New Ways of Selling Design
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- ********0
Capital overhead doesnt cost as much, the soft capital costs a lot more. Retaining people at 90% utilization at all times costs more money.
Something like KDU works, sort of, because they do not have to have people on payroll.
- ********0
Dinky, true(in theory. In reality, The KDU doesn't pay anyone, anything). But re:90% utlization, you're right....you either you lose money, or you work your designers to the bone to make sure all your costs are covered for having them salaried.
- ********0
The down side is that design is something that you just cant grow old with.
Much like any creative industry, young is always the new black. About 80% of designers do not go beyond 40 and keep designing. 20% opens their own shop / sr management / etc.
Also, job security, unlike other industry is very scares.
- ukit0
In the end, I don't think this really requires all that much more than a messageboard for freelancers and companies to list themselves on.
Something between Guru (low end and tacky) and Krop (high end and exclusive, but maybe too much so).
The main value that a company like this provides is peace of mind. They act as a neutral arbitrator and also mechanism for delivering payment/ contracts etc. Client feels like they know what they are getting, and freelancer knows they will get paid.
- ********0
Well you're right, there is a lot of ageism (prejudice against anyone over 40) in this industry.
The anonymity of a global collective (a bunch of freelancers scattered around the world) kind of helps fight that. Same with anything done online. No one needs to know your age online.
- ukit0
Yeah but that will change once the industry itself grows up, right? Is everyone really gonna quit at 40 (that would be around 2020 for me)?
If so, I'll happily take all your clients;)
- ********0
Design salary $100k
Administration (building / software / computer ext) 10% = $10k
Average utilization rate at 75% per four quarters = loss of $25k
Perks (health / vacation) 8% = $8k
Total cost $143k
Client billing at 25% markup.
Per designer billing rate $178,750 to break even- Sometimes it's amazing you can even make a living in this field.********
- Most agencies dont make that much money. They go by billing and not by profitability.********
- Designers in some areas do expect too much money for what they do – unless they are truly brilliant.Amicus
- Sometimes it's amazing you can even make a living in this field.
- ********0
^ sorry not break even
But agency must earn $178,750 to earn profit per designer- Well considering the partner's / owners salaries and expected returns, you ARE just about breaking even.********
- < that 25% constituting the salaries / returns.********
- Well considering the partner's / owners salaries and expected returns, you ARE just about breaking even.
- utopian0
^ That sounds about right to me.
- ********0
indeed, You have to have over 100% utilization to make profit.
- ********0
ukit;
I see what you're saying about msgboards for freelancers - but I disagree.
I think there's still an enormous opportunity for innovation - which a lot of companies aren't exploiting. (I guess risk is of course another thing that larger firms are worried by...)
I think a lot will change once web-technology evolves a step, but a lot is possible now. All the web 2.0 stuff provided a lot of new opportunity because it allowed us to view the web more like a traditional desktop application... it helped people to see more possibilities.
But currently - despite these advances - there's still a huge disconnect between me sat here, and you sat wherever you are. The technology isn't really making communication any more human or efficient.
For example, at the moment I'm sat at my laptop which has a webcam built in. I think that talking 'face-to-face' to the people we're working with remotely on a regular basis (as a normal part of our daily routine) will be a complete game-changer. (e.g. even on a basic level, I think it's far more difficult for most people to treat someone badly when you see their face on a daily basis)
While the example I've given is a bit trite, what I'm trying to say is that there's room for technology to help groups become more cohesive and function more effectively. The current applications we have don't do the job well enough.
There's room for something which is more than just a messageboard.
- ukit0
Agree, but there are plenty of tools out there like that. Maybe it's the awareness part that hasn't happened yet...pull it all together into a branded package and then sustained ad campaign, blog posts etc.
Similar to how Crowdspring and others took off
I think the branding is the biggest part, you have to make people feel comfortable buying services from freelancers and small companies and actual talented designers/devs enthusiastic enough to actually participate.
- ukit0
If you think about it, there are a lot of business ideas like that, where it's really the framing or the marketing that is lacking rather than the technology being out there
- true, but if there was one which actually did a good job I reckon people would use it maybe?********
- true, but if there was one which actually did a good job I reckon people would use it maybe?
- ukit0
Something like this maybe could be used in that way? http://www.adobe.com/acom/connec…
- ukit0
It would be cool to have a job/ networking site that encouraged users to post experimental work as promotion in a showcase...not spec work but non-client work that could be used to demonstrate their ability.
- freitag0
interesting.
i think there is still room for large agencies doing bulk-work for large organisations, in terms of advertising, brand design & management, large scale internet design and brand application...
but for a large part there is a definite movement to self-branded designers doing great shares of corporate work.
there is a shift and i wish i could look 20 years ahead and see what happened.
- Meeklo0
I think most of us freelancers have been working that way for quite some time now. In all honestly I don't think there is anything new in terms of agencies subcontracting work to freelancers.
Agencies are usually way more solid than designers to present work, conduct meetings, organize big projects, manage invoices, etc.
Name one freelance designer that loves working on proposals, I think you will have a hard time finding that. We need each other, there is a sense of security that comes from an established agency that has a fancy loft/ office and offers catering during client meetings.
I think its extremely rare that "big corp." is going to come knocking on a freelancer's door and give him a huge project to work on.
Agencies usually are more in tune with talent than the actual suit from big corp, so not sure why you say agencies will disappear.But maybe I'm not understanding this correctly
- agencies will become more of an intermediate between client and creative execution than ever before?freitag
- freitag0
this is a good discussion btw. i'd love to see it unfold more.
*need to brush teef and go to bed.'night!
- ukit0
Gnite!