you've strategically hit upon the logo & icon portfolio and blog of UK logo designer Graham Smith — the original Logo Smith since '86.
It’s no shocker that more and more people are feeling the financial squeeze, being a freelancer, with no real steady and reliable income, just sets you up for endless financial stress. I have recently talked openly about several logo design projects where the clients have failed to settle the outstanding balance. Leaving me considerably short changed and generally very pissed off.
I should add here that these non-paying clients were overseas, not based in the UK. This poses significant problems with taking legal action. As far as I know, it’s practically impossible to enforce payment from clients not residing in the country you work from. I’m not saying that all UK clients are always angelic when it comes to getting payment. I am focusing on the direct complications with overseas clients and the restrictions of a contract that is only really worth anything for the country it was originated in.
Lawyers and Solicitors
If there are any international copyright lawyers who read this who can offer up anything to the contrary, then would love to hear from you. Bear in mind, most freelancers don’t have the financial means to hire a lawyer, let alone continue to pay for the services of one during a dispute.
My point here is, don’t put all your trust into a contract, not matter how well written it is. Unless you have money to spare to fund a lawyer when a contractual issue arises, you are unlikely to really get any benefit from it at that time. A contract is like a low key anti theft lock for a car. It will deter the casual and opportunist, but unlikely to deter a hard nose, thick skinned manipulative individual.
Yes, I am generally this cynical.
A contract is all well and good, but its mostly just words wrapped up to look ‘mean’. Trying to enforce a contract when you are a solo freelancer, with limited time and resources, can prove to be overwhelming. The contract is ‘peace of mind’ but is not bullet proof.
Take Charge
So having been at the end of 3 significant loses, enough to put me 3 months behind on my mortgage and other bills, something had to be done. I have had enough of the minority who seem to think it’s ‘no big deal’ to screw over a hard working creative.
As a designer, presenting work, ideas and concepts is liking baring your soul. It’s a pretty risky adventure.
I decided that I could no longer swallow all this lost time and money. It’s not just that you don’t get paid, if the project you are working one is a big one, you may be involved with that project for many weeks. In that time, you are likely to have to put other clients off, especially if they need work ASAP. Not to mention the clients that you had to ‘pass on’ when you took on this big new project. You knew you would need to focus all your energies on this one project. So in effect, you have now not just lost this one big client, but you have turned down what would probably of been, genuine and honest paying clients.
It’s a big loss when a client from big project, refuses to pay, the repercussions are felt further away than you might initially think.
Full Payment Please
The only viable option, other than refusing to do any non-UK client work was to ask for full payment up front. To eliminate all risk of non payment further down the line.
I did toy with increasing the deposit to 50% to even 75%. But this in itself poses problems. You have a bigger deposit, but one could argue it gives less reason for less honest clients to settle up the balance. You may not lose out as much, but you are still risking the struggle of collecting the balance. This is not just financially bad, it affects your very soul, your motivation. When it happens consecutively, then it can become a significant psychological challenge.
I did realise that I could potentially lose out to clients unprepared to pay the full amount prior to completion. But my thinking was then I was probably better free of any client who has a problem parting with any money.
Now they must trust you
The coin has now flipped. You can’t expect all clients to then trust all designers who ask for full payment up front. There are restrictions to this method. Clients will feel far more ‘at ease’ to part with full payment if they can see who you are, how you work, how you operate, how transparent you are in your business and online social activities. They will feel more ‘comforted’ if they see a portfolio of quality work and bigger name companies or brands. They will be more assured if you can provide solid reasons as to why ‘trying to pull a fast one with a client’ would be creative suicide.
Fortunately for me, I am pretty transparent in all the above. I am everywhere you can possibly be online. I make a point of showing aspects of my professional life with my personal life. Clients will be happier to work with someone they can at least get a feel for, even if they can’t meet in real life. In the absence of real life meetings, you must provide alternatives, video chat and phone calls to name but two.
From the work I have put into ImJustCreative and social media over the last few years, I am able to now present myself as a honest and genuine designer. This gives me a better chance to convince clients that I am a ‘safe bet’ when they are considering paying the full amount prior to the project starting.
You need to take charge and convince yourself and potential new clients that you are worth investing in.
That the client needs to appreciate exactly how much work, how much experience you are investing in creating a logo design for them. That to then show this work prior to receiving full payment is a huge risk. Once you can do that, then asking for full payment does not seem so unreasonable after all.
I have been comforted to see that recently, clients have been more than happy to pay the full balance. This has renewed my sense of trust in others. The sense of relief and comfort I now have with current non UK clients is a breath of fresh air. I can now focus entirely on the project at hand and put aside any lingering doubts about the collection of money owed towards the end of the project.
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We have had the same issues here and at one point considered asking for the full amount up front. We eventually decided against it though because we are just re-opening in a new city with a small client base.
We are still doing half up front, half on completion but we hold the final product until payment. We still spend too much time waiting on payments but having some leverage seems to help.
Keep us updated on how charging full price works out. For creative work it seems like a solid option if you can get past the customer trust issues.
We have had the same issues here and at one point considered asking for the full amount up front. We eventually decided against it though because we are just re-opening in a new city with a small client base.
We are still doing half up front, half on completion but we hold the final product until payment. We still spend too much time waiting on payments but having some leverage seems to help.
Keep us updated on how charging full price works out. For creative work it seems like a solid option if you can get past the customer trust issues.
Very apt post! The way I see it the two options are: ask for 100% up front as you say, or ask for 50% up front and stress that the final logo file can only be sent after the other 50% has been received. When the client wishes to view the final logo or work in progress send a low res version with a watermark over. I think the key is to be very vocal and up front about your T & C’s, to avoid future disputes. I was toying with the idea of charging 100% up front for projects below a certain price range and 50%/50% using the method I described above for larger projects. One thing I have learned is the less a client is willing to invest financially the more likely they will be to rip you off. So charging 100% up front is working well for you Graham?
Love this summing up “One thing I have learned is the less a client is willing to invest financially the more likely they will be to rip you off.” This has been my experience, more than I would care to think is possible. Maybe I have just been unlucky, or maybe opened myself up to much and too soon. Any number of reasons I have picked up a number of non-paying clients. I think initially I was just too new to freelancing to even think that people would do that. If you give some people the chance, no matter the situation, some people will take advantage. The harder you make it, the more obstacles you provide, the less it will happen. The adverse affect is that you can close yourself off too much, and run the risk of coming over as ‘too inflexible’.
My natural way is to be trusting and wanting to do what I can to help. This I think is what landed me in these situations, too trusting or even maybe too gullible. So now I have to tighten things up, but there is always room for flexibility and I do tackle each new client on a individual basis. If I sense they are open, sincere and genuine then I will offer up more flexible options, and vice versa of course. The clients that are prepared to dig a little deeper are the ones that usually benefit in the long run.
As you say, the clients that are prone to ‘try it on’ are the ones that are unlikely commit themselves to paying up front, yet expect or hope the designer will do just that with their ideas.
If you are honest and have honorable intentions, then you will see that I am really rather flexible and accommodating, but I try not to shout that out from the roof-tops too frequently or at first contact.
PS: Do you have a twitter ID? Would like to mention that ‘quote’ of yours with a credit.
Very apt post! The way I see it the two options are: ask for 100% up front as you say, or ask for 50% up front and stress that the final logo file can only be sent after the other 50% has been received. When the client wishes to view the final logo or work in progress send a low res version with a watermark over. I think the key is to be very vocal and up front about your T & C’s, to avoid future disputes. I was toying with the idea of charging 100% up front for projects below a certain price range and 50%/50% using the method I described above for larger projects. One thing I have learned is the less a client is willing to invest financially the more likely they will be to rip you off. So charging 100% up front is working well for you Graham?
Love this summing up “One thing I have learned is the less a client is willing to invest financially the more likely they will be to rip you off.” This has been my experience, more than I would care to think is possible. Maybe I have just been unlucky, or maybe opened myself up to much and too soon. Any number of reasons I have picked up a number of non-paying clients. I think initially I was just too new to freelancing to even think that people would do that. If you give some people the chance, no matter the situation, some people will take advantage. The harder you make it, the more obstacles you provide, the less it will happen. The adverse affect is that you can close yourself off too much, and run the risk of coming over as ‘too inflexible’.
My natural way is to be trusting and wanting to do what I can to help. This I think is what landed me in these situations, too trusting or even maybe too gullible. So now I have to tighten things up, but there is always room for flexibility and I do tackle each new client on a individual basis. If I sense they are open, sincere and genuine then I will offer up more flexible options, and vice versa of course. The clients that are prepared to dig a little deeper are the ones that usually benefit in the long run.
As you say, the clients that are prone to ‘try it on’ are the ones that are unlikely commit themselves to paying up front, yet expect or hope the designer will do just that with their ideas.
If you are honest and have honorable intentions, then you will see that I am really rather flexible and accommodating, but I try not to shout that out from the roof-tops too frequently or at first contact.
PS: Do you have a twitter ID? Would like to mention that ‘quote’ of yours with a credit.
In early 2009, I had a similar problem, when a client that was more then 40 percent of my residual business- unable to pay because of market forces. So now i only deliver product after payment has cleared, unless they have used me for more than 4 jobs and been consistent in payment terms. It is unfortunate that it has to come to this.
In early 2009, I had a similar problem, when a client that was more then 40 percent of my residual business- unable to pay because of market forces. So now i only deliver product after payment has cleared, unless they have used me for more than 4 jobs and been consistent in payment terms. It is unfortunate that it has to come to this.
That’s a helluva bold, creative solution. Glad to hear it’s working out.
It certainly is becoming more common though amongst freelancer types, not sure about companies and agencies tho.
That’s a helluva bold, creative solution. Glad to hear it’s working out.
It certainly is becoming more common though amongst freelancer types, not sure about companies and agencies tho.
Hmm, it seems like there’s a reason for everything. I’m glad you are recouping from dishonorable people.
I am based in the U.S. but I suppose I could use the same tips for overseas clients as well.
Anywhere you live you can try this, it’s not just the UK. So for any client that is overseas to you, suggest asking for full payment up front. But explain and justify the reasons, so it doesn’t seem such a odd thing to request.
I’m in the US, and have had several clients back out on their financial commitments in just the past month. It’s an epidemic – and I agree, enforcing contracts across international borders? Not happening.
Hmm, it seems like there’s a reason for everything. I’m glad you are recouping from dishonorable people.
I am based in the U.S. but I suppose I could use the same tips for overseas clients as well.
Anywhere you live you can try this, it’s not just the UK. So for any client that is overseas to you, suggest asking for full payment up front. But explain and justify the reasons, so it doesn’t seem such a odd thing to request.
I’m in the US, and have had several clients back out on their financial commitments in just the past month. It’s an epidemic – and I agree, enforcing contracts across international borders? Not happening.
Graham even at 50% up front, which is what I take, I end up getting half the payment and then owning a site they never pay for. Like I need another web template or logo for Sweet Cupcakes and Crap. My portfolio is full enough, but my belly could use some food. :)
Good luck on your new policies.
Graham even at 50% up front, which is what I take, I end up getting half the payment and then owning a site they never pay for. Like I need another web template or logo for Sweet Cupcakes and Crap. My portfolio is full enough, but my belly could use some food. :)
Good luck on your new policies.
Last year I was working on a brochure for a particular real estate development company who turned out to be pretty dodge! I worked on the 12 page brochure for months, making changes that they continually requested. There was even a professional photographer and copywriter on board getting us the right photos and copy to use in the brochure. After 9 months working on their “2009 brochure” no payment was ever received.
Fortunately, this was done during full time employment and not Freelance so I wasn’t at a personal loss, but our company, photographer and external copywriter most certainly were!
I’m not sure what the status of the legal action is, or how far we took it, but as far as I’m aware the brochure never went to print! Such a shame because it was probably the most pretty minimal brochure I ever worked on!
I have also worked on a number of large brochure projects, but for my previous company. Some of these also didnt’ see the light of day as the client either went bust or just cancelled.
Quite soul damaging, worse when you are solo tho and have no means to swallow the loss.
Last year I was working on a brochure for a particular real estate development company who turned out to be pretty dodge! I worked on the 12 page brochure for months, making changes that they continually requested. There was even a professional photographer and copywriter on board getting us the right photos and copy to use in the brochure. After 9 months working on their “2009 brochure” no payment was ever received.
Fortunately, this was done during full time employment and not Freelance so I wasn’t at a personal loss, but our company, photographer and external copywriter most certainly were!
I’m not sure what the status of the legal action is, or how far we took it, but as far as I’m aware the brochure never went to print! Such a shame because it was probably the most pretty minimal brochure I ever worked on!
I have also worked on a number of large brochure projects, but for my previous company. Some of these also didnt’ see the light of day as the client either went bust or just cancelled.
Quite soul damaging, worse when you are solo tho and have no means to swallow the loss.
It’s baffling why people seem to treat creatives so differently than a lot of other service oriented businesses. Good to see that it doesn’t seem to have affected your bottom line. Glad the business is still coming in for you. Great post Graham. :-)
It’s true, I think design just has that ‘air’ of being cheap and ‘everyone’ can do it.
It is a very busy place to compete, which also doesn’t help with prices. So many ‘designers’ trying to make money, all competing with each other and also the client.
All I am doing is trying not to think about others, but focus on what’s right for me, what’s good for my soul and for my wallet. And hope that clients will still come.
So far, since these changes, work is flowing in… so there has to be a clue there somewhere. Full payment up front does work. who knows how many clients I am loosing who are not prepared to pay upfront, but as I mentioned, I am probably better off without them.
Bear in mind, being solo, only so much work you can take on anyway.
It’s baffling why people seem to treat creatives so differently than a lot of other service oriented businesses. Good to see that it doesn’t seem to have affected your bottom line. Glad the business is still coming in for you. Great post Graham. :-)
It’s true, I think design just has that ‘air’ of being cheap and ‘everyone’ can do it.
It is a very busy place to compete, which also doesn’t help with prices. So many ‘designers’ trying to make money, all competing with each other and also the client.
All I am doing is trying not to think about others, but focus on what’s right for me, what’s good for my soul and for my wallet. And hope that clients will still come.
So far, since these changes, work is flowing in… so there has to be a clue there somewhere. Full payment up front does work. who knows how many clients I am loosing who are not prepared to pay upfront, but as I mentioned, I am probably better off without them.
Bear in mind, being solo, only so much work you can take on anyway.
It’s a tricky one. I can totally understand your reasons but it’s probably very difficult to implement. The good thing about a deposit scenario is that both parties have an incentive to make the project work and complete on time.
If the overseas market can stand it then you could try doubling your rate and still charging a 50% deposit. That way if they don’t pay up you have the full 100% and if they do then you get a bonus. I’m not really being serious here, but there could be scope for an increased rate at least for risky customers like that .
It’s proving ‘not’ tricky at all. All I see recently are overseas clients appreciating and acknowledging this is actually becoming the norm.
Many designers actually do ask for full payment, even from local clients.
I tried with higher percentage deposits, but they just pay that then don’t pay the remainder. The bonus aspect I feel is a bit ‘dodgy’, just feels a bit tacky in my view.
My guidelines are all set out for all to see before they commit to getting in contact. SO ultimately it’s their choice. I trust my reputation and portfolio help convince some to go ahead and work with me.
Thanks for your comment :)
It’s a tricky one. I can totally understand your reasons but it’s probably very difficult to implement. The good thing about a deposit scenario is that both parties have an incentive to make the project work and complete on time.
If the overseas market can stand it then you could try doubling your rate and still charging a 50% deposit. That way if they don’t pay up you have the full 100% and if they do then you get a bonus. I’m not really being serious here, but there could be scope for an increased rate at least for risky customers like that .
It’s proving ‘not’ tricky at all. All I see recently are overseas clients appreciating and acknowledging this is actually becoming the norm.
Many designers actually do ask for full payment, even from local clients.
I tried with higher percentage deposits, but they just pay that then don’t pay the remainder. The bonus aspect I feel is a bit ‘dodgy’, just feels a bit tacky in my view.
My guidelines are all set out for all to see before they commit to getting in contact. SO ultimately it’s their choice. I trust my reputation and portfolio help convince some to go ahead and work with me.
Thanks for your comment :)
I think is a case of going from one extreme to the other. I mean – would you ever pay any other contractor 100% up front? I sure as hell wouldn’t. In fact builders always advise NOT to pay them any more than half up front, or they lose motivation!
IMO 50/50 is fair and works for most things.
I think is a case of going from one extreme to the other. I mean – would you ever pay any other contractor 100% up front? I sure as hell wouldn’t. In fact builders always advise NOT to pay them any more than half up front, or they lose motivation!
IMO 50/50 is fair and works for most things.
That’s a great article Graham. I can totally relate to what you’re saying. I have never used a contract, and never would for overseas clients. I think contracts can be a stumbling block in themselves anyway. They can scare clients off! I think this is why some designers who do use them call these contracts “letter of agreement” of of-sort.
I never, ever, work without an initial deposit unless I’m working for a proven and repeat client. I also offer the option to either pay 40% before the initial design stages, or 95% upfront (with 5% discount applied). 2 of my recent clients actually took the 95% option, so it works really well….
That’s a great article Graham. I can totally relate to what you’re saying. I have never used a contract, and never would for overseas clients. I think contracts can be a stumbling block in themselves anyway. They can scare clients off! I think this is why some designers who do use them call these contracts “letter of agreement” of of-sort.
I never, ever, work without an initial deposit unless I’m working for a proven and repeat client. I also offer the option to either pay 40% before the initial design stages, or 95% upfront (with 5% discount applied). 2 of my recent clients actually took the 95% option, so it works really well….
I don’t find myself at the receiving end of being stiffed very often at all. It’s only happened about twice in the last couple of years actually and only small amounts.
So I’m sticking to 50% up front only. However if the project is for a small amount I always ask for full up front payment rather than splitting it.
Sorry to hear about your mortgage and bills, what a nightmare! I had a weak December personally and my credit card bill is thirsty after xmas, lol.
Thankfully several projects came through the door yesterday and everyone seems to be ‘back to work proper’ this week and starting new projects. Phew.
Good for you that you have not been a victim of this too often. But as I said in the comment below, it’s worth having it in mind…
Sometimes it can be good for the soul to take preventative measures… anticipate how you would feel and cope if two big paying projects failed to settle the invoice. How would that affect you and your life.
I am very cautious now, but the full payment up front as released all those burdens and crippling thoughts. It’s been the best decision so far. :)
I don’t find myself at the receiving end of being stiffed very often at all. It’s only happened about twice in the last couple of years actually and only small amounts.
So I’m sticking to 50% up front only. However if the project is for a small amount I always ask for full up front payment rather than splitting it.
Sorry to hear about your mortgage and bills, what a nightmare! I had a weak December personally and my credit card bill is thirsty after xmas, lol.
Thankfully several projects came through the door yesterday and everyone seems to be ‘back to work proper’ this week and starting new projects. Phew.
Good for you that you have not been a victim of this too often. But as I said in the comment below, it’s worth having it in mind…
Sometimes it can be good for the soul to take preventative measures… anticipate how you would feel and cope if two big paying projects failed to settle the invoice. How would that affect you and your life.
I am very cautious now, but the full payment up front as released all those burdens and crippling thoughts. It’s been the best decision so far. :)
I’ve stuck with the 50% deposit method for a while, but for many of my steady clients I’m going to switch to an incremental method of payment, where at certain checkpoints, I’ll require an additional payment.
I definitely know how it feels to be stiffed though and feel you on the “it kills your soul” comment.
I found the incremental method too time consuming, not just practically but from a more emotional energy sense.
Nothing like getting the money upfront, all invoices clear and done. No stress during project wondering if you will get paid in full in part or not at all.
Try it, see how it goes. The feeling of calm and peace of mind is astonishing. Helps ones really focus on the job at hand.
But I think it also depends how many times you have been burnt in the past. If you have been fortunate not to get burned, then no reason to change I guess.
My actions came about after repeat non or partial payment. My whole motivation to work and put myself out for clients quickly evaporated. New clients were suffering as a result. And self confidence took a nose dive the last few months.
But keep with what works for you, but do bear it in mind. Because the first time a major project doesn’t pay up, you may of wished you had taken further provisions. :)
I’ve stuck with the 50% deposit method for a while, but for many of my steady clients I’m going to switch to an incremental method of payment, where at certain checkpoints, I’ll require an additional payment.
I definitely know how it feels to be stiffed though and feel you on the “it kills your soul” comment.
I found the incremental method too time consuming, not just practically but from a more emotional energy sense.
Nothing like getting the money upfront, all invoices clear and done. No stress during project wondering if you will get paid in full in part or not at all.
Try it, see how it goes. The feeling of calm and peace of mind is astonishing. Helps ones really focus on the job at hand.
But I think it also depends how many times you have been burnt in the past. If you have been fortunate not to get burned, then no reason to change I guess.
My actions came about after repeat non or partial payment. My whole motivation to work and put myself out for clients quickly evaporated. New clients were suffering as a result. And self confidence took a nose dive the last few months.
But keep with what works for you, but do bear it in mind. Because the first time a major project doesn’t pay up, you may of wished you had taken further provisions. :)
Graham, the idea of respecting any creative for their ideas or time spent is yet to be appreciated among the industry, especially in India (Japan and S. Korea could differ here, considering the design culture there). There needs to an organization with legal rights that protects us when working with international clients.
Graham, the idea of respecting any creative for their ideas or time spent is yet to be appreciated among the industry, especially in India (Japan and S. Korea could differ here, considering the design culture there). There needs to an organization with legal rights that protects us when working with international clients.
Don’t know if you’ve ever looked at these guys, I know of a few people who have been members and made good use of their legal muscle to bring about a satisfactory conclusion…
http://acid.eu.com/
May be worth a look
Don’t know if you’ve ever looked at these guys, I know of a few people who have been members and made good use of their legal muscle to bring about a satisfactory conclusion…
http://acid.eu.com/
May be worth a look