentially large cost savings.

Advantage: Freelancers

Round 3: Quality of Service

Quality is a very subjective thing and can encompass a wide range of criteria. In this case, we’re talking about:

• The overall results of the final product (i.e., does it satisfy the client’s needs and wants);
• The client’s experience of working with the agency/freelancer to develop that product;
• The service provided after the final product is launched

The results here are completely dependent upon the person(s) working on the project. Either a freelancer or an agency could fail this test.

But I think it’s worth mentioning that the overall quality of service has a lot to do with the relationship you develop with a client. Again, this can go either way. But one potential advantage a freelancer has here is that the client only has one single point of contact. Agencies may have several links in the chain of client relations, which offers more opportunities to fall short.

Of course, the reverse argument is that an unresponsive or difficult freelancer means that the project fails outright. At least an agency might have others to pick up the slack for a fellow team member who isn’t pulling their own weight.

Advantage: Tie

Fair is Fair

So, does a freelancer bidding against an agency have a fair shot? Based on my experience, I think that they do in most situations. But I’ve also found there is a certain amount of stigma associated with freelancers. Some see us as unqualified simply because we’re not part of some large conglomerate and don’t work in a fancy office building. There’s not much you can do there.

However, most often clients will choose the company that provides the best match for their needs. When they consider what services are offered, how much it costs and how that fits into their overall goals, freelancers can win their fair share of projects.

That being said, it’s easy to feel afraid that you may not have a real chance to book a new client when competing against larger companies. My advice is this: If you want the project, go for it. You may just find that you have more to offer than you think.

The post Freelancers vs. Agencies: Which is Right for Your Project? appeared first on Speckyboy Design Magazine.

Questions of ethics are often very personal, and what I find acceptable may not sit so well with you and vice-versa. But there are some general traits that most designers can agree on. In my view, an ethical designer:

Charges a Fair Price for Services

It’s a safe bet that most people don’t enjoy overpaying for a product or service. What makes web design a bit different is that there aren’t any established norms in pricing.

Designers often charge according to their specific formula. Some price their services by the hour, others on a per-project basis, and some use a combination of both. In other words, we all do our own thing.

So, it’s understandable that there could be a significant difference between designers when pricing the same project. But what can give a designer a bad name is charging an exorbitant fee compared to the level of service they’re providing.

One example of this would be using a readymade template with very little in the way of customization and then charging as if it were a completely original design. Or it could be massively inflating the hours spent on a project to charge a higher fee.

The reality is that we all need to make a decent living. But deceptive practices here are what separate the good from the bad.

Avoids Pushing Unnecessary Features

We live in a world full of upsells. Whether it’s the golden opportunity to “super-size” a meal or add that premium stereo to our new car, we’re constantly being asked to chase something more.

For designers, more features often mean more money. And while it’s fine to discuss bigger and better possibilities with a client, there should be a certain amount of restraint.

The key is to be considerate of what the client’s actual needs are. If they’re not going to see a real benefit from an added bell or whistle, you probably should avoid anything more than a casual mention of it – perhaps limiting it to any written materials you provide.

This helps to build trust between you and your client. Doing so will give them the confidence to return to you if their needs change.

Doesn’t Knowingly Put Clients in a Bad Position

So much has changed for web designers in the last two decades. For example, it used to be a fairly common practice to grab images from anywhere and use them on a site – copyrighted or not. Other shenanigans included black hat SEO tactics and even copying content from someone else. The web was like the old wild west, where it seemed like “anything goes” was the motto.

Thankfully, things have evolved quite a bit in that area. Trying those actions now will put both you and your client in a position of liability.

That’s why it pays to be as careful as possible when using software and design assets on a client’s project. The last thing you want is for a bit of carelessness to put a strain on your relationship – not to mention your wallet. Make sure that you’re using those items in a way that is consistent with its licensing and that it was obtained through legitimate means.

Every one of us makes mistakes. But an honest blunder is much more forgivable than knowingly putting someone else in harm’s way.

Moves Forward After a Bad Experience

We all have our terrible client stories to tell. Some of them are entertaining, while others bring a wince of pain to your face when recalling them. It’s one of those unfortunate side effects of working with people.

Through the years, I’ve been insulted, threatened and even a bit bewildered. These situations aren’t easy to deal with, and they can negatively impact you both personally and professionally.

The temptation is often there to exact some sort of revenge. That could come in the form of leaving an anonymous negative review or some other silliness meant to annoy an ex-client.

But when all the dust settles, it’s much more productive to move on to something bigger and better. The hope is that, even though you went through a difficult time, you came out on the other side all the better for it. And you can use it as a learning experience for future challenges.

Of course, this doesn’t mean you can’t defend yourself when necessary. There are times when you must respond to save your good name. But you also don’t want to be the aggressor, as it reflects poorly on you. Plus, it’s often more trouble than it’s worth.

Won’t Risk Their Reputation by Following an Unethical Client

And now, a story from the “sad but true” files of my life. As a young designer, I was hired on by a small company under the guise that I would be working on, well, design projects. It didn’t turn out that way.

On my first day, I was asked to sign up for an AOL account (this was a long time ago) and pay for it with my personal credit card. Once I had an account, I was to then start listing pirated copies of various software for sale on an auction site.

I was absolutely shocked. So, after I received those chilling instructions, the “boss” walked into another room – leaving me alone. I grabbed my belongings and ran as fast as I could to my car. I went home and never looked back.

The lesson here is that you will run into people who ask you to do things you’re uncomfortable with. Get out of those situations as quickly and gracefully as you can. Nothing good can come from sticking around.

Stay True to Yourself

There are so many challenges in running your own business. You’re required to wear many hats, including that of an ethics officer. But even though there are many gray areas, this part of your responsibilities doesn’t have to be difficult. There’s even a little trick to help you make the right decisions.

Whenever you’re faced with an ethical dilemma at work, think about how your mom would want you to handle it. If you have children, think about what your wishes for them would be.

If you’ve made a mistake in the past, it’s OK (and welcome to the club). Those different experiences make us who we are. Once we know better, we can do better.

The post The Five Traits of an Ethical Freelance Web Designer appeared first on Speckyboy Design Magazine.

If anyone thinks that doing freelance work is easy, they need to think again!

And that’s why it’s so important to make sure you don’t stumble into the freelance pricing trap many freelancers fall into. As there are already so many things you already have to deal with, you really want to avoid this one from the beginning.

So, What’s the Freelance Pricing Trap?

The freelance pricing trap is not charging enough for the work that you do. And it happens much more often than you would think.

Many freelancers feel like they don’t have enough experience or expertise to charge a certain rate, so they simply don’t. They price below the market rate because they feel they aren’t qualified to charge for more.

Some freelancers may actually feel bad for charging more. They feel like it’s too expensive and that they can’t justify charging so much.

However, if you want to make it as a freelancer, this needs to change.

Why it Needs to Change

Not charging enough for your services is a huge issue because it sets up the wrong expectations for your clients from the outset. It makes them devalue your work and expertise. They may also presume that you’re not as talented as others in your niche because you don’t charge as much they do.

This is a real problem. I know of an online learning school that couldn’t get work in a wealthy city because they didn’t charge as much as the competition. Since they didn’t charge as much, the perception was that they weren’t as good as other similar schools. This happens to many businesses, and it happens to freelancers as well.

It also makes the work you do less rewarding. And since the work is less rewarding, you’re much more likely to get disheartened and potentially burn out. Consider this common scenario for a moment:

A client calls asking how much a particular web project would cost to design and build. You ask for the brief, take the time to work out the number of hours it would take, and then respond with an estimate. But this is where it gets interesting.

The client tells you they can’t afford that much and counters by asking if you can do it for less, much less. Not wanting to lose out on the business, you agree since you don’t feel confident enough in your ability to negotiate a higher rate.

You also really need the work and don’t want to miss out on the revenue. Or so you think…

You begin working only to realize that you’re getting paid for half of what the project’s worth. If you’re just starting out in the freelance world, that may not necessarily be a huge issue because you’re trying to build up your portfolio and get your name out there, but if you’ve been freelancing for a while, that is a huge problem.

You’ve got bills to pay and mouths to feed. You’ll end up working more hours on extra projects just to make up for the drop in pay you’ve received from this project.

You may become resentful of the client and more than likely disappointed in yourself. Instead of putting in your best work, you give less than your best effort. And why shouldn’t you? You’re getting paid less than what you’re worth.

Then it comes time to get the project approved. Surprise, surprise: the client has a list of changes they would like. But you’re already over on hours! And you’re already getting underpaid!

More resentful than ever, you dig back into the project half-heartedly. When will this project finally be finished?

Have you ever experienced a project like this? If you have, you understand the primary reasons it’s detrimental to charge less than you’re worth:

• You won’t put your full heart and soul into the project.
• You won’t produce your best work which ultimately is what would allow you to raise your rates in the future.
• You won’t attract clients that value your work and understand the costs.
• You won’t make enough money to cover your bills and will mean an increase in the number of hours you work.

What Should You do Instead?

In order to not fall into the trap of lower-paid work, here are three tips to consider:

1. Find out what the market pays for your type of service and get to that rate as quickly as possible.

Whether it’s photography, web design, or copywriting, there’s a freelance market rate that professionals realize they need to earn to make a living.

Instead of thinking you can win more work or clients by undercutting this price, do whatever it takes to get to the market price as quickly as you can.

Yes, you’ll need to spend some time building up your portfolio and personal brand, but once you have reached that point where you’re happy, stop offering discounted rates.

2. Don’t be afraid to charge what you’re worth.

Many freelancers don’t like asking for more money or even asking for the going freelance rate. They feel like they’re not qualified or experienced enough.

If that’s the case, continue building your portfolio, but if it’s not, don’t be afraid to ask what you’re worth.

3. Incrementally raise your rates.

The number one thing that shoots negotiators in the foot is being desperate to close a sale. If you’re desperate for the business, you won’t be able to negotiate as well.

This means you’ll have the most trouble at the beginning of your freelance career. But once you start picking up clients and have a decent amount of work, start raising your rates.

If you aren’t as desperate to pick up your next client, you can afford to ask for more money now. If they take it, you can drop lower-paying clients at the right time and raise your rates again with subsequent clients.

Just remember to continue raising your rates once you have a healthy amount of work. It only makes sense that you charge more as you get better at what you do.

Falling Out of the Trap

If you feel like you’ve fallen into the trap of not charging enough for what you’re worth, make the decision to start charging more today.

By incrementally increasing your rates, you can quickly get to the market rate for your type of freelance work, and if you’re really good at what you do, you can even start charging more than the market rate.

That’s the kind of “trap” you want to fall into.

The post How to Get out of the Freelance Pricing Trap appeared first on Speckyboy Design Magazine.

It’s true — well-prepared, aesthetically-presented sushi is not cheap. But why should it be?

When you choose to go to a nice sushi restaurant, you’re not just paying for the base ingredients in the food. You’re paying for the overall value you receive. The quality of the food, the experience you receive in the restaurant, and even the chef’s expertise in how to properly prepare sushi (a craft in and of itself) are all part of what you pay for at this type of restaurant.

Similarly, although We’ve been taught as freelancers to think that the way to price ourselves is per hour or per project, we should be thinking of value-based pricing instead.

This is actually a more accurate pricing system for freelancers, because once you take all of your client interactions, past experiences, applied efforts, and end results into account (not to mention the quality of your work), you’re no longer dealing with just minutes of your life.

You’re dealing with a person whose services are more valuable than a clock can determine.

Time-Based Pricing Only Goes So Far

At the beginning of your freelancing career, pricing your services according to time makes sense. After all, it’s easier to keep track of your business expenses and income down to the last cent, and helps you figure out your work habits, like how long it typically takes you to finish a project.

Time-based pricing also keeps you well aware of those bills starting to stack up.

But there comes a point where those bills start to pay themselves off more consistently, and you’re not as worried about making ends meet. You realize you need to start earning more, so you can take your business to the next level.

This is when you need to pay attention to your value and not just “what it takes to make it.”

Sure, you can keep telling yourself that it makes sense to charge per hour because you’re still earning what you need to live, and all you need to do to earn more is charge more so you have a higher hourly rate. And of course you can keep telling yourself that it’s okay to provide a quote based on how long you think the project will take you.

But you’ll just be delaying the inevitable meltdown.

Unfortunately, freelancers who make the common pricing mistake of charging per hour tend to run themselves into the ground, because they’re the ones most likely to undervalue their own work. They think, “If I want to make this much, I should work this many hours, so the project’s worth this much.” They position themselves as nothing more than the individual parts that make up their services, like sushi’s ingredients versus the entire sushi restaurant experience.

This often means they get stuck with trying to finish a project within the timeframe they quoted to avoid it lowering their hourly rate, or having to deal with clients who try to push them to provide extra services free of charge (scope creep). Or, even worse, they have to deal with the fact that the client could have paid them a lot more money because their work provided so much value.

As an example, let’s say your typical rate is $75 an hour, and you think a client’s project will take you 30 hours, so you charge $2250. But what if the project actually ends up being worth far more than that to your client, say, $5000? You would have lost over $2700, more than double your quote for this client.

You don’t want to deal with this your entire life, do you?

Then start paying attention to value.

Figure out what to charge based on the value you’ll provide to your clients. Be aware this value could look different to each one; a 30-hour project may only be worth $5000 to one client while another would gladly pay upwards of $25,000.

This is why pricing on value, instead of an hourly rate, is so vital . It’s your “get out of jail free” card.

There’s a Value to Value (Seriously)

“Now wait a minute,” you might be saying. “Who’s going to pay for some hypothetical value I claim I can offer clients?”

You’d be surprised how much people are willing to pay for value. If something’s hard to obtain, make, or duplicate, it’s considered valuable, exclusive almost, and people want it. That’s why they pay out the butt for diamond engagement rings, and it’s also why foodies are willing to plop down a good chunk of cash for an unforgettable sushi experience.

Just as people will pay for value, so will clients.

This means you need to stop thinking of your services as the amount of time you put into them, and instead think in terms of the overall value they will bring to your client.

If you’ve got that track record of providing useful ideas to your clients which they implement and consequently earn more than expected, you’d be surprised how many people will want to hire you when you position yourself as a freelancer who brings results and value no one else can. After all, you’re basically providing them a diamond ring or really good sushi in a really nice restaurant.

You wouldn’t want to undercharge for those items, just like you wouldn’t with your own services.

Don’t Underestimate the Value of Your Services

If you’re still worried about switching to value-based pricing, cut it out.

You do need to pay your bills, of course, but you also need to treat yourself like a professional if you expect others to do the same.

Once you’ve paid your dues with time-based pricing, sit down and analyze everything you’ve learned about yourself, your business, and your clients. Price your services based on the value you’re bringing to them, and they’ll gladly refer you to new ones who will pay the fees you’re asking. In other words, your name will start going around as the expert freelancer people are looking for.

However, don’t accept an offer you know isn’t worth your time or stress. If a client wants you to design a website for $20,000, for example, but they have demands you think are going to take you a lot longer than a typical $20k contract looks like for you, negotiate what you can offer them value-wise for that price. If they don’t like it and still want to undervalue you, just move on. Some other client will be more than happy to accept that same offer.

If you treat yourself like a professional and value your work, clients will be coming to you, and the fear of moving to value-based pricing won’t have been justified in the least.

Make the Transition to Value-Based Pricing

Just like a sushi chef has to continually practice making high-quality sushi, it takes time and experience (and less and less instances of you doubting yourself) before you’ll figure out how to better price the value of your freelance services.

That’s okay, as long as you make the transition from time-based pricing to value-based, because staying in the time-based system is just silly if you’re serious about your work.

Once you’ve made the transition, don’t let anyone make you feel like you’re less than your asking price. You’re a professional with your own business, after all, and a valuable one at that.

The post How Value-Based Pricing Will Make Clients Beg You to Work for Them appeared first on Speckyboy Design Magazine.

It includes asking a lot of probing questions about what the client is hoping to accomplish. From there, it’s time to research competitors and the technologies that will power the website.

And time is the keyword, as the estimation process will take up a lot of it. That may not be a huge deal if you end up booking the project. But if not, it can feel like a massive waste.

That’s why some web designers have transitioned to charging potential clients for project estimates. In some ways, it goes against the grain of the industry norm. But it may also make a lot of sense in certain situations.

Should you start charging for estimates? Here’s a look at the pros and cons of doing so.

Websites Are Increasingly Complex; So Are Estimates

Building a modern website requires a lot of moving parts. And we’re not talking about animation (although that’s a nice touch). No, we’re talking about the various pieces that comprise a website.

Consider content management systems (CMS), static site generators, themes, and plugins. And that’s only scratching the surface. A website may also need to interface with various third-party APIs and cloud services.

Figuring out the logistics of how this all fits together is a challenge. That’s particularly difficult if you haven’t worked with a specific technology before.

Once that’s all squared away, you’ll have to think about the actual design and content portions. Taken together, these are no small tasks.

Harder still is determining an accurate price for these various components. There’s nothing simple about this process.

How Charging for Project Estimates Gives Designers More Freedom

The more project estimates you create over time, the more likely it is that you’ll sour on the practice. You can put in a lot of work, only to have a prospective client say “Thanks, but no thanks.” The feeling of giving away your precious time can be demoralizing.

Charging a fee for this work accomplishes a few things:

1. More Enthusiasm, Less Guilt

Part of the challenge in writing proposals is that they are time-consuming. Thus, you may start to feel a sense of guilt when it takes you away from your paid work. There’s a certain pressure to get back to the other projects on your plate.

Being paid a fee eliminates (or greatly reduces) this pressure. You can now give the task proper attention without worrying so much about the other things you need to get done.

This also affords you the freedom to dig deeper into the project requirements than you otherwise might. Theoretically, you’ll be less likely to miss those little details that can impact the overall cost. That’s better for both you and your client.

2. It Filters Out Less-Desirable Clients

Have you ever felt compelled to provide an estimate for a project you aren’t interested in? That may be the biggest of all time-wasters.

The mere fact that you’re charging for your time will act as a repellant to some clients (more on this in a moment). Particularly those with very low budgets and those who don’t value your expertise.

Meanwhile, clients who don’t mind paying for top-notch service likely won’t blink an eye at your fee.

Determining a Fair Price for Estimates

It’s important to find a balance between being fairly compensated and helping potential clients see the value. Price your project estimates too high and the value proposition is a hard sell.

There are many ways to calculate a price. For example, you could go with a standard hourly rate and charge based on the actual time spent researching, meeting, and discussing the project. But the drawback there is uncertainty.

A flat fee might be more desirable, as all parties will be on the same page from the start. The challenge is in determining a price that will cover you in most scenarios.

Here’s a potential solution: Take a look back at some recent proposals and think about the time you put into them. Try to find the median time spent and charge based on that.

Let’s say you charge $50 per hour, and it generally takes you around two hours to create a project estimate. Using this formula, the flat fee would be $100.

If that’s not the best fit for your business, then don’t be afraid to get creative in how you structure things. Just remember that simple is often better.

Potential Pitfalls

Depending on your situation, there can be some downsides to charging for website estimates. The biggest might be that you risk missing out on projects.

Some clients will undoubtedly be turned off by paying for an estimate. As we mentioned, this can help you weed out the undesirables. But there could be times when a legitimately interesting project slips through your fingers.

Much also depends on your typical clientele. If you focus on smaller projects, then a significant portion of a client’s budget could be spent on an estimate. While you could apply some or all of your fees towards the actual project, it’s still a risk.

In addition, this practice may not be well-suited for those who are just starting out in web design. When your business is at its most vulnerable, limiting your possibilities too much isn’t advisable. In general, waiting until you have an established presence in the market is a better bet. That’s when you can afford to be a bit choosier.

So, while this may seem like a no-brainer, there are some important considerations. Implementing a policy like this can have unintended consequences.

Regardless of the Task, Your Time Is Valuable

The promise of “free estimates” is common throughout a lot of industries. And while that can certainly draw in potential clients, it can also be abused. A long, arduous process means time taken away from other important tasks.

For freelancers, this can be draining – both financially and mentally. You might be thrilled that people are interested in hiring you. On the other hand, you’re sacrificing time for paying customers to serve those who haven’t paid you a thing.

Charging a fee for project estimates is one way to recoup some of the value you bring to the table. It means not being bothered by cheapskates or those who aren’t serious about their project. And it compensates you for the time you’ve put in.

Only you can determine whether or not it’s the right fit for your business. But it’s worth consideration.

The post Should You Charge for Website Project Estimates? appeared first on Speckyboy Design Magazine.

Tools like Bard, ChatGPT, and Stable Diffusion are becoming mainstream. And people have a lot of opinions regarding what they mean to society. Two very boisterous camps are forming.

On the one hand, we have the AI cheerleaders. They are looking at the future through rose-colored glasses. Even if they have concerns about potential misuse, they’re generally optimistic.

Then we have the doomsday crowd. They tend to see AI as a means to spread disinformation and put humans out of work. Science fiction has become a reality.

I tend to be somewhere in the middle. Yes, I see benefits. But I also worry about the harm that AI might cause. Plus, we don’t fully understand what we’re doing with this technology. We’re moving full speed ahead – consequences be damned.

This thinking also applies to AI’s impact on web designers. The existing tools we have can be helpful. Yet they also present some significant challenges to our industry.

Here are a few areas where I believe AI will frustrate web designers. And (surprise), none of them are existential!

Cleaning Up After Adventurous Clients

Some website owners love to experiment. They’ll install new WordPress themes or plugins without a second thought. Or they’ll attempt to change the meticulously-crafted page layout you built for them.

Web designers are usually left to deal with the aftermath. It’s part of the job. And AI may make things even harder to manage.

It’s not hard to imagine the trouble one can get into. A client could generate content that’s full of inaccuracies. Or they might add a problematic code snippet.

Even AI image generators can be problematic. There is a lot of gray area when it comes to copyright. Therefore, a client may upload an illegal image.

This new category of tools performs tasks at lightning speed. The negative impact on a website could happen just as quickly.

A Race to the Bottom in Pricing

It’s no secret that AI tools can write code. That might send shivers down your spine. And some developers may wonder if they’ll soon be replaced by bots.

This fear is not unfounded. Stories are already detailing how humans have lost their jobs to ChatGPT. These cases may be extreme. But web designers could still take a direct hit.

Pricing is an area that seems ripe for conflict. Some prospective clients may scoff at the cost of a seasoned developer. They’ll reason that AI is “faster and cheaper.” No mention of accuracy or adaptability, of course.

Even so, web design isn’t easy. And a great website still requires a human touch. To this point in history, AI alone can only advance a project so far.

But will anyone be surprised when a client uses AI as an excuse to pay less? It’s only a matter of time before this becomes a common argument.

Here’s hoping that most clients embrace reality. There are things web professionals do that bots can’t. It’s a point worth driving home.

An Influx of Spam and Junk Content

Clients aren’t the only ones who will use AI to create content. Spammers and malicious actors are sure to take advantage. They are undoubtedly giddy about the possibilities AI presents.

There are multiple reasons for concern. First, AI-generated content is usually coherent. This may allow it to slip past some spam filters. And phony content that looks legitimate is dangerous. Thus, we may see more users falling victim to phishing scams.

AI is also incredibly fast. A tool built for rogue purposes could flood a web or email server and cause service interruptions. And it may be “smart” enough to adjust tactics on-the-fly.

Spam is already a thorn in a web designer’s side. AI has the potential to raise the bar exponentially. As a result, we may see higher costs for maintenance, web hosting, and email services.

The day-to-day tasks we perform will likely become harder – all thanks to the misuse of AI.

The Added Cost of Using AI Tools

AI may lead to higher costs across the board. And that’s not accounting for the cost of the tools themselves.

These tools are in their early stages. Many provide free service levels. But make no mistake: their creators are expecting massive profits.

Let’s use ChatGPT as an example. Developers hoping to tap into its API will have to purchase “tokens.” The more you use the service, the more tokens you’ll need. And those costs will ultimately be passed on to users.

For web designers, this means an extra expense for projects. Those who like the convenience of AI will need to budget accordingly. And it may be too easy to spend more than you anticipated.

Sure, it may be cheaper than hiring a freelancer. But there will be a cost for employing the help of AI.

Navigating a New Era of Web Design

For all its potential to help web designers, AI might also become an obstacle. It’s a nascent technology that we’re just beginning to understand. Thus, we’re likely to hit some serious bumps in the road.

So much depends on how people use it. Some will inevitably do so in ways that make our jobs harder. It might be an adventurous client or a hacker. But web designers will be tasked with cleaning up the mess regardless.

We may also struggle with client expectations. Humans can’t work at the speed of AI. Yet some people may expect us to. And they’ll also devalue the knowledge and experience of professional designers. That could eventually shrink the pool of potential clients.

It sounds gloomy. But web designers are great at adapting to new circumstances. We routinely adopt new technologies and revise our workflows. And despite the challenges, we can do it again with AI.

The post AI Presents Many Challenges for Web Designers appeared first on Speckyboy Design Magazine.