When low on projects, or when seeking that extra bit of money to buy something nice for someone’s birthday I check my e-mails for the latest from PeoplePerHour.com, a place where you place bids for work that others have posted. It can be a way of acquiring clients and projects normally beyond your location.
It seems like a really good idea. Until you take the fact that about 5% of all things posted have a realistic budget
Below is an example taken straight from People Per Hour today:
I am looking for a modern quirky exciting logo designer to appeal to the middle class fun but glamorous young ladies.
The company is in the beauty/fashion industry, specialised in the eyelashes.
If you are interested in this role please forward me any images of previous work you have done in the past.
The client clearly has something specific in mind. They have told us about the company, what level of society it is aimed at and their speciality. So that’s a good thing, the more a designer knows about a project, the more realistic their quote can be.
Twitpoll – What would you pay for the design of a new professional logo?
When doing some quick research to help support my point I was pointed at this Twitter Poll, asking the buyer what their prepared budget would be. Note the pricing structure and responses.
Pricing starts at £50, with the most popular result for a Logo being £750.
Taking a quick look at Google to try and gage other companies the results vary largely. One company states pricing starting from £50 and working upwards. Another company starts at £750.
The People Per Hour Formula
Now, the formula on People Per Hour is that they take 10% of the free as their commission for finding the work. Further to this we can’t forget to pay our Taxes, being the good citizens we are, meaning another 20%. So we take 30% off any fee charged to see what the designer is left with. For examples, at the base suggestion of £50:
£0.50*30=£15=30% of £50
So after our designer has finished work on your logo (s)he is left with £35.
Back to our client
So our Middle Class client has given us a specific target audience and implicate they want a nice piece of design work. So ideally they are looking someone to spend a reasonable amount of time on the design.
We know that a budget of £50 is the lowest end of the scale, knowing a few designers I have asked around for their opinion on hourly pricing and the lowest charge was £25 up to £35. This means a £50 would get our client about 1 hours work, 2 if you go for the cheaper designer.
So, naturally our client on People Per Hour is offering a reasonable budget, by the time they think of revisions they want. They are unlikely to take the first logo sent to them, so let’s put a modest time of 4 hours all in all, we’re talking £100 at £25 an hour, and that’s before we take off the 30%, leaving our designer with £70.
Not bad for 3 hours work compared to working on a till, but bearing in mind that outside the 4 hours that the designer spends in Photoshop etc their is the time spent contemplating the project, sketching out ideas and making modifications, so that 3 hours is probably more like 5-8 hours.
That’s not necessarily a bad thing, if the designer is getting one job like that a day and the client that devotes the time to responding instantly to e-mails. A week of that sort of work would earn him/her £350.
However that isn’t usually the case, most designers aren’t working 9-5 and getting paid every hour of the day, not self employed ones anyway.
The Big Reveal – The People Per Hour Client’s Budget
And I quote – £40-£41.
Now then, let’s examine our formula again, that means that at say, 8 hours work our designer would get a massive £5.125 per hour, if the client is watching their e-mails and respond instantly allowing the designer to work effectively.
That’s less than minimum wage. Legally, if the client was paying a designer to work on their Logo on a per hour basis, they would be breaking the law.
In a long and roundabout way my point is that people are seriously undervaluing the Design community. People Per Hour have added a feature to report unrealistic budgets, and sadly when I look at PPH I am more often than not reporting budgets than bidding for work.
When you are asking for a quote or posting a budget for a job thing of the time it will take the person to do the job at hand, one fellow designer on PPH has started replying to every post with an unrealistic budget with this simple message:
And I ask you the same – How long would you work for that amount?