Freelancer or Debt Collector? How to Keep the Money Rolling
If you’re a freelance designer, you’ve probably come to the realization that you are not only a graphic artist but also a collection agency.
You turn around projects to meet your client’s unrealistic deadlines and in return for your hard work they take 90 days to pay. Your invoice stated very clearly in 72 pt. bold Helvetica type, PAYMENT DUE UPON RECEIPT, yet somehow, it still went unnoticed. After a week or so you give the client a friendly phone call only to hear, “Oh yes, we received your invoice, but the person who signs our checks is in Hawaii on vacation.” So you patiently wait. Weeks go by and your mailbox is still void of that much needed check. You call the client again and find that your invoice was just entered into the accounting system and your check will be cut at the end of the month.
Why is it so hard to get paid? Do clients not value your work and effort? Do they not understand that you are sick of eating ramen noodles and drinking cheap beer? As frustrating as this sounds, many freelancers have experienced this at least once in their careers. So how do you keep a constant flow of income when you have no idea when the next check will arrive? Here are a few ideas:
Ask for 50% upfront.
State very clearly in your initial meeting that you require 50% down once design concepts have been approved. Make sure they understand that production will not begin until payment has been received. This not only helps your cash flow situation, but it puts the pressure on the client to keep the project rolling. If the project is deadline sensitive, then the client will make sure a check gets into your hands quickly to prevent any delays.
Ask for a retainer.
If you do a substantial amount of work consistently for a client, why not suggest a retainer fee instead of a pay-per-project basis. Not only will this provide you with a lump sum of money at the beginning of every month, it will reduce the amount of time spent invoicing and calling accounts payable. Set a certain amount of hours that you will dedicate to them a month. Be careful and keep track of your time. Clients sometimes take advantage of this situation and may mistake you for a full-time employee.
Sell your artwork online.
Fill those income gaps with royalty checks from selling your artwork on the web. Sites like iStock, Vectorstock, Voomstock and GraphicLeftovers.com sell member-generated artwork to the masses. Gather up some of your best creations (illustrations, logos, icons or web templates) and start earning a royalty every time someone downloads your art. You can make an extra $50 to $1000 a month depending on the quantity and quality of your work.
Get a teaching job.
You’re great at what you do, so why not teach young designers a few pointers? Colleges, tech schools and community colleges are always seeking experienced professionals to teach web design, illustration and graphic design courses. Although compensation may not be as profitable as your hourly design rate, it is still very rewarding and makes a nice addition to your resume.
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