And now, your next question, “What the heck does this have to do with NetObjects Fusion!?” Well, NetObjects has been kind enough to give me carte blanche with these articles, and seeing as how NetObjects is refocusing on the small business market, this seemed a good fit. Additionally, many Fusion users also provide design services or are thinking of it, or are people who hire folks to do work for them, so I thought this rather fitting.

After reading many posts from people in the NetObjects Fusion newsgroups about what to charge, I have come up with my own process when it comes to bidding.

Hopefully, some of these tips will be helpful to you not only when you are bidding on a project, but also if you have a bid out for someone to do work for you, this may help you see the broader picture.

GETTING WORK

THE MONEY THING

What do I charge?
I don’t think there is a hard and fast rule on what is the best rate. There are lots of factors. Where it used to be the case, pre-Internet, that you based your rate partly on what your competition charged in town, this is no longer the best case because now, well, your competition is the world. Scary huh!

Seriously though, I think your rate will likely always be in flux, especially in the beginning. You can’t overcharge when you start, as it may be hard for clients to value your worth if you don’t have something to back your rate up.

The other question to consider is if this is a part-time or full-time venture? Obviously, if you are just getting started or if this isn’t your prime income source, you can start at a lower rate than if you are doing this full time. However, if your bread and butter come from this, you need to factor in your overhead costs and things like being able to pay for rent/mortgage/car/food.

The best thing to do is to ask other professionals what their rates are, either up-front or covertly by phoning firms in your area or searching for Web sites of similar firms on the Internet, etc. Take some time. This is important. :)

Do I charge per hour or per project?
There’s the $64/hr. question! When I initially started doing print projects, and later Web projects, I used to charge by the hour. I would give an estimate, then at billing time, I’d break down each task I did and that would be presented to the client with the final total. Man, was that ever time consuming!

So, the decision as to how you want to bill is up to you. The flat rate, with exceptions, works well for me because I can usually gauge a project and compare it with previous ones. There is nothing like experience to help you charge. :)

What about clients who aren’t in my country? Do I bill them in my currency or their currency?

That’s totally up to you. I generally try and bill in the currency of the country they are in, but all of my clients are in Canada or the U.S. I haven’t had to deal with anyone outside those areas, and if the time comes, and I know it will, I’ll cross that bridge then.

Up-front cash or hope for the best and bill in the end?
Again, that’s totally up to you, but personally, and I didn’t do this in the beginning, I charge 25% of the project cost as a “down-payment.” Work doesn’t start until I receive the check and it clears the bank.

Once the project is complete, and before I hand it over to the client, I also wait until the money is in the bank. Now, as always, there are exceptions. But at a minimum, do charge a deposit. And have your radar working as if a new client balks or says they can’t or won’t pay a deposit (unless they are government which often can’t) think hard. I’ve been stiffed once, and that was waaaay too much.

Now, if the client is one you already have a relationship with, of course you can bill at the end, but these days, with many companies getting burned, this isn’t a good option.

I had a company at my home a while back installing a filter on my water system. They take a credit card imprint upfront first, but give 30-day terms. No biggy for me. But according to the installer, and this is a 30+-year-old company, many long-time customers have a really big problem with this. The reason they had to go this way is that it used to be the work first, pay later, but they got burned by defaulting clients and now, well, they just can’t afford to do it.

So, as I say, it’s up to you, but I’d recommend a deposit first.

Certainly a contract is no guarantee that things are going to go smoothly, but it does set up some guidelines and establishes some scope on a project.

One other thing to remember—if the client won’t sign, don’t do the work. It’s that simple.

What other things, aside from the “Design” should I factor in my quote?
That was one thing I learned from, well, screwing up. :) In addition to the basic quote, say for a Web project, I look at other things as well. For example:

• Traveling. I look at the potential for travel and note that if it is local, I have to figure driving and meeting time. I really try to keep my meeting time to a minimum and tell the client that more in-person meetings the greater the cost. And with things like web projects, samples can be presented on line, so this generally isn’t an issue.
  
  Also, if the client is out of local range, I note that there will be travel costs added to the project, be they mileage charges for driving or air travel. Of course, if there is air travel involved, then you need to factor in car rental, accommodation and meals as well. Best to be up front.
   
• Courier, printing, media and other stuff. In some cases there are hard copy items that need to be transferred back and forth. Personally, that’s an extra expense and is noted in the contract. I explicitly say in my contracts that things like this are NOT included.
   
• Site maintenance. I factor in all my contracts, unless the client doesn’t want it or the project doesn’t need it, one hour a month of text-only, non-cumulative maintenance to the site. Beyond that, I note that they client will be billed an hourly rate for additional work such as adding new pages or changing graphics. Of course, there should, if you are a conscientious businessperson, be some flexibility. For example, though I say I only do an hour a month and charge after that, if the client hasn’t requested changes for six month and then wants some thing done that takes a few hours, and of course, if they clients aren’t difficult, I just do it. Good for the clients. Good for you.
   
• Additional work. Within the contract is the scope of the task at hand, but what about other stuff. I think it is a good idea to note in the project that anything beyond the initial scope of the project that is requested after the project is signed-off will be billed at a set rate. Best to be up front on these issues.
   

Learning from previous projects
I think you can read as many books as you can about the “charging” process but there is nothing like you own experiences to help you become a better bidder. Only you know your overhead, your efficiency and no one can tell you exactly how you should do things. You can listen to advice, like mine, ;), but you really need to interpret it in your own way. Learning by mistakes is a good thing! :)

Go with your gut!
Yes, your little voice is probably the best consultant you have. Learning by mistakes is one thing, but in hindsight, I’d say my gut has been right a vast majority of the time.

If you get a bad feeling about a project or a client during the “feel out” stages, listen to that. Start asking around about the client, do some research, be wary. And price accordingly. Really! I may “pad” my estimate if I feel this project may not go smoothly and may go beyond the time I’ve allotted. And on the other side of the coin, I may price a bit lower if I feel things will go well. Knock wood, it’s worked so far. ;)

In my experience, and when I am judging a potential client, I sometimes price based on the “PITA” principle. And what does PITA stand for? Honestly, it stands for Pain In The Ass. Granted that sounds very cold and cruel, but it is reality. Think of it this way—you meet a client and are negotiating and they don’t return e-mail or phone calls, are short with you and unprofessional. What do you think your working relationship is going to be like? On the flipside, if the potential client is prompt with the return of phone calls and e-mails, is professional and courteous, that’s a VERY good sign that the working relationship will likely be a good one. It isn’t 100%, nothing is, but it works most of the time.

SORRY, NOT MY DEPARTMENT

But some of what the client wants, or what I want to do, is beyond my skill level!
You have to use your intuition on this one, but if it’s a project you want, there are ways to deliver. It pays to network with other people in the field. For example, if you are a designer but have limited database or programming skills, kinda like me, ask around in your area or in business news groups for references to someone who you may be able to subcontract with. No one firm can do it all, so if you can start building relationships with others who can expand your business, your business can have a broader appeal. This also applies to small business owners who build and maintain their own site.

If you find that the task of adding dynamic database functions or something like that to your site or a client’s site is too daunting, why not look up a fellow NetObjects Fusion user who may be interested in doing that aspect for you? Here are some good resources:

I´VE NEVER DONE THAT AND DON´T THINK I CAN

See the above options. If you can’t or don’t want to do a facet of a client project, or a project of your own, why not look for someone to help?

Phew, luckily for NetObjects they don’t pay by the word! ;)

I do hope that some of this information has proven helpful not only for those looking to run their own business and provide Web services using NetObjects Fusion, but for those using NetObjects Fusion that do it themselves and may be looking for help.

Good luck with your project, your bidding, and your business!