Prototyping Your Business

transcript

Prototypingyour business

@d!nielm!ll d!n@d!nielm!ll.com

Design

Illustration

Motion Graphics

JavaScript

“Portfolio piece”

“More work”

Wh" do we just de!l with this?

Business isn’t a science.

Business is an art.

“Desi#n” isn’t limited to the thin#s we m!ke.

Desi#n "our process. Desi#n "our business.

Business is an art.

Founder $ Desi#n Director

Business is an art.Desi#n Director

Business is an art.

Inter!ctive Director

february 2011

With ! %ull-time s!l!r" !s ! b!ckup, I w!s %ree to experiment with m" business.

I w!s %ree to protot"pe.

prototypeA w!" to test ! h"pothesis.

webdesignforidiots.net/2012/11/plan-learning-to-wire-frame/

How much should I charge?

I can make good moneyon side work

H"pothesis

I can makegood moneyon side work

H"pothesis

rate cards

Principal

Art Director

Sr. Designer

Jr. Designer

Intern

$250/hr

$200/hr

$150/hr

$100/hr

Principal

Art Director

Sr. Designer

Jr. Designer

Intern

$250/hr

$200/hr

$150/hr

$100/hr

Hourly ratesSpoiler: hourl" r!tes suck.

For me, it w!s di%%icult to convince ! client to p!" more th!n $150/hr.

No one went to school to be ! client.

paid hourly—$7/hr

paid hourly—$70/hr

paid hourly but went to school for 7 years

$375/hr

Hourl" r!tes don’t sc!le with experience.

Hourly Rate $ 100

Hourly Rate

5× ×

Hourly Rate

Hourl" r!tes incentivize "ou to be slower.

Director of Client Service

2008 Hourl! Billin" R#tes* Over 500 employees—http://dmall.me/15CxrwU

Director of Client Service $ 533/hr

Executive Director Account Planning

$ 533/hr

$ 601/hr

Executive Research Director

$ 533/hr

$ 601/hr

$ 533/hr

$ 601/hr

$ 427/hr

Chief Creative Director

$ 533/hr

$ 601/hr

$ 427/hr

$ 533/hr

$ 601/hr

$ 427/hr

$ 964/hr

Executive Media Director

$ 533/hr

$ 601/hr

$ 427/hr

$ 964/hr

$ 533/hr

$ 601/hr

$ 427/hr

$ 964/hr

$ 478/hr

Executive Director Print Production

$ 533/hr

$ 601/hr

$ 427/hr

$ 964/hr

$ 478/hr

Executive Director Print Production

$ 533/hr

$ 601/hr

$ 427/hr

$ 964/hr

$ 478/hr

$ 391/hr

Ye!rs in business

Clients should not be p!"in# %or our time. The" should be p!"in# %or our expertise.

if not hourly, then what?

Fixed pricing

Hourly Rate

value pricing

V!lue pricin# is not the s!me !s %ixed pricin#.

* However, %ixed pricin# is one t"pe o% v!lue pricin#.

V!lue pricin# o%ten h!s little to do with the project itsel%.

It’s more !bout the service provider !nd the client.

1. touchy feely.

2. cool & calculated.

1. touchy feely.

2. Cool & calculated.

danielmall.com/articles/object-value-pricing/

Trust "our #ut.

1. touchy feely.

Fi#ure out wh!t "ou need to e!rn.

Health Insurance

Mortgage

TV Services

Auto expenses

Groceries

Misc shopping

Student loan

$472.62

$79.98

$700.00

$25.99

$887.27

$128.09

Electric

Property Tax

Sewer Dept.

$1000.00

$200.00

$80.00

$125.00

$300.00

$6938.95Tot!l

Round numbers m!ke the m!th e!s".

1 month project = $10K

2 week project = $5K

danielmall.com/articles/superfriendly-annual-report-2012

February 2012

1-month project, $10K

February 2012

1-month project, $10KMarch 2012

February 2012

1-month project, $10KApril 2012

February 2012

1-month project, $10KApril 2012

1-month project, $30KMay 2012

When "ou’re !he!d on c!sh%low, "ou h!ve the %reedom to be pick",

rel!xed, or !mbitious.

When "ou’re !he!d on c!sh%low, "ou !re more v!lu!ble.

V!lue-b!sed pricin# is !bout how v!lu!ble "ou !re.

V!lue-b!sed pricin# is !bout how v!lu!ble "ou !re (!t !n" #iven time).

Save-the-date

They Really want to work with me.

H"pothesis

I’ll be honest: m" time is in dem!nd. To reserve ! speci%ic time%r!me %or "our project, "ou c!n opt into !n !ddition!l ret!iner which #u!r!ntees th!t "our project is m" %irst priorit" st!rtin# October 30. This ret!iner is non-re%und!ble.

I choose to immedi!tel" reserve this time%r!me %or m" project !nd will send $7500 !lon# with the si#ned contr!ct.

budgetThe B-Word

Wh!t’s "our bud#et?You

Well, we’d like to he!r wh!t numbers "ou come up with.

Client

[li#hts h!ir on %ire]You

The M!#ic Question

“Is it closer to three thous!nd, thirt" thous!nd, or three hundred thous!nd?”

The M!#ic Question

“Bud#et” = This is wh!t I think "ou’re worth

The Questionnaire

• Wh!t kind o% time%r!me !re we lookin# !t? Is there ! cert!in event or d!te th!t is dependent on this site l!unchin#? On m" end, the soonest !v!il!bilit" I h!ve to st!rt this is in _____________. In the spirit o% %ull disclosure, I !lso h!ve !nother prospective client interested in the s!me time slot.

• Is there !n" work !lre!d" st!rted th!t I should know !bout? A new lo#o? Some rou#h desi#ns or ide!s %or the site?

• Wh!t size is the project te!m on "our end? Would it just be "ou? Or would it be ! whole te!m on "our end?

• How did "ou he!r !bout our work? Wh!t speci%ic!ll" interests "ou !bout it? An" p!rticul!r projects th!t "ou're keen on?

• Are there other people th!t "ou’re t!lkin# to !bout this project? Mi#ht I !sk how m!n"? Wh!t do "ou like !bout their work?

• Wh!t kind o% bud#et do "ou h!ve !lloc!ted %or this project?

• Wh!t !re "ou speci%ic!ll" lookin# %or %rom me? Do "ou !lre!d" h!ve developers or other p!rtners lined up !nd !re lookin# to us just %or desi#n? Or do "ou w!nt the whole thin# desi#ned !nd built?

• An"thin# else th!t I should know !bout wh!t "ou’re lookin# %or %rom me?

performance-based compensation

V!lue Pricin#

Equit", s!les bonuses, incentives, etc

Cashflow

When should "ou #et p!id?

50%-50%

Thirds

Good c!sh%low is !bout miti#!tin# risk.

Biweekly

Further areas to prototype

Contracts

stuffandnonsense.co.uk/projects/contract-killer

Proposals/pitches

Language

When "ou w!nt numbers to seem low, use “K.” When "ou w!nt them to seem hi#h, write out the %ull number.

Pro Tip

“While our competitor mi#ht be ch!r#in# "ou $372,000.00, we’re con%ident we could #et it done %or

!bout $254K.

Ex!mple

Wh!t clients w!nt to bu" more th!n !n"thin# is trust.

businessolo#"show.biz @bizolo#"show in%o@businessolo#"show.biz

Wh!t clients w!nt to bu" more th!n !n"thin# is trust.

The more time "ou spend buildin# trust, the better "our business will be.

Thanks!B u

@d!nielm!ll d!n@d!nielm!ll.com