10 Reasons why Designers and Studios Earn Less than They Should

I have been interested in the topic of earning money in design since 2016, when I opened my branding agency, Moloko. That was the first time I felt the world’s cruelty in which services must be provided. After analyzing the years of work and collecting statistics, I would like to name 10 reasons that prevent designers, studios, and creative people from earning more. I also released the guide “How to Make Money from Design” in which I collected many tips and tactics that helped me develop my agency and find new clients.

An idea is much more valuable than money

The main focus is the desire to make a project rather than earn money. Hence, the processing, work on some tasks that were not immediately agreed upon (I don’t want to discuss the most unpleasant things with the client), and self-torture when the project fatigue came. At this point, the idea disappears, the desire vanishes, and you already want to close the work faster to get money. There is no financial pleasure from such work.

The idea and desire to do a project are excellent, but you should consider all the risks and all the extra hours required and boldly voice your financial requirements to the client. And it’s best to fix them for some part of the work, and then, for example, when there are edits, pay by the hour.

The task is only superficially clear

Are you familiar with the situation when you listen to a client, write down his answers, and start coming up with something? Then, there is a disconnect from the client’s task. You are already in the ideas, different from what the client needs to do. More often, in such situations, you do the work and prepare a presentation, and after receiving feedback from the client, you realize that the task was a little different than you had set it for yourself.

No additional sales are made

Additional sales can be made while working on any project. It’s easy. The main thing is to hear the client. We often think about how to deliver the project, not what the client needs. So, we do not look at the task through customers’ eyes. For example, during essential identity development, it is always important to look at the client’s business and understand what media will be needed, what may be required in marketing, etc. It will allow you to make an additional offer and continue working with the client. And this is a treasured part of working with a client when you understand his business and start offering something, not just doing it.

They are afraid to tell the actual cost

Fear is one of the serious factors in dumping the design services market. More often than not, it is because of fear and uncertainty that designers say the amount is less than it needs to be said. As we have tested in practice, nothing terrible happens if you say the amount that is yours. The client should choose not by price but by decision, skill, style, etc. The cost of the design is secondary. If you put it first, customers will come purely for mechanical work, which will not allow you to grow as a specialist and earn more.

I’m not taking on my own tasks

The desire to take on a task sometimes overpowers reason and sobriety concerning the situation. The thought “I can try” is not always correct. When you take on a commercial project, you must be confident in your abilities. And at the moment of “I can try,” you think you will ask for a bit of money, get experience, and try to pass the project. It’s terrible for you because you’ll earn less. This is bad for the client because he will not get the best job. This is bad for the market because it will create another dumping of services. To grow in the receipt for services, you need to focus on the range of services in which you are a professional and leave “I can try” for a series of personal projects or free initiatives to gain experience.

There is no system in operation

I felt this during the first years of the branding agency’s work. We spent time searching for mockups and arranging presentations. Many actions took hours because I wanted to find the right visual solution, improve the slides, etc. Over time, it became clear that many repetitive actions must be entered into the system; otherwise, we will spend a lot of money and resources. The system helped to save about 30% of the project significantly. Almost all actions can be put into the system, and forget about looking for additional solutions. Moreover, both freelancers and studios should have a system. Any system will allow you to earn more.

Number of concepts

Two of the three concepts are always thrown in the trash. 66% to nowhere. Find your own concept presentation system to reduce costs and earn more. There are options to do 2 concepts, one or three, but with less elaboration. For example, three drafts, and then you seriously expand one concept. It doesn’t matter which approach you choose; the only important thing is that the resource savings here are significant. Therefore, you will be able to earn more.

Lack of confidence in the presentation

A good presentation is 90% successful. A simple or complex draft or detailed solution can always be presented correctly to the client, and the deal can be ended on this. In the majority, many projects fail due to two key factors. First, the client is not ready to change and will hate everything he sees. The second is that the idea needed to be conveyed to the client; everything must be laid out for his brand, and everything needed to be adequately told. From a lack of information, something like the following happens: “I didn’t understand, so I didn’t like it.”

Not being able to finish a project in time

The loss of money also occurs when you are trying to save a project that has already sunk. For example, you have done several concepts and are considering post-payment for the project and continuing to offer something to the client. This hope that you will guess or find the way to the client’s heart deprives you of earnings. You need to be able to stop in time. Not all projects are successful, not all reach the end, and not all solutions can be sold. Stopping at the right time and not wasting your time on the client are skills that must be developed and pumped.

Do not compete with the market — look for your niche

Your niche, style, and unique formats — this is all the key to success in naming precisely the cost that is comfortable for you since there will be no one to compare it with. Your blue ocean is consistently profitable and has your rules, not the rules of the market or the client.

Check my guide “How to Make Money from Design”