How much are you worth?

[glorybound]

So many people I talk to in architectural visualization undervalue themselves. For myself, I have 28 years' worth of client contacts and digital assets, not to mention knowledge. Often I get people wanting to hire me exclusively to do their architectural renderings, but I have never entertained it until recently. In the last few months, I worked on a large project consisting of 100's of exteriors and 100 kitchens. All of these had design and color options. This was just one series, and he has an endless stream of series he'll be doing. He keeps asking me to work exclusively for him, and he said that he'll make me an offer I can't refuse. He says that he has so many investors that he won't have to sell anything for years. I am 52 years old, and to tell you the truth, the cycle is getting old. I love the work, but I don't like the constant quoting and always being too busy to take a breath. I don't know if I am any different, but the only projects I don't do are the ones I don't want to do. I am always months out, so there is no break in sight, which I know is a good problem, but I am getting tired.

My question is, what are you worth? If someone were to hire you, they are getting all your assets, too. The assets I have, and use, are always the best I can buy. The project on my screen right now, the assets cost far more than they are paying for their images. I guess it isn't different than any business, but for some reason, our industry doesn't put a value on this. A few weeks ago, a client got mad because I wouldn't give him the model when I was done. I explained, he paid X for the image, and he would be getting far more in assets, and he wouldn't be paying for them. I told him that I would be glad to make a list to buy his own copies but to tell you the truth unless he did this for a living, it would make absolutely no sense for him to buy them.

Is there a formula? When I talk to people about what they are worth as a freelancer, I tell them to find someone in the nearest largest city who does what they do and double that number. They have to pay for insurance, vacations, retirement... I guess I can do the same thing, but do I double that with the assets I bring? How about my client list, do I sell that? I mean, is it worth your annual income?

[fixeighted]

If I were you, I would hire someone and gradually turn more and more of the work over to them as they equal your proficiency level, if they are not already there.
You stay on as consultaant and client liaison if necessary and sit back more and just reap the rewards. You both win that way.
I am 55 and have worked tirelessly since I was 15....the last 25+ in 2D/3D viz and vfx and I also am tired....not too tired to do the work but I'm not into doing
80 hours a week any more, for people who seem increasingly less inclined to value what I do, which seems to equal as much if not more work for less money.
Life contentment is way more important than work, I have always thought - and so I earn less now and couldn't care less, as my life quality is better than it was when I was younger
and I do only what enables me to live in the manner to which I can accustom myself

Anyway, original question: is it worth abandoning the mutitude of clients and the relative unpredictability that brings, as well as the constant lack of time, for one exclusive client?
I would argue yes, it is worth considering.
It gives you a guaranteed and predictable workflow, structure and cashflow, as well as the ability to limit your working hours to a fixed, lesser amount than currently.
All of which is a better base for allowing yourself more of a degree of normality and, more crucially, fun! (especially as you have a family, which I do not).

You can keep the rest of your business also - but in a managerial way, if you want - just do the hiring and gradual transition. Or you can sell it as a client list or whatever other method that may work.
As far as what that may be worth, I will leave that to someone else who may have done just that, or has specific knowledge thereof

[glorybound]

Good words, thanks! I have gotten over the fear and anxiety of the next job coming in, which was terrible the first couple of years. Now it is more the headache of working with people. I like to help, and I try to go above and beyond, but people can be difficult. I have fired two clients over the last years, but I find myself getting frustrated more often than ever, but I keep that from my clients. I am getting better at managing my clients' and not taking things personally. Now, if you want a change that isn't part of our agreement, sure, here is what it'll cost.

Hiring someone full time is stressful. To be responsible for someone else's livelihood is a considerable responsibility. I keep three people pretty busy, one full-time, but those are remote people, and I don't think any of them have significant living expenses. I have two kids, a wife, a house, two cars, an RV, retirement to worry about, health insurance, college to pay for... it isn't a hobby for me like it is to a lot, if not most.

The client wants to talk this week, so I'll be doing some praying. I have a number in my head, and I ain't going to come cheap .

[fixeighted]

If your client is what your description of him appears to be, then he should expect to pay a rate commensurate with what value he is getting in return.
If you have a figure you will not go below, then haggle downwards to it from a higher one I reckon.
Luckily you are in the position of power here, with effectively zero to lose.

Anecdote: I worked for a friend's production house for the best part of 15 years and went from him paying me 450 a day freelancing to me eventually becoming an employee for 30k yearly, so quite a drop but fine for the time and the situation I thought.
After 2 years it was apparent that he wasn't paying enough however, plus he was annoying me, so I said give me 10k extra or I'm off. He refused, I left. Very simple and no regrets. You need to stay in control I figure

What is this 'retirement' word that you use? Does not compute

Good luck with the meeting

[glorybound]

I am thinking of him buying me out and then hiring me. My wife is a nurse and is in the same position. She has worked for a large hospital for 30 years and is getting paid 30% more than the average, but people are offering her more with a big hiring bonus. I also have company-related debt that I have to keep my business credit score high, which I need to pay off. I keep a revolving $20,000 a year in capital credit, which I pay every month and I don't ever touch. The interest is tax-deductible, so it is a win/win. I am willing to make less per year, but I can't be left hanging on those things. I have hardware and software that he needs to buy from me.

Retirement... An American goal is to retire with a million dollars in the bank, We save our whole lives, investing it in the market, and we try to retire at 65. We also pay social security our whole working lives, but you can no longer live on that alone. Most companies have 401K plans and the good companies match what you put in, which is free money.

So, I want a $10,000 sign-on bonus, a new computer, him to pay for all software, 3 weeks paid vacation, matched 401K, health insurance, and I know how much per year. As you said, the ball is in my court.

[fixeighted]

Big numbers...I'm sure you'll achieve it.
My life is far, far simpler, so I deal in tinier numbers. I will work until I begin to dribble uncontrollably and then...
...well who knows?!

[glorybound]

I am telling you, it ain't cheap being an American. Everything is relative, I guess. We pay $3000 a month for family health insurance and that is through my wife's employer. The whole system is screwed up and only benefits a few. I think some island is calling my name.

[fixeighted]

Hehe yes it sounds like a rigged game and I would have been dead by now I'm sure, under that system
I sympathise.

[Neilg]

I'm planning to be the first ever arch-viz billionaire. a little behind schedule but I'm confident I can catch up to where I need to be.

[glorybound]

Two people working full time for 45 years, investing the whole time, with equity in things like their home. Warren Buffett lives in the first house he ever bought and he says it was his greatest investment. He purchased it for $15,000 and it is now worth $650,000. My in-laws purchased their house in 1977 for $30,000 and my mother-in-law passed two weeks ago leaving the house to my wife and her sisters. The house is worth well over 1/2 million and they'll be selling it, dividing it 6 ways (5 sisters). This is the cycle to get to retirement. My house will be paid off soon enough before I retire and I won't have a mortgage. My two kids will get the house, sell it, and split the money, and the cycle repeats. I also have parents, one that has passed, and their house will go to me and my two siblings. So, the million dollars is doable for most who play the game their whole life. The alternative is to live under a bridge when you can no longer work, I suppose.

[francomanko]

you can also rent crap houses at ever increasing un-affordable prices because the investors bought em all....then live under the bridge......

[fixeighted]

Any model which exponentially inceases the wealth of a few at the expense of the vastly overwhelming majority is ultimately unsustainable and doomed to eventual collapse.
Just saying

[francomanko]

endless growth for the win

[fixeighted]

LOL yeah....onwards and er, somewhere or other...

[piotrus3333]

nothing to add regarding retirement plans but can not agree that your future employer is getting all the assets you bought over the years. check the licences.
example: you need mid tier megascans plan to be able to share assets with subcontractors.