Retainer, and pay in full or three payments?

[Debra Jones]

I am slowly working my way out of three digit sales and into my first four digit commission.

I know they need an oil, for the subject and detail, but I offer watercolor and pastel for a slightly lower fee and would like the commission. I had a really good price structure for oil: retainer of 30% for materials and my time and design work, at approval of detailed tonal underpainting, the second third. The final would be upon approval and acceptance of the finished piece.

First third is NON refundable. That is part of my marketing:
I am doing a promotion which I really believe in, that any of my charities who refer a client will receive half my deposit (15%) IN A CHECK TO THEM from the client, so they both benefit. I get a value of full price for my work but discount the donation. Charity gets money, client gets tax deduction! With nothing else, I think it is good, cheap advertising!

Only this first big commission thinks he wants a watercolor.

I have not quite figured out at what point the second payment should come. A small color sketch? A detailed pencil rendering of the heads? I liked my tonal sketch in oil but I work very paint by number in watercolor and it is a DO IT or die sort of thing... not much correction when I get going. Not the sort of thing I really want a client tweaking.

So how do any of you who offer watercolor work set up your pricing and receipt of monies or billing? I am willing to adjust my painting style but it is very hard to discern a stopping point before the one of no return.
dj*

[Allan Rahbek]

Hi Debra,

Your oil business is based on Network Marketing.

I have done a lot of watercolor painting, landscapes and still life's. There are no natural stops along the process, it goes strait from chaos to success/failure.

I think that a small sketch with color suggestions will be a sufficient material for the client to decide, and pay 30%. The rest when finished and approved.

Allan

[Debra Jones]

I would think the better portrait artists have quite a bit of networking, not a pyramid scheme, but the network of clients is how I am hoping to get my business. If I put a big ad in a magazine, or even give a percentage to an agent, I am reducing my profit. By giving it back to the charity I support and have given donations of gift certificates, or designed a logo, they are very eager to spread the word. Beats knocking on doors.

The small color sketch seems like the best idea. I am glad I am not the only who goes directly from chaos to masterpiece! That is reassuring.

dj*

[Mike McCarty]

Debra,

I don't agree with your involving the client with charity donations. Charitable giving can be a complicated issue and one I don't think should be intertwined with the relationship with your client.

I think it would be fine to give the money directly to the charity as a commission, but I would make it transparent to the client.

Soon you will hear a client say -- here's your fee less the donation, if you want to donate go ahead, I gave at the office.

I think a client's decision to commission you for a painting is a PURE business consideration. To interject charitable donations (your idea of charity, not theirs) is to unduly complicate this transaction.

Just one man's take.

[Debra Jones]

I do appreciate what you are saying. It is not done on all my pieces, only the ones referred to me through the charity.

That is the marketing, not a forced deal.

This gentleman found me through a husky rescue site. I offer my CHARITIES the 15% for referring me clients. NOT the clients donate to my charities. NO, I keep all the profits from the non charity stuff. When they call me, they already know of the charitible contribution. That way I can involve the discount to their benefit... rather than my attempt at "mention you saw it here" sales.

Totally agree! They are not doing my donating for me. The charities get the referral fee and just as an added incentive, the client gets the deduction.

When I get fat and can donate on my own, I guess that would be fun, having charitable donations out of the pure goodness of my heart! Right now it is just good karma marketing.
dj*

[Chris Saper]

Debra,

I would recommend you chat with a tax attorney or accountant. What you're describing sounds a lot like a "kickback" and 501(c)(3) organizations are generally very careful (or should be) that indirect or complex donations are properly represented within the tax code, as well as within the charter of the specific organization.