How To Make Money As A Creative Design Agency (2024)

How do designers make money? It may sound like a daft question. But if you’re working as a designer and there isn’t much left in your bank account after rent and bills have gone out, it’s very much worth asking.

At the Republic of Designers, we’ve had years of experience in guiding people through their design careers. There are many answers to the question of how to make money as a designer, and we’ve seen them all.

So if you’re wondering how to make more money as a designer, read on, and we’ll give you pieces of solid advice. Follow these tips, and you’ll soon be better off financially and able to focus fully on doing the job you love.

An agency is an organization that offers a list of services for one specific industry. A creative design agency, then, offers services related to marketing, advertising, and designing.

For instance, some creative agencies you’ll see offer design services, social media content creations, advertising and branding, influencer marketing, and more. These agencies usually have different tiers or models for how they operate, and what they offer.

Creative agencies take on a large workload. They usually have a client base and execute different projects for them from start to finish. For instance, a design agency might find brand deals that relate to their niche.

If this sounds pretty broad, that’s because design agencies usually are — there are so many niches and specialties agencies can tackle. Because of the slight ambiguity, you might be wondering how these agencies operate, or even … how they make money?

Agencies are a business. Businesses have plans in place to earn revenue, but some exceptions are unique to agencies. Next, let’s dive into a list of ways agencies stay afloat.

Every design piece needs a pricing model to charge for their services, and agencies are no exception. Pricing models are determined by the agency and should reflect the value of the services offered, as well as industry standards.

Here is the secret formula we use to price our design👇

Some pricing models are more beneficial to design agencies than others — it differs from company to company. Maybe your pricing model is based on the one you’ve seen from a different agency, but it doesn’t quite work for your business goals.

If you’re struggling to come up with a pricing model, or your design is outgrowing your current strategy, refer to this rundown of common ones for design creatives.

Fixed-rate

If you’ve ever put down a deposit for a service, and then paid the rest of the rate after completion, you’ve participated in a fixed-rate model. This model is determined by calculating how many hours a project takes, combined with the hourly rate. That amount is split into two fees: One upfront, and one due after the project.

For instance, let’s say we charge $125 for logo design services for one client. In a fixed-rate model, this price is made up of projected hours needed and how much we charge per hour. In the beginning, our client and I agree to a $50 deposit, with the rest due after.

This pricing model can be useful if your end product works case by case, as this method also includes the retainer approach. In a nutshell, you wouldn’t need to think about how much to charge for each client because it would already be determined.

However, design agencies can run into an issue if the project takes much more than the projected hour amount. If that happens, the pricing should reflect the work, but that’s difficult if the fee is already set. To alleviate this, specify your offerings — for instance, one logo design for one week or more could be its rate.

Value-based

This pricing model is determined after a project’s completion. Based on ROI (Return on Investment), the price will be determined according to what the agency and clients agree on, sharing risk and rewards.

To implement this model, you need to work through a few steps. First, you’ll determine the clients’ goals and make sure they’re measurable. In this case, let’s say the client wants to boost logo design with a brand guide.

After identifying the client’s goals, estimating a price, and reminding the client that it’s subject to change upon completion. Failing to meet goals might negate a lower price while exceeding them would have the opposite effect.

For this pricing model to work, agencies need a proven track record of exceeding customer expectations. That’s why it can be hard to sell this model if you work for a startup — you’d have little history to show past work.

This model is a good choice for design agencies with a solid reputation and history of high-performing projects. Showing proof of the value you give clients reinforces your rate and makes them more comfortable when choosing your agency.

Hourly rate

An hourly rate is determined by the number of hours a company spends working on a project for a client. In this scenario, if our design agency ran a client’s design project, we would charge based on the number of hours spent doing that.

If we spent 40 hours working at a designated rate of $125/hr, then we would earn $5,000 from that client. Generally, design agencies come up with their hourly rate based on the seniority of the employee(s) involved or agree on a set price across the board.

This is a useful pricing model if your organization has multiple specializations. You can offer one price for the same set of services across the board. Or, you can assign the best employees for certain projects based on bandwidth.

However, it can be hard to predict cash flow with this model. It can also place weariness on the client — the longer it takes to do the work, the more you get paid. So clients might be unsure about efficiency during the length of their project.

Some design agencies often offer advertising services to help the client broadcast the designs they’ve helped the client create … Typically, agencies will take a percentage of the ROI(Return on Investment) from those ads, which is one way to make extra revenue.

In the same vein, design agencies can also run ads for their own company. In this case, all revenue from ads would go back directly to the organization. Let’s look at those options more in-depth here.

Paid Media

Design agencies can charge clients based on the ROI(Return on Investment) of paid media. Ads, search results, and sponsored content that’s paid to be promoted are common examples of this ad type. Usually, they’re used to expand reach and traffic.

For example, If we were running a social media campaign for a client design, and one of our content marketing strategies included paid ads, we might consider including the cost it takes to run them in the total price I charge the client. Alternatively, we could also choose to take a percentage of the ROI(Return on Investment) after the campaign is over.

The inclusion of paid ad returns in projects ensures the work gets paid for, regardless of results. You can also use paid media to promote your company. Because paid media supports waiting until the end of a campaign to charge, this strategy works well with a value-based pricing model.

Owned Media

Owned media simply means all the content created by your design agency. So if we make blog posts, tweets, main feed posts, pins, and other multimedia elements, those are all considered “owned”. The purpose of this type of media is to nurture leads.

Design agencies can charge based on the amount of owned media created per campaign, or by agreeing on a percent of ROI(Return on Investment) with the client. For example, our social media campaign might involve 15 owned media that we can charge for all at once, or based on the client’s goal.

You’ll want to consider using owned media to promote your brand. It’ll convey the value of your company to prospects, and ideally, convince them to convert.

Here, “projects” means how you offer your services. While pricing models determine how much you’ll charge, this aspect focuses on what you’ll provide. Design agencies tackle projects in a couple of different ways, and some are unique to their own rules.

Next, let’s review the most common ways design agencies can tackle projects.

One-off

This is a case-by-case basis. For one-off projects, the client and agency agree on a set of services and prices. Generally, one-offs call for pricing models that can be flexible, so that prices can be set individually.

Design agencies can offer simple campaigns, content creation, or other services that meet client goals with this method. For instance, let assume our design company might offer ad campaigns by social media channel or duration at a fixed rate with other creative graphic design opportunities.

One-off structures are useful for agencies that can sustain a flexible pricing model. Additionally, if companies offer many services that clients can choose from, one-offs keep goals focused. This approach allows clients full customization.

Contracted clients

Design agencies can execute projects based on an agreed-upon contract signed by both parties. This contract would outline the services provided, the length of the agreement, and the rate. Typically, contracted clients are for long-term projects.

Let’s say our company signs a client with the intent of designing content for their Facebook and Instagram accounts for a fixed monthly rate. The length of the contract is one year and includes a bundle of services that correlate, such as monthly design updates according to the latest trends.

This scenario is common, and a lot of agencies set their client relationships up with contracts.

Contacted clients can be a good avenue for your agency if you want a set income and deep client relationships. Over time, your team will get to know the client and their needs as they evolve. This can lead to improved ROI(Return on Investment).

However, clients may be hesitant to sign a long-term contract. Make sure you show the client previous long-term successful campaigns to alleviate their worries. You can also introduce a trial run for a shorter amount of time.

Inbound designing with marketing

Design agencies can make money from their design and marketing efforts. Of course, your agency is most likely to design content and run marketing campaigns for clients. However, there are ways to monetize marketing for your design agency — for instance, if you run PPC ads on your website.

Inbound marketing is one of the best ways to save money from branding your company. If you provide value for your target audience upfront, you won’t have to waste time and resources cold calling and emailing. Additionally, your leads will be more valuable.

When you run ads, consider looking for PPC options, so you can earn money with every click. Additionally, produce content, for example, ebooks on design techniques and your online portfolio, that promote your brand. This can be included in offers for prospective clients.

Referrals

You probably rely on referrals at some capacity for new clients. The referrals from happy customers give you quality contacts and new potential customers. Essentially, this form of word-of-mouth marketing helps you generate leads for your creative content.

Other than gaining more business, referrals help strengthen the relationship you have with clients. Ask them for their input on your offerings, and if they would recommend your company to a friend. That way, you’re being proactive about lead generation.

Design agencies can benefit from partnering with other organizations to generate revenue and leads. Think about influencers, clients, and other agencies in your industry that have the potential to be in a campaign with your company.

Partnerships are mutually beneficial relationships that earn both parties leads and generate revenue. Thought leaders are going to reach out to even if you don’t secure a partnership; You can still expand your network and make new connections.

With influencers

If your design agency works with influencers, consider partnering with a few on a brand awareness campaign. They will be an advocate for your company and maybe appear in a few ads or sponsored posts.

As you’re thinking about influencers with whom to partner, remember to choose one related closely to your industry if they’re not a client. Those influencers will have audience members that are interested in content similar to yours and have great potential to be quality leads and grow your creations.

With Clients

Similar to the last example, instead of partnering with an influencer, team up with a client. You can use their testimonials as part of a lead generation campaign. This is also a lower-cost alternative to the price of leveraging influencers.

You can obtain the testimonial for free, and use the visual assets you created for the client as the content for the ad to promote your designs.

With other creative agencies

Maybe you run a design agency that focuses solely on both design and social media. Your team conceptualizes, creates, and implements campaigns solely for social media. It works, and it’s great.

But you know your agency would benefit from offering a little more to clients. For that, consider partnering with an agency that offers services that complement social media — perhaps this is a website branding company.

A partnership deal could include a bundled services offer. Clients can receive both services from each agency for a special price. This is a great way to obtain new leads and generate new business. Complementary agencies wouldn’t be direct competition, and there’s an advantage of tapping into their clientele.

Sometimes, creative agencies are the unsung heroes behind your favorite design campaign. It’s always fun to look at which agencies produced a viral campaign. But to obtain the resources to create an effective campaign, you need revenue.

Creative agencies can use a lot of the resources around them to pull in extra money. If you’re part of an agency that is struggling to make ends meet, consider some of the out-of-the-box ideas, above, to either restructure your pricing model or increase revenue through partnerships or additional services.

It’s a lot easier than you might think to earn money online designing if you have the correct mindset (Think like a design agency) as we discussed above! There are so many great educational tools out there to get you started in the process, and the number of job boards makes it easy to connect with clients and various opportunities.

As always we wish you a great design journey ahead and until then…

“To design is much more than simply to assemble, to order, or even to edit: it is to add value and meaning, to illuminate, to simplify, to clarify, to modify, to dignify, to dramatize, to persuade, and perhaps even to amuse. To design is to transform prose into poetry.”

–Paul Rand

How to Get Rich as a Designer- https://www.hongkiat.com/blog/get-rich-design/

13 Ways to Make Money as a Graphic Designer in 2022-https://www.shillingtoneducation.com/blog/how-to-make-money-as-a-graphic-designer/

7 Easy Ways Freelance Graphic Designers Can Make Money Online-https://freelancinghacks.com/ways-graphic-designers-make-money-online/

Why some freelance designers become rich while others don’t-https://millo.co/why-some-freelancers-get-rich

How Do I Make Money as a Graphic Designer?-https://www.graphicdesigndegreehub.com/faq/how-do-i-make-money-as-a-graphic-designer/

How To Make Money As A Freelance Graphic Designer-https://www.thewaystowealth.com/make-money/freelance-graphic-design-basics/

Smart ideas for multiple income streams for graphic designers-https://www.creativeboom.com/tips/smart-ideas-for-multiple-income-streams-for-savvy-graphic-designers/

how to become rich when freelance graphic designer?-https://www.ictsd.org/business/rich/how-to-become-rich-when-freelance-graphic-designer/

How Graphic Designers Making their Money in Graphic Design Career-https://listendesigner.com/how-graphic-designer-earning-money/