prototyping your business
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TRANSCRIPT
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Prototypingyour business
@d!nielm!ll d!n@d!nielm!ll.com
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Design
Illustration
iOS
Motion Graphics
JavaScript
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“Portfolio piece”
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“More work”
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Wh" do we just de!l with this?
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Business isn’t a science.
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Business is an art.
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“Desi#n” isn’t limited to the thin#s we m!ke.
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Desi#n "our process. Desi#n "our business.
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Business is an art.
Founder $ Desi#n Director
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Business is an art.Desi#n Director
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Business is an art.
Inter!ctive Director
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february 2011
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With ! %ull-time s!l!r" !s ! b!ckup, I w!s %ree to experiment with m" business.
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I w!s %ree to protot"pe.
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prototypeA w!" to test ! h"pothesis.
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webdesignforidiots.net/2012/11/plan-learning-to-wire-frame/
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How much should I charge?
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I can make good moneyon side work
H"pothesis
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I can makegood moneyon side work
H"pothesis
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rate cards
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Principal
Art Director
Sr. Designer
Jr. Designer
Intern
$250/hr
$200/hr
$150/hr
$100/hr
$100/hr
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Principal
Art Director
Sr. Designer
Jr. Designer
Intern
$250/hr
$200/hr
$150/hr
$100/hr
$100/hr
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Hourly ratesSpoiler: hourl" r!tes suck.
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$25
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$50
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$100
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$200
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$400
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$800D
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For me, it w!s di%%icult to convince ! client to p!" more th!n $150/hr.
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No one went to school to be ! client.
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paid hourly—$7/hr
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paid hourly—$70/hr
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paid hourly but went to school for 7 years
$375/hr
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Hourl" r!tes don’t sc!le with experience.
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Hourly Rate $ 100
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Hourly Rate
Hours
$ 100
10×
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Hourly Rate
Hours
Total
$ 100
10
$1000
×
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Hourly Rate
Hours
Total
$ 100
10
$1000
×
$ 100
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Hourly Rate
Hours
Total
$ 100
10
$1000
$ 100
5× ×
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Hourly Rate
Hours
Total
$ 100
10
$1000
$ 100
5
$ 500
× ×
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Hourly Rate
Hours
Total
$ 100
10
$1000
$ 200
5
$1000
× ×
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Hourly Rate
Hours
Total
$ 100
10
$1000
$ 400
5
$2000
× ×
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Hourly Rate
Hours
Total
$ 100
10
$1000
$ 200
10
$2000
× ×
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Hourly Rate
Hours
Total
$ 100
10
$1000
$ 100
20
$2000
× ×
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Hourl" r!tes incentivize "ou to be slower.
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Director of Client Service
2008 Hourl! Billin" R#tes* Over 500 employees—http://dmall.me/15CxrwU
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Director of Client Service $ 533/hr
2008 Hourl! Billin" R#tes* Over 500 employees—http://dmall.me/15CxrwU
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Director of Client Service
Executive Director Account Planning
$ 533/hr
2008 Hourl! Billin" R#tes* Over 500 employees—http://dmall.me/15CxrwU
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Director of Client Service
Executive Director Account Planning
$ 533/hr
$ 601/hr
2008 Hourl! Billin" R#tes* Over 500 employees—http://dmall.me/15CxrwU
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Director of Client Service
Executive Director Account Planning
Executive Research Director
$ 533/hr
$ 601/hr
2008 Hourl! Billin" R#tes* Over 500 employees—http://dmall.me/15CxrwU
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Director of Client Service
Executive Director Account Planning
Executive Research Director
$ 533/hr
$ 601/hr
$ 427/hr
2008 Hourl! Billin" R#tes* Over 500 employees—http://dmall.me/15CxrwU
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Director of Client Service
Executive Director Account Planning
Executive Research Director
Chief Creative Director
$ 533/hr
$ 601/hr
$ 427/hr
2008 Hourl! Billin" R#tes* Over 500 employees—http://dmall.me/15CxrwU
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Director of Client Service
Executive Director Account Planning
Executive Research Director
Chief Creative Director
$ 533/hr
$ 601/hr
$ 427/hr
$ 964/hr
2008 Hourl! Billin" R#tes* Over 500 employees—http://dmall.me/15CxrwU
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Director of Client Service
Executive Director Account Planning
Executive Research Director
Chief Creative Director
Executive Media Director
$ 533/hr
$ 601/hr
$ 427/hr
$ 964/hr
2008 Hourl! Billin" R#tes* Over 500 employees—http://dmall.me/15CxrwU
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Director of Client Service
Executive Director Account Planning
Executive Research Director
Chief Creative Director
Executive Media Director
$ 533/hr
$ 601/hr
$ 427/hr
$ 964/hr
$ 478/hr
2008 Hourl! Billin" R#tes* Over 500 employees—http://dmall.me/15CxrwU
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Director of Client Service
Executive Director Account Planning
Executive Research Director
Chief Creative Director
Executive Media Director
Executive Director Print Production
$ 533/hr
$ 601/hr
$ 427/hr
$ 964/hr
$ 478/hr
2008 Hourl! Billin" R#tes* Over 500 employees—http://dmall.me/15CxrwU
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Director of Client Service
Executive Director Account Planning
Executive Research Director
Chief Creative Director
Executive Media Director
Executive Director Print Production
$ 533/hr
$ 601/hr
$ 427/hr
$ 964/hr
$ 478/hr
$ 391/hr
2008 Hourl! Billin" R#tes* Over 500 employees—http://dmall.me/15CxrwU
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t
t
Time
Ye!rs in business
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Clients should not be p!"in# %or our time. The" should be p!"in# %or our expertise.
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if not hourly, then what?
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Fixed pricing
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Hourly Rate
Hours
Total
$ 100
10
$1000
×
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Hourly Rate
Hours
Total
$ 100
10
$1000
×
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Hourly Rate
Hours
Total
$ 100
10
$1000
×
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Hourly Rate
Hours
Total
$ 100
5
$1000
×
v
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Hourly Rate
Hours
Total
$ 100
15
$1000
×
v
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value pricing
0
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V!lue pricin# is not the s!me !s %ixed pricin#.
* However, %ixed pricin# is one t"pe o% v!lue pricin#.
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V!lue pricin# o%ten h!s little to do with the project itsel%.
It’s more !bout the service provider !nd the client.
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1. touchy feely.
2. cool & calculated.
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1. touchy feely.
2. cool & calculated.
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1. touchy feely.
2. Cool & calculated.
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danielmall.com/articles/object-value-pricing/
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Trust "our #ut.
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1. touchy feely.
2. cool & calculated.
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Fi#ure out wh!t "ou need to e!rn.
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Health Insurance
Gym
Mortgage
TV Services
Auto expenses
Groceries
Misc shopping
Student loan
$472.62
$79.98
$700.00
$25.99
$887.27
$400
$407
$128.09
Taxes
Phone
Water
Electric
Tithe
Property Tax
Sewer Dept.
Misc.
$1000.00
$200.00
$80.00
$125.00
$300.00
$100
$33
$2000
$6938.95Tot!l
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Round numbers m!ke the m!th e!s".
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1 month project = $10K
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2 week project = $5K
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2 month project = $20K
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1 month project = $10K
danielmall.com/articles/superfriendly-annual-report-2012
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February 2012
1-month project, $10K
![Page 99: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/99.jpg)
February 2012
1-month project, $10KMarch 2012
1-month project, $10K
![Page 100: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/100.jpg)
February 2012
1-month project, $10KMarch 2012
1-month project, $10KApril 2012
1-month project, $30K
![Page 101: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/101.jpg)
February 2012
1-month project, $10KMarch 2012
1-month project, $10KApril 2012
1-month project, $30KMay 2012
![Page 102: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/102.jpg)
![Page 103: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/103.jpg)
When "ou’re !he!d on c!sh%low, "ou h!ve the %reedom to be pick",
rel!xed, or !mbitious.
![Page 104: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/104.jpg)
When "ou’re !he!d on c!sh%low, "ou !re more v!lu!ble.
![Page 105: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/105.jpg)
V!lue-b!sed pricin# is !bout how v!lu!ble "ou !re.
![Page 106: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/106.jpg)
V!lue-b!sed pricin# is !bout how v!lu!ble "ou !re (!t !n" #iven time).
![Page 107: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/107.jpg)
Save-the-date
![Page 108: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/108.jpg)
They Really want to work with me.
H"pothesis
![Page 109: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/109.jpg)
I’ll be honest: m" time is in dem!nd. To reserve ! speci%ic time%r!me %or "our project, "ou c!n opt into !n !ddition!l ret!iner which #u!r!ntees th!t "our project is m" %irst priorit" st!rtin# October 30. This ret!iner is non-re%und!ble.
I choose to immedi!tel" reserve this time%r!me %or m" project !nd will send $7500 !lon# with the si#ned contr!ct.
![Page 110: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/110.jpg)
budgetThe B-Word
![Page 111: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/111.jpg)
Wh!t’s "our bud#et?You
Well, we’d like to he!r wh!t numbers "ou come up with.
Client
[li#hts h!ir on %ire]You
![Page 112: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/112.jpg)
?
![Page 113: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/113.jpg)
$60K
![Page 114: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/114.jpg)
$60K
$35K
![Page 115: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/115.jpg)
$60K
$105K
![Page 116: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/116.jpg)
The M!#ic Question
![Page 117: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/117.jpg)
“Is it closer to three thous!nd, thirt" thous!nd, or three hundred thous!nd?”
The M!#ic Question
![Page 118: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/118.jpg)
“Bud#et” = This is wh!t I think "ou’re worth
![Page 119: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/119.jpg)
The Questionnaire
![Page 120: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/120.jpg)
• Wh!t kind o% time%r!me !re we lookin# !t? Is there ! cert!in event or d!te th!t is dependent on this site l!unchin#? On m" end, the soonest !v!il!bilit" I h!ve to st!rt this is in _____________. In the spirit o% %ull disclosure, I !lso h!ve !nother prospective client interested in the s!me time slot.
![Page 121: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/121.jpg)
• Wh!t kind o% time%r!me !re we lookin# !t? Is there ! cert!in event or d!te th!t is dependent on this site l!unchin#? On m" end, the soonest !v!il!bilit" I h!ve to st!rt this is in _____________. In the spirit o% %ull disclosure, I !lso h!ve !nother prospective client interested in the s!me time slot.
• Is there !n" work !lre!d" st!rted th!t I should know !bout? A new lo#o? Some rou#h desi#ns or ide!s %or the site?
![Page 122: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/122.jpg)
• Wh!t kind o% time%r!me !re we lookin# !t? Is there ! cert!in event or d!te th!t is dependent on this site l!unchin#? On m" end, the soonest !v!il!bilit" I h!ve to st!rt this is in _____________. In the spirit o% %ull disclosure, I !lso h!ve !nother prospective client interested in the s!me time slot.
• Is there !n" work !lre!d" st!rted th!t I should know !bout? A new lo#o? Some rou#h desi#ns or ide!s %or the site?
• Wh!t size is the project te!m on "our end? Would it just be "ou? Or would it be ! whole te!m on "our end?
![Page 123: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/123.jpg)
• Wh!t kind o% time%r!me !re we lookin# !t? Is there ! cert!in event or d!te th!t is dependent on this site l!unchin#? On m" end, the soonest !v!il!bilit" I h!ve to st!rt this is in _____________. In the spirit o% %ull disclosure, I !lso h!ve !nother prospective client interested in the s!me time slot.
• Is there !n" work !lre!d" st!rted th!t I should know !bout? A new lo#o? Some rou#h desi#ns or ide!s %or the site?
• Wh!t size is the project te!m on "our end? Would it just be "ou? Or would it be ! whole te!m on "our end?
• How did "ou he!r !bout our work? Wh!t speci%ic!ll" interests "ou !bout it? An" p!rticul!r projects th!t "ou're keen on?
![Page 124: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/124.jpg)
• Wh!t kind o% time%r!me !re we lookin# !t? Is there ! cert!in event or d!te th!t is dependent on this site l!unchin#? On m" end, the soonest !v!il!bilit" I h!ve to st!rt this is in _____________. In the spirit o% %ull disclosure, I !lso h!ve !nother prospective client interested in the s!me time slot.
• Is there !n" work !lre!d" st!rted th!t I should know !bout? A new lo#o? Some rou#h desi#ns or ide!s %or the site?
• Wh!t size is the project te!m on "our end? Would it just be "ou? Or would it be ! whole te!m on "our end?
• How did "ou he!r !bout our work? Wh!t speci%ic!ll" interests "ou !bout it? An" p!rticul!r projects th!t "ou're keen on?
• Are there other people th!t "ou’re t!lkin# to !bout this project? Mi#ht I !sk how m!n"? Wh!t do "ou like !bout their work?
![Page 125: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/125.jpg)
• Wh!t kind o% time%r!me !re we lookin# !t? Is there ! cert!in event or d!te th!t is dependent on this site l!unchin#? On m" end, the soonest !v!il!bilit" I h!ve to st!rt this is in _____________. In the spirit o% %ull disclosure, I !lso h!ve !nother prospective client interested in the s!me time slot.
• Is there !n" work !lre!d" st!rted th!t I should know !bout? A new lo#o? Some rou#h desi#ns or ide!s %or the site?
• Wh!t size is the project te!m on "our end? Would it just be "ou? Or would it be ! whole te!m on "our end?
• How did "ou he!r !bout our work? Wh!t speci%ic!ll" interests "ou !bout it? An" p!rticul!r projects th!t "ou're keen on?
• Are there other people th!t "ou’re t!lkin# to !bout this project? Mi#ht I !sk how m!n"? Wh!t do "ou like !bout their work?
• Wh!t kind o% bud#et do "ou h!ve !lloc!ted %or this project?
![Page 126: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/126.jpg)
• Wh!t kind o% time%r!me !re we lookin# !t? Is there ! cert!in event or d!te th!t is dependent on this site l!unchin#? On m" end, the soonest !v!il!bilit" I h!ve to st!rt this is in _____________. In the spirit o% %ull disclosure, I !lso h!ve !nother prospective client interested in the s!me time slot.
• Is there !n" work !lre!d" st!rted th!t I should know !bout? A new lo#o? Some rou#h desi#ns or ide!s %or the site?
• Wh!t size is the project te!m on "our end? Would it just be "ou? Or would it be ! whole te!m on "our end?
• How did "ou he!r !bout our work? Wh!t speci%ic!ll" interests "ou !bout it? An" p!rticul!r projects th!t "ou're keen on?
• Are there other people th!t "ou’re t!lkin# to !bout this project? Mi#ht I !sk how m!n"? Wh!t do "ou like !bout their work?
• Wh!t kind o% bud#et do "ou h!ve !lloc!ted %or this project?
• Wh!t !re "ou speci%ic!ll" lookin# %or %rom me? Do "ou !lre!d" h!ve developers or other p!rtners lined up !nd !re lookin# to us just %or desi#n? Or do "ou w!nt the whole thin# desi#ned !nd built?
![Page 127: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/127.jpg)
• Wh!t kind o% time%r!me !re we lookin# !t? Is there ! cert!in event or d!te th!t is dependent on this site l!unchin#? On m" end, the soonest !v!il!bilit" I h!ve to st!rt this is in _____________. In the spirit o% %ull disclosure, I !lso h!ve !nother prospective client interested in the s!me time slot.
• Is there !n" work !lre!d" st!rted th!t I should know !bout? A new lo#o? Some rou#h desi#ns or ide!s %or the site?
• Wh!t size is the project te!m on "our end? Would it just be "ou? Or would it be ! whole te!m on "our end?
• How did "ou he!r !bout our work? Wh!t speci%ic!ll" interests "ou !bout it? An" p!rticul!r projects th!t "ou're keen on?
• Are there other people th!t "ou’re t!lkin# to !bout this project? Mi#ht I !sk how m!n"? Wh!t do "ou like !bout their work?
• Wh!t kind o% bud#et do "ou h!ve !lloc!ted %or this project?
• Wh!t !re "ou speci%ic!ll" lookin# %or %rom me? Do "ou !lre!d" h!ve developers or other p!rtners lined up !nd !re lookin# to us just %or desi#n? Or do "ou w!nt the whole thin# desi#ned !nd built?
• An"thin# else th!t I should know !bout wh!t "ou’re lookin# %or %rom me?
![Page 128: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/128.jpg)
performance-based compensation
V!lue Pricin#
![Page 129: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/129.jpg)
Equit", s!les bonuses, incentives, etc
![Page 130: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/130.jpg)
Cashflow
![Page 131: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/131.jpg)
When should "ou #et p!id?
![Page 132: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/132.jpg)
50%-50%
![Page 133: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/133.jpg)
Thirds
![Page 134: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/134.jpg)
Good c!sh%low is !bout miti#!tin# risk.
![Page 135: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/135.jpg)
Biweekly
![Page 136: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/136.jpg)
97%
![Page 137: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/137.jpg)
Further areas to prototype
![Page 138: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/138.jpg)
Contracts
![Page 139: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/139.jpg)
Contracts
stuffandnonsense.co.uk/projects/contract-killer
![Page 140: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/140.jpg)
Proposals/pitches
![Page 141: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/141.jpg)
Language
![Page 142: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/142.jpg)
When "ou w!nt numbers to seem low, use “K.” When "ou w!nt them to seem hi#h, write out the %ull number.
Pro Tip
![Page 143: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/143.jpg)
“While our competitor mi#ht be ch!r#in# "ou $372,000.00, we’re con%ident we could #et it done %or
!bout $254K.
Ex!mple
![Page 144: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/144.jpg)
Wh!t clients w!nt to bu" more th!n !n"thin# is trust.
businessolo#"show.biz @bizolo#"show in%o@businessolo#"show.biz
![Page 145: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/145.jpg)
Wh!t clients w!nt to bu" more th!n !n"thin# is trust.
![Page 146: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/146.jpg)
The more time "ou spend buildin# trust, the better "our business will be.
![Page 147: Prototyping Your Business](https://reader033.vdocuments.net/reader033/viewer/2022051613/54c767d74a7959036b8b4577/html5/thumbnails/147.jpg)
Thanks!B u
@d!nielm!ll d!n@d!nielm!ll.com