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Prototyping
your business
@danielmall dan@danielmall.com
Design
Illustration
iOS
Motion Graphics
JavaScript
“Portfolio piece”
“More work”
Why do we just deal with this?
Business isn’t a science.
Business is an art.
“Design” isn’t limited to the things we make.
Design your process. Design your business.
Business is an art.
Founder & Design Director
Business is an art.
Design Director
Business is an art.
Interactive Director
february 2011
With a full-time salary as a backup,
I was free to experiment with my business.
I was free to prototype.
prototype
A way to test a hypothesis.
webdesignforidiots.net/2012/11/plan-learning-to-wire-frame/
How much
should I charge?
I can make
good money
on side work
Hypothesis
I can make
good money
on side work
Hypothesis
rate cards
Principal
Art Director
Sr. Designer
Jr. Designer
Intern
$250/hr
$200/hr
$150/hr
$100/hr
$100/hr
Principal
Art Director
Sr. Designer
Jr. Designer
Intern
$250/hr
$200/hr
$150/hr
$100/hr
$100/hr
Hourly rates
Spoiler: hourly rates suck.
$25
$50
$100
$200
$400
$800
D
For me, it was difficult to convince a client
to pay more than $150/hr.
No one went to school to be a client.
paid hourly—$7/hr
paid hourly—$70/hr
paid
hourly but
went to
school for
7 years
$375/hr
Hourly rates don’t scale
with experience.
Hourly Rate $ 100
Hourly Rate
Hours
$ 100
10×
Hourly Rate
Hours
Total
$ 100
10
$1000
×
Hourly Rate
Hours
Total
$ 100
10
$1000
×
$ 100
Hourly Rate
Hours
Total
$ 100
10
$1000
$ 100
5× ×
Hourly Rate
Hours
Total
$ 100
10
$1000
$ 100
5
$ 500
× ×
Hourly Rate
Hours
Total
$ 100
10
$1000
$ 200
5
$1000
× ×
Hourly Rate
Hours
Total
$ 100
10
$1000
$ 400
5
$2000
× ×
Hourly Rate
Hours
Total
$ 100
10
$1000
$ 200
10
$2000
× ×
Hourly Rate
Hours
Total
$ 100
10
$1000
$ 100
20
$2000
× ×
Hourly rates incentivize you
to be slower.
Director of Client Service
2008 Hourly Billing Rates
* Over 500 employees—http://dmall.me/15CxrwU
Director of Client Service $ 533/hr
2008 Hourly Billing Rates
* Over 500 employees—http://dmall.me/15CxrwU
Director of Client Service
Executive Director Account Planning
$ 533/hr
2008 Hourly Billing Rates
* Over 500 employees—htt...
Director of Client Service
Executive Director Account Planning
$ 533/hr
$ 601/hr
2008 Hourly Billing Rates
* Over 500 empl...
Director of Client Service
Executive Director Account Planning
Executive Research Director
$ 533/hr
$ 601/hr
2008 Hourly B...
Director of Client Service
Executive Director Account Planning
Executive Research Director
$ 533/hr
$ 601/hr
$ 427/hr
2008...
Director of Client Service
Executive Director Account Planning
Executive Research Director
Chief Creative Director
$ 533/h...
Director of Client Service
Executive Director Account Planning
Executive Research Director
Chief Creative Director
$ 533/h...
Director of Client Service
Executive Director Account Planning
Executive Research Director
Chief Creative Director
Executi...
Director of Client Service
Executive Director Account Planning
Executive Research Director
Chief Creative Director
Executi...
Director of Client Service
Executive Director Account Planning
Executive Research Director
Chief Creative Director
Executi...
Director of Client Service
Executive Director Account Planning
Executive Research Director
Chief Creative Director
Executi...
t
t
Time
Years in business
Clients should not be paying for our time.
They should be paying for our expertise.
if not hourly,
then what?
Fixed pricing
Hourly Rate
Hours
Total
$ 100
10
$1000
×
Hourly Rate
Hours
Total
$ 100
10
$1000
×
Hourly Rate
Hours
Total
$ 100
10
$1000
×
Hourly Rate
Hours
Total
$ 100
5
$1000
×
v
Hourly Rate
Hours
Total
$ 100
15
$1000
×
v
value pricing
0
Value pricing is not the same
as fixed pricing.
* However, fixed pricing is one type of value pricing.
Value pricing often has little to do
with the project itself.
It’s more about the service provider
and the client.
1. touchy feely.
2. cool & calculated.
1. touchy feely.
2. cool & calculated.
1. touchy feely.
2. Cool & calculated.
danielmall.com/articles/object-value-pricing/
Trust your gut.
1. touchy feely.
2. cool & calculated.
Figure out what you need to earn.
Health Insurance
Gym
Mortgage
TV Services
Auto expenses
Groceries
Misc shopping
Student loan
$472.62
$79.98
$700.00
$25.99...
Round numbers make the math easy.
1 month project = $10K
2 week project = $5K
2 month project = $20K
1 month project = $10K
danielmall.com/articles/superfriendly-annual-report-2012
February 2012
1-month project, $10K
February 2012
1-month project, $10K
March 2012
1-month project, $10K
February 2012
1-month project, $10K
March 2012
1-month project, $10K
April 2012
1-month project, $30K
February 2012
1-month project, $10K
March 2012
1-month project, $10K
April 2012
1-month project, $30K
May 2012
When you’re ahead on cashflow, you
have the freedom to be picky,
relaxed, or ambitious.
When you’re ahead on cashflow,
you are more valuable.
Value-based pricing is about
how valuable you are.
Value-based pricing is about
how valuable you are (at any given time).
Save-the-date
They Really want
to work with me.
Hypothesis
I’ll be honest: my time is in demand. To reserve a
specific timeframe for your project, you can opt
into an additional ret...
budget
The B-Word
What’s your budget?You
Well, we’d like to hear what
numbers you come up with.
Client
[lights hair on fire]You
?
$60K
$60K
$35K
$60K
$105K
The Magic Question
“Is it closer to three thousand, thirty
thousand, or three hundred thousand?”
The Magic Question
“Budget” = This is what I think you’re worth
The Questionnaire
• What kind of timeframe are we looking at? Is there a certain event or date
that is dependent on this site launching? On ...
• What kind of timeframe are we looking at? Is there a certain event or date
that is dependent on this site launching? On ...
• What kind of timeframe are we looking at? Is there a certain event or date
that is dependent on this site launching? On ...
• What kind of timeframe are we looking at? Is there a certain event or date
that is dependent on this site launching? On ...
• What kind of timeframe are we looking at? Is there a certain event or date
that is dependent on this site launching? On ...
• What kind of timeframe are we looking at? Is there a certain event or date
that is dependent on this site launching? On ...
• What kind of timeframe are we looking at? Is there a certain event or date
that is dependent on this site launching? On ...
• What kind of timeframe are we looking at? Is there a certain event or date
that is dependent on this site launching? On ...
performance-based
compensation
Value Pricing
Equity, sales bonuses, incentives, etc
Cashflow
When should you get paid?
50%-50%
Thirds
Good cashflow is about mitigating risk.
Biweekly
97%
Further areas
to prototype
Contracts
Contracts
stuffandnonsense.co.uk/projects/contract-killer
Proposals/pitches
Language
When you want numbers to seem
low, use “K.” When you want them to
seem high, write out the full number.
Pro Tip
“While our competitor might be
charging you $372,000.00, we’re
confident we could get it done for
about $254K.
Example
What clients want to buy
more than anything is trust.
businessologyshow.biz @bizologyshow info@businessologyshow.biz
What clients want to buy
more than anything is trust.
The more time you spend building trust,
the better your business will be.
Thanks!
B u
@danielmall dan@danielmall.com
Prototyping Your Business with Dan Mall
Prototyping Your Business with Dan Mall
Prototyping Your Business with Dan Mall
Prototyping Your Business with Dan Mall
Prototyping Your Business with Dan Mall
Prototyping Your Business with Dan Mall
Prototyping Your Business with Dan Mall
Prototyping Your Business with Dan Mall
Prototyping Your Business with Dan Mall
Prototyping Your Business with Dan Mall
Prototyping Your Business with Dan Mall
Prototyping Your Business with Dan Mall
Prototyping Your Business with Dan Mall
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.

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Prototyping Your Business with Dan Mall

  1. 1. Prototyping your business @danielmall dan@danielmall.com
  2. 2. Design Illustration iOS Motion Graphics JavaScript
  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. prototype A way to test a hypothesis.
  17. 17. webdesignforidiots.net/2012/11/plan-learning-to-wire-frame/
  18. 18. How much should I charge?
  19. 19. I can make good money on side work Hypothesis
  20. 20. I can make good money on side work Hypothesis
  21. 21. rate cards
  22. 22. Principal Art Director Sr. Designer Jr. Designer Intern $250/hr $200/hr $150/hr $100/hr $100/hr
  23. 23. Principal Art Director Sr. Designer Jr. Designer Intern $250/hr $200/hr $150/hr $100/hr $100/hr
  24. 24. Hourly rates Spoiler: hourly rates suck.
  25. 25. $25
  26. 26. $50
  27. 27. $100
  28. 28. $200
  29. 29. $400
  30. 30. $800 D
  31. 31. For me, it was difficult to convince a client to 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. paid hourly but went to school for 7 years $375/hr
  36. 36. Hourly rates don’t scale with experience.
  37. 37. Hourly Rate $ 100
  38. 38. Hourly Rate Hours $ 100 10×
  39. 39. Hourly Rate Hours Total $ 100 10 $1000 ×
  40. 40. Hourly Rate Hours Total $ 100 10 $1000 × $ 100
  41. 41. Hourly Rate Hours Total $ 100 10 $1000 $ 100 5× ×
  42. 42. Hourly Rate Hours Total $ 100 10 $1000 $ 100 5 $ 500 × ×
  43. 43. Hourly Rate Hours Total $ 100 10 $1000 $ 200 5 $1000 × ×
  44. 44. Hourly Rate Hours Total $ 100 10 $1000 $ 400 5 $2000 × ×
  45. 45. Hourly Rate Hours Total $ 100 10 $1000 $ 200 10 $2000 × ×
  46. 46. Hourly Rate Hours Total $ 100 10 $1000 $ 100 20 $2000 × ×
  47. 47. Hourly rates incentivize you to be slower.
  48. 48. Director of Client Service 2008 Hourly Billing Rates * Over 500 employees—http://dmall.me/15CxrwU
  49. 49. Director of Client Service $ 533/hr 2008 Hourly Billing Rates * Over 500 employees—http://dmall.me/15CxrwU
  50. 50. Director of Client Service Executive Director Account Planning $ 533/hr 2008 Hourly Billing Rates * Over 500 employees—http://dmall.me/15CxrwU
  51. 51. Director of Client Service Executive Director Account Planning $ 533/hr $ 601/hr 2008 Hourly Billing Rates * Over 500 employees—http://dmall.me/15CxrwU
  52. 52. 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
  53. 53. 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
  54. 54. 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
  55. 55. 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
  56. 56. 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
  57. 57. 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
  58. 58. 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
  59. 59. 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
  60. 60. t t Time Years 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 Rate Hours Total $ 100 10 $1000 ×
  65. 65. Hourly Rate Hours Total $ 100 10 $1000 ×
  66. 66. Hourly Rate Hours Total $ 100 10 $1000 ×
  67. 67. Hourly Rate Hours Total $ 100 5 $1000 × v
  68. 68. Hourly Rate Hours Total $ 100 15 $1000 × v
  69. 69. value pricing 0
  70. 70. Value pricing is not the same as fixed pricing. * However, fixed pricing is one type of value pricing.
  71. 71. Value pricing often has little to do with the project itself. It’s more about the service provider and 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 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
  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 = $10K danielmall.com/articles/superfriendly-annual-report-2012
  85. 85. February 2012 1-month project, $10K
  86. 86. February 2012 1-month project, $10K March 2012 1-month project, $10K
  87. 87. February 2012 1-month project, $10K March 2012 1-month project, $10K April 2012 1-month project, $30K
  88. 88. February 2012 1-month project, $10K March 2012 1-month project, $10K April 2012 1-month project, $30K May 2012
  89. 89. When you’re ahead on cashflow, you have 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 about how valuable you are.
  92. 92. Value-based pricing is about how valuable you are (at any given time).
  93. 93. Save-the-date
  94. 94. They Really want to work with me. Hypothesis
  95. 95. 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.
  96. 96. budget The B-Word
  97. 97. What’s your budget?You Well, we’d like to hear what numbers 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, thirty thousand, 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 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.
  107. 107. • 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?
  108. 108. • 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?
  109. 109. • 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?
  110. 110. • 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?
  111. 111. • 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?
  112. 112. • 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?
  113. 113. • 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?
  114. 114. performance-based compensation Value 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 areas to prototype
  124. 124. Contracts
  125. 125. Contracts stuffandnonsense.co.uk/projects/contract-killer
  126. 126. Proposals/pitches
  127. 127. Language
  128. 128. When you want numbers to seem low, use “K.” When you want them to seem high, write out the full number. Pro Tip
  129. 129. “While our competitor might be charging you $372,000.00, we’re confident we could get it done for about $254K. Example
  130. 130. What clients want to buy more than anything is trust. businessologyshow.biz @bizologyshow info@businessologyshow.biz
  131. 131. What clients want to buy more 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
  • DawnSullivan20

    Nov. 27, 2021
  • monstermac

    Mar. 10, 2017
  • gregwarner9

    Nov. 6, 2014
  • dleatherman

    Aug. 21, 2014
  • 4EveRYounG

    Aug. 8, 2014
  • adamkurzawa

    Aug. 1, 2014
  • DanielMorosan

    Sep. 22, 2013

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.

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