Designer Paul Rand's Client Philosophy Explained by Steve Jobs

Something on Twitter pointing to some blog led me to this 1993 interview with then NeXT CEO Steve Jobs (between stints at Apple):



He's talking about working with a famous graphic designer, Paul Rand. Here's how he describes Rand's philosophy about getting paid for his work:

He had very clear conclusions about what the relationship meant to both parties and how it should be conducted. For example, I asked him if he would come up with a few options, and he said, "No, I will solve your problem for you and you will pay me. And you don't have to use the solution. If you want options, go talk to other people. But I'll solve your problem for you the best way I know how and you use it or not -- that's up to you, you're the client -- but you pay me." And there was a clarity about the relationship that was refreshing.

NBC Universal and Nielsen Want Your Money, Too

Just the other day I mentioned how Time Inc. wants you to take less money for prompt payment. Well, Gawker, which wrote about the first issue (and eventually noted that while one freelancer claimed payment within 30 days, another said that it generally took 60, making the discount-for promptness plan more economic arm-twisting) has another. NBC Universal is doing the same thing. There is one big difference: while Time may make you wait for 60 days normally before dropping that fiscal ort you so badly need to pay the bills, NBC Universal will either make you wait 75 days or cough up 2.5 percent of the money you earned in 15 days. Oh, and as my BNET colleague Jim Edwards noted back in March, Nielsen says that it won't pay until 75 days unless any of its vendors (which included, but is not limited to, freelancers) give up 3 percent for payment in 15 days.

And for the people who want to argue that discount for early payment is normal business, I'll say that it is, but here's what is considered normal:

• The service provider is the one offering the discount because that fits into its business plan.


• The service provider sets its own rates and doesn't have to ask, "And what do you pay for this?" So its rates can reflect a more realistic view of what a discounted fee would have to be to remain worth the work. It also sets fees to recognize the many companies that don't pay in a timely manner.


• The service provider also has late penalty fees, so if the client doesn't pay on time, more gets tacked on - like 2.5 percent a month or so.


• What doesn't happen is a fucking cheap-assed financially conservative megacorporation setting rates that haven't moved in so many years that archaeologists line up to study them recognize the economic pressures on today's business, and then putting a gun to someone's head holding payments for long periods of time to twist people's arms convince freelancers to take a discount.

Bastards.

Time Inc. Wants to Charge You to Pay Promptly [UPDATED]

Writer colleague Dana Kennedy passed this information on, and even if you don't write for any of the Time Inc. properties, be prepared for a blood pressure boost. As Gawker reports, Time Inc. is offering to pay freelancers quickly -- if they are willing to take less money

Under the cheery subject heading "Time Inc - Accelerate payments at year end!", it outlined the company's PayMeNow program, whereby you can speed up payment of your invoice for a fee, kind of like when you get a payday loan at the check cashing place down on the corner so you can afford to buy lottery tickets for the week.

There's a whole rate sheet of how much you give up to see that check earlier:

• 25 days - 0.5 percent
• 20 - 1 percent
• 15 - 1.5 percent
• 10 - 2 percent
• 5 - 3 percent
• 3 - 4 percent

Nice, eh? Now understand that discounts for early payment are nothing new in corporate transactions. They have been around for, oh, I don't know, I'm guessing hundreds of years. Certainly many, many decades at the very least. But there's a difference between something offered as a general part of negotiation -- and usually offered by the seller -- and something tossed out by a chronically late payer who is trying to manipulate individuals who often have the least fiscal power to make totally reasoned decisions.

And, if you think about it, this behavior is even more contemptible and the evidence that the corporate suits there are a nasty bunch of sneaky little shits. It's almost the end of the year. Guess what companies generally do at this point if their fiscal year ends with the calendar year? They accelerate payments anyway to reduce tax liabilities. Want to guess when parent Time Warner Inc.'s fiscal year ends? Yup, December 31st. So they're laughing all the way to the bank - literally - because they know they're going to try to push all this stuff out anyway, and they want to shave a little extra profit out of the pockets of freelancers. And my bet is that they take the discount and are still late based on the payment schedule. Merry Christmas. Ho, Ho, Fucking Ho. Bastards.

[UPDATE: The original article suggested that Time was paying in 30 days already, which seemed faster than many large corporations. A new Gawker post says that they heard from another freelancer who said that it usually takes closer to 60 days. I've heard from a couple of Time Inc. freelancers that the online payment system works well, but having dealt with one at a big client in the past, where the editor didn't bother to process the paperwork, I can pretty authoritatively say that even with the best accounting system, the company can leave you screwed. It's one reason why you want to get a definition of what acceptance means. Is that "yup, we're going to use the piece," or "you have to wait until the Big Man in the Sky reaches down, lights a burning bush, and allows your manuscript to pass into the publishing promised land"?]

Image via Flickr user DanCentury, Creative Commons license.

Mediabistro and the Reputation Economy

You’ve heard of the New Economy. You’re heard of the Old Economy. There’s the Freemium Economy and the Link Economy and, as everyone knows after the past year, the Crashing Economy. But now we have a new invention from WebMediaBrands in its guise as MediaBistro: the Reputation Economy:

BNET Media story

Blogger Claiming Newspaper Rip-Off Goes on Video Attack

I came across this story on Bloggasm, a blog by Simon Owens focusing on new media and online journalism. A freelance writer and blogger, Tina Dupay, sent a column via email to the Tampa Tribune, which decided to run the article without notification or payment. So the blogger took the issue to YouTube after sending an invoice for $75:





She's received support online as well as an eventual offer by the paper to pay. Normally I'd advise registering copyright in a timely fashion and then sending a demand letter quoting how much statutory infringement can run. But this seems to have worked. Shows you what public pressure will do. Wonder if her name is pronounced Do Pay?

Brant Pubs Under Fire For "Not Paying Anybody"

Brant Publications, which produces such titles as Interview and Art in America, has been the brunt of some major criticism by people who’ve claimed that they weren’t getting paid. Now there is corroboration from Glenn O’Brien, who, up until recently, was the company’s editorial director.

Here's the link.

Warnings on Outside Magazine and Web Site

Mediabistro's FishbowlNY has a story about the alleged bad financial condition of Outside. According to the story, not only have people been laid off, but the magazine has taken months to pay freelancers.

To be fair, and the article does mention this, Outside has long had the reputation of being slow to pay. According to the article, as well as contributors to the magazine that I've spoken with over the years when reviewing contracts and counseling on negotiating, that includes expense reimbursement, which can be painful because a writer having to travel for research will generally front the money and get it afterwards. (Hint, if you're still planning to pitch Outside, consider negotiating for front money on expenses, with any extra something you will either reimburse or that will be counted against a fee.)Keyes assured FBNY that Outside is in good financial standing. "I feel really good about our longterm viability," he said. "This April's issue is 140 pages, while last year's was 136."

Some people we spoke with question the continued publication of Go earlier this year, especially given the battered market. (Best Life, a similarly themed book, folded earlier this March.) Ironically, Go is reportedly paying its writers more quickly than parent Outside -- although still months late -- but many within the company wonder why the money-hemorrhaging magazine still exists.

It may be that there are no problems financially, but then you have an even thornier question for a freelancer: If they have enough money, why do they think so little of their writers that they are unwilling to pay invoices in a timely fashion? It suggests an enormous degree of disrespect, and if they're going to act that way over money, how many other needless hoops are you likely to be asked to leap through? If they don't have enough money, why trust them? Woudln't that make them liars? In fact, if a magazine says it's going to pay in a given timeframe and consistently doesn't, for whatever reason, isn't it already lying?

Craigslist Scams and Other Cheap Ass Lowlifes

If you've ever looked at Craigslist posts for writers (and, to be fair, they're not all scams), you've probably seen calls for writers to send in sample content to show how well they write. Before even considering sending a sample (and I'm sure the experienced pros wouldn't get as far as consideration), check the following web post:

Heyya peeps, haven't been on in a long while since the hack attacks, but got into this AC thing. So far its shit cause they're real big bloody assholes about what kind of articles they want; kinda like a little kid who picks at his food.

Well I guessed they couldnt turn professionally written articles down so here's what I did short and simple. I went to craiglist put up a job listing in suburbs and shit like that (since the cities cost $25), it was for a writing position on how-to's and guides. I instructed them to send me a newly written sample 500 word article on a topic that I chose for each ad. I also asked for a resume to make it look more authentic.

Took about 4 days, but I got maybe 10 to 20 articles on good subjects that I submitted to AC and got paid a good $35 bucks total for the articles since they were very nicely written.

Yup, there are people who put up such notices just to get articles and then to resell them. The best way to avoid such crap is to ignore the postings.

But that's not the real problem, because this is so obviously a scam. The real problem is all the businesses and organizations and individuals that want every writer to take a flier with them because they think they have some God-given right to impose on anyone who seems even remotely literate.

Not long ago, the -- get this -- National Endowment for Financial Education, a freaking non-profit "that helps Americans from all walks of life gain the knowledge and skills necessary to achieve their financial well-being" was emailing writers to see if they were available to work, but wanted two articles rewritten so they could decide which approach they liked best and choose the writers they thought were a fit. Do free work for the possibility of maybe getting some work. Is this their idea of financial well-being, or even borderline intelligence?

Screw that. I'm absolutely sick of it. In the words of Goodfellas, "Fuck you, pay me." You're not sure that you'll like what I do? Fuck you, pay me. Not sure what you really need, but figure you'll know it when you see it? Fuck you, pay me. Want to be able to sample everything on a restaurant's menu and then decide afterward what you'll actually order? Fuck you, pay me.

Most of us try to be pleasant, polite, and profession. But there's no getting through to people whose skulls are as thick as the Earth's mantle. To such people, I say:

1. This isn't a pastime. I actually have to work for a living.
2. Do you get paid? If not, do you own a piece of the company? No? Jeez, you really are as stupid as you look, aren't you?
3. You want a guarantee? Pay extra money at Best Buy.
4. Do I look like a trust fund baby?
5. If you can't say it with a straight face to the electric company, don't try me. I have less money and understanding than they do.
6. Maybe you can live with yourself in asking people to do free work for your convenience, but not in my office or on my dime.
7. Have you ever read The No Asshole Rule?

When some moron who thinks you were born yesterday suggests this kind of bullshit, because there is no other word for it, say this:

Don't tell me about getting exposure to a bunch of deadbeat bums like you. Don't tell me that I can get enough money for hours of my work to buy a pack of gum. Don't tell me that you might pay me at some time in the future. Pay me for the work you're asking me to do or go fuck yourself, because I'm certainly not going to let you fuck me.

Gawker's Slowest Payers List

The information is not scientifically gleaned, but it's still worthwhile to look at
Gawker's list of the ten worst late paying offenders in print. This is just another example of why it's worth doing a little research and digging before approaching a new client. Who needs the headache of waiting for -- get this -- two years for a lousy $40. You'll have to check the link to find the name of the corporate miscreant.

Complaints on WritersWeekly About Absolute Write

As the saying goes down South, I've got no dog in this fight. But some writers are claiming that Absolute Write either owes them money now, or did and took a long time to pay. In the first case, MacAllister Stone apparently admitted to being late. There is no response on the second situation yet. But if you're thinking of teaching a class there, you might want to consider the time it could take to get paid.

Three Considerations on Dealing with Growing Payment Cycles

On a writers' board, someone brought up the topic of clients that are trying to unilaterally stretch their payment schedules from 30 days to 45 or more. There should be two concerns when that happens. One is that we're in some times when certain types of clients - print publications, for example - are feeling a revenue pinch. Generally when a client, particularly a smaller one, starts paying later and later, it's a sign of economic troubles.

There's another factor at work as well. Remember that the commercial credit crisis hasn't suddenly stopped. One result is that many businesses, including large ones, don't have access to their usual amounts of credit, which is the lubricant for all sorts of business transactions. When things get tight on the lending side, you can find some of these larger clients choosing a different form of financing - late payment to vendors - that they think they can control.

Whatever the case, you want to consider your various options and what steps might be best for you in the short and long runs:

• Hit the 'Chutes If you have any sense that the company is in financial trouble, drop the client immediately. Usually I'm an advocate for phasing out clients over time and not dropping one until you have a replacement. However, if there are economic problems, the chances are overwhelming that they will continue to be bad. I'm not suggesting that you be rude or panicked. You can excuse yourself by blaming your schedule or simply stop pitching ideas. If you do not take action quickly, you can find yourself with thousands being owed money that you may never see. Generally speaking, making a break and doing intensive marketing is a less costly solution.
• Recalculate Client Viability Just as I think it's good to limit the total amount of business that any one client represents of your normal billing activity, I also think it's good to limit what is tied up in long payers - and to make sure that you're getting something from it in terms of higher rates. If it's more waiting for no more money, then it's time to recalculate the client's profitability and PIA factors and consider whether a replacement might not make sense.
• Get Something in Return The client wants you to give in on something. That means you're in a negotiation and should consider if there is something you could get in return to make things acceptable. Maybe you should increase your rates to cover the few percent that you lose in the time value of money (what borrowing that amount of money for a month or two might cost). Perhaps you should have late fees or, even better, a slight discount for accounts paid within a short amount of time. If you regularly do business, perhaps you could get a retainer relationship, with a certain amount of money guaranteed every month. Perhaps you'd get a greater share of more valuable assignments. Figure out what might make things desirable from your end (so long as you don't think the client's economic ship is taking on water).

Even if you find things slowing down, you can weather the storm and even arrange your business to eliminate the disruption of those checks hitting your mailbox.

Mediabisto Gives Heads Up Over Ad

About a week ago, Mediabistro ran an advertisement for OverTime Magazine, which was seeking "Excellent Freelance Writers." But according to an article that MB ran today, the publication is in deep hoch:

According to interviews conducted by mediabistro.com with five people who worked on the magazine at various times since 2004, McNeil's company, Maven Media Group, which publishes OverTime, owes money to vendors, freelancers, and former staff. One source with intimate knowledge of its finances -- who is owed more than $8,000 by Maven Media to date -- said the company owes "considerably more than $100,000" to former magazine staff, freelancers and vendors. "[$100,000] wouldn't even cover the loans [McNeil's] taken out," she said.

Of course, that's based on a few sources that may or may not be correct, and the publication claims that everyone has been paid. However, there are enough questions raised in this piece that, personally, I'd steer clear. There are too many problems in the business world. Why walk in a direction with signs proclaiming alligators, quicksand, and stinging flies?

Handling Client Budget Moaning

Yes, economic times are tough. Yes, some industries are particularly hard hit. Yes, some number of clients are going to push back on rates, crying that they are in budget difficulties. And, yes, it's true: many are and might not have more money to spend.

But, as I've written before, no, your first reaction should not be to drop your prices in a bid to make clients happy. There are a few reasons:

• Some clients may be desperate, but there will also be many interested in knowing how much they can save by crying poor.
• Anyone who wrote for technology publications in the late 1990s knows that when the dot com bubble burst, specialized magazines were going out of business right and left, and the remaining ones reduced their rates. (To be fair, the rates were related to high demand for writers and their relative scarcity to the work load.) If a client says, "We'll pay less until times are better," realize that the probability that times will get better enough for them to raise rates is about zero.
• Clients often talk, and once you're known for writing for those who pay less, the ones who pay more may want to revisit your rates.
• The more you give in on pricing, the more you have to work to make your living. Eventually your life is there to support your work, not the other way around.

To reduce your rates is to devalue what you are doing. There may be times it is necessary, but that is probably a rare occasion. More often you can try renegotiating to balance out the value you are giving up. Here are some approaches that can work:

1. Reduce what you offer -- Look to see where you can scale back what you provide to the client. Mind you, this is something you do out in the open so they understand that they are getting less because they are paying less. Maybe you don't search for art, or write something shorter, or provide fewer options.
2. Better payment terms -- If budgets are smaller, it might be that the client can pay faster or pay for a bank transfer instead of your waiting for a check to clear. Be careful, as some clients will promise anything knowing that the accounting department will work on its usually time frame.
3. Get regular work -- It takes a certain amount of time to find work. Get to some reasonable estimate of how long that is, and you can use your bottom line hourly figure to determine how much that time is worth to you. Discount an assignment by less than that, and you're actually ahead because you open more time for assignments and other marketing. So trade off a somewhat lower fee for guaranteed work.
4. Improve other terms -- There may be other conditions that, if changed, either improve cash flow, open time, or provide some other benefit whose financial value you can calculate. It may be that having more time to work on an assignment lets you manage your schedule more effectively. If you're doing work that requires outsourcing sections, it could be that you can have the client directly pay the other people (though you do face the potential risk of their making deals independent of you, which may or may not be a problem, depending on your business model). It might be that you can get money forwarded for expenses, rather than receiving payment after the fact.

As with all forms of negotiation, creative problem solving can take you a long way and even turn what could have been an income drop into a net gain.

Making Sure to Get Paid

There was a recently extended discussion on Freelance Success of troubles in getting paid by clients. I'm not going to pretend that I never have to chase payments - everyone does every now and then. But I do minimize it and reduce the amount of time to get a check with the following steps:

• Ask About Paperwork Right after geting an assignment, ask about the paperwork you'll need to provide. The company will need a W-9, unless you've worked with the client before. You may need a contract to get paid, or not. But make this part of what you ascertain when talking about pay rates, deadlines, and rights license.


• Talk To Account Payable Shortly after you start the assignment, it never hurts to talk to accounts payable, ask about what they need, which can differ from what an editor or corporate representative thinks. Particularly ask about what the company will need on an invoice. Do you need to include social security number? Is there a purchase order number that you have to include? Are there specific addresses or division names that must go onto the invoice? Get all this clear up front, because the people asking for your services may actually not know what they're supposed to do.


• Start the Clock When you submit the assignment, or any milestone part, submit the appropriate invoice. If the client wants changes, you can provide them, but maximize the chance that the receiving person must have received the invoice. If they got the work, they got the invoice, so long as you send the two in together.


• Check on Progress This can be a bit sticky. You must not be beligerant about it, because that will be off-putting, and people might delay processing your invoice out of irritation and spite. But you want to find out whether the invoice is in process and when it would be scheduled to pay. You must ask accounts payable about this. Your editor or client doesn't want to spend the time finding out, and they won't know and might lie because they are embarrassed about not knowing. The accounts payable contact might say that it isn't yet in the system, so try back in another week or two.


• When Things Go Wrong Notice that I don't say if, but when. That is because, even with the best clients, sometimes that will happen. If you hear that the invoice hasn't been received yet, you might want to talk to your business contact, mention that accounts payable didn't have it, and ask how long processing generally took, letting the person have the out of saying that accounting lost the invoice. Sometimes accounting does screw up and tries to blame others. In my experience, more often it's other people who don't do their end of the paperwork and try blaming accounting. No matter what the situation, you don't care. What you want is a check in a reasonable amount of time.


• Making Friends Notice that I keep talking about contacting accounts payable. You want to make friends with accounting, because they have the best chance of telling you where things actually are, and when the check will arrive.


• Don't Wait I've said this in a number of ways so far, but will underscore the importance of not waiting until money is running late. Until you know how a given organization runs, assume that you need to check on them - and even when you know them, keep tabs on how things are going, so you can tell when something is going wrong for whatever reason. That recently happened to me with a good client that got a bit confused over the number of invoices that had some in over a short period of time and which ones they had paid. I was able to help straighten out the situation, and they got payment out right away.


• Squeeky Wheel When things aren't going right, do not - I repeat, DO NOT - nicely go off. Be pleasant, but stay on top of the situation and be sure that you get the answers you need. If you are persistent, they will get you what you need to keep from getting another call. If you aren't getting answers, then keep calling - using whatever code you need to eliminate caller ID from telegraphing your identity - until you reach someone.

I'm not going to talk about what to do when you can't get paid, as that's a different issue. Instead, focus on how you can get others' business processes to work with your needs so most of the money you are owed comes as quickly as you can get it.

Check on Invoices Early and Often - at First

I find that most companies have their own rhythms when it comes to payment - their own processes, cash flow, and requirements. Often the buyer at the client - whether editor, corporation, or organization - doesn't think much about those processes. Your first invoice with someone is always tricky because the accounting department has to get you into the account payable system as a vendor, which might require additional authorization than just getting an invoice signed and passed in.

So on that crucial first invoice, I check right when it's due - sometimes asking the person I dealt with, but more frequently, now, going right to the accounts payable department. These people aren't shy about talking money and actually expect to hear from their vendors with problems and questions. Call and ask how the process works and see if they have your invoice. Explain that this is a regular process you go through to make sure things are working smoothly and to better understand their process, and that you're not standing over their shoulder about when you will be paid for this particular check. If there is a problem, like someone not filling out paperwork or an invoice not arriving from the buyer, then you can start taking corrective action rather than waiting weeks more and getting your stomach in a know. It's just business - so just take care of it.

Never Walk Away From the Good Fight

There will be times (if you haven't already seen them) that you are in conflict with a client. Perhaps it wants to unreasonably delay payment or demand significant more work for no extra compensation or ask you to shoulder other burdens that never were mentioned during discussions of the assignment. You may have talked to the people involved, trying to get a resolution, but to no avail.

I understand the reluctance to take significant action. A number of thoughts are running through your head - don't want to lose the client, I'm friends with the editor, what if they get angry because I hate conflict - as your emotions bubble over. And I certainly understand how you would prefer a reasoned solution that got you what you needed. Obviously if that is possible, then it's a good outcome.

But there will be times that does not happen, and the company is happy to string you along or out or whatever preposition best describes your state of misery. In those circumstances, for your own sake as a human being, you cannot back down or give in. To do so is to allow yourself to be stepped on. That sets a bad precedent for the future and puts you further into a frame of mind where you feel like you're getting what you actually deserve: "If it's happening, then I must have done something to bring it on." This is the abused spouse mindset, and one that you must discourage.

That doesn't mean you necessarily become crazed and demand a knock-down, drag out fight. However, you stand firm for what is right and take the actions necessary to see it happen. It's good for you, it's good for your family and friends - it's particularly important if you have children, because somehow they know when you act in a righteous, and not self-righteous, manner and it teaches them to stand up for themselves. It's good good for the writing community, and it's good for the world. If people firmly planted their feet at such times, we'd have far fewer tragedies, because we would not let things go so far.

Be firm and hold your ground. You did the work and they owe you the money. If they want more work, they can pay more money. Insist that they make good. And when they do act in a reprehensible manner, add your voice to the others descrying such atrocious behavior. The more you do this, the lest often you'll find people ready to take you on. You don't go into new business relationships with a chip on your shoulder and frothing at the mouth because you won't have to. People will just know. And, more importantly, you will know. You may win, you may lose, but you'll feel better about yourself no matter what.

When Things Go Wrong, Negotiate

Yesterday I mentioned that when things are going well, you should continue marketing with a focus on things you might not ordinarily do. When things go wrong, yes, you market, but you might also consider negotiation. Instead of taking whatever life deals out, see how much you can change more toward your advantage. I had a real example happen yesterday when a publication decided literally at the last minute because of a mix-up on its end that it needed substantial changes to a story. It was pulling the article from the current issue and now the piece was no longer accepted. I did start gnashing my teeth and began writing an email to the editor because I couldn't afford to disrupt my cash flow further than a couple of previous setbacks had already done.

I started the email a few times - got a line or two in and tossed it. Remembering my goal - to get money - I knew that venting at the editor would do no good. So I carefully crafted a message saying that we needed to talk and that while I understood there was a mix-up on the publisher's side because I got the go-ahead from someone new who hadn't known of the history of covering a given topic, I couldn't add another invoicing cycle on top of what I had already waited.

That was the first part of my negotiation strategy - because I wanted a practical resolution, not the emotional satisfaction of screaming at someone. Next, I said that if we could work out payment issues, I'd be happy to do a few extra interviews and the rewrite "to reflect what is now a different angle and article." I was clearly indicating that additional pay over the original fee might otherwise be in question. Could I have held out for more? Sure, but I was considering the most important goal in this case - while realizing that it would largely be a case of reslanting much of what I already had in a somewhat different way.

Later that day I received a counter-proposal - a one-third "kill" fee immediately, and the remainder on rewriting the article. Because I had overbooked revenue above my target goal, I could agree to that, maintain a relationship that I expect to be a profitable one (I already had a second assignment and had negotiated a 20% rate increase between the two), and still have the cash flow for the full goal, with the extra to follow in the future. So I agreed.

Did I get everything I wanted? Of course not! But did I get what I needed then? Absolutely. And if that hadn't done it, I would have looked at other possible negotiation strategies. Negotiating out of a problem won't always work - it didn't do a thing when early this year I had a client declare bankruptcy. But it's a potential tool that might get you out of a jam, so don't assume that you only use negotiation before you start an assignment. Any time an issue comes up - payment, or maybe a sudden change in an assignment or deadline - negotiation is useful. And it's a great deal more effective than tying yourself up in knots or posting on a writers' board how angry you are with someone.