I find that one of the challenges in this business—whether you are at big agency, small agency, or are a freelancer—is getting paid fairly for the work you do. And I believe that that is due in a large part to the fact that we don’t talk with our clients about the price of things early enough, often enough, or in enough detail. The money conversation is always a tough one to tackle, so we often just avoid it. And avoidance definitely complicates things.

So, here are a few random thoughts on estimating, billing and collecting. Not very sexy, but baby needs shoes, right?

1. Don’t start work without an estimate…ever….it’s just asking for unpleasantness.

2. It’s fine to have an hourly rate discussion with your client, but still do an estimate for every job. Billing hourly without an estimate is like an open faucet—it feels good at first until the place is a flooded mess. And floods are ugly to clean up.

3. If you really want a piece of business, you can drop your rates to appear more attractive to the prospect. In a sense you are “buying” the business. And that is absolutely a sound strategy, but be prepared to live with that price structure for awhile because clients hate bait and switch.

4. When you estimate, don’t be afraid to use reasonable dollar ranges. What we do is not an exact science and when a client will agree to a range, then he has an understanding of the process and the flexibility that should be built into it.

5. When a client changes the job spec, don’t just let it ride. Let him know in the same conversation that changes will impact the price, even if you don’t know the exact dollar details. Then get back to him with a revised estimate right away.

6. Talk to your client about how the actual job costs are comparing to the estimate pretty regularly because everyone hates surprises—especially invoices. And that can make them hard to get paid.

7. It’s best to bill a job when you and your client are both involved in the job and the details are fresh in your minds. So, if there is a lot of work, bill every two weeks.

8. Don’t send an invoice until you’ve delivered something…and hopefully something that they’ve liked.

That’s all I’ve got—but it does work, really!