124 - Deep Dive: Pricing Creative Work — with Michael Janda
Mar 10, 2021
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In this engaging discussion, guest Michael Janda, a seasoned ad agency executive and author of 'Burn Your Portfolio,' shares invaluable insights on pricing for creative work. He breaks down the essentials of production costs, market value, and client budgets, guiding listeners on how to navigate the tricky bidding process. Through humorous anecdotes and practical techniques, Janda emphasizes building confidence in pricing strategies and fostering clear communication with clients to enhance financial negotiations. It's a must-listen for creatives looking to level up their pricing game!
Approach pricing conversations with confidence and knowledge of your numbers.
Don't feel guilty about making a profit; you are running a business.
Avoid bidding on projects without enough profit to sustain your business.
Consider fixed bid pricing based on market value, client budget, and production costs instead of hourly rates.
Deep dives
Discussing pricing with confidence
Always approach pricing conversations with confidence and knowledge of your numbers.
Never feel bad about your profit
You are running a business, so don't feel guilty about making a profit.
Never take on an unprofitable project
Avoid bidding on projects that will not generate enough profit to sustain your business.
Consider fixed bid pricing
Instead of charging by the hour, consider fixed bid pricing based on market value, client budget, and production costs.
Avoid disclosing profit and hours
Never reveal the exact profit margin or the number of hours in your bid to clients.
Verify your price with confidence
Ask yourself if you are comfortable with your profit, if your price matches market value, and if it falls within the client's budget.
The Importance of Focusing on the Reward
One of the main ideas discussed in this podcast episode is the importance of focusing on the positive outcomes and rewards instead of being held back by fear. The speaker emphasizes that while there may be risks and potential negative consequences, it is essential to shift the mindset towards what positive things can happen. By running towards fear instead of away from it, one can overcome limitations and achieve success. The speaker shares personal experiences of starting a show and facing initial fears, but ultimately, by focusing on the reward, they were able to achieve significant growth.
The Value-Based Pricing Approach
Another key point discussed in the podcast is the concept of value-based pricing and its role in the design industry. The speaker highlights the importance of discussing money confidently and even influencing the client's perception of the project's worth. They emphasize that no work should be completely free, as there should always be some form of compensation, even if it's not monetary. Value is exchanged through various means, such as portfolio exposure, testimonials, or other non-monetary benefits. The speaker also presents a different perspective on starting out with free work, suggesting that instead of monetary compensation, valuable exchanges can come in the form of building relationships and increasing one's own value in the long run.
This deep dive episode comes from a livestream we held way back in 2019 on The Futur’s YouTube channel.
Our guest, Michael Janda, is the author of the best-selling book Burn Your Portfolio. He’s also a seasoned ad agency executive who helps creative entrepreneurs make more money with less stress.
In this episode, we aim our focus on pricing creative work. A topic that every creative professional has struggles with. Michael walks you through a step by step process on how to price your work and how to parse all the variables that come with it. Things like production cost, market value, and client budget, to name a few.
If you ever find yourself lost in the bidding process or pulling numbers out of thin air, then get ready to get schooled. Because you’re about to get a crash course in pricing creative work.
