Effectively calculate pricing for design usage rights

The precise calculation of usage rights is an essential skill for freelance web and graphic designers. Often, pricing in these areas is complicated by various factors that need to be managed efficiently. The terms you should understand in this context include type of use, area of use, duration of use, and scope of use. In this guide, you will learn how to consider these factors when calculating your designs and thus determine the total required compensation.

Key Insights

• Types of use, areas of use, durations of use, and scopes of use are the four critical factors for calculating usage rights.
• The design fee forms the basis for further calculations.
• Each of these factors has a specific usage factor that is included in the calculation.

Step-by-step guide to calculating usage rights

First, it is essential to determine the base amount, namely the design fee. This forms the basis for all further calculations. Assuming you have a design fee of 100 €. This is the starting point from which you will begin your calculations.

Next, you must determine the desired type of use from the client. Does the client plan to use the design only for simple use? This is the simple usage right, which has a usage factor of 0.2. If the client wants the exclusive usage right, the factor of 1.0 should be used.

Now the calculation is performed: If the client requests a simple usage right, you add 20% to your design fee. So: 100 € (design fee) + 20 € (usage right) equals 120 €.

Now move on to the next factor, the area of use: Here you can distinguish between regional and national use. If the client wants to use the work regionally, you find the corresponding usage factor in your table. Assuming it is 0.1, you would add another 10 € to the 120 €.

The next step is to consider the duration of use. One year of use could also be represented as a usage factor of 0.1. That would add another 10 € to your previous price.

Finally, the last factor, the scope of use, comes into play. Will your work also be used only for this particular event this year? That would again require a factor of 0.1, which means another 10 €.

To summarize the total amount, you add all these individual amounts. In this case, it would be 100 € (design fee) + 20 € (simple usage right) + 10 € (regional) + 10 € (one year) + 10 € (scope of use), which totals 150 €.

This method of summarizing calculations allows you to determine a precise and fair compensation for every conceivable case of the project.

To illustrate what a complete invoice looks like: Let’s assume you have different usage rights for a design. The design fee remains the same, but the usage factors can vary, resulting in a base factor of 0.5.

Here are some example calculations for numerous variations: If the client wants to use the design for one year and regionally, your price can be adjusted accordingly. These factors allow for flexible but fair pricing.

Let’s calculate another example for exclusivity: A client wants to use a design exclusively for three years. The usage factor for exclusivity would be 1.0 and for the duration three years 0.8. So: 0.8 * 78 € (design fee) equals 62.40 € for the use.

The total amount then adds up to 78 € (design fee) + 62.40 € (use) = 140.40 €. Through this calculation practice, you can create transparency for both yourself and your clients.

Summary – Calculating design: Practical guide for web and graphic designers to calculate usage rights

In summary, you have learned how to approach the calculation of usage rights simply and thoroughly. With the factors presented, you can develop fair and transparent pricing that benefits both you and your clients. By understanding these fundamentals, you make your offers understandable and transparent for every assignment.