João Roque Dias, CT
jrdias.com
EL TRADUCTOR EL CLIENTE EL PARNÉ
Vigo –April, 4, 2014
©2014 João Roque Dias.
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April2014
Meet Paris Hilton, your competitor!
Where’s the money coming from?
Measuring and pricing your work
Time and Money. Or is it Money and Time?
Your apartment in Manhattan The Ω 0,03 market! Is it for you?
5 rules for your business You’re not dating your client
A haircut by Ted Gibson or Dr. Mike?
The Golden Triangle:
Translator, Client and Money
Questions and (maybe) answers And the papel hixiénico...
TODAY’S FLIGHT PLAN TODAY’S FLIGHT PLAN
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3 rolls of the iconic, seriously chic, Portuguese black toilet paper from Renova.
Give the right answer to the question asked at the end of this session.
More than one right answerer?
The younger one wins...
WIN! WIN! WIN!
WIN! WIN! WIN!
Will I ever make enough money translating?
Enough money for what?
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1. Translation can be done just for fun! Without getting paid, that is!
Can you afford it?
2. HOWEVER...
For most people, translation, besides being fun, is also a way to make a living!
3. If you’re in this last group…
this next hour is for you.
A WORD OF CAUTION
A WORD OF CAUTION
WHERE’S THE MONEY COMING FROM?
WHERE’S THE MONEY COMING FROM?
From OUR own pocket:
Buy José Saramago in Spanish.
Buy a new phone (with the manual translated).
Attend a conference with simultaneous interpretation.
Use a multilingual service or product (e.g., airport, software, medicine).
Watch Homeland in your country.
Pay your taxes for:
− interpretation at police stations / courts
− translation of international treaties.
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1. TRANSLATION IS A SERVICE!
2. It is NOT a commodity.
Paper, computers, oil,
pork bellies,and even money and time are commodities!
3. You can stock commodities.
You CANNOT stock services.
IN CASE YOU DIDN’T KNOW...
IN CASE YOU DIDN’T KNOW...
A VERY SPECIAL COMMODITY A VERY SPECIAL COMMODITY
Time
is also a commodity. A very special one.Time
cannot be stocked.Time
is a NON-RENEWABLE RESOURCE.Time
is good: things cannot happen at the same time in the same place.GLOSSARY OF TIME FOR TRANSLATORS GLOSSARY OF TIME FOR TRANSLATORS
day – noun
The period of 24 hours.
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1. Sell your service as a commodity!
You WILL be treated
as a commodity supplier!
2. Want to be seen and treated as a service provider? Act like one!
Sell your service as a...
SERVICE.
IT’S UP TO YOU...
IT’S UP TO YOU...
MEASURING OUR WORK MEASURING OUR WORK
Within the Translation World
(Translators Translation Companies):1. Translation work priced by the word / line.
2. Editing / proofreading tasks priced by the hour.
3. Newest trend: PMs asking for lump sum / flat prices.
4. Translation buyers seldom receive estimates based on word count.
In the “real” World
(Translators direct Clients):1. Estimates / pricing by the word is perceived as suspicious...
2. Clients used to price / buy services by the hour.
3. Translation is just another service. Period.
4. Safest way to go: talk time, estimate time, invoice time.
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MEASURING OUR WORK MEASURING OUR WORK
SERVICE PROVIDERS SELL THEIR TIME
In the translation business, ALL units for measuring work are related to TIME:
1. Here is a 10 000 word job. WHEN can you deliver?
2. What is your DAILY translation output?
3. What’s your HOURLY rate for proofreading?
4. Can you translate 20 000 words in one DAY?
PRICING COMMODITIES
How much does this water valve cost?
PRICING COMMODITIES
How much does this water valve cost?
Just add up the costs for:
Research & Development Engineering
Materials
Production (machine time and labor) Quality Assurance
Scrap parts Packaging Marketing Distribution
Company overhead
And...
some profit, too!
PRICE TAG
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How much should I charge for my
translation?
WRONG QUESTION, LADY…
WRONG QUESTION, LADY…
How much will it cost me to provide THIS service to THIS client?
How much will it cost me to provide THIS service to THIS client?
Easy answer:
Easy answer:
1. TIME. Your time.
DO YOU HAVE IT?
2. MONEY. Your money.
To pay for the things you need to work.
ASK THE RIGHT QUESTION ASK THE RIGHT QUESTION
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One year = 365 days
Less the days you
DO NOT WORK
: Sickness (other people’s, at least...)Holidays (12-15 days a year)
Other holidays (birthdays, anniversaries, vacations, etc.)
Reunions, friend’s parties, sports and arts events, etc.
Religious observances
Family duties and things (you know...)
Citizenship affairs (junta de propietarios, protestas, etc.)
Stupid things (sick dog, in-laws visiting, prueba de prenda, etc.)
Other stupid things (must-see movie, free tickets to Lisbon, etc.)
2 15 30 15 3 6 3 6 2
62 days 2 months HOW MUCH OF YOUR TIME?
HOW MUCH OF YOUR TIME?
TO DO YOUR WORK, YOU ALSO NEED TIME FOR
Procuring Clients and Building Up a Clientele Learning how to use a TM (or yet another TM)
Making good / correcting / revising your own translations Answering to prospective clients
Maintaining your equipment and software
Keeping up your paperwork (NOT only for tax purposes)
Issuing invoices and tracking down payments (or non-payments) Updating your website / blog
Preparing your promotional materials (and using them…) Attending professional conferences, workshops, etc.
Anything else?
TALKING ABOUT TIME...
TALKING ABOUT TIME...
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AVAILABLE TIME > BILLABLE TIME
COSTS to get your work done:
Computer (including repairs, upgrades, and accessories...)
Printer (including consumables...)
Telecommunications (Internet, mobile, fax, Skype, etc.)
Utilities and amenities (electricity, air conditioning, coffee...)
Office supplies (paper, toner, staples, pens, etc.)
Software (new and upgrades, LOTS of upgrades...)
Professional Training (conferences, workshops, seminars, etc.)
Professional Development (conferences, workshops, seminars, etc.)
Advertisement costs (website, business cards, résumés, etc.)
Networking (powwows, dinners, get-togethers, new dress/tie, etc.)
Bank commissions and finder’s fees
HOW MUCH OF YOUR MONEY?
HOW MUCH OF YOUR MONEY?
How much does my computer cost?
HOW MUCH OF YOUR MONEY?
HOW MUCH OF YOUR MONEY?
USEFUL LIFE = 3 YEARS
Purchasing price € 1500,00
Accessories € 200,00
Mouse, USB hub, external hard drive, etc.
Mid-life upgrade / repair € 100,00
TOTAL € 1800,00
€ 1800,00 / 3 years = € 600,00
This is the yearly cost of your computer
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Common scenario Common scenario
Income from Translation Services rendered € 1 000 000,00 10% of the income paid 3 months late* € 100 000,00
1,000,000.00 x 10%
Application of DIRECTIVE 2011/7/EU € 2125,00
Interest rate from the European Central Bank: 0,5% (after May 8, 2013) PLUS the margin (8%, at least) = 8,5%
This amount (plus any collection costs) is a BUSINESS COST.
LATE MONEY COSTS MONEY LATE MONEY COSTS MONEY
* NEW DIRECTIVE: PAYMENTS WITHIN 60 DAYS
House rent / mortgage
(residence, apartment in Manhattan) Eating (in and out)
Clothing (go ahead, go wild...) Transportation
Kids education (it ain’t free...)
Porsche / BMW (fuel, and maintenance) Vacation (Miami, Bermuda, Lisboa...) Entertainment (self, family and friends) Savings account (we’ll all get old...) Taxes (DON’T FORGET)
AND HOW ABOUT YOURSELF?
AND HOW ABOUT YOURSELF?
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DON’T YOU HAVE A LIFE?
DO I NEED MONEY FOR ALL THAT?
I JUST WANT TO
TRANSLATE...
HOW MUCH MONEY DO I HAVE TO MAKE AS A TRANSLATOR?
HOW MUCH MONEY DO I HAVE TO MAKE AS A TRANSLATOR?
AT LEAST, enough money to:
1. COVER YOUR BUSINESS EXPENSES.
YOUR BUSINESS (ANY BUSINESS) SHOULD PAY ITSELF!
2. PAY FOR YOUR LIFE, AS A PERSON. A NORMAL PERSON.
BUSINESS EXPENSES + PERSONAL INCOME
BILLABLE HOURS
=
HOURLY FEETHIS IS YOUR MINIMUM HOURLY FEE.
CHARGE LESS AND YOU’RE IN TROUBLE!
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DO NOT STARVE YOUR BUSINESS DO NOT STARVE YOUR BUSINESS
1. You need 2000 calories/day to feed your body.
2. Eat 1000 calories in ONE DAY: no problem.
3. Eat 1000 calories EVERY DAY: you die.
YOUR BODY
1. You need 2000 euros/day to feed your business.
2. Earn 1000 euros in ONE DAY: no problem.
YOUR BUSINESS
REMEMBER: BUSINESSES DON’T NEED DIETS!
TALKING ABOUT TIME & MONEY TALKING ABOUT TIME & MONEY
Average Total Hours Worked in 2009: 2032 Average Billable Hours Worked in 2009: 1771
NET MULTIPLIER
(Measures the success of a business)
Business Costs = Labor (€ 100,00) + Overhead (€170,00) = € 270,00 BREAK EVEN = Labor Costs x 2,7
For 15% profit: Labor Costs x 3,10
Net Multiplier < 3,10 = PROFIT NOT REALIZED Net Multiplier < 2,70 = COSTS NOT COVERED
(Lawyers, USA)
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THE Ω0,03 MARKET THE Ω0,03 MARKET
Acceptable fact: 2000 to 3000 words/day.
Let’s be (very) generous: 3000 words/day.
Taxes (European style): 40 to 50%.
Ω0,03 x 3000 = Ω90 for a day of work.
After 40% taxes = Ω54,00/day.
15 to 20 full days of translation per month (DEDUCT administration, marketing,
week-ends, sick days, family, days off, etc.).
15 to 20 full days of translation per month:
Ω54 x 15 = Ω810,00 to Ω54 x 20 = Ω1120,00 FOR ONE MONTH FOR FULL TIME WORK...
...AND WE HAVEN’T EVEN DEDUCTED EXPENSES.
THE COMPETITION AND THE MARKET GOING RATES?
THE ONE-CENT CLIENTS AND TRANSLATORS?
THE GLOBALIZATION?
THE I CAN’T FIND WORK SUITABLE FOR MY BOTTOM LINE?
THE CLIENTS TRYING TO SET MY PRICE?
THIS CRAZY MARKET, THAT SEEMS TO PAY LESS AND LESS?
WHAT ABOUT?
WHAT ABOUT?
AND WHAT ABOUT…
AND WHAT ABOUT…
jrdias.com
IF I SELL MY WORK VERY CHEAP, I WILL GET LOTS OF WORK, RIGHT?
IF I SELL MY WORK VERY CHEAP, I WILL GET LOTS OF WORK, RIGHT?
WRONG WRONG
BECAUSE ALL THE WORK YOU GET MAY NOT BE
ENOUGH TO PAY FOR
BUT, I NEED WORK
BUT, I NEED WORK
ACTION PLAN ACTION PLAN
1. ANALYSE AND KEEP TRACK OF ALL YOUR COSTS.
It’s your business and your life. Know it well.
2. PAY ATTENTION TO THE SMALL COSTS. THEY ADD UP...
Small gadgets cost money and (may) add little value...
3. CALCULATE YOUR MINIMUM HOURLY FEE
This is the fee that will cover your costs and expenses. ONLY.
This should NOT be your selling fee.
4. DO NOT CHARGE LESS THAN YOUR MINIMUM FEE.
EVER. Do that, and you’re in trouble. BIG TROUBLE.
5. PROVIDE YOUR BEST (ONLY THE BEST) SERVICE ALWAYS.
Clients will notice that.
And they will send you more work. And more money.
jrdias.com
HOW MUCH
MONEY?
HOW MUCH
MONEY?
YOU’LL BE SUPRISED!
5 RULES FOR YOUR BUSINESS 5 RULES FOR YOUR BUSINESS
Adapted: The TranslationJob, by Roger Chriss
From General Motors to Traducciones Pepita
1.
Keep money for AS LONG AS POSSIBLE.
2.
Get money AS SOON AS POSSIBLE.
3.
NEVER break the first two rules.
4.
Only the FIRST TWO RULES really matter.
5.
There are NO OTHER RULES.
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3 RULES OF NEGOTIATING 3 RULES OF NEGOTIATING
1.
Always Start the Negotiations.
If you didn’t, do something about it!
2.
Always Negotiate in Writing.
Always! No exceptions!
3.
Always Stay Cool.
You’re not dating your client…
From General Motors to Traducciones Pepita
1. FREQUENCY OF NEW JOBS
365 DAYS / NUMBER OF JOBS = FREQUENCY OF NEW JOBS
Probability of a new job coming in, when we’rebusy Estimate ofLOSS OF WORK, whenwe’re busy
365 days / 130 jobs = 1 NEW JOB / 2,8 DAYS Spend a week in Lisbon = LOSS OF 2,5 JOBS
2. AVERAGE INVOICE AMOUNT
TOTAL INVOCING / NUMBER OF JOBS = AVERAGE INVOICE
Estimated REVENUE LOSS whenwe’re busy
Helps us decide which job to take to maximize income
EUR 50 000,00 / 130 JOBS = € 385,00 / JOB
Spend a week in Lisbon = LOSS OF € 385,00 x 2,5 = € 963,00
Things you should know (even in your sleep) Things you should know (even in your sleep)
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TRANSLATOR
CLIENT MONEY
LOW FEES LATE PAYMENTS
UNBALANCED TRIANGLE
POOR BUSINESS POOR CLIENT
POOR TRANSLATOR
TRANSLATOR
CLIENT MONEY
FAIR AND TIMELY PAYMENTS FAIR / JUST
SELECTION
QUALITY SERVICE
HEALTHY BUDGETS HEALTHY BUSINESS
GOLDEN TRIANGLE
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YOUR BUSINESS INCOME SHOULD NOT LOOK LIKE THIS
YOUR BUSINESS INCOME SHOULD NOT LOOK LIKE THIS
YOUR INCOME SHOULD LOOK LIKE THIS YOUR INCOME SHOULD LOOK LIKE THIS
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IT’S UP TO YOU...
IT’S UP TO YOU...
A haircut is a haircut, a haircut, a haircut.
www.jrdias.com
Go ahead!
You can ask him questions, now!
PREGUNTAS ?
PREGUNTAS ?
How do you calculate your HOURLY FEE?
BUSINESS EXPENSES + PERSONAL INCOME
BILLABLE HOURS
=
HOURLY FEEFor 3 rolls of the iconic,
seriously chic, Portuguese
black toilet paper from Renova...
In how many slides
have you seen clocks?
jrdias.com
For 3 rolls of the iconic,
seriously chic, Portuguese
red toilet paper from Renova...
CATRO ● 4 ● CUATRO
The Business of Translating by Danilo Nogueira
http://www.proz.com/translation-articles/articles/286/
Translation Economics 101 by Danilo Nogueira
http://www.proz.com/translation-articles/articles/298/
The Business of Freelance Translation by Fester Leenstra
http://www.kwintessential.co.uk/translation/articles/business-freelance-translation.html The Translation Jobby Roger Chriss
http://www.translation-services-usa.com/articles/translation-job.shtml Personal Finance for Freelancers by Sara Freitas-Maltaverne
http://www.proz.com/translation-articles/articles/567/1/Personal-Finance-for-Freelancers Payment Collection by Andrei Gerasimov
http://accurapid.com/journal/26collection.htm
Beach Time, Bridge Time, and Billable Hours: The Temporal Structure of Technical Contracting www.stanford.edu/group/WTO/cgi-bin/uploads/Evans_2004.pdf
USEFUL READING USEFUL READING
WARNING
This will not cost you money, but it will cost you time.
WARNING
This will not cost you money, but it will cost you time.
Don’t forget to include it in your costs calculations
THANK YOU FOR YOUR TIME THANK YOU FOR YOUR TIME
João Roque Dias, CT
