A Must-Read for Clients The Freelance Exchange (FX) of In addition, FX offers an annual Portfolio If your project requires a freelancer to Kansas City serves as a virtual Yellow Showcase each spring in which area be available for meetings, brainstorming Pages of advertising and marketing businesses and advertising agencies are sessions, or to work on-site during talent for area businesses and agencies. invited to view our members’ work, all in standard business hours, availability Most of our members are experienced, one setting, all under one roof. might be something to additionally consider in your selection process and self-employed individuals who work Visit kcfreelanceexchange.com/ ask your prospects about upfront. within a variety of industries, mediums showcase for details or send an email to and with clients of all types and sizes. [email protected] to Consider a virtual agency While the common perception of get on the mailing list. Because FX caters to so many different disciplines (designers, copywriters, a freelancer may be of one who’s Whichever route you choose, consider most in FX are career photographers, etc.), you can easily between jobs, taking the following steps to best freelance professionals form a virtual ad agency by teaming up (‘permalancers’, determine which of our many talented a group of individuals from different ‘solopreneurs’) and choose to do this for freelancers are right for you: a living. We provide valuable, affordable specialties. You could pair up two or services to ad agencies and design Read their bio or résumé more on your own, or ask one who they’d studios, large corporations, media outlets, Many have these available on our refer or prefer to work with, as many small businesses and more. Yet we are Web site and/or on their own sites. If not, already work within their own teams. different than our agency or corporate you should be able to obtain one with a simple request. Bring us in as soon as possible counterparts in that, as business owners, Oftentimes, clients will begin working we do much more than what each of our Be sure to note their specialties, mediums on a project and then pull in a freelancer disciplines or specialties imply. they work in, industries they’re familiar later. This may be inefficient as many For example, a copywriter does more with, and any awards they may have won. decisions may have already been made than just concepting and writing. If it’s not provided, consider asking for a that could’ve required the freelancer’s Freelancers juggle the roles of client and account list, too. professional input. The earlier you can receptionist, account executive and View portfolio samples bring us in on the process, the better it researcher. We do our own billing, sales Especially when looking for creative is for us to produce an effective solution and marketing; we are CEOs, CFOs, talent, a portfolio of work samples will to achieve your goals. We can provide a COOs and Strategic Planners all in one. give you a sense of one’s style and fresh perspective, strategy and viewpoint And many of us have spent years working approach. Many freelancers have these that can affect the project’s overall on national accounts and are well-versed available online, but a simple request success and perhaps even lower final costs. in the best practices of the industry as can get you your own copies. Study their well as today’s marketing strategy. work and determine whose pieces you KNOW WHAT TO EXPECT The competitive advantage of hiring a admire and which styles might best fit Just like other business entities, freelance freelancer is getting comparable talent your project. professionals may provide you with and insight of an ad agency for a fraction paperwork to protect themselves and Meet them in person their clients in business matters, such as: of the marked-up cost. If time permits, invite a prospective freelancer in for a face-to-face meeting to Estimate FIND THE RIGHT FREELANCER view their work. This can additionally help Before asking for an estimate or proposal, Do your homework before buying one’s in determining character, compatibility and discuss with the freelancer specific service… even if a freelancer came highly personality. Ask them to bring samples directions about the project, and include recommended. Check out several for of pieces similar to what you’re looking to any limitations, such as budget, deadlines your particular job before making achieve, like brochures, logo designs, etc., and any elements (research, photographs, a decision. as well as those that were completed within charts, etc.) you can provide. Conduct a bit of research budgets similar to your own. Once the scope of a project is Inquire about the professional you’re Determine considerations determined, the freelancer may issue interested in. Investigate their professional Is a freelancer’s location important to a cost estimate or proposal that might background, reputation and dependability. you? While most work nowadays can itemize the project deliverables, cost (Note that many freelancers will also do this easily be conducted over the phone for each delivery date and method. This in return to determine fit and ensure timely and Internet, many clients appreciate estimated cost may appear as a range payments.) the value of face time. If you feel this is and is often based upon how much time it might take to complete a project as There are plenty of ways to effectively essential to the success of your project well as the complexity of the project. find the right freelancer for you. Aside and working relationship, consider using from flipping through this fancy directory, a freelancer who is close in proximity to Allowing for a 10% plus or minus leeway you can access our up-to-date and your business or one who is willing to to the estimated cost is standard industry searchable online member listings travel the distance. practice. If the scope of the project (complete with portfolio samples) on Is a freelancer’s availability during changes (even after the project has our Web site or send out a help-wanted the workday essential? A handful of begun), it’s common for the freelancer to email ad to our membership (see FX members freelance part time or issue a revised estimate and inform the kcfreelanceexchange.com for details). moonlight on the side of other jobs. client of additional costs that may incur. Typically, an estimate will also include Other Forms other than the freelancer’s contact in a round or two of revisions (not entire Photographers, illustrators and designers the agency or business, it is the client’s re-do’s) and should be signed by the might present additional forms that responsibility to inform them of the client. Some may also include a disclaimer are also created to protect all parties appropriate person and protocol. that the estimate is only good for a involved, as well as the work, including: certain amount of time, such as 30 days, • terms and conditions RATES & BILLING PRACTICES to account for any possible schedule • image contract The following should help navigate and/or rate changes for the individual through these freelance subject matters. • property, model, minor or nude and, potentially, their subcontractor, releases Rates & Fees printer or paper supplier. • rights Rates tend to vary based upon specialty, Contract • usage skill level, demand and experience. Some Many freelancers use a legal and freelancers charge by the hour (anywhere • reproduction binding contract, working agreement, from $30 – $130+) while others charge by confirmation form, or letter of intent • reuse and resale the project. Some (like photographers) to protect both themselves and the • copyrights and trademarks may charge by the day or in half-day client. Agreeing on terms is vital to the Creative Brief segments, or by the word or page (like freelancer/client relationship. Be sure to A creative brief is helpful for both the editorial writers). read the contents of a contract thoroughly. freelancer and the client, and should be Rates are typically devised based on the Items addressed may include: put together by the team leader, whether following direct and indirect business • length of service it’s the client or freelancer. A brief costs: office space (if not home-based), • project description summarizes the client’s desires, project utilities, administrative time, advertising specifics, and helps keep the workflow • billing and payment terms and marketing, outside professional organized. Items that might appear in a • deposits services, office and art supplies, creative brief include: transportation, invested capital, software, • deadlines • current situation assessment training, equipment, insurance, taxes, • project cancellation or termination • assignment/vehicle client entertainment and other expenses, policies • target audience/demographics as well as to account for non-billable work • produced samples of the finished work • objectives (billing, self-promo, etc.) and downtime. • approval process • barriers It can get tricky for clients to try and • original artwork • strategies determine final costs based solely upon • copyrighted property • desired results an hourly rate. Try to get a complete • usage rights proposal or estimate before making • creative considerations and • default/legal expenses a decision, if cost is the biggest specifications (logo, color scheme, etc.) • indemnification determining factor. Take these other • products/offerings • and more factors into consideration, as well: • call-to-action • talent level Be sure to note which rights are given to • look and feel • discipline or specialty use the finished product the freelancer • tone and voice created (photographs, artwork, logos, • skills required • legal requirements etc.) in other applications. Don’t assume • experience • time frame you’re purchasing a product for a flat fee • availability and have the right to reuse or manipulate Invoice • speed the product without the permission of Invoices may be emailed or snail-mailed • work/product/service value the freelancer. Work out any licensing to you and are typically due within 15 or agreements, royalties, and exclusive 30 days. If your company has a longer As a general rule, a freelancer’s work vs. nonexclusive rights upfront and payment policy (i.e., 45 days), be sure to should be judged for its value, just like be prepared to pay for usage. (Before let your freelancer know this upfront so the services of an experienced consultant asking to purchase an image out right, there are no surprises down the road. or advisor are, rather than by the time consider licensing options as opposed to Payment is expected when the bill is due, they might spend on the project, such as ownership of an image to save money.) not when you get paid by your client or that in working with a vendor. Each freelancer has his or her own policies other third party. Billable Items and uses them in the negotiation process Line items on invoices (and estimates, These tend to vary as well. It’s best to to help eliminate possible conflicts before too) may vary from freelancer to work out a fee and the terms before they arise. Many will not work on projects freelancer. For instance, some may starting any project. Obviously, writing, without a signed agreement or deposit charge for meetings or travel time or designing, or whatever-the-discipline upfront. It is helpful for both parties to while others do not. And some (like time is billable. But additionally, the maintain professionalism throughout the photographers) may have to account following may be, too, depending on the negotiation process in order to work out a for rented items while others may freelancer’s policies: win-win situation. already own certain props or lighting. • travel Once an agreement it reached, both Oftentimes, it will depend on creative • tolls and parking parties should sign and date the concept and execution. • materials document and maintain a copy; scans or Clients should notify the freelancer of • postage, shipping and courier faxes are okay. Note: only an authorized any purchase order or job number that services employee of the client company should needs to appear on the invoice. If an • client meetings, consultations sign a binding contract. invoice should be submitted to someone and communications

The Freelance Exchange (FX) of Kansas City KC’S MARKETING OUTSOURCE RESOURCE A Must-Read for Clients 2 • research time relationship or large project, and may (as with ad agencies), or are experiencing • subcontractors’ fees non-refundable. The amount of the cash-flow problems. In such cases, it’s • digital output, file preparation deposit requested could be anywhere essential to communicate your position and storage from a third of the estimated cost to half with the freelancer in order to best find a • photo usage and rights or more and is applied towards the final solution, whether it’s agreeing on a new bill. If, for some reason, a client won’t due date or offering up a payment plan. • rentals, models, props, pay a deposit upfront and the freelancer expendables, etc. Many freelancers know their legal rights agrees to do the project, they may add when it comes to collections. We’ll try • printing, paper and print in a termination clause in their contract. to prevent a sticky situation by getting management (press checks, etc.) (See Contract.) • excessive client alterations all parties to agree upon payment terms Advances upfront, but when deserved payment Some items may be marked up to Some (i.e., photographers) may ask for is not made, we may try a variety of account for the time it takes to manage an advance of production costs upfront collection strategies: all entities in an effort to ensure that all to ensure there are no excessive out-of- • sending a late invoice notice, often work is done to the correct specifications pocket expenses for any overhead they with late fees and quality standards. might have to spend on production. • emailing or calling the delinquent party This also gives them the ability to defer Discounted or Different Rates • mailing a certified demand/final payment to a producer. Some freelancers are willing to discount attempt letter, final invoice, or letter their rates if working on-site with a client, Milestone Billing of intent for guaranteed, ongoing work, or when Some freelancers do milestone billing, • turning over the invoice to collection working with nonprofits. Some also charge where – for instance – clients pay a services different rates for different tasks, such as third upfront, a third when a concept is • filing in small-claims court production work and graphic design. approved, and a third upon the project’s • reporting to the Better Business completion. Sometimes, this is broken Some may even discount the total amount Bureau due as an incentive for timely payment out into even more segments. Clients should consider the repercussions (i.e., within 15 days). However, the Retainers & Progress Billing of being late on a bill and/or choosing to operative word here is some. And in many If it’s ongoing work, a large project, or a disregard late fees. When this happens, cases, it may very well depend on the project that takes an extended period of freelancers are usually quick to decide freelancer’s schedule and how good of a time to complete, a freelancer may bill a whether or not they’ll work with them relationship they have with each client. standard retainer or do ‘progress billing,’ again or, instead, seek out other clients such as on a monthly basis. This keeps Rush Fees who will pay on time. (Additionally, see cash flowing for the freelancer and avoids Many will charge a rush fee or inflated Word Gets Around.) rate anywhere from 50 – 100% more a large lump sum bill for the client when than their standard rate when work it’s all said and done. Cancellation & Kill Fees Some freelancers offer a cancellation fee is requested on a much-abbreviated Vendor Payments as an option to reimburse them for time schedule or during unreasonable working Many times, in the course of completing reserved to work on a project that was hours, such as when a client asks for a projects, there are costs outside of agreed upon. For example, a freelancer project to be completed: a freelancer’s time that are incurred, may have set aside several hours to • same day such as printing, production costs, or work on a project that gets postponed, the purchase of ad space. While many • overnight suspended or canceled. When this freelancers will help facilitate this • over a weekend happens, it’s difficult for them to go back process, the responsibility of the cost • over a holiday (federal, religious to other clients who were turned away ultimately falls back on the client. It is or other) and ask to get back the missed work in not unusual for freelancers to require order to fill the downtime the canceled Finder’s Fees clients to pay these vendors directly. If a project created. A cancellation fee is When clients request that a freelancer client prefers the freelancer help manage simply a way to protect the freelancer’s find other talent to help complete the payment process, the freelancer will commitment of time and holds the client a project (i.e., a designer finds a often ask for payment in full before the accountable for promised work. copywriter), it is not unusual for the project is executed. freelancer to charge a commission or If you are ever unsatisfied with the work Late Fees & Collections finder’s fee. This may be a flat rate or a or your relationship with the freelancer Freelancers are legally entitled to charge percentage of the project’s estimated goes sour, a rejection or kill fee may be – and collect – late fees (often 1.5%) for cost. This is typically a one-time fee for offered to terminate the relationship. any payment not made within 30 days the initial project and is good for any This may appear in the form as a of the invoice date and every 30 days other projects the newly introduced party nonrefundable deposit (see Deposits), or subsequently thereafter. This is a legally may work on for the client in the future. – if time spent on the project goes above accepted practice in Kansas and Missouri. and beyond what the deposit covers – an Common Billing Strategies If your company has a longer payment amount that would cover the cost of the The following are commonplace for period, i.e., 45 days, it is essential to total number of hours spent on the job, freelancers in the advertising/marketing let the freelancer know this upfront to plus any expenses incurred. industry: prevent any surprises or late fees down Deposits the road. Determining whether a project is canceled or killed may become a matter of common It’s not unusual for a freelancer to Payment is due to the freelancer whether sense and negotiation. A freelancer’s request a deposit or initial payment or not you are completely satisfied with contract should provide direction on before starting work. Deposits are the end product (see Cancellation & Kill this matter and note any policies as such commonplace, especially with a new Fees), you’ve yet to be paid by your client The Freelance Exchange (FX) of Kansas City KC’S MARKETING OUTSOURCE RESOURCE A Must-Read for Clients 3 upfront. Note: killing or canceling a project a project, the better. Of course, you may or clarification, in order to deliver as gives up any agreed-upon copyright tend to seek outside help only when you’re promised. Note: it’s to both parties’ transfers and future use of the work is overloaded and advanced lead-time may advantage if expectations and specifics subject to renegotiation. not be an option. If that’s the case, know are communicated – ideally in writing that it never hurts to call and ask, as some – before any work begins to prevent WORKING WITH A FREELANCER might be able to fit you in or offer a referral any misunderstandings. As with any Advertising and marketing freelancers as an alternative solution. contractor, future assignments and are hired to communicate ideas and Asking a freelancer to produce work referrals may very well depend on the promote products and services. It’s our during unreasonable working hours finished piece and client satisfaction. responsibility to transform a client’s begs for additional compensation to be If all else fails, be prepared to pay for the desires into a persuasive piece of paid. Freelance professionals might offer individual’s time spent on the project. communication. In turn, we ask that you special after-hours, holiday or last-minute As in haircuts and doctors, if you don’t give consideration to the following: service, but charging a rush fee is the like the result or opinion, you’re free to Professional Courtesy expected rule of thumb. (See Rush Fees.) seek out a different professional, but you Freelancers are just like any other Spec Work still pay for services rendered. The same professional vendor or business associate Speculative work (sometimes requested holds true for advertising and marketing you might deal with and, therefore, as a trial project or to compare talents) is freelancers. should be treated as such… with dignity not common in the freelance community, A kill fee is often established upfront and respect. All parties involved should especially if it’s not paid for. Our time is and reserved for circumstances in strive to keep all correspondence and valuable, and it’s important that we spend which a project is stopped after the discussions calm and businesslike, our time wisely. What we decide to spend process is underway, or even when without letting emotions get in the way. our time on, billable vs. non-billable hours, it’s fully completed but not used. (See Work vs. Home Life can be crucial to our business’ success. Cancellation & Kill Fees.) A project may Many freelancers work from home and Furthermore, oftentimes when a be ‘killed’ for a variety of reasons – from establish office hours in order to separate prospective client asks for spec work, budget cuts to upper management work from personal life. A phone call at there’s not enough information shared interference, or just a difference of 10 p.m. or fax at 5 a.m. could be startling to be able to truly create a successful opinion. But whatever the reason, and disruptive to the freelancer (and piece of work simply because a true freelancers account for time spent on a their family). For most, this separation partnership has not been created due to project, whether it’s completed or not, legally entitled is essential and applies to weekends the tentative nature. and they are to payment and holidays, too. If you require special for their time spent. attention or last-minute service, try If you’re not sure about hiring a freelancer, consider requesting portfolio samples of Word Gets Around and make arrangements before close Freelancers are a tight-knit community. a like nature instead to help determine if of business and be prepared to pay a We frequently discuss both positive and his or her style will best fit your project’s higher rate. (See Rush Fees.) Otherwise, negative experiences and may share needs. try and keep calls and faxes limited to those in a private or public forum. While normal business hours (8 to 5-ish, M-F) Subcontracting it’s in the best interest of a freelancer and understand that emails may not be Freelancers may subcontract or outsource to deliver promised services in a timely returned until the next business day. work they cannot complete themselves fashion that best fulfill the client’s A Little Info, Please due to time constraints or ability (i.e., not needs, it’s in the best interest of a After the estimate and contract are all designers are illustrators, or they may client to provide frequent and effective signed, it is helpful (and can help keep need to hire writing or photography). communication throughout the process, your costs down) if you can provide as The freelancer and client should determine along with timely payments for services much background information as possible. who would be the point of contact and rendered. This could be samples of previous direct payer to the subcontractor(s). marketing efforts, what the competition Payment is due to these subcontractors FOR MORE INFORMATION is doing, and pieces you like or don’t like. in a timely fashion, no matter when the Freelance professionals are often the In addition, research information, such freelancer or client (like in the case of an best way to get the job done well, on as target audience demographics, and ad agency) receives payment from their time, and on budget. The Freelance anything that might be pertinent to the client or other third party. Exchange is here to help as Kansas City’s product or service you intend to promote Revisions/Dissatisfaction Marketing Outsource Resource. would be very helpful. If you’re not pleased with the work (it For more information on the issues Work Samples happens at agencies, too!), be upfront and discussed here, see the 11th edition of It is a courtesy for clients to provide their honest. Advertising and marketing is a very the Graphic Artists Guild Handbook freelancer with samples of the finished subjective business. You’re paying for it and of Pricing & Ethical Guidelines and its work in its completed form (often called have every right to be satisfied. (Of course, included Code of Fair Practice. a tear-sheet) to be used for self-promotion viewing work samples upfront could very purposes. Freelancers reserve the right to well prevent dissatisfaction.) Be clear and show completed pieces in their portfolios concise with your criticism and allow the (online and/or in print) unless a client freelancer to offer a solution. The earlier in refuses this in writing. the process you do this, the better. Scheduling Most freelance professionals want to be Often, freelance professionals’ schedules informed if they’re on the wrong track can be booked for days or weeks at a time. and given the opportunity to correct The more lead time you can provide on the work, based on new direction and/

The Freelance Exchange (FX) of Kansas City KC’S MARKETING OUTSOURCE RESOURCE A Must-Read for Clients 4