With numbers like these in the advertising industry, things are going to continue to be bumpy for a while. Clients and the clients of clients are all shedding jobs.
However, as in all things, this is not a permanent state. Sooner or later things will turn for the better and, even if they stay as they are for a while, there is still work being made. If you want to get some of that work, you are going to have to push your vision to the very best targets–those who really need it.
You also may have to work with your clients to hit the numbers they need. That doesn’t mean dropping your fees willy-nilly, but saving money on production is certainly a good idea whenever possible. And offering lower fees for more limited licenses while providing a guaranteed set of numbers for additional usage (so your client can know you won’t hold the images hostage) might help too.
Also now is a good time to think about sharing the risk with your clients–how about a lower guaranteed fee, then if the project “hits” (some metrics will be required), a “performance bonus”–why not?
I know some of you will have a cow at the thought of such a suggestion, and I’m not even saying it is the best option, but I’m not hearing a whole lot of new thinking on this topic and it’s just something I’ve thought a teeny bit about (in between studying…which doesn’t leave a load of time). Now is the time to be thinking about solutions and not rejecting anything just on its face.
So…ideas?
I am certainly emphasizing a graduated use scale with clients. I am making sure that they are only buying the rights for each level the campaign. When the project is a success all or a portion of the images there in will be rerun. We have a solid understanding of what the immediate rights include and what to expect reuse costs to be, up front. So far it’s working for both parties.
Since I hail from the design field, I’m more than a little leery of performance-based bonuses. Why? Because clients often use them as a way to wiggle out of paying us for our time and work.
And think about it: If you went to the doctor, but for some reason did not get better, you still have to pay him or here. Likewise, your lawyer.
So, why should things be any different for that people in the creative fields? You do the work, you get paid. Period.
Docs and other professionals have changed how they charge as the business has changed–think about insurance companies and how docs interact with them and their patients now. Things change.
All I’m saying is that we have to look for alternative methods of calculating and receiving payment. The old ways were justifiable using old arguments that may not be so valid today. We need to look for today’s (and tomorrow’s) justifiable and legitimate rationales for fees and methods of billing. -L
Btw, to be clear, I am in no way suggesting working for nothing (or almost nothing) and then getting paid this “bonus”–that would be spec and that is still bad. No, I’m saying a low (cover the CODB) rate as a base, then tie in the usage license fee to the success of whatever the piece is.
-L
I am still charging a significant creative fee and post processing rate. I’m just spreading out the license fee’s over actual use rather than presumed use. I don’t consider any of the billing structure to be a “bonus”.