Strategies for Pricing Your Illustrating Work

You may know Joann Miller over at the Directory of Illustration. Well, she asked Friend + Johnson (illustration representation agency) if she could share the best advice they had about pricing that they would give an illustrator. I thought I would share the part about how to come up with a price for a potential client. It is quite good.

Here is a list of questions to ask your potential client to help create an accurate estimate that fulfills both their expectations and your needs.

Introduction

1. How did you find out about me? Is there something in your portfolio that inspired them to think of you for this project? Make sure you understand exactly what they’re referencing so you can make sure you’re comfortable executing it, and are clear on what they’re hiring you to do. This will also help you determine the level of complexity of the illustration they’re looking for.

Project Description

2. Do you have a layout? How complex are the illustrations? Are they single-spot illustrations or more complex scenarios? Are they providing any references for you to use? Are they looking for you to concept illustration ideas with the creatives, or are you working from a pre-approved layout that will not allow for much change? Is this black-and-white or a four-color piece? Are you working in layers?

3. What is the timing for the initial pencils and the final illustration? Usually, you should have three to four days for the initial pencils, and after client approval, another five to seven days to deliver the final. Two rounds of pencils are standard; anything more should have an additional charge.

Usage, Licensing and Copyright

4. Usage is very important in helping you price your project. Note that consumer advertising will be priced much higher than illustrations for a children’s book or direct mail.

Does the client want national, regional, international, web or worldwide uses? How long is the usage? What is the media use: consumer ad, trade ad, packaging, direct mail, billboards, brochures?

5. If clients say they want unlimited use, you should explore if this is really what they need and offer alternative licensing to match their budget. Often times, clients are not “educated” in this area of rights-based pricing; they will be much more understanding if you take the time to outline that they will ultimately save money by purchasing just the usage they need. For example, if they see the difference in cost for a two-, three- or five-year use, this may be more in-line with what they really need vs. unlimited use/time. 

Most clients aren’t planning on a consumer magazine campaign or any out of home use, they may just want unlimited collateral (direct mail and consumer or trade brochures and inserts) use. Find out specifically what they’ll use the artwork for and tailor your pricing to match.

6. If at all possible, never do “work for hire,” give buyouts or sell your copyright. You’re essentially giving away all of your rights as the creator of the artwork and giving ownership to your client. They in turn can reuse and resell the artwork in any way they want.

You can still retain your copyright even if it’s unlimited use, worldwide for an unlimited time and exclusive to them. If they feel they may need the artwork for other uses down the road or for a longer period of time, these extended uses can be renegotiated or factored into the original contract as well.

Remember, they want to use you and you want to work with them. This is a negotiation to give them what they need and pay you fairly for the creation and use of the work. You’re working together to create a fair contract for both parties.

7. Will this image have resale potential in stock or other markets? Does your licensing give you this option?

Keep Budgets & Other Paperwork in Mind

8. Editorial and book clients usually have a predetermined budget. Sometimes you can renegotiate if you feel it’s too low for the amount of work they’re requesting. You should always get a credit line for editorial or pro-bono work.

9. Do they have an allotted budget already in mind? If not, when do they need numbers?

10. Is there a contract? You should have your own contract in addition to anything they supply.

Hang Up

11. Never give an estimate while you’re on the phone with your client. It’s best to hang up and think about what you’re comfortable with.

12. Review your estimate before submitting it. A great source for guidelines for estimating various projects is the “Graphic Artists Guild Handbook” at www.graphicartistsguild.org/handbook/.

Post-Submittal

13. After you have submitted your estimate and it’s approved, make sure to have it signed and sent back to you.

14. After the project is confirmed, you should bill 50% of the job. This is important for cash flow since illustration projects can stretch over a number of weeks with the back-and-forth for approvals. This is also important with a new client that you don’t have a payment history with.

15. In addition to billing upon confirmation AND having a new client sign your contract, you may want to get a purchase order from you client as it is a contract to purchase your services from your buyer.

To read all the other helpful information use this link: http://joannsartadvice.blogspot.com/2014/03/take-charge-of-pricing-your.html

Talk tomorrow,

Kathy