Retainers

Posted: Monday, 03/31/2003 -- by Lamar Morgan. Subject: Retainers

If you are designing a tailormade multimedia script for someone who wants it burned onto a CD, this can be a very time-consuming processing. This is not something you can normally do in a matter of minutes - or even an hour or two - especially if the client is constantly requesting modifications. Therefore, my question is what is the best way to handle such situations?

Do a lot of you out there operate like ceertain other professional groups and utilize "retainer agreements?"
I have been wondering if a procedure such as this is appropriate for people who do design work. Rather than work simply on an hourly basis, set up a system wherein you are paid a certain amount upfront and the remainder when the job is done. And, prior to any work being done, get a signed an agreement(retainer) so there is no misunderstanding. The goal here is to be fair to all involved in the process - both designer and client. There is a "time value" associated with money. If you are working for an extended period of time and you're paid nothing until the job is completed, you may be shooting yourself in the foot, financially speaking. No one likes negative cashflow.

I would like to know how others handle this. Please advise.

Posted: Monday, 03/31/2003 -- by Mike Levin. Subject: Authors Alterations

Documents such as Statements of Work and Creative Briefs can help you manage the customer relationship. They help you lay out both the scope and the duration of work, with several steps requiring sign-off along the way.

The concept of changing the deliverable after the fact is called an Author's Alteration. Usually, you charge for this piecemeal at a much more expensive rate than if the decisions were made at the appropriate time. This fact should be spelled out at the beginning. This came from the print industry when clients changing their mind after all the proofs were approved and a piece has gone to press can be very costly.

These topics might be touched on in the Graphic Artists Guild book you picked up. If not, it might be worth a trip to the library or the bookstore to research how companies that are based on creative services run. Not charging for Authors Alterations can eat up any profit you hope to make. It's a serious topic.

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