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.

1. Prototyping
your business
@danielmall dan@danielmall.com

7. Design
Illustration
iOS
Motion Graphics
JavaScript

9. “Portfolio piece”

10. “More work”

12. Why do we just deal with this?

13. Business isn’t a science.

14. Business is an art.

15. “Design” isn’t limited to the things we make.

16. Design your process. Design your business.

17. Business is an art.
Founder & Design Director

18. Business is an art.
Design Director

19. Business is an art.
Interactive Director

20. february 2011

21. With a full-time salary as a backup,
I was free to experiment with my business.

22. I was free to prototype.

23. prototype
A way to test a hypothesis.

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

30. How much
should I charge?

31. I can make
good money
on side work
Hypothesis

32. I can make
good money
on side work
Hypothesis

33. rate cards

34. Principal
Art Director
Sr. Designer
Jr. Designer
Intern
$250/hr
$200/hr
$150/hr
$100/hr
$100/hr

35. Principal
Art Director
Sr. Designer
Jr. Designer
Intern
$250/hr
$200/hr
$150/hr
$100/hr
$100/hr

36. Hourly rates
Spoiler: hourly rates suck.

37. $25

38. $50

39. $100

40. $200

41. $400

42. $800
D

43. For me, it was difficult to convince a client
to pay more than $150/hr.

44. No one went to school to be a client.

45. paid hourly—$7/hr

46. paid hourly—$70/hr

47. paid
hourly but
went to
school for
7 years
$375/hr

48. Hourly rates don’t scale
with experience.

49. Hourly Rate $ 100

50. Hourly Rate
Hours
$ 100
10×

51. Hourly Rate
Hours
Total
$ 100
10
$1000
×

52. Hourly Rate
Hours
Total
$ 100
10
$1000
×
$ 100

53. Hourly Rate
Hours
Total
$ 100
10
$1000
$ 100
5× ×

54. Hourly Rate
Hours
Total
$ 100
10
$1000
$ 100
5
$ 500
× ×

55. Hourly Rate
Hours
Total
$ 100
10
$1000
$ 200
5
$1000
× ×

56. Hourly Rate
Hours
Total
$ 100
10
$1000
$ 400
5
$2000
× ×

57. Hourly Rate
Hours
Total
$ 100
10
$1000
$ 200
10
$2000
× ×

58. Hourly Rate
Hours
Total
$ 100
10
$1000
$ 100
20
$2000
× ×

59. Hourly rates incentivize you
to be slower.

60. Director of Client Service
2008 Hourly Billing Rates
* Over 500 employees—http://dmall.me/15CxrwU

61. Director of Client Service $ 533/hr
2008 Hourly Billing Rates
* Over 500 employees—http://dmall.me/15CxrwU

62. Director of Client Service
Executive Director Account Planning
$ 533/hr
2008 Hourly Billing Rates
* Over 500 employees—http://dmall.me/15CxrwU

63. Director of Client Service
Executive Director Account Planning
$ 533/hr
$ 601/hr
2008 Hourly Billing Rates
* Over 500 employees—http://dmall.me/15CxrwU

64. Director of Client Service
Executive Director Account Planning
Executive Research Director
$ 533/hr
$ 601/hr
2008 Hourly Billing Rates
* Over 500 employees—http://dmall.me/15CxrwU

65. Director of Client Service
Executive Director Account Planning
Executive Research Director
$ 533/hr
$ 601/hr
$ 427/hr
2008 Hourly Billing Rates
* Over 500 employees—http://dmall.me/15CxrwU

66. Director of Client Service
Executive Director Account Planning
Executive Research Director
Chief Creative Director
$ 533/hr
$ 601/hr
$ 427/hr
2008 Hourly Billing Rates
* Over 500 employees—http://dmall.me/15CxrwU

67. Director of Client Service
Executive Director Account Planning
Executive Research Director
Chief Creative Director
$ 533/hr
$ 601/hr
$ 427/hr
$ 964/hr
2008 Hourly Billing Rates
* Over 500 employees—http://dmall.me/15CxrwU

68. Director of Client Service
Executive Director Account Planning
Executive Research Director
Chief Creative Director
Executive Media Director
$ 533/hr
$ 601/hr
$ 427/hr
$ 964/hr
2008 Hourly Billing Rates
* Over 500 employees—http://dmall.me/15CxrwU

69. Director of Client Service
Executive Director Account Planning
Executive Research Director
Chief Creative Director
Executive Media Director
$ 533/hr
$ 601/hr
$ 427/hr
$ 964/hr
$ 478/hr
2008 Hourly Billing Rates
* Over 500 employees—http://dmall.me/15CxrwU

70. Director of Client Service
Executive Director Account Planning
Executive Research Director
Chief Creative Director
Executive Media Director
Executive Director Print Production
$ 533/hr
$ 601/hr
$ 427/hr
$ 964/hr
$ 478/hr
2008 Hourly Billing Rates
* Over 500 employees—http://dmall.me/15CxrwU

71. Director of Client Service
Executive Director Account Planning
Executive Research Director
Chief Creative Director
Executive Media Director
Executive Director Print Production
$ 533/hr
$ 601/hr
$ 427/hr
$ 964/hr
$ 478/hr
$ 391/hr
2008 Hourly Billing Rates
* Over 500 employees—http://dmall.me/15CxrwU

72. t
t
Time
Years in business

73. Clients should not be paying for our time.
They should be paying for our expertise.

74. if not hourly,
then what?

75. Fixed pricing

76. Hourly Rate
Hours
Total
$ 100
10
$1000
×

77. Hourly Rate
Hours
Total
$ 100
10
$1000
×

78. Hourly Rate
Hours
Total
$ 100
10
$1000
×

79. Hourly Rate
Hours
Total
$ 100
5
$1000
×
v

80. Hourly Rate
Hours
Total
$ 100
15
$1000
×
v

81. value pricing
0

82. Value pricing is not the same
as fixed pricing.
* However, fixed pricing is one type of value pricing.

83. Value pricing often has little to do
with the project itself.
It’s more about the service provider
and the client.

84. 1. touchy feely.
2. cool & calculated.

85. 1. touchy feely.
2. cool & calculated.

86. 1. touchy feely.
2. Cool & calculated.

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

89. Trust your gut.

90. 1. touchy feely.
2. cool & calculated.

91. Figure out what you need to earn.

92. Health Insurance
Gym
Mortgage
TV Services
Auto expenses
Groceries
Misc shopping
Student loan
$472.62
$79.98
$700.00
$25.99
$887.27
$400
$407
$128.09
Taxes
Phone
Water
Electric
Tithe
Property Tax
Sewer Dept.
Misc.
$1000.00
$200.00
$80.00
$125.00
$300.00
$100
$33
$2000
$6938.95Total

93. Round numbers make the math easy.

94. 1 month project = $10K

95. 2 week project = $5K

96. 2 month project = $20K

97. 1 month project = $10K
danielmall.com/articles/superfriendly-annual-report-2012

98. February 2012
1-month project, $10K

99. February 2012
1-month project, $10K
March 2012
1-month project, $10K

100. February 2012
1-month project, $10K
March 2012
1-month project, $10K
April 2012
1-month project, $30K

101. February 2012
1-month project, $10K
March 2012
1-month project, $10K
April 2012
1-month project, $30K
May 2012

103. When you’re ahead on cashflow, you
have the freedom to be picky,
relaxed, or ambitious.

104. When you’re ahead on cashflow,
you are more valuable.

105. Value-based pricing is about
how valuable you are.

106. Value-based pricing is about
how valuable you are (at any given time).

107. Save-the-date

108. They Really want
to work with me.
Hypothesis

109. I’ll be honest: my time is in demand. To reserve a
specific timeframe for your project, you can opt
into an additional retainer which guarantees
that your project is my first priority starting
October 30. This retainer is non-refundable.
I choose to immediately reserve this timeframe for my project and will
send $7500 along with the signed contract.

110. budget
The B-Word

111. What’s your budget?You
Well, we’d like to hear what
numbers you come up with.
Client
[lights hair on fire]You

112. ?

113. $60K

114. $60K
$35K

115. $60K
$105K

116. The Magic Question

117. “Is it closer to three thousand, thirty
thousand, or three hundred thousand?”
The Magic Question

118. “Budget” = This is what I think you’re worth

119. The Questionnaire

120. • What kind of timeframe are we looking at? Is there a certain event or date
that is dependent on this site launching? On my end, the soonest
availability I have to start this is in _____________. In the spirit of full
disclosure, I also have another prospective client interested in the same
time slot.

121. • What kind of timeframe are we looking at? Is there a certain event or date
that is dependent on this site launching? On my end, the soonest
availability I have to start this is in _____________. In the spirit of full
disclosure, I also have another prospective client interested in the same
time slot.
• Is there any work already started that I should know about? A new logo?
Some rough designs or ideas for the site?

122. • What kind of timeframe are we looking at? Is there a certain event or date
that is dependent on this site launching? On my end, the soonest
availability I have to start this is in _____________. In the spirit of full
disclosure, I also have another prospective client interested in the same
time 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 would
it be a whole team on your end?

123. • What kind of timeframe are we looking at? Is there a certain event or date
that is dependent on this site launching? On my end, the soonest
availability I have to start this is in _____________. In the spirit of full
disclosure, I also have another prospective client interested in the same
time 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 would
it be a whole team on your end?
• How did you hear about our work? What specifically interests you about
it? Any particular projects that you're keen on?

124. • What kind of timeframe are we looking at? Is there a certain event or date
that is dependent on this site launching? On my end, the soonest
availability I have to start this is in _____________. In the spirit of full
disclosure, I also have another prospective client interested in the same
time 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 would
it be a whole team on your end?
• How did you hear about our work? What specifically interests you about
it? Any particular projects that you're keen on?
• Are there other people that you’re talking to about this project? Might I ask
how many? What do you like about their work?

125. • What kind of timeframe are we looking at? Is there a certain event or date
that is dependent on this site launching? On my end, the soonest
availability I have to start this is in _____________. In the spirit of full
disclosure, I also have another prospective client interested in the same
time 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 would
it be a whole team on your end?
• How did you hear about our work? What specifically interests you about
it? Any particular projects that you're keen on?
• Are there other people that you’re talking to about this project? Might I ask
how many? What do you like about their work?
• What kind of budget do you have allocated for this project?

126. • What kind of timeframe are we looking at? Is there a certain event or date
that is dependent on this site launching? On my end, the soonest
availability I have to start this is in _____________. In the spirit of full
disclosure, I also have another prospective client interested in the same
time 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 would
it be a whole team on your end?
• How did you hear about our work? What specifically interests you about
it? Any particular projects that you're keen on?
• Are there other people that you’re talking to about this project? Might I ask
how 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 have
developers or other partners lined up and are looking to us just for design?
Or do you want the whole thing designed and built?

127. • What kind of timeframe are we looking at? Is there a certain event or date
that is dependent on this site launching? On my end, the soonest
availability I have to start this is in _____________. In the spirit of full
disclosure, I also have another prospective client interested in the same
time 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 would
it be a whole team on your end?
• How did you hear about our work? What specifically interests you about
it? Any particular projects that you're keen on?
• Are there other people that you’re talking to about this project? Might I ask
how 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 have
developers 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?

128. performance-based
compensation
Value Pricing

129. Equity, sales bonuses, incentives, etc

130. Cashflow

131. When should you get paid?

132. 50%-50%

133. Thirds

134. Good cashflow is about mitigating risk.

135. Biweekly

136. 97%

137. Further areas
to prototype

138. Contracts

139. Contracts
stuffandnonsense.co.uk/projects/contract-killer

140. Proposals/pitches

141. Language

142. When you want numbers to seem
low, use “K.” When you want them to
seem high, write out the full number.
Pro Tip

143. “While our competitor might be
charging you $372,000.00, we’re
confident we could get it done for
about $254K.
Example

144. What clients want to buy
more than anything is trust.
businessologyshow.biz @bizologyshow info@businessologyshow.biz

145. What clients want to buy
more than anything is trust.

146. The more time you spend building trust,
the better your business will be.

147. Thanks!
B u
@danielmall dan@danielmall.com