Art Money & Success
Page 15
One artist I worked with, I’ll call him “Bob,” was mid-sixties. He was extremely talented and had achieved masterful works throughout his life. Bob refused to learn about business and he was continually taken advantage of. After decades of this, Bob had enough. He became bitter and angry and impossible to communicate with.
This is a true story, and I have seen it happen with others. I don’t want this to happen to you. From today forward, creatively find ways to get paid for doing promotional or charity work.
Is there ever a time that you should give art away? Maybe. Here is a short list of when I think it’s okay to give art for free: to your mother or father, who gave you life; to the donor who gave you a kidney; and to your very best friend that you grew up with and has done big things for you over the years.
There will never be a shortage of opportunities for artists to do free stuff. You can often turn them into a paid gig. When presented by an opportunity, get into the habit of asking yourself: “how much is this going to cost and who is going to pay for it?”
When we ask questions, we find answers.
If an opportunity does not pay you enough to generate cash flow and profit, turn it down. Say “no” to people, projects and things that will pull you away from profit-earning projects.
One thing to keep in mind with false opportunities; the person asking for your work for free, has a budget for everything else. They have a budget for printing, rent, advertising, office supplies and business travel. They also have a budget for art, they just don’t want to pay you if they don’t have to.
A few years ago I received a call from a promoter who was putting on a very high profile event in the Florida Keys. He said that they were investing over a half a million dollars into this event. He boasted that A-Listers like the football celebrity Mike Ditka and comedian Dana Carvey would be present and promised that we would get so much exposure that we would never have to work again. This promise was a red flag to me. How could he possibly know that?
He asked for Drew to create an illustration that would be used for their advertising campaign and merchandise. It would be a four week project for Drew. But here’s the kicker; he didn’t want to pay for it. I said, “You’re investing $500,000 into this event, yet you don’t have a budget for art?”
I used to just say “no” when given these “offers” to do work for free. It would make me so angry! But, I’ve gotten a little wiser with age and now, I turn it into a sale. More than half of the time, I am able to get someone who wanted a donation to pay for it. How? By explaining that what they are asking for will take time, and if they want it to look great, they have to pay.
And if they don’t care if the work is professional, they should go to a high school student that’s an aspiring artist and help them get practice. Below are scripts on how to turn these requests for a freebie into a sale.
SCRIPTS:
When you get an offer from a potential client to give art in exchange for promotion, follow these steps:
Pretend you didn’t hear them ask for it for free or cheap. Allow your mind to automatically reject that part of the conversation. This is very important. Pretend you didn’t hear it.
Listen and ask questions so that you can understand exactly what they need. Once you have all the details, say:
“This is a great opportunity, thank you. I’ll write up a proposal and email it to you.” This announces that you are viewing them as a client and will provide a price quote.
If they say, “We don’t have a budget; we were hoping you would donate it,” then say: “Based on what you just told me, you’ll need a professional artist to do this for you. Let me write a proposal for you and if you really need what I have to offer, then you’ll find a way to budget for it. Fair enough?”
Sometimes, the client suddenly comes up with money for it, because they really need it and they want you to be the one to do it. Other times, they say “sorry, we don’t have any money.”
And in that case, I either:
Recommend they find an artist still in high school to do it, as the young artist may need to add to their portfolio.
Brainstorm to find other ways for them to pay for the work. Large companies have many different budgets. If their budget for art is depleted, they will have a budget for advertising and promotion, and you can suggest that they take from that budget.
Encourage them to get a sponsor or to do fund-raising to pay for it.
Below is an example of how we handled an opportunity with a company that had no budget for art:
Drew and I used to go to Hawaii every year for a large surfing contest. Ever since he was a teen, it had been Drew’s dream to illustrate the art for the contest poster. One year, the promoters called and asked Drew to do the artwork—his dream come true! But there was one problem; they didn’t have a budget for art. I asked the promoter, “Do you have a travel budget?” He said, “Yes.” I said, “Well, how about this; you pay for our tickets and lodging to Hawaii, in exchange for the illustration. Would that work for you?” And they agreed! It was a win for us, as Drew and I were planning to travel to Hawaii anyway. With this arrangement, we actually got paid more in travel costs than if we were paid in dollars. It was a win-win all around.
FRIENDS AND FAMILY
When a friend or family member asks for your art at no charge, this can feel uncomfortable. It’s hard to say “no” to someone we love. But when we say “yes” to giving our work away, we say “no” to our own goals, business and future.
One artist friend of mine is overly generous giving his artwork away, and because of that, he never had the money to help his own daughter pay for college, which he always regretted. Imagine that—unconsciously making choices that take away from your own children.
It’s not being greedy when you charge friends and family for your work; it’s your profession! When anyone takes work from you and they do not pay for it, they are stealing from your livelihood and your business.
On the other hand, when your friends and family buy from you, they are supporting your work. It’s a very loving and generous thing to do.
So, how do we allow ourselves to be generous with others, but yet not go broke over it? The answer is simple; offer a “friends and family discount.”
Decide how much of a “friends and family discount” you wish to give to those who are very close to you. It’s up to you. We often use a 20% discount. That allows us to be generous, but not to give too much that it hurts our business.
SCRIPT FOR GOOD FRIENDS & FAMILY:
When a good friend wants art from Drew, we feel appreciation for their support of our business.
We tell them: “Thank you so much for your support! Since you’re a close friend, I’m happy to offer you a 20% discount off of my regular price.”
This response demonstrates that you appreciate that they are supporting your business. It also allows you to be very generous by offering a deep discount.
If it’s a $2,000 art piece, a 20% discount is equal to $400. That’s incredibly generous to give a friend $400! And, it doesn’t break the bank for us.
CHARITY REQUESTS
Recently I received this email from an artist in despair:
“Maria, I get three or four free art requests a week. I’m a cancer survivor and I can’t say no, but my business is failing! It is draining me from my being able to support my family and pay my studio rent.”
If you have been in business as an artist for more than a year, you most likely are being asked to donate art to every charity, school event and local auction in town.
And chances are, you have a hard time saying no.
Giving to a worthy cause feels great. But, too many artists are giving too much and it creates a financial hardship. This need to give, give, give without thought to what you are losing is part of the “starving artist” paradigm.
If you are giving too much, this section will forever change your perspective and your life. I’m going to give you strategies to handle
charity requests that will result in an increase in your income while helping others at the same time.
Artists, photographers, musicians, writers; we make what we do look too easy. That is why our friends, family and even strangers ask us to donate our valuable time and art, not realizing that this is what we do for a living.
When you choose to give mindlessly to others, you take from your own business and family. It doesn’t have to be that way. Instead, give mindfully, so that everyone will benefit and you can feel good about it.
HOW TO GIVE MINDFULLY
Drew and I get barraged with charity requests through Facebook and e-mail. Some people even walk into the studio and interrupt Drew while he’s working. If you’ve been a professional artist for more than a few years, this is happening to you regularly.
But wait, isn’t giving noble? I have to stop for a moment and share my philosophy on giving to charities and good causes, because if I don’t, someone is going to write to me and say “don’t be selfish, Maria! Be more giving!”
Yes, giving is noble. Harming your own business to give to everyone else is not. Years ago Drew and I would give art to many charities. In 2008, when the economy crashed, we suddenly had nothing left to give. That’s when we took a hard look at where we had been putting our money and time.
Now, instead of giving art to anyone who asks, we choose three charities a year that are near and dear to our hearts, and we pay 10% of our income to them. We mindfully plan out how we will help the causes that we care about.
We all should be generous and help charitable causes, mindfully and in a way that doesn’t harm our business or family.
WHY MONEY IS A BETTER DONATION THAN ART
I’m not saying we never give anything other than 10% of our income. Sometimes a local school will ask for a donation for the graduation auction and we will give them posters that we have a large supply of, or something else that’s small and inexpensive.
Practically speaking, though, artists fare better by donating money instead of art. This is because artists forget how much their art, time, materials, blood sweat and tears, are worth.
When you give art away consistently, you lose track of how much it’s really costing you. Giving money, instead of art, is better because:
Donating money is more easily tracked and controlled than art. You can track donations and be in complete control of your finances when writing checks rather than giving away paintings.
Donating money is a sensible write-off on taxes. In the USA, the I.R.S. does not value an artist’s time creating art, and that lack of value is reflected in tax laws. If you donate $1,500 cash, the IRS gives you a $1,500 write off. However, if you donate a $1,500 painting, the IRS only allows you to write off your actual cost of materials; you cannot write off the value of the three weeks that it took to paint it.
DONATING YOUR ART IN EXCHANGE FOR PROMOTION
Years ago we donated often, freely, for many different charity events. It cost us a lot of time and money, but we were drawn in, wanting to contribute to others. We also thought the promotional aspect that the charities promised could be good for our business.
Over time, we realized that we never got new, paying clients directly from a charitable donation. What we did get, though, were more and more requests to donate art.
The idea that giving art away is going to get you more business is false. If you are donating for promotional purposes, you’re doing it for the wrong reasons.
TURN IT INTO A SALE
So what do you do with all of these requests for art for charity? Turn it into a sale.
Charitable organizations are run like any other business; they have a product (their promise), a vision and a brand. They need a logo and design, a lawyer and a website. And if they want these things done right, they have to pay for them. If they want artists to donate their best work for auction, they will have to financially reimburse the artist. Otherwise, artists will give their worst pieces, and this doesn’t do anyone any good.
Below are strategies to turn a charity request into a sale:
AUCTION ITEMS: When a charity asks for a donation for their auction, give them these options to choose from:
Sell the item to them at a wholesale price, and anything they earn over that price is their donation. Payment is due at pick up or delivery, or, due three (3) business days after the auction.
Agree to a 50/50 split of the auction proceeds. Make sure you set the starting bid price. If the item doesn’t sell, you require it back in your possession within three business days. If the item sells, your 50% cut is due within three business days. Their 50% is your donation. Some charities will tell you that their by-laws don’t allow for a split of auction; in this case, then a wholesale price will have to do. The discount off the retail price is your donation to the charity.
Offer a gift certificate as a donation for $100 off the buyer’s purchase of a $500 or higher priced artwork from you. With this option, you are only donating $100, but you truly do get new business when the buyer comes to purchase a piece of art from you. Some artists will include a small, inexpensive art print to go with the certificate, so that a representation of their art will be on display for the auction.
Last year, a local private school asked Drew for a donation of artwork for their annual auction. We had an original painting which we offered to the school at a wholesale price of $1,200. The retail value was $2,500. We agreed to take the art back if they didn’t sell.
A few days after the auction, my contact at the school brought me a $1,200 check. She said that the piece sold for $5,000! The school made $3,800 off of that donated art piece. I would say that was a generous donation.
DESIGN, website or illustration work: Take the time to find out what they need; get a good understanding of their problem and then put together a proper proposal.
Tell them that you are happy to offer a 10% or 20% discount off your normal rate; this is your donation. For example, a $1,000 project discounted at 20% = a $200 donation. This is a very generous donation for an artist to make.
Don’t feel bad about charging charities for your work. Everyone else is getting paid, and they don’t feel bad about it. The employees at the charities don’t feel bad cashing their paychecks, nor do their attorneys feel remorse for charging legal fees, nor does their printer, their landlord, or any other vendor.
If the charity does not accept your proposal or your offer, that’s okay, let them go. Out of the many charities that contact us, only about 50% actually buy from us. The rest of them find artists who are willing to give art away.
DESIGN FOR A CHARITY
A few years ago a dear friend of mine asked Drew to create an illustration package for his charity. They needed logo treatments, a full illustration and t-shirt designs. It was going to take Drew at least four weeks from start to finish.
I was excited and said, “Thank you so much for the opportunity! I’ll work up a proposal for you.”
He said, “Oh, we were hoping Drew would do it for free.” My enthusiasm dropped like a lead balloon! I explained to my friend, “What you are asking for is an entire month’s income from us. He countered, “But thousands of people will see the art. It will be great promotion for you!”
I jokingly suggested, “Why don’t you just donate a month of your income to the charity, and that can pay for the art?” He went silent. This helped to put it into perspective for him. And then he said, apologetically, “Wow, I never looked at it like that.”
I told him I would provide him with a proposal with a discount. I assured him that there would be no hard feelings if the charity decided not to accept our proposal and use someone else.
A week later, my friend called to say that the charity accepted our proposal. They decided not to use a cheaper, inexperienced illustrator, because this project was going to be highly publicized and it had to look great. Drew completed the project, and it was a win-win for everyone.
I didn’t lose a friend for saying “no freebie
s” and I didn’t put my business and my family in jeopardy by giving away a month’s income. Instead, we gave a “donation” via a 20% discount to a good charity, the client was happy AND we got paid. It worked out great for all involved.
SCRIPTS FOR CHARITIES
W you get a request to donate your art, instead of thinking “oh no, not again,” see it as an opportunity to put these strategies into practice.
When you respond to someone with confidence, such as “Here’s what I offer to charities...” their response will be one of respect and understanding.
Script #1 – Turn their Request for Auction Artwork into a Sale:
“Thank you for your interest in my art. I am happy to provide one of my best pieces for your event. This is how I work with charities; I’m able to donate 50% of the retail price of the art piece you choose. The other 50% will be payable to me at pickup or delivery. Any money your charity earns over the 50% that you pay is all yours. Fair enough?”
GIFT CERTIFICATES are your next best option: If the charity says, “No thank you, we don’t have a budget to purchase art,” your next option is to offer a Gift Certificate, not an actual art piece.
This way, the charity earns their money off the auction, and you gain a new art buyer and a sale when the buyer comes to cash in their certificate.
Script #2 – Turn their Request for Free Design/Illustration Work into a Sale:
Script: “Thank you for your interest in working with me. I appreciate the opportunity. Can you tell me a little more about what you need?” (This is asked so you can assess what they need and then you can put together a detailed proposal that shows how you can solve their design problems.)
Ask questions so that you gain an understanding of what their problem or challenge is and what their desired result is. Then say: “Thanks for the detail. I am confident I can create art to meet your needs.” (Explain how you can get them the results they need.)