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graphicsguy's picture
17 pencils

An extremely awkward place with a big client. Help!!

OK, a little history first, folks...

I was the sole graphic designer, working for the marketing department of a national, but not huge (just under 200 locations) specialty quick serve restaurant franchise chain (I'll keep company names anonymous). I started in January 2006. Before that, they never even had a full time in-house designer. As sole graphic designer, I handled pretty much everything graphics related for them. I designed most in-store POP, ad work, training materials, franchise sales materials, yada yada. (I was VERY busy!) It was a great job, and they were very happy with my work. Then, in early 2007, everything changed. The company was bought out by a larger company. This larger company also bought a major competitor, and wanted to continue running them as separate brands. So, my work doubled. They also purchased a few other brands, which I helped out with. They laid off almost the entire staff of the original chain's corporate staff, except for the marketing team, which they absorbed and turned into the marketing team for the larger company. I was considered part of marketing, so I was saved, too. Unfortunately, by end of 2007, it was decided that all staff must work in one office, which was not in my state. If we refused to relocate, we lost our job. I did not want to relocate, and my boss, now VP of marketing for the larger company, didn't want to lose me. So, we worked out a deal that I would contract for them, working from home. I was excited about the opportunity, thinking that I could grow my contracting work into a business.

So, in March, I started my contracting business, with one huge client. I drew up a very detailed contract a few months earlier, and spent a long time going back and forth with my boss and the legal dept at the company getting it finalized. Once I closed down my old office, got my last paycheck, and it came time to start contracting for them, they had not yet signed the contract. The Marketing VP (my old boss) promised she would take care of it soon, and I decided to start working for them in good faith without the signed contract. I didn't really have a choice, as I needed the income.

Well, we're now six months later, and still no signed contract. I email and voice mail the VP every month, and I either get a response saying that they can't find the "good copy" (which I resend them immediately) or lately no response at all. They send me plenty of work, and pay me on time about 75% of the time. In fact, they basically treat me like their in-house designer still (and I know for a fact that they refer to me as that with many people). What also is starting to make me feel uneasy is that, even if my contract was signed, it's set up as hourly, basically whenever they need me. There's no flat rate per month or retainer agreement, which the VP refused to agree to in the beginning. Yet, the 6-8 people from this company that contact me for anything from large projects to small tasks, like sending someone a logo, expect me to be available at moments notice for emergency needs, which would probably be best served by an in-house designer, or at least a contractor with some kind of retainer. This makes it very hard for me to expand my business to other clients. I have managed to get a few other small local jobs, which becomes tough at times to manage with the big company's needs. And, if I ever mention that I'm doing work for other clients, they don't seem very happy about it.

I feel like having this big client is a blessing and a curse. The money is decent, but I have little time to expand my business. Plus, I have the looming fear of them cutting me loose at any time, because of no signed contract. The last time I got a response from the VP, she mentioned that they might be looking for an in-house designer, because they had more work coming up and thought I couldn't handle all the work they needed done, but they would continue using me for the work that the in house person couldn't get to. This would would seriously cut into my take, I just know it. But she said she had no idea when she would be cleared to hire someone. I don't know how true this was. It was in response to another one of my contract nagging emails a month ago. I also know for a fact that this company is not doing well financially (it's been all over news on business-related news sites for a few months) So I don't know what's going on over there! (I'm just glad I didn't relocate)

I can't withhold work from them to sign the contract, because I can't afford it, and that may force their hand to hire within, if they can afford it! Yet, with no signed contract, I want to find other work, but don't have the time, because they need me so much. I know how they say that everyone is replaceable, but considering how much I know about how they do things, I think it will be difficult for them to replace me in-house. I think that maybe that's why their holding onto me. It's kind of a symbiotic relationship - I need them and they need me.

So, that's the whole story! What a corner I've painted myself into! What would you do in my place? Should I just cut my losses and look for another in-house job? Any advice would be greatly appreciated!!

Commenting on this Forum topic is closed.

designmonkey's picture
98 pencils

To me, it sounds like you already know what you should do. You just need a little push.

My advice, either they sign the contract, or you start looking for another gig. I wouldn't stick around working on big projects at the risk of one day getting screwed. It's happened to me and it's definetely not a good feeling knowing you just did a buttload of work for free. That contract is guaranteed payment. Big corporate companies have no heart and are unpredictable. Common sense dude....

natobasso's picture
3954 pencils

Sounds like your boss wants a certain deal that the higher ups and owning company don't want to agree to so rather than tell you the truth they just keep you on the line. You're still doing the work, right?!

It's a sucky situation, but you're getting paid so that's good. You might investigate drawing up invoices and just bill them like a freelance client, but whatever you do: SOLIDIFY THE RELATIONSHIP. Right now your "client" is neither fully on retainer or fully freelance, it's a bit of both. They are having their cake and eating it too, essentially.

The fact they won't sign the contract and yet are "upset" when you tell them you have other clients sounds like proof enough for me of my aforementioned theory.

Realize that you're expendable in this situation and it's not in the company's best interest to ever sign that contract. I doubt they ever will. Bill them for every hour worked. Send them invoices and require POs. Move forward with your own plan that doesn't require this contract be signed and get yourself some more clients.

----
Natobasso
dirtandrust.com
"Powerpoint is not a design application"

mbennett2's picture
425 pencils

I agree wholeheartedly with this. You need to clarify the situation one way or another. If they are interested in retaining your services as a freelance designer, they need to do business with you in good faith. The current situation does not fit this description.

ireid's picture
1283 pencils

Have a meeting with your VP. and say. "From X month I will start charging you a deposit on all jobs. . . lets say 25% and then I send you an invoice for the rest." if they don't agree to that then say, ok the alternative is to sign this agreement (resubmit your old contract) and if they don't agree then you gotta cut your losses. . .

The think is they KNOW you don't want to lose them as a client and are afraid of 'losing pay' so they will string you along for as long as it benefits them. . . so start looking for other clients. . . I figure you're gonna have to starve for a while until you get other work. . . but I hope not.

Good luck!

"Try not, Do! or do not, there is no try."
-Yoda

3dogmama's picture
1994 pencils

I concur with all of the comments above. I know what it's like working for a large client who basically is your bread and butter. However, it does sound like they're just using you until they find a replacement, and you're probably in the boat that most of us freelancers are in...worried about taking on new work and not being able to keep up with current demands. My advice? Start looking for other clients and put in a few extra hours to keep up with the pace. Also, if you have another designer in the area that you trust, pass on some of the work to them, billing through you with an X percentage marked in for your time. And who knows...this might be a blessing in disguise and you could accidentally find yourself running a growing design agency.

Good luck with your choice.
3dog

"Without deviation from the norm, progress is not possible."
— Frank Zappa

"Art -- the one achievement of Man which has made the long trip up from all fours seem well advised." - James Thurber

onegirlcreative's picture
1092 pencils

Not sure if you're located near a local university or college, but definitely utilize an intern in this situation to keep up with the demand of your work. I would hate to see you completely turn down potential clients because of your workload with this other company, only to be screwed in the long run.

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"I am not sick. I am broken. But I am happy as long as I can paint." ~ Frida Kahlo

www.onegirlcreative.com

mara06's picture
2453 pencils

Your nice former boss doesn't want to tell you outright that she has no authority to go past where you already are with her. In talking about this mythic new in-house person they might hire, without suggesting it could be you, she's trying to tell you to line up something else. I'd do that, if I were you. You are being used by a lot of people who are frankly more worried about their own professional futures than yours. But be nice to everyone. Eventually, they'll land new marketing jobs and you might be able to pick them up as clients -- on retainer and with a tight contract that protects you from this kind of thing.

Mara

gwells's picture
1705 pencils

to add to what mara said, be prepared to tell them they need to do a little more planning for short-turnaround projects as you add clients. they'll have to learn to treat you like a vendor and not like an in-house employee. if they're not going to give you the benefits of being inhouse, they'll have to get used to the downsides from their end. and one of the big ones is they can't always count on you to drop everything else you're doing just because they need something yesterday and didn't plan on it.

i agree with the other comments that you should begin making your transition away from them being your sole (or vast majority) income source. if they're not willing to/capable of make the commitment to you as an employee, you can't count on them to be capable of making the long-term commitment as a freelancer.

btw, i hope you're making at least 30-40% more hourly with them as a freelancer than you were as an employee. you need to be covered for your benefits costs, your time off, your administrative time and overhead, etc. when my last company laid me off, but asked if i could occasionally do some work on projects that i hadn't finished, i told them i was fine with that. and they technically kept me on as a part-time employee with no benefits. but i told them they had to pay me a burdened rate (i.e., with benefits) which was 40% higher than my salary rate was. and they were fine with that. oh, and it was still a bit of a discount from what i was charging studios to freelance with them.

graphicsguy's picture
17 pencils

Thanks for all of your comments. I am making an equal, and sometimes superior (on a good month) amount of money, taking into consideration taxes and overhead. Just no benefits. I keep putting off getting new health insurance. I know that's bad. Putting bad circumstances aside, I've enjoyed working from home.

An update from today... The director of marketing, who mainly handles two of the 6 brands that I work with, and is the VP's right hand person (and someone I worked with originally), threw a lot of "urgent" last minute needs on me today again. She kept calling me to "check up" on me, and grilled me on what else I was doing today. When I told her what other brand work I was doing for the company, she went to all the other staff for those brands, and had them reschedule their work for her. (She does this often - her brands are evidently 'more important') She gave me so much that I'm now working into the evening to get it for her first thing tomorrow. She never asks me if I can do it. She just tells me. Never been a big fan of hers.

Anyway, I digress. The real story... I was getting so frustrated with her, combined with reading all your comments today. So, while I had her on the phone, I asked her to give the VP a message that I needed to speak with her. She asked why, and I said because she never returns my messages. SHe said, "Well she's very very very busy!" I said, "well, I'm very very very upset about not getting my contract signed after 7 months." OK, maybe a bit harsh, but after this woman's bossiness today, my nerves were a bit frayed. She paused, then said, "Are you getting paid on time?" I said for the most part. "OK..." she said and paused. I know her enough to know that she's thinking that I shouldn't be complaining as long as I'm getting paid. I started to go into why the contract is important for a minute. She responded with a completely different topic. "By the way, due to our current scenario with our bank (or something to that effect), we're supposed to be making sure that we have all assets owned by the company in-house. I've been tasked with making sure that we get all copies of files you've worked on since you started contracting. This is very important! I've been getting grilled for this. (By who I don't know.) It needs to be done ASAP!" She wanted me to FTP all of the files to their server. GB and GB and GB of them from 7 months! I told her that shipping a HD down to them would be easier, as all of that uploading would take a long time. She said that that are so strapped that she couldn't even clear a purchase of a $100 HD to ship me! I said fine, I'll just ship you back the HD I'm using, since technically it still belongs to the company, (They let me take it with me originally) and I'll buy a new one for myself. (I actually have another one to use, just wanted it to sound like I was doing a nice gesture) She paused and gave me a faint thank you. I actually think she was disappointed that I wasn't going to have to do all of that uploading work!! She told me she would pass along the message to contact me, but that the VP is incredibly busy these days, and that even she doesn't get contact from her as often. Well, that just filled me with hope. :(

So, I'm starting to think more and more that they may be getting rid of me. They're more concerned obviously about getting copies of their files back. Big red flag in my opinion. I deliver the files, and they then have no worries about letting me go. Do you all agree?

natobasso's picture
3954 pencils

Like I said, they are NEVER signing that contract. Their legal department is probably telling them to cut any former employees loose. A company I used to work for did this as well, making it "policy" to not hire employees back as freelancers. Too much "liability".

Don't send them all their files till they pay you in full, at the very least.

----
Natobasso
dirtandrust.com
"Powerpoint is not a design application"

3dogmama's picture
1994 pencils

Agree with nato, and you're wise to notice that red flag waving. Too bad people in this world can't be more upfront about their actions...it's not as if they're engaging in the secretive realm of global warfare.

My advice on this turn of events? Load the minimal on to the hard drive--final approved files, flattened PS photos so that you are complying with their request. Don't send them your working, layered PS files. Therefore, if and when they do hire someone inhouse and they require your native files, they will need to contact you. It always helps to keep an Ace in your pocket just in case they cut you loose without remitting to you monies owed.

Good luck and I feel bad for you that you're going through this. It's not fun.

"Without deviation from the norm, progress is not possible."
— Frank Zappa

"Art -- the one achievement of Man which has made the long trip up from all fours seem well advised." - James Thurber

mbennett2's picture
425 pencils

...and charge them for the time it takes you to do this. No "favors". They certainly aren't doing you any,

gwells's picture
1705 pencils

definitely agree on this. anything you do for them should be billed. every single minute.

ireid's picture
1283 pencils

Letsee. You were PAID as an 'employee' of the company. The files are theirs (contract or no contract) You're lucky they don't ask back for the equipment! I would send everything to them (after you're paid of course!) and cut your losses.

Which brings me to the point: You made a LOT of money (so you've said) from them and they DID pay on time so why penalise them? They don't want you to do work for them so say "Thank you! come again. (not really! lol)"

Any NEW projects coming in say "I am no longer an employee of this company, if you require any work from me please A. sign my contract or B. negotiate a new system. Till then I look forward to hearing from you." Finish the current jobs you're working on and MAKE SURE you get paid for it! When all the old jobs are done and you're paid, move on (send them the files on their harddrive)

Like I said, you may have to live off your savings a bit. . . sorry

"Try not, Do! or do not, there is no try."
-Yoda

3dogmama's picture
1994 pencils

Working for a company and working for yourself generate totally different outlooks. As a paid employee you get your paycheque every week; as a freelancer you need to protect your ASSets. The company in question here appears to be working within the arena of deception--ie no contract and a cry that $100 is going to break them. That in itself would make me hesitant to hand over every last iota.

"Without deviation from the norm, progress is not possible."
— Frank Zappa

"Art -- the one achievement of Man which has made the long trip up from all fours seem well advised." - James Thurber

ireid's picture
1283 pencils

He's being PAID on TIME. :) They haven't told him. . . "Uhhh we'll give you an I.O.U" so is there any feeling that they WON'T pay him regularly EVEN though he's not under any kind of formal contract? I think fair is fair. . . my philosophy is make love not war! lol So that's why I said until the LAST job is finished and all outstanding debts paid. . . send EVERYTHING. :) and move on. They may come back a few weeks later and ask for "xyz" so then you say: "Lets negotiate"

:)

"Try not, Do! or do not, there is no try."
-Yoda

3dogmama's picture
1994 pencils

Gotchya. Guess I'm still a little tender from an experience early on in my first few years of freelancing. Randy Lamming (yes, I will name the asshole just in case any one out in the internet world is googling his name) was a steadily paying client until of course the LAST one. He left me owing $13,000.00 to suppliers--print house, paper company, etc. My father told me that I should just fold up my newly begun business and declare bankruptcy. I didn't want to do that because a) I believed in my work and 2) why do that to suppliers who in good faith had trusted me with credit? So, I explained the situation to my suppliers, took a year to pay them off in full by working not only at my own design business, but also at a packaging manufacturer setting up very basic artwork for the flexo presses and at night as a cleaner at a large company. Three jobs in one year just about did me in, but I came out of that experience with a more cautionary outlook and a desire to never say DIE.

"Without deviation from the norm, progress is not possible."
— Frank Zappa

"Art -- the one achievement of Man which has made the long trip up from all fours seem well advised." - James Thurber

gwells's picture
1705 pencils

ugh. ouch.

yeah, that's the main reason i don't float printing, even if it can be a profit center with the markup. i just build in extra time/estimate money to handle managing printing. i'm too askeert to lose my shirt like that.

natobasso's picture
3954 pencils

+1. I never mark up printing because I don't want the liability/risk.

----
Natobasso
dirtandrust.com
"Powerpoint is not a design application"

gwells's picture
1705 pencils

he's definitely borderline on whether he's work for hire, and i would say on the work for hire side of the border. especially because he's not working on a contract, so he hasn't spelled out the relationship.

since it is probably work for hire, that which would mean the working files do legally belong to the company.

ship the files when you're paid, but don't strip them down or cripple them, send them what they own.

natobasso's picture
3954 pencils

A few things to confirm the work for hire arrangement:

1. Using their equipment
2. They are your biggest client, at least 80% or more
3. You're on their payroll (I'm assuming this arrangement?)

----
Natobasso
dirtandrust.com
"Powerpoint is not a design application"

graphicsguy's picture
17 pencils

1. No, except the Hard drive.
2. Yes
3. No. Money to pay me comes out of their marketing budget, similar to how they pay their ad agencies.

natobasso's picture
3954 pencils

#2 is pretty crucial (depending on your state) in determining your working relationship with your client.

----
Natobasso
dirtandrust.com
"Powerpoint is not a design application"

onegirlcreative's picture
1092 pencils

I was also an in-house designer and I was the only designer there. So basically I was in charge of all package design, flyers, catalog designs, photography (had a photo studio in my office), etc. I loved the job, but the commute was killing me. I was stuck in bumper-to-bumper traffic for an hour each way. Not only did it wear me out emotionally everyday, but my daughter was only in part time kindergarten at the time, so the daycare situation was a nightmare, if non-existent.

I confronted the company about my dilemma, and they agreed to allow me to work from home, but as an independent contractor. Which worked out perfectly for me, because the advantage for them was I didn't require benefits, thus resulting in a higher hourly rate, as well as ¢¢¢ per mile, if needed in the office (to consult with account reps). It was a perfect solution for both parties involved.

However, they were the ones who handed me a contract to sign, not the other way around. Which I regret till this day. I didn't have a leg to stand on because it allowed them to "cut me loose" at any point, without sufficient notice or any sort of severance. Which of course, is exactly what happened less than 6 months later. I knew it was coming, because I was needed more and more in the office on a daily basis, and because my daughter was only in half-time kindergarten, they had to give me at least a day notice. Of course, this wasn't convenient for them—understandably—so they confronted me not long afterwards and told me they decided that they would need to have their designer in-house.

Long story short, I did the work for them until they found another designer, at which point, I gave them all of their files—native and working—to the new designer, as it was clearly written in their contract that I was required to do so.

So I know exactly what you're going through, minus the long-term relationship, of course. I agree with what everybody has recommended for you, because guess what? They're only out for themselves, not you. As painful as that is to hear, it's the truth. These companies could care less about whether or not you're replaceable, because guess what? You are, and so is everybody else. No offense, as I'm sure your work is just amazing, but there are thousands of unemployed designers out there who are more than willing to relocate if needed, and who are more than able to learn the job, just like you did way back when. Because of this horrific economy, we're desperate. I have been laid off (from another job) since December, and I STILL can't find anything. So believe me, they will have NO problems at all finding another designer to replace you. With this job, they praised me left and right, so I thought for sure that finding another designer would be difficult, if not challenging. After hearing for so long how awesome my work was, blah blah blah, it was a difficult pill to swallow once they did find a new designer, and after 2.5 years, he's STILL working for them.

Move on, look for something else or other clients, and juggle accordingly.

Good luck to you.

--------
"

--------
"I am not sick. I am broken. But I am happy as long as I can paint." ~ Frida Kahlo

www.onegirlcreative.com

3dogmama's picture
1994 pencils

+1!
Cheers.
3dog

"Without deviation from the norm, progress is not possible."
— Frank Zappa

"Art -- the one achievement of Man which has made the long trip up from all fours seem well advised." - James Thurber

ireid's picture
1283 pencils

In this world. . . not like here, here we care about you. :)

"Try not, Do! or do not, there is no try."
-Yoda

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