How can you use detailed estimates to increase your billing? It’s simple.

When you create a detailed estimate, you’re noting all of the deliverables. If you don’t provide detailed deliverables, you’re probably doing work that you’re not billing for.

Here’s an easy example—research. I see many creatives on social media asking, “Should I charge for research?” (They’re doing the research, but not billing for it.)

The three-part answer is, “Hell yes, if you need it for the project, you’re spending time on it, and more importantly, if you included it in your estimate.”

Every Project Needs a Written Estimate

Let’s start at the beginning. No matter who your client is, every project needs a written estimate. Don’t start a project without specific approval on the scope, the timeline for delivery, and the agreed-upon cost.

That applies even to small $100 projects. Keep your admin straightforward and clear. Create written estimates that you’ll use later to write your invoices.

You Need a Clear Client Briefing Before Estimating

Sometimes you’ll get a client briefing that’s either missing information or is simply unclear. You might be tempted to skip over it, assuming you understand what they mean. You may be concerned you’ll look stupid by asking questions.

Ask the questions.

Have the discussion before writing the estimate. Let the client elaborate on what they mean. To the client, this shows you’re taking the project seriously and want to get it right.

Don’t waste your time writing an estimate if you’re not 100% sure what they’re asking for. You don’t want to write three versions of an estimate.

Well-Written Estimates Build Client Confidence

It takes time to write a detailed estimate, but it’s worth the effort. From a client’s perspective, it shows you’ve dug into the project, understand the requirements, and have outlined a process on how you plan to deliver it.

If your project has several distinct phases, break down your estimate to show them. This helps the client understand what it takes to deliver the project. It also serves as a checklist throughout the project. Both you and the client will know where you are as you’re working through it.

Your Estimate Should Cover All of Your Work Including Meetings

Whether you’re writing, designing, or programming, you likely go through a series of steps to get to the final deliverable.

If you’re writing a longer piece, you’ll create an outline first. Designers create various rough layouts, and developers will outline the project requirements, their process, and tech choices for the job.

Often, you’ll want client approval for these early stages before moving on to the next phase. Both you and the client should be clear about where you need approval and how quickly you can expect it. Don’t move to the next stage before getting specific approval. This will have an impact on your delivery schedule.

Throughout the project, you’ll likely have meetings (F2F, Zoom, or phone). Many of these are predictable, such as presentation meetings. Include them in your estimate and charge for them.

If you ever get asked whether you charge for meetings, yes, you do. Consider this: is the client getting paid for meeting with you? Yes, they are. You should get paid too.

Some clients don’t want to pay for “meetings”. Call them “working sessions”, “strategy sessions”, or “approval sessions”. Clients will pay for those.

Include Research in Your Estimate

If you can tell from the briefing that you’ll have to do research, whether the client specifies it or not, let the client know and then include it on your estimate.

By letting them know, you give them the choice of providing you with the required information (they do the research themselves) or having you do the research and paying you for it.

One way or another, if it has to be done, someone needs to get paid for their time.

Review the Estimate with Your Client

For a more significant project, walk your client through your estimate. They may have questions, and you want to be there to answer them.

Don’t just send it in and wait for a response. Before you give it to them, let them know it’s coming and set up a time to discuss it.

Detailed Estimates Help Clients Sell Your Work Internally

If your client works for a large company, there’s a good chance she will have to review it with her boss or another department. In most cases, you won’t be there to answer any questions.

So, make it easy for your client to explain and sell your estimate internally. Details will help her do that.

The Key Sections of a Creative Services Estimate

At the top of the proposal, you’ll want the date, company name, name of your client, and title of your proposal. After that, your sections should include the following:

Project Overview

This is a general overview of the project. It could include the objectives, intended audience, and timing. Ideally, anyone reading it would understand what this project is about.

Kick-Off Meeting

Every major project should have a formal beginning. In the kick-off meeting, you would take the client and perhaps her internal clients through the estimate. This type of meeting is essential where you’re expecting further information or deliverables from the client, or where there is a fixed deadline. The client needs to be aware of your expectations of them throughout the project. Often, this means you need timely feedback and approvals, so the project stays on schedule.

Make sure you describe the nature of the kick-off meeting in your estimate.

A formal start to the project also means that all questions have been answered, and you have approval to start. Assuming that you’ve asked for a deposit in your payment terms, now is the time to send that invoice. The project is underway!

Process and Deliverables

Describe what you’re doing for the project and what the client can expect to see along the way. Deliverables could include written outlines, rough graphic designs, process flowcharts, etc.

If you’re presenting options (3 layouts of key web pages, for example), be sure to specify that. If a deliverable needs client approval before you move on, mention it.

Concept Presentation Meeting

In my experience, when it came time to present concepts, there were often more people in the room with my client. So, describe what you propose to present so that attendees know what to expect.

Production Requirements (if necessary)

Depending on the project, once the concept is approved, it may need others to fulfill the production. This could be photographers, filmmakers, animators, other programmers for integration, etc. Be sure to describe this, so there are no surprises.

Terms & Conditions For Payment and Revisions

Your Terms & Conditions should clearly outline your payment terms and how many revisions are included. Payment terms should include deposits and progress payments for larger projects.

If you need legal terms regarding copyright or ownership of software, this is the place to include that.

Comprehensive Estimates Prevent Scope Creep

If you include everything relevant to the project in your estimate, then your client should understand “if it’s not in the estimate, it’s not included in the project”. (Find a nicer way of saying that if it comes up)

This is why it’s important to review the estimate with the client. They may want more included in the project. Better to know this at the beginning so that you can add any items and adjust the price.

Learn more about scope definition here. Learn how to prevent scope creep and get paid what you’re worth here.

How Many Revisions Should You Include?

You might want to discuss this with your client, but for me, the standard disclaimer for every deliverable was, “Includes up to two rounds of revisions. Any further revisions, if required, will be estimated.”

I had a client who always asked to include up to five rounds of revisions, knowing all the management layers it would go through for approval. Fine, adjust the price, and get approval.

Be sure to include this disclaimer throughout the project phases so that the client knows what to expect.

How to Bill for Extra Revisions

Assuming the estimate included up to two rounds, when it came time to do that second round, I let the client know where we were in the project, so they would know that further rounds would be extra.

Don’t Make This Mistake—Be Sure to Create Estimates for Billable Revisions

You’re about to go into further revisions that you want to bill for. Don’t make the mistake of just going ahead with the revisions. Create a quick estimate, detailing these revisions, and get it approved.

Sometimes revisions go on and on. Be sure to get approvals so there’s no surprise and no debate on costs.

You want your estimates to line up with your invoices later on. If the client uses purchase orders, make sure all PO numbers are included where necessary.

Your Invoices Should Align with Your Estimates

Make it easy for accounting to look at your estimates and see them reflected in your invoice. Include all relevant information, such as purchase order numbers and dates.

You don’t want your payment to get held up in accounting because of missing documentation or confusion.

Estimates for Large Projects Need a Schedule

If the client doesn’t give you a schedule for a project, you should propose one. It’s in your best interest to keep a project moving at a reasonable pace.

It’s not efficient to have a two-week project drag on for months.

Create a schedule and get agreement from your client.

There’s much more about the importance of writing good estimates in my book, How to Start a Successful Creative Agency. It’s the essential business guide for graphic designers, copywriters, filmmakers, photographers, and programmers.

With over 300 pages and 23 chapters, it’s available at Amazon (Paper & Kindle), Kobo (ebook), Apple Books (ebook), and Gumroad (PDF).

“I just picked up your book yesterday! Already loving it and can't wait to sit back down with it.”

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The book is packed with useful information to help creatives start and grow their business.

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Increase Your Billing with Detailed Estimates