Prototyping Your Business with Dan Mall

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As designers and developers, we’re used to prototyping our ideas; that is, we roughly test concepts to see if there’s any merit in them before committing to a full-scale effort. Why don’t we do this with our businesses? In this session, we’ll talk about how to apply the same approaches from building sites and apps to iterating on contracts, billing options, project cycles, presenting work, and all the other stuff that pays the bills—and pays them well.

Published in: Technology, Business

Prototyping Your Business with Dan Mall

  1. 1. Prototypingyour business@danielmall dan@danielmall.com
  2. 2. DesignIllustrationiOSMotion GraphicsJavaScript
  3. 3. “Portfolio piece”
  4. 4. “More work”
  5. 5. Why do we just deal with this?
  6. 6. Business isn’t a science.
  7. 7. Business is an art.
  8. 8. “Design” isn’t limited to the things we make.
  9. 9. Design your process. Design your business.
  10. 10. Business is an art.Founder & Design Director
  11. 11. Business is an art.Design Director
  12. 12. Business is an art.Interactive Director
  13. 13. february 2011
  14. 14. With a full-time salary as a backup,I was free to experiment with my business.
  15. 15. I was free to prototype.
  16. 16. prototypeA way to test a hypothesis.
  17. 17. webdesignforidiots.net/2012/11/plan-learning-to-wire-frame/
  18. 18. How muchshould I charge?
  19. 19. I can makegood moneyon side workHypothesis
  20. 20. I can makegood moneyon side workHypothesis
  21. 21. rate cards
  22. 22. PrincipalArt DirectorSr. DesignerJr. DesignerIntern$250/hr$200/hr$150/hr$100/hr$100/hr
  23. 23. PrincipalArt DirectorSr. DesignerJr. DesignerIntern$250/hr$200/hr$150/hr$100/hr$100/hr
  24. 24. Hourly ratesSpoiler: hourly rates suck.
  25. 25. $25
  26. 26. $50
  27. 27. $100
  28. 28. $200
  29. 29. $400
  30. 30. $800D
  31. 31. For me, it was difficult to convince a clientto pay more than $150/hr.
  32. 32. No one went to school to be a client.
  33. 33. paid hourly—$7/hr
  34. 34. paid hourly—$70/hr
  35. 35. paidhourly butwent toschool for7 years$375/hr
  36. 36. Hourly rates don’t scalewith experience.
  37. 37. Hourly Rate $ 100
  38. 38. Hourly RateHours$ 10010×
  39. 39. Hourly RateHoursTotal$ 10010$1000×
  40. 40. Hourly RateHoursTotal$ 10010$1000×$ 100
  41. 41. Hourly RateHoursTotal$ 10010$1000$ 1005× ×
  42. 42. Hourly RateHoursTotal$ 10010$1000$ 1005$ 500× ×
  43. 43. Hourly RateHoursTotal$ 10010$1000$ 2005$1000× ×
  44. 44. Hourly RateHoursTotal$ 10010$1000$ 4005$2000× ×
  45. 45. Hourly RateHoursTotal$ 10010$1000$ 20010$2000× ×
  46. 46. Hourly RateHoursTotal$ 10010$1000$ 10020$2000× ×
  47. 47. Hourly rates incentivize youto be slower.
  48. 48. Director of Client Service2008 Hourly Billing Rates* Over 500 employees—http://dmall.me/15CxrwU
  49. 49. Director of Client Service $ 533/hr2008 Hourly Billing Rates* Over 500 employees—http://dmall.me/15CxrwU
  50. 50. Director of Client ServiceExecutive Director Account Planning$ 533/hr2008 Hourly Billing Rates* Over 500 employees—http://dmall.me/15CxrwU
  51. 51. Director of Client ServiceExecutive Director Account Planning$ 533/hr$ 601/hr2008 Hourly Billing Rates* Over 500 employees—http://dmall.me/15CxrwU
  52. 52. Director of Client ServiceExecutive Director Account PlanningExecutive Research Director$ 533/hr$ 601/hr2008 Hourly Billing Rates* Over 500 employees—http://dmall.me/15CxrwU
  53. 53. Director of Client ServiceExecutive Director Account PlanningExecutive Research Director$ 533/hr$ 601/hr$ 427/hr2008 Hourly Billing Rates* Over 500 employees—http://dmall.me/15CxrwU
  54. 54. Director of Client ServiceExecutive Director Account PlanningExecutive Research DirectorChief Creative Director$ 533/hr$ 601/hr$ 427/hr2008 Hourly Billing Rates* Over 500 employees—http://dmall.me/15CxrwU
  55. 55. Director of Client ServiceExecutive Director Account PlanningExecutive Research DirectorChief Creative Director$ 533/hr$ 601/hr$ 427/hr$ 964/hr2008 Hourly Billing Rates* Over 500 employees—http://dmall.me/15CxrwU
  56. 56. Director of Client ServiceExecutive Director Account PlanningExecutive Research DirectorChief Creative DirectorExecutive Media Director$ 533/hr$ 601/hr$ 427/hr$ 964/hr2008 Hourly Billing Rates* Over 500 employees—http://dmall.me/15CxrwU
  57. 57. Director of Client ServiceExecutive Director Account PlanningExecutive Research DirectorChief Creative DirectorExecutive Media Director$ 533/hr$ 601/hr$ 427/hr$ 964/hr$ 478/hr2008 Hourly Billing Rates* Over 500 employees—http://dmall.me/15CxrwU
  58. 58. Director of Client ServiceExecutive Director Account PlanningExecutive Research DirectorChief Creative DirectorExecutive Media DirectorExecutive Director Print Production$ 533/hr$ 601/hr$ 427/hr$ 964/hr$ 478/hr2008 Hourly Billing Rates* Over 500 employees—http://dmall.me/15CxrwU
  59. 59. Director of Client ServiceExecutive Director Account PlanningExecutive Research DirectorChief Creative DirectorExecutive Media DirectorExecutive Director Print Production$ 533/hr$ 601/hr$ 427/hr$ 964/hr$ 478/hr$ 391/hr2008 Hourly Billing Rates* Over 500 employees—http://dmall.me/15CxrwU
  60. 60. ttTimeYears in business
  61. 61. Clients should not be paying for our time.They should be paying for our expertise.
  62. 62. if not hourly,then what?
  63. 63. Fixed pricing
  64. 64. Hourly RateHoursTotal$ 10010$1000×
  65. 65. Hourly RateHoursTotal$ 10010$1000×
  66. 66. Hourly RateHoursTotal$ 10010$1000×
  67. 67. Hourly RateHoursTotal$ 1005$1000×v
  68. 68. Hourly RateHoursTotal$ 10015$1000×v
  69. 69. value pricing0
  70. 70. Value pricing is not the sameas fixed pricing.* However, fixed pricing is one type of value pricing.
  71. 71. Value pricing often has little to dowith the project itself.It’s more about the service providerand the client.
  72. 72. 1. touchy feely.2. cool & calculated.
  73. 73. 1. touchy feely.2. cool & calculated.
  74. 74. 1. touchy feely.2. Cool & calculated.
  75. 75. danielmall.com/articles/object-value-pricing/
  76. 76. Trust your gut.
  77. 77. 1. touchy feely.2. cool & calculated.
  78. 78. Figure out what you need to earn.
  79. 79. Health InsuranceGymMortgageTV ServicesAuto expensesGroceriesMisc shoppingStudent loan$472.62$79.98$700.00$25.99$887.27$400$407$128.09TaxesPhoneWaterElectricTitheProperty TaxSewer Dept.Misc.$1000.00$200.00$80.00$125.00$300.00$100$33$2000$6938.95Total
  80. 80. Round numbers make the math easy.
  81. 81. 1 month project = $10K
  82. 82. 2 week project = $5K
  83. 83. 2 month project = $20K
  84. 84. 1 month project = $10Kdanielmall.com/articles/superfriendly-annual-report-2012
  85. 85. February 20121-month project, $10K
  86. 86. February 20121-month project, $10KMarch 20121-month project, $10K
  87. 87. February 20121-month project, $10KMarch 20121-month project, $10KApril 20121-month project, $30K
  88. 88. February 20121-month project, $10KMarch 20121-month project, $10KApril 20121-month project, $30KMay 2012
  89. 89. When you’re ahead on cashflow, youhave the freedom to be picky,relaxed, or ambitious.
  90. 90. When you’re ahead on cashflow,you are more valuable.
  91. 91. Value-based pricing is abouthow valuable you are.
  92. 92. Value-based pricing is abouthow valuable you are (at any given time).
  93. 93. Save-the-date
  94. 94. They Really wantto work with me.Hypothesis
  95. 95. I’ll be honest: my time is in demand. To reserve aspecific timeframe for your project, you can optinto an additional retainer which guaranteesthat your project is my first priority startingOctober 30. This retainer is non-refundable.I choose to immediately reserve this timeframe for my project and willsend $7500 along with the signed contract.
  96. 96. budgetThe B-Word
  97. 97. What’s your budget?YouWell, we’d like to hear whatnumbers you come up with.Client[lights hair on fire]You
  98. 98. ?
  99. 99. $60K
  100. 100. $60K$35K
  101. 101. $60K$105K
  102. 102. The Magic Question
  103. 103. “Is it closer to three thousand, thirtythousand, or three hundred thousand?”The Magic Question
  104. 104. “Budget” = This is what I think you’re worth
  105. 105. The Questionnaire
  106. 106. • What kind of timeframe are we looking at? Is there a certain event or datethat is dependent on this site launching? On my end, the soonestavailability I have to start this is in _____________. In the spirit of fulldisclosure, I also have another prospective client interested in the sametime slot.
  107. 107. • What kind of timeframe are we looking at? Is there a certain event or datethat is dependent on this site launching? On my end, the soonestavailability I have to start this is in _____________. In the spirit of fulldisclosure, I also have another prospective client interested in the sametime slot.• Is there any work already started that I should know about? A new logo?Some rough designs or ideas for the site?
  108. 108. • What kind of timeframe are we looking at? Is there a certain event or datethat is dependent on this site launching? On my end, the soonestavailability I have to start this is in _____________. In the spirit of fulldisclosure, I also have another prospective client interested in the sametime slot.• Is there any work already started that I should know about? A new logo?Some rough designs or ideas for the site?• What size is the project team on your end? Would it just be you? Or wouldit be a whole team on your end?
  109. 109. • What kind of timeframe are we looking at? Is there a certain event or datethat is dependent on this site launching? On my end, the soonestavailability I have to start this is in _____________. In the spirit of fulldisclosure, I also have another prospective client interested in the sametime slot.• Is there any work already started that I should know about? A new logo?Some rough designs or ideas for the site?• What size is the project team on your end? Would it just be you? Or wouldit be a whole team on your end?• How did you hear about our work? What specifically interests you aboutit? Any particular projects that youre keen on?
  110. 110. • What kind of timeframe are we looking at? Is there a certain event or datethat is dependent on this site launching? On my end, the soonestavailability I have to start this is in _____________. In the spirit of fulldisclosure, I also have another prospective client interested in the sametime slot.• Is there any work already started that I should know about? A new logo?Some rough designs or ideas for the site?• What size is the project team on your end? Would it just be you? Or wouldit be a whole team on your end?• How did you hear about our work? What specifically interests you aboutit? Any particular projects that youre keen on?• Are there other people that you’re talking to about this project? Might I askhow many? What do you like about their work?
  111. 111. • What kind of timeframe are we looking at? Is there a certain event or datethat is dependent on this site launching? On my end, the soonestavailability I have to start this is in _____________. In the spirit of fulldisclosure, I also have another prospective client interested in the sametime slot.• Is there any work already started that I should know about? A new logo?Some rough designs or ideas for the site?• What size is the project team on your end? Would it just be you? Or wouldit be a whole team on your end?• How did you hear about our work? What specifically interests you aboutit? Any particular projects that youre keen on?• Are there other people that you’re talking to about this project? Might I askhow many? What do you like about their work?• What kind of budget do you have allocated for this project?
  112. 112. • What kind of timeframe are we looking at? Is there a certain event or datethat is dependent on this site launching? On my end, the soonestavailability I have to start this is in _____________. In the spirit of fulldisclosure, I also have another prospective client interested in the sametime slot.• Is there any work already started that I should know about? A new logo?Some rough designs or ideas for the site?• What size is the project team on your end? Would it just be you? Or wouldit be a whole team on your end?• How did you hear about our work? What specifically interests you aboutit? Any particular projects that youre keen on?• Are there other people that you’re talking to about this project? Might I askhow many? What do you like about their work?• What kind of budget do you have allocated for this project?• What are you specifically looking for from me? Do you already havedevelopers or other partners lined up and are looking to us just for design?Or do you want the whole thing designed and built?
  113. 113. • What kind of timeframe are we looking at? Is there a certain event or datethat is dependent on this site launching? On my end, the soonestavailability I have to start this is in _____________. In the spirit of fulldisclosure, I also have another prospective client interested in the sametime slot.• Is there any work already started that I should know about? A new logo?Some rough designs or ideas for the site?• What size is the project team on your end? Would it just be you? Or wouldit be a whole team on your end?• How did you hear about our work? What specifically interests you aboutit? Any particular projects that youre keen on?• Are there other people that you’re talking to about this project? Might I askhow many? What do you like about their work?• What kind of budget do you have allocated for this project?• What are you specifically looking for from me? Do you already havedevelopers or other partners lined up and are looking to us just for design?Or do you want the whole thing designed and built?• Anything else that I should know about what you’re looking for from me?
  114. 114. performance-basedcompensationValue Pricing
  115. 115. Equity, sales bonuses, incentives, etc
  116. 116. Cashflow
  117. 117. When should you get paid?
  118. 118. 50%-50%
  119. 119. Thirds
  120. 120. Good cashflow is about mitigating risk.
  121. 121. Biweekly
  122. 122. 97%
  123. 123. Further areasto prototype
  124. 124. Contracts
  125. 125. Contractsstuffandnonsense.co.uk/projects/contract-killer
  126. 126. Proposals/pitches
  127. 127. Language
  128. 128. When you want numbers to seemlow, use “K.” When you want them toseem high, write out the full number.Pro Tip
  129. 129. “While our competitor might becharging you $372,000.00, we’reconfident we could get it done forabout $254K.Example
  130. 130. What clients want to buymore than anything is trust.businessologyshow.biz @bizologyshow info@businessologyshow.biz
  131. 131. What clients want to buymore than anything is trust.
  132. 132. The more time you spend building trust,the better your business will be.
  133. 133. Thanks!B u@danielmall dan@danielmall.com

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