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Changing the Standard
Good Day
I have been working as a freelancer for nearly 5 years now, and it’s been really tough. I usually get the common problems of a freelancer, late or slow pays, and underbudget projects. Sure it was tolerable when I started out, but recently the priority company I been working, started using unethical business practics (as so I see). Late payments, breaching intial agreements and underbudgeting projects that has major labor work( I am not sure underbudgeting is unethical but I like to solve the problem)
When I started with them, everything was okay, projects was budgeted properly, I get paid really well and payemnt was right on time. just recently, the pass few projects I work with them. It seems that the company has become comfortable to the fact that I prioritize with them, and think they can do what they want with me.
I was thinking of giving written contracts to ensure my safety when working with companies I work as freelance and setting up hourly rates to ensure no under budgeting works. Now here is the problem, giving out contracts and using hourly rates are not the standard business practices for my country. When a freelance gets a job, majority of us use blackbox pricing and agree on to do a project based on initial agreement and a handshake. I haven’t known a single freelance uses these type of practices. Maybe for directors, dops and supplier. But far as I know editors, graphics artist creative talents that are not with studio employment, don use contracts or hourly rate.
I been looking for change these pass few years, and so far these are only ideas that I could only think of. Are there any sugguestions for my current situation? Is it a bad idea do this?
Thank you for load of help and I hope for hearing for it soon.
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20 Replies
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In a time when gigs are hard to come by, limiting them more with contracts is probably not a cost-effective thing in the long run. I have found being a very cool dude helps. When everyone else is leaning hard, playing good cop/bad cop and other hard ball tactics, I often let em slide upwards of ninty days before calling and telling them I totally understand, then politly asking when I can expect a partial payment. You really do get more with honey. Perhaps it’s because I don’t bluff well and my tough guy act is seen as an act. Or maybe I just really do understand. Then again, maybe I really need the money and would rather keep good relations with all that I can.
There are many that won’t go near a contract when they don’t have to and the truth is, when looking for a freelancer, no company has to. Test it if you can afford it. You’ll see this is the case.
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bill collection is the # 1 issue of running your own business. This is also the #1 thing that people who “work for a living” don’t get about running a business. I have been running my busines since 1982, and I am lucky to be very busy in this tough economy, but I am (once again) faced with a very large “cash flow” problem, where I have business expenses, and my clients (big nationally known companies) are not paying me on time. It makes me sick, as my bills keep coming.
This is what business is about, and is the ONLY thing that seperates a business owner from an employee. Everyone thinks that it’s about “being good – being talented” – or “getting customers”. It’s not. That is the easy part. Getting paid – that is the hard part. It’s always been that way – in NY, and in Florida. WHERE THE HELL IS MY MONEY !
Bob Zelin
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I agree with Bob 100%, and I hate to say it but it’s only going to get worse and worse. I personally think the root of the whole issue is that many people in our industry feel they are lucky just to be working in the field, and allow all manner of totally unethical practices go without so much as a word. When one studio lets net 30 become net 60, that business forever expects to get net 60 from all their video production vendors. They also expect the ever shrinking time frame, smaller budget, etc. etc. and only because THEY GET AWAY WITH IT.
While I realize this sounds like a naive over-simplification, if everyone in this industry stopped letting clients walk all over them, it wouldn’t happen, plain and simple. Sure every industry faces similar pressures, but within the video production realm it seems to be getting worse almost daily.
Brendan Coots
Splitvision Digital
http://www.splitvisiondigital.com -
if everyone in this industry stopped letting clients walk all over them, it wouldn’t happen, plain and simple. Sure every industry faces similar pressures, but within the video production realm it seems to be getting worse almost daily.
Amen to that…
It is hard when even the old, good clients turn into “grinders.”Dual 2.5 G5, IO, Kona LH, IO, Medea Raid, UL4D, NVidia 6800, 4Gig RAM
Octocore 8 GB Ram, Radeon card, MBP, MXO
Windows Vista Adobe Studio CS4, Vegas 8.0, Lightwave 9.3, Sound Forge 9, Acid Pro 7, Continuum 5, Boris Red 4, Combustion 2008, Sapphire Effects -
[Christopher Wright] “It is hard when even the old, good clients turn into “grinders.””
I find that very true these days, when I start freelancing in new company, at the start it becomes okay. Pay is good, your happy to work with them and the people around the company. But then you offend work with them, they gradually and slowly becoming grinders. Your fee goes lower and lower the the timeline becomes shorter and shorter. Plus the demands of the work doesn’t seem to add any more.
A full motion graphics work worth 60 or even 80 percent less than your actual rate. But of coarse you say okay because your still happy working for them and assure you the next project will have a better project.
Then little did you know that low-budget project wasn’t so low, when you see dramatic change in the lifestyles of the head huncho.
I learn my lesson, and I guess you can’t be a nice guy all the time. Or you should choose who to be a nice guy to.
https://www.youtube.com/user/marcdanielvillarin
Look on the Bright Side…
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A few things..
I don’t like the term “freelancer”..its an excuse to become a doormat. You own a company, even if you are one person. Your website should reflect that. The difference between owning a motion graphics design company and doing freelance motion graphic design should net a higher rate. It even sounds better. Again, even if its just you, start to think of yourself as a company. The change of speech from “my company would like to work with you” from “I am available for freelance work” makes a difference, perception is key.
You say you have been doing this for 5 years..so have you been upping your rate? You have 5 years of experience now, you need to move to a new bracket of work. The biggest pitfall is creative artists stay in their bracket, afraid to move out, they are just happy to have clients. As you progress in your career, you will outgrow clients, your asking price will cause existing clients to need to move on. If you don’t progress, you just attract more of the same clients, at the same rate. Think bigger and tackle potential clients you would not have even approached 5 years ago.
Listen to my podcast “Media Artist Secrets” in iTunes. The process of marketing and branding yourself is a hugely creative and fun task. It’s a skill and art that needs to be developed. Become a creative marketing ninja and read business books and learn to pimp yourself anywhere and everywhere. The more chances you take, the bigger your circle of contacts is, the more often you’ll get great opportunities. Donald Trump no longer focuses on 3 story condo buildings. He’s moved on. He has a unique thirst to take it to the next level, ready or not. The creative people who have this desire become very successful, it does not even depend on skills often, its tenacity and drive. The day you decide IF you want to take on the client (as opposed to you NEED to take on this client) is when you start to make progress.
Fire grinders. If you feel a client is constantly taking advantage, cut them loose. Don’t be happy just to be working. Aim higher and find clients the same quality as you are. If you are waiting for checks, and doing work upfront while your client takes their time, they do not respect you and they do not deserve your services. Years ago when I turned away grinders and people who were at a lower level business-wise (“I’d rather starve” was my mantra) was when my creative career really kicked into high gear and I have been doing great ever since, especially last year and this, even in a down economy.
You drive ALWAYS needs to be HIGHER than your talent. If you talent is HIGHER than your drive, you will just join thousands of creative artists who are struggling.
FInally…download the song “You Get What You Give” by New Radicals…that song always get me going! 😉
Frank
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Franklin McMahon / Host
CreativeCow.net PODCASTCreative Cow Podcast in iTunes /
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Grinders? That’s a cool term, Franklin. I may have to start using it. ;o)
Outgrowing old clients. I like that comment. Businesses really do have to think in terms of leveraging their growing skill levels and abilities. You cannot keep working at the same level that you did when you were just starting out.
Good post, Franklin.
Ron Lindeboom
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I heard that term in an article I once read:
https://magazine.creativecow.net/article/clients-or-grinders-understanding-the-three-market-types
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Franklin McMahon / Host
CreativeCow.net PODCASTCreative Cow Podcast in iTunes /
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[Franklin McMahon] “Fire grinders. If you feel a client is constantly taking advantage, cut them loose. Don’t be happy just to be working. Aim higher and find clients the same quality as you are. If you are waiting for checks, and doing work upfront while your client takes their time, they do not respect you and they do not deserve your services. Years ago when I turned away grinders and people who were at a lower level business-wise (“I’d rather starve” was my mantra) was when my creative career really kicked into high gear”
[Ron Lindeboom] “Outgrowing old clients. “
My thoughts exactly, I am cutting them lose. It was difficult, especially I grew attach with the companies I work with. But then I realized that they started taking advantage of my good nature. I’ve decided to move, and I don’t want to be those “companies” that struggle because most of their client network are grinders.
I do admit that rising rates are difficult especially while my competition’s rates are really below the standard. With this effect many, clients starting to think that our rates are really low.
It very difficult, but I see a bright future ahead.
https://www.youtube.com/user/marcdanielvillarin
Look on the Bright Side…
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While I agree in principal with most of what Franklin says, you just cannot apply it all the time and in all parts of this counrty, and especially not globally. People in other countries and cultures just do not share the business mentality that most people have in the U.S.
Franklin McMahon The creative people who have this desire become very successful, it does not even depend on skills often, its tenacity and drive.
I just don’t believe this is true, even in this country. You cannot succeed ONLY on desire, tenacity and drive. You MUST have skills and abilities that match. You can possess those skills and abilities… or you can hire them out, but you cannot achieve high levels of success without them. That’s like a restaurant who has great marketing and advertising, a cool space, and funky and friendly waiters…but their food sucks. You won’t be eating there long based on their desire and tenacity at getting you in the door if that food continues to suck.
Donald Trump no longer focuses on 3 story condo buildings. He’s moved on. He has a unique thirst to take it to the next level, ready or not.
If you’ve ever read much about Donald Trump…I dare say he’s what anyone would consider a well-rounded role model for success. For most small-business owners I know, and likely the majority of people that contribute and read these forums, business success is rarely measured in how much money we make, or by the name recognition of our client roster. Many of us have families and other priorities that may even preclude us from taking on certain types of projects and clients. So I think when you say”pimp yourself anywhere and everywhere…” it should be clarified…because the very notion of pimping oneself is pretty much synonymous with taking money from anyone, anytime for ANY service. I think what you’re saying is we should seize every opportunity to promote ourselves…which to me is very different from pimping our company.
We’ve been in business for 13 years, with most of those being profitable. But we’re starting to see the effects of the economy here in the midwest. Huge companies are continuing to lay people off, usually in small groups so as to not draw media attention. They’re closing factories. They’re cutting budgets..and the projects they have left are being handled by people who are quite literally overwhelmed and cannot get to them all…which means they sit, being postponed and delayed. Clients are taking longer and longer to pay their bills. Some large companies have even sent letters stating they’ve changed their payment policy and it will now take longer, sometimes MUCH longer to get paid.
Now I ask…what do you do about that? These are NOT companies that could be considered grinders by any stretch of the imagination. These are several billion dollars a year companies, with brand rosters loaded with names you’d all recognize. Do we drop them because they’re taking 90 days to pay? Do we fire them because they’re no longer as organized as they once were and projects are pretty much a nightmare to work on?
There will be GREAT production companies in this economy that will go out of business. Several, like the Orphanage already have. The reasons will be many and varied. So while I generally agree with the premise of what you’re saying…I do not believe it applies for the majority of people working out there in this economy. You can have GREAT branding (and I agree it’s fun to do), and a great service and still fail in these times.
I think an even bigger key to surviving and thriving is finding what services people DO want and need and are willing to pay for…and becoming THE expert or provider of those services and solutions in your market. So I agree it means continuing to grow and learn…but it has to be growth that has a commensurate need. It won’t do you any good to learn to do something new that people don’t have a need for or that they’ve moved in-house.
Chris Blair
Magnetic Image, Inc.
Evansville, IN
http://www.videomi.com
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