Graphic design isn’t always an easy way to make a living. The competition is fierce, and you need a steady flow of clients who pay on time to stay in business. Knowing how to make an invoice for a freelance artist is a vital part of the trade. The good news is invoice templates for graphic designers can easily be downloaded online.
On your invoices, you need to include the ways that clients can pay you. Here are some options to consider:
PayPal
Because it is simple to set up and widely accepted, PayPal is a popular payment option for freelancers and small business owners. PayPal has a quick and straightforward payment process that doesn’t require any setup costs. The only downside is that PayPal charges steep transaction fees. If you accept payment from a different currency, you will also be pinged with unfavorable currency conversion rates.
Bank Transfer
Bank transfers are a quick and safe way to receive payments, and can usually be done with lower fees than credit cards or PayPal. They are safe because bank transfers are traceable and need the account holder’s authorization. Nevertheless, depending on the bank, the transaction might take days to settle, which can be inconvenient if you need quick access to cash.
Credit Card
Credit card payments are quick and straightforward and can be completed online. They are widely recognized globally, making it easier for freelancers to collect payments from customers from around the globe. High costs are one downside, and not all clients may not have access to a company credit card. Payments are also subject to chargebacks, which happen when a client challenges a transaction and asks for a refund.
Online Payment Platforms
Internet payment solutions such as Stripe, Square, and Payoneer make it simple and safe for freelancers to accept payments. They enable fast money processing, have no set-up costs, and can accept payments from overseas clients. Nevertheless, using online payment systems may incur transaction fees and disputes or holds on payments.
Cryptocurrency
Bitcoin and other cryptocurrencies are becoming increasingly popular among freelancers. Fast payment processing, no transaction fees, and the possibility for improved security and anonymity are all advantages of using Bitcoin. The disadvantages of employing cryptocurrencies include currency value fluctuations and the reluctance of clients to use them as payment methods.
Other Forms of Compensation that Don’t Involve Money
There may be times when you will want to negotiate another form of compensation for your work. Other ways to be reimbursed for your time and talent are:
Exposure to a Larger Audience
Graphic designers may do work in return for increased visibility. For example, they may barter their work in exchange for being able to showcase their talents on a client’s website or social media platforms. While exposure can help a designer gain awareness and perhaps attract new customers, ensuring that the exposure is meaningful and corresponds with the designer’s philosophy and goals is critical.
Equity or Royalties
Graphic designers may be offered equity in a firm or future royalties from selling a product or service they developed. While this strategy might result in a long-term financial advantage, you should verify that the equity or royalties are fair and detailed in your agreement with the client.
How Do Graphic Designers Set Their Rates?
Graphic designers and other freelancers adopt different types of payment structures depending on the project, client, and a number of other variables. Examples of the different types of arrangements include:
Hourly Rate
Many graphic designers bill by the hour. Some clients are reluctant to agree to this type of arrangement because they would rather pay for the quality of the output, not the time spent on it.
Per Project Basis
Graphic designers can set a flat fee for a project, regardless of the number of hours performed. This is a more predictable way of getting paid but could result in income loss if the project takes longer than expected.
Commission-Based Rate
Graphic designers sometimes charge a percentage of the project’s total cost or revenues earned. The benefits of this system include a more direct link between payment and the success of the project. The disadvantages include a lower payout if sales are slow.
Retainer Fee
Graphic designers may commit to fixed amounts to be paid at specified times, such as at monthly or yearly intervals, in return for being available to the customer whenever services are needed. This provides a consistent revenue stream but is often a lower compensation rate than hourly or project-based agreements.
Final Thoughts
Invoice Ninja is perfect for you if you need to invoice as a freelance designer and are tired of spending hours creating and submitting invoices to clients. Our solution is intuitive, user-friendly, and has features that streamline invoicing and payment processes. Sign-up today for a free account!
