May/June ’08 Guild News

Business by Design
Forming Strategic Alliances and Maximizing Income

By Deborah Kantor

Contributors: Lula Chang (www.woolydream.com), Sara L. Chapman (www.artsquadgraphics.com), Marion Y. Dorfer, Lisa C. Jackson, Aidin Mariscal (www.immagineint.com), Wendy Martin (http://wendymartinillustration.com), Laureen Maurer (www.ridethewhitehorse.com), Evelyn McCauley (www.emdesignconsulting.com), David Veal (www.vealcreative.com), and April Zay (www.hummingbird-arts.com).

Over the past few decades we have seen more and more small businesses close their doors as big box stores and national chains celebrate their grand openings. Family farms are being plowed under by huge agri-conglomerates. An increasing number of manufacturing and service jobs are being outsourced to foreign countries where labor is cheaper. When the economy takes a downturn, these trends intensify and small businesses find it increasingly difficult to stay afloat.

Graphic designers who make their living as freelancers or who own small design firms are not immune to these trends. As Evelyn McCauley, a design consultant from Raleigh, NC, specializing in corporate identity and collateral, says, The business climate seems to change daily, and I am definitely the “canary in the coal mine”—whatever effects the economy might feel, I, and professionals like me, tend to feel first, as we are working directly with businesses….

How can independent graphic designers make a living and even grow their businesses during difficult economic times? Ten Guild designers from around the country shared their specific strategies for survival with Guild News. Recognizing that they alone cannot possibly provide all the graphic art services their clients need, some designers have formed strategic alliances with other small businesses providing related services. Other designers realize that they cannot survive in isolation, so they have joined professional organizations that offer business-related resources, networking and marketing opportunities, and even potential clients. Still others have maximized their income by branching out into new markets or by utilizing additional talents to offer new services and products. Although these strategies are not necessarily new, they have become necessities for survival in today’s business climate.

FORMING STRATEGIC BUSINESS ALLIANCES
Designers can form various types and levels of strategic business alliances to better serve their clients and to make themselves more marketable. These range from true symbiotic relationships in which the designer and another party agree to provide services for each other so that both benefit, to more informal alliances that occur through the natural course of doing business. Sometimes long-lasting lucrative partnerships are formed with clients.

PARTNERING WITH PROFESSIONALS WITH COMPLEMENTARY SKILLS
David Veal of Veal Creative, a one-person design firm in Highland Ranch, CO, that specializes in identity and collateral, calls on “power partners” to complement his areas of expertise in order to provide a full array of services for his clients. His power partners include three different marketing specialists who cover different niches and levels of business, several photographers and illustrators who provide images, and several website developers who help with online projects. He also has several businesses that he teams up with to help clients develop business plans and to help them with customer service and media placement. I can give them a bit of a reality check for their branding and marketing, but they also need a solid business structure to survive. By assisting his clients with their business survival, Veal is ensuring his own business’s longevity.

Sara L. Chapman of Seattle, WA, a designer of business communications and books, remembers her most successful alliance as being a similar group of creative pros in Sonoma County, California, called the Ad Club. We had a broad mix of not just designers, but illustrators, photographers, Web techies, video people, an owner of a recording studio, someone who worked in an enamel sign company, etc. We used to meet in various people’s places of business and created a working group of social and professional relationships. I got several referrals from belonging to that group.

A natural business alliance for a designer, which worked very well for Wendy Martin of Crystal City, MO, is to partner with a writer. According to Martin, who specializes in illustration and Web, logo, and brochure design, For several years, a writer and I worked together on larger projects, especially those requiring logo design and color specifications. He would write the copy and I would do the design and layout and send the mechanicals to the printer. Sometimes I received requests for copyediting, which I would pass on to him.

Designer and commercial photographer Aidin Mariscal, based in Laguna Niguel, CA, partners with a small ad agency that does the coding for the Web sites she designs. In return, she does most of their photography. She has similar arrangements with a copywriter, a salesperson for a magazine, and two printing companies. Mariscal sums up the advantages of these types of partnerships: I can offer my business as a full ad agency, but I don't have any employees. I make more money, offer more services, my clients are happy and I have a full group of people that all work for each other. Sara Chapman’s Art Squad Graphics also has an alliance with a Web coder, although on a more informal basis: (She) is happy to refer her clients who may be in need of design help, and the feeling is mutual on my side.

Laureen Maurer of White Horse Design in Scottsdale, AZ, also has realized the mutual benefit of working with Web professionals for a different reason: Although my business offered website services, I finally came to realize that I really disliked working on Web projects and that my passion was predominantly in print-related projects with really tight deadlines. I had already made the decision to scout out a Web design company who would provide comprehensive Web services for my clients, so I could do what I love most. On the flip side, the other company clearly expressed a desire to marry their existing love of all things Web and network-related with a seasoned graphic designer in order to provide comprehensive marketing solutions for their clients. It seemed evident that the timing and need for one another’s services was mutual…. I am hopeful that it will move into a long-term, contractual alliance where we would utilize one another’s services exclusively.

Alliances can also provide designers with secondary benefits beyond increased business. Design consultant McCauley has partnered with an ad agency as its primary source for design and creative services, and she is currently partnered with marketing professionals as one of their creative resources: In each case, I was able to offer the partner agency a level of creative service that approached a full-service firm, as well as work with them to develop strategies and concepts for various clients. In return, of course, I had the projects awarded to me, and the opportunity to expand my knowledge base about the details of marketing plans and marketing strategies.

One effective marketing approach for artists is to form an alliance with another business that is trying to reach the same target market but with a different service or product. April Zay, a designer/illustrator from Hamilton, NJ, has had excellent results with cooperative marketing. One of her specialties is painting pet portraits. To promote her portrait service, she teamed up with one of Philadelphia’s best natural pet food stores: We had a wine-and-cheese “Meet the Artist” reception at the store. I made up advertising with my logo and the store logo to advertise the event. I now have many of my paintings hung on the wall and placed business cards for the customers to take. This is an excellent example of a partnership that was mutually beneficial to both parties. As a result of the alliance, they have advertising that features information about both businesses. The reception attracted new people to the store, who could view Zay’s art, also learn more about the store, and hopefully become customers for both businesses. Zay has approached other pet-related business owners who have allowed her to display her work for their customers. With some of them, she has an agreement with the owner to pay a small percentage of any commissions she receives from their customers.

Zay employs a different type of alliance to market one of her other talents: designing wedding invitations. This is not the primary focus of her business, so she works exclusively with a bridal planner as one of the planner’s preferred vendors to obtain her invitation business. The planner keeps Zay’s samples on file and will recommend Zay to her clients, as someone she trusts and has done business with. Zay has found this to be a positive relationship: Since the planner is selective of her clients, I know that they will be good clients for me.

Forming alliances with other professionals in order to expand the services you offer or to complement your skills involves not only trust, but should be considered carefully, especially if you are presenting the other person’s expertise and skills to clients as part of your business. As David Veal points out, you and the other party also need to have a similar work ethic: In many cases the alliance is mutually beneficial. At times things fall through. When you work with other businesses for your client, you need to really keep on them to focus on hitting key actions on time. Never take anything for granted. When everything sticks to the schedule without client interruption, it is a very satisfying endeavor.

Veal believes the most successful alliances occur when everyone is onboard to meet the goals of the client and/or project: As with any job, if you buy into teaming up with others, understand their proposals, iron out differences, and meet client expectations (exceeding them is always better), then you are going to be successful. Just get to know the people you are working with and look for the best team for your client.

VIEWING CLIENTS AS PARTNERS
Designers who view clients as partners working toward a common goal are often rewarded with mutually beneficial relationships that last long after the initial project is completed. During her career as a Surface Pattern Designer, Marion Y. Dorfer, Associate Professor of Surface Design at Syracuse University, partnered with Kohler Inc. to produce designs for their Artistic Editions Ceramic Products. I feel the partnership with Kohler was quite beneficial to both parties. They flew me out to Wisconsin to see the entire operation. I met with the design team and we shared suggestions on how we could work together on a continual basis. Over the years the company hired me to create several designs for new and revised ceramic and glass products.

VOLUNTEERING CAN PAY OFF
Volunteering is another way to form an alliance that can yield increased recognition and business for a designer. April Zay is a paid instructor for her local arts council, but she also has donated her time to do events to promote her classes, as well as advertise the arts council in general. In return, she has gained private clients from these events, as well as filled up her classes with them. The arts council receives numerous requests for artists and designers for many projects. The council in turn passes on the requests to Zay, giving her the opportunity to follow up with these potential clients. My work with the Arts Council has been the most beneficial for me. I have received so many calls from them. My Web site is also linked to their Web site, so I get a lot of hits that way as well. Through the Art Council, I have been able to establish a community presence and therefore gain the trust of many of my clients.

Zay credits her involvement in a few local art groups with receiving a lot of business through word of mouth. She volunteers to give workshops on design for their artists and gets clients through the workshops.


INITIATING ALLIANCES
How does one go about initiating a strategic alliance? If we look at the experiences of the designers we talked to, there is no single answer. In fact, in some cases, the designers did not have to initiate the process; the other party approached them.

If you want to position yourself to initiate an alliance, join local business organizations. Like volunteering, membership in these groups helps you to become known. This strategy is especially crucial for designers who are just starting their own business in order to start building a client base. Lisa Jackson of Washington Terrace, UT, is employing this strategy to get her corporate identity business, Lisa Jackson Design, off the ground. By joining her local Chamber of Commerce, she has access to a networking event once a month and is listed in the Chamber’s online and print directories. She also became a member of Women in Business, which holds seasonal networking events and also offers members a listing in its printed directory. By joining the Palette Club, which meets monthly, she is able to form friendships with those who may need her services someday. She also joined the At-Large Chapter of the Graphic Artists Guild, which provides her with access to other graphic arts professionals, business and legal resources, promotional opportunities, and national advocacy on behalf of graphic artists.

Joining local business organizations also provides opportunities to identify potential partners, as David Veal discovered. He had already been freelancing since 1982 when he started his own business, Veal Creative, in 2006: I started out meeting people from other businesses through my local Chamber of Commerce and networking groups like Business Network International. Those groups introduced me to the concept of power partners—finding those businesses to connect with and build a relationship with for new work development as well as for completing work my promotional efforts dig up.

April Zay initiated some of her most successful alliances through old-fashioned “cold calling.” For her pet portrait business she went to several higher end stores and showed her work. As a result, one woman offered to do a reception as a way to attract business for herself and to promote Zay’s work. The relationship with the arts council started after she called and asked them what they were looking for in potential teachers. They wouldn’t have known my skills, unless I had called and asked what they were specifically looking for and offered to fill that need.

The old adage, “it’s who you know,” also plays a part in forming alliances. Zay made the alliance for her wedding invitation business through a friend, a former art director, who started her own business and approached Zay about designing for her clients. Evelyn McCauley also entered into an alliance after being contacted by a personal/professional associate who had started his own agency and wanted her services.

Alliances can also happen through other jobs and associations. Wendy Martin met the writer she teamed up with when she was working on the city Web site and he was creating the city newsletter. She had to contact him periodically to get the newsletter content to place on the Web site. After several such contacts, he approached her to design an anniversary logo for an association he belonged to. The logo project went better than he expected with the association using the logo in multiple instances. This led to Martin and the writer meeting and discussing their mutual strengths and weaknesses. As a result, whenever one of them took in a job that the other could do better, they shared the work.

Sometimes, opportunities come about in unexpected ways. Laureen Maurer, for example, initially thought that she was simply meeting a new client for the first time, but after hearing their goals for expanding their own business, she was offered a position of employment. Although she did not take the job, they have agreed to subcontract with one another to become better acquainted and explore various alternatives in forming a strategic alliance that would be most beneficial for both companies. One of Evelyn McCauley’s partnerships came about after being contacted by a firm who wanted to get a sense of the professional climate before moving into the area.

Aiden Mariscal’s alliance with the small agency came about through a mutual client—a new client who hired her to do photography. The agency was the graphic designer for the same client. After a year, Mariscal ended up doing all the graphic design for the client instead of the agency. However, she and the agency worked on several projects together and developed a good professional relationship. Eventually, the agency hired her to do a photo shoot for them. After talking, she realized they could help her develop Web sites, since she had a lot of requests but didn’t have the time and interest to learn Flash development correctly. So she asked them if they would do all her Web production. Now they work as “partners.” She does the graphic design and sends them the files. Then they produce the sites. When my clients hire me, it’s as if the agency is part of my staff as I am part of theirs when they need a photographer. This has allowed me to get a lot more work and be faster.

OTHER STRATEGIES FOR MAXIMIZING INCOME
Several of the graphic designers interviewed for this article are working on or have found additional ways to maximize their income in order to keep their businesses profitable.

Some have stepped up their marketing efforts. After being in business eight years, Sarah Chapman has created and launched a Web site. In an effort to place higher in search engines, she’s started a photo blog as well. Marion Dorfer has been re-working her portfolio and adding new work to open up more outlets for her design work outside of Home Furnishings. I intend to offer my CAD design skills as a selling strategy to generate more profitable opportunities. My main goal is to eventually break into the licensing arena. I plan to do several mailings of my design work to hopefully generate licenses, sales, or commissions.

Others, like Evelyn McCauley, are already offering new services and branching out into new markets. She recently became certified in a branding process that she offers to clients, exclusive of her design services, and she is constantly networking to research additional markets for which her skills would be appropriate—most recently, the kitchen and bath industries. The branding process has been received well and has allowed clients to explore their own message before ever engaging in the design process. She is also in the process of developing a trade show management service, which would involve managing the logistics of trade show participation, in addition to developing the design.

Of the designers interviewed, April Zay’s business seems to be the most diversified. It is comprised of three separate areas: she offers graphic design services, paints oil portraits of people’s pets, and teaches private and group art/software lessons. I have found that these three areas of my business are the most lucrative. I have learned to be flexible and change my focus as the demand changes. When I first started out, I thought I would be doing a lot of invitation and wedding design, but I have discovered there is a larger demand for private art/software teachers.

To meet that demand, she offers Photoshop lessons to artists who are just getting into computer technology. I teach artists how to properly photograph their artwork and color correct it for print and Web. I also offer photography services for artists that don’t want to do it themselves. Then I give them final images that are prepared to upload on their Web site.

Another strategy Zay has used to maximize her income is to design spin-off products to expand her pet portrait business. She offers her clients note cards and wrapping paper of their pet’s portrait. Sometimes she utilizes the original painting to create new notecard designs. She also is considering licensing her art, especially in the pet art category.

The possibilities are limitless for designers who can combine their creative talents with one of their special interests or passions. David Veal, along with partner Steve Schader, has started a new business venture—designing and marketing a new product, American Throttle, the Game. It is a motorcycle trivia, poker-run board game. Veal came up with the concept: I’m a big picture person, a starter. I’m great at strategy and fairly good at selling. That is my basic contribution to American Throttle. He offers one tip on creating a great alliance: pick the right partner. Steve is the art director and illustrator for the graphics. They are selling the games now, in addition to designing and illustrating.

Wooly Dreams Design, the Maryland-based needlework design business of Lula Chang, is a case study in growing a business by continually branching out into new markets. She started her business in 1985 after doing freelance work. Building up a business was a seven-day a week “job” for many years. It was not uncommon for Chang to work 18+ hours per day, but she kept going and now has an established needlework design business where she sells her own line of needlepoint and chart designs. To help her build up a base of shops to wholesale her work to, Chang exhibited at four to five trade shows a year in different cities.

Through the years Chang also has had design work commissioned for books and magazines. Thanks to the Internet, her designs have also been published in the United Kingdom and Australia. About ten years ago, I decided to try licensing and began exhibiting at Surtex to make contacts. I was able to license to a variety of manufacturers for such products as greeting cards, tin cans, ceramics, decorative pillows, fabrics, etc.

GROWING A SMALL BUSINESS IN A DOWN ECONOMY
The designers featured in this article offer small business owners advice for not only surviving but also growing their businesses in difficult economic times. Of course, these are excellent strategies for staying profitable in any economic climate.

Lula Chang advises: I’ve always believed one makes their own “luck,” and that one needs to think just as creatively to find work as to create work.

April Zay agrees: There is a definite need to keep fresh and constantly adapt. There are a lot of people that don’t understand our industry and are not willing to pay for designers, when they can use a friend who has a copy of Photoshop. If you do proper research, you can establish a base of clients that appreciate good design, and are willing to pay for it.

David Veal stresses the importance of creating alliances and having a business plan in place: If you illustrate or design or do photography, etc, it is important to diversify the sales of your work. However, promotion and market analysis might not be your thing. So team up with others. You can team up on a client’s project. Or you can bring in a team to market your work. Think of keeping your eye on your specialty, while giving others the opportunity to use their skills to sell your work. I’m not talking reps, I’m talking partners to supply textile or novelty niches. No matter how you diversify your income, always build a business plan first. My last upgrade to my business plan included my best power partners, including the people I use to help my clients with their business plans.

Sara Chapman sums it up: For profitability tomorrow, you must make alliances today. Everyone I meet I consider to be a potential working associate, so I am always trying to create relationships that may bear fruit in the future.

Advocacy Report

[Please be aware that this is dated information. It was published in the May/June issue of the Graphic Artists Guild Guild News. It is important as it reflects that moment in time. More recent information is on the “ADVOCACY” pages.]

Graphic Artists Guild Opposes Senate Orphan Works Bill

NEW YORK –The Graphic Artists Guild’s Board of Directors voted unanimously May 16, 2008, to oppose the Senate’s passage of the Shawn Bentley Orphan Works Act of 2008 that significantly alters copyright protection rights. The Guild says the bill approved by the Senate Judiciary Committee is incomplete legislation, insufficient protection, and indifferent to American workers.

The Guild has been advising members of Congress about the “orphan works” issue since 2006 and has participated in discussions with the Copyright Office since 2005. The Guild withheld comment about the Senate bill until work was finalized. That position changed when the completed version was announced only hours before the Senate committee vote on May 15, 2008.

“This is a disappointment,” Guild President John P. Schmelzer said. “We’re encouraging creative people from all industries to contact their senators to express their disapproval before the full Senate vote later this year.”

Orphan works legislation is intended to limit monetary rewards and injunctive relief to stop further infringement of copyrighted works for which the user has been unable to determine the identity of the copyright owner. The Guild and the artist community are concerned that the manner in which the limitations are imposed could produce an incentive for theft in the highly competitive industry that contributes $13billion a year to the U.S. economy.

Guild leadership was pleased that lawmakers agreed with their recommendation to exclude artwork used on “useful items” such as textiles or wallpaper from being subject to the bill, but they say the measure otherwise has a long way to go before sufficiently protecting copyright owners.

The bill is incomplete because three key provisions the Guild sought to protect artists were left out. At the center of the controversy are the “best practices,” “database certification,” and “notice of use” clauses.

When artwork is being considered for use but the artist’s identity is unknown, the bill’s provisions state the user is to attempt to locate the artist by following the best practices outlined by the Register of Copyrights. These practices have not yet been drafted however, and the bill will go into effect prior to their adoption.

The bill also references a database that’s supposed to make the search for copyright owners possible, but no such database exists for graphic, pictorial, or sculptural work. There are no plans for the Copyright Office to create this database, and Congress cannot mandate one be made by a private company. In this case, no matter what best practices the Copyright Register might determine are appropriate for finding a copyright owner, the capacity to do so is not possible at this time.

The Guild proposed a further compromise that the legislation include a publicly accessible “notice of use” filing statement. This provision requires an individual or organization to submit a copy of the visual work believed to be orphaned to the Copyright Office prior to using it. The Copyright Office would then post the filed information on the Internet so copyright owners could review the Web site and self-identify themselves as the owner. The virtual “lost and found” department would additionally ensure that bad actors could not falsely assert they fulfilled the diligent search requirement of the law prior to using copyrighted work.

The Guild says copyright law was established to protect the creative community that made America the inventive capital of the world. The bill in its current state does too much to protect the interests of possible infringers and reduces protection for creators.

The measure is indifferent to artists because it fails to take into consideration the long-term effect to the income potential for a workforce whose yearly median income is only $39,900 according to the Bureau of
Labor Statistics. People who use artistic works, such as advertising and promotion managers, make a median average of $73,060 per year.

Guild Administrative Director Patricia McKiernan says the group will remain engaged to resolve these high priority shortcomings of the legislation. “Copyright protection is an important issue for our membership and the economy they serve,” McKiernan said. “When anyone’s economic rights are reduced, it has enormous implications for the country as a whole. We will remain steadfast for the artist’s interests and this important industry.”

Editor’s Note: The House of Representatives’ version of the Orphan Works bill, which is different from the Senate’s, was still in committee as this issue went to press. Watch the Guild Web site for updates on both of these pieces of legislation: www.gag.org.

The Guild on Capitol Hill

A new copyright bill, H.R. 4279: “Prioritizing Resources and Organization for Intellectual Property Act of 2007’’ (To enhance remedies for violations of intellectual property laws, and for other purposes), was introduced in the House of Representatives in December 2007 by Rep. John Conyers, Jr. (D-MI). The bill includes a variety of updates to existing codes, especially anti-piracy remedies.

The bill was sent for review by the House Judiciary Committee. The Copyright Office held a one-day roundtable in Washington, DC, on January 25, 2008, to discuss the pros and cons of the section pertaining to revision of §504(c)(1) of U.S. Copyright Law, the definition of “compilations,” and the determination of statutory damages for infringement of copyrighted works registered as compilations.

Graphic Artists Guild National Advocacy Committee Chair Lisa Shaftel participated in the meeting in Washington, DC, representing the Guild and visual artists. Special thanks to Northern California Chapter Guild member and Intellectual Property attorney Linda Joy Kattwinkel for helping prepare Lisa for the meeting.

The Guild believes that the current definition of a compilation in our copyright law is inaccurate when applied to current media. Digital media didn’t exist when a “compilation” was defined for this section; the print model of a published book or magazine was what people had in mind. Digital media now allows for the publication of compilations of musical recordings, motion picture collections, image collections and web sites (which are registered as compilations). These all contain works that were previously individually published and/or qualified for individual copyright. Individual copyright and economic value should remain whole even if individual works are published and registered as a “compilation.” Infringement of multiple images in a compilation should still be valued individually when assessing statutory damages against an infringer.

For more information, read the White Paper on H.R. 4279 (2008) and the revision of §504(c)(1) of US Copyright Law on the Advocacy page of the Guild’s Web site, www.gag.org.

ADVISORY

Publisher Delaying Payments

Three Guild members have reported experiencing unreasonable delays in payment from Carus Publishing Company for freelance work they did for the company that was accepted and used in Carus publications. In two instances, the delays represent breaches of contracts, since the terms of the contracts state specifically when Carus would pay the illustrators, but one was not paid for over six months beyond the date specified in the contract, and the other still has not been paid after weeks of waiting. These two illustrators also reported the poor response they received from Carus when they inquired about the delays. Carus is the publisher of Cricket Magazine Group, whose publications include Babybug, Ladybug, Spider, Cricket, Muse, Odyssey, Cicada, and other children’s magazines.

If you have experienced this problem with Carus, please contact Tricia McKiernan at the Guild Office (212-791-3400, ext. 15). 

Here’s a list of additional articles in this issue:

Incorporating Backend Technologies in Your Web 2.0 Sites

New York Chapter's Creative Exchange

Expose Yourself! Maximize Your Web Presence for Free.

Building a Successful Business as Freelancer

Madden vs. DreamWorks, You Bee-otch!

For a pdf of the complete issue, click here.