Managing Design Service Credits & Fees

Effectively managing design services helps publishers control costs and strengthen client relationships. Offering complimentary design credits adds value for clients, especially those with limited budgets or long-term agreements. Tracking and strategically pricing billable design services enables resource optimization and profitability.

A profit and loss perspective on design credits, client fees, and costs helps publishers understand the financial impact of each request, leading to informed decisions that balance costs, enhance client relationships, and maximize returns.

Complimentary Design Service Credits

Each publisher receives a set number of complimentary design credits per month based on their tier. Credits are used when clients request a new ad design.

• Bronze & Silver Tiers: 8 client credits
• Gold & Platinum Tiers: 12 client credits
• Diamond Tier: 16 client credits
• Black Tier: 20 client credits

* Client-submitted print-ready ads or past ads with no/minor changes do not count toward complementary credits thus are not billable.

** During the launch process (first issue), publishers receive unlimited complimentary design services with no cost. Publishers can still bill clients for these designs to generate revenue ($50/$70 per design).

What is Considered a “Billable Ad”?

An ad is considered billable in the following cases:

• All brand new ad designs
• Additional edits requested after the initial proof
• The design request takes more than 15 minutes
• The design request changes the ad layout
• Ads are resized (i.e. from a half page to a full page)

Design Requests that Exceed Credits and Pricing Options

For design requests exceeding monthly complimentary credits, publishers are charged $50 per design that is added to “Publisher’s Misc. Expenses”. Publishers have the option to:

1. Absorb the additional cost as a value add for clients
2. Charge clients $50 per design to cover expenses
3. Charge clients $70 per design, earning $20 profit for each additional design service
4. Adjust cost per client’s needs

Why Absorb Design Costs?

Offering complimentary design services can benefit publishers in several ways:

1. Incentivizing Client Agreements: Including free design services in a package can encourage clients to sign on, especially if they see it as added value at no additional cost.
2. Sweetening Long-Term Deals: Absorbing design costs can act as a “sweetener” for clients willing to commit to longer-term agreements.
3. Client Budget Considerations: Clients with limited budgets may appreciate free design services, making it more feasible for them to continue advertising.
4. Relationship Building: Offering complimentary services can foster goodwill, building a stronger, trust-based relationship with clients.

Setting Up Design Services in Client Agreements

Publishers can charge the design service rate for each insertion when building the client’s agreement.

1. Flat Rate or Monthly Charges: Publishers may set up a flat or monthly rate for design services across the agreement, even if the client does not use the service every period
2. Quarterly Billing Option: If the client intends to use the design services only quarterly, publishers can set up a quarterly charge for design services in the agreement
   1. Once design services are set up in the agreement, the client has access to them unless the publisher manually adjusts the services in the agreement. Publishers should remember to revert any temporary changes to prevent unauthorized or unintended service use.
3. Client Visibility: Clients can view any design service charges in the agreement details within the customer portal, providing full transparency.

Tracking Billable Ads

Tracking design requests helps publishers manage costs and set strategic pricing to enhance client value.

1. In the ads list report, use the black paintbrush symbol in the ad status column to identify billable designs.
2. At the bottom of the status column, you’ll also see a summary, providing a quick view of available and used credits.

Example Scenarios:

Standard Month (Post-Launch)

• Total Requests: 10
• Credited: 8
• Billable Designs: 2 ($50 cost per design to the publisher)
• Total Publisher Cost: $100
• Billing Options:

1. No Charge → $100 cost to the publisher
2. Charge $50 per Design → $100 revenue (break-even)
3. Charge $70 per Design → $140 revenue, $40 profit

Launch Issue

• Total Requests: 15
• Credited: 15 (no billable 1st month)
• Billing Options:

1. No Charge → $0 cost to the publisher
2. Charge $50 per Design → $750 profit
3. Charge $70 per Design → $1,050 profit

8 or Fewer Designs Requested

• Total Requests: 5
• Credited: 5
• Total Cost to Publisher: $0
• Billing Options:

1. No Charge → $0 cost to the publisher
2. Charge $50 per Design → $250 profit
3. Charge $70 per Design → $350 profit
4. Charge 4 clients $50 and 1 client $70 → $270 profit

Guidde: Managing Design Service Credits & Fees