HELP ADVICE ASAP PLEASE

Frustrated! Annoyed!
This is probably my own fault. I hate doing business for friends and family, they expect that since I design that I can design stuff for free!
Sorry for ranting!!!
However here is the real issue. I have a friend(turned client) that is looking for things that will be a business logo, business card, Corporate Charter, etc, this person wants to have the .psd, and .ai files?!
I have started working and typically I charge $20hr for work. When I started working on this project for my friend(client) I started an itinerary (which i know this to be a wise thing to get into, just to keep track of what I am doing and how long it takes me. ) Where I am having the problem is that I want to tell this person I want at least half of what I have already done upfront. This person didn't like my first design. So I went back to the drawing board and doing something in the same genre (it is very labor intensive) Art Deco styled items.
How do I approach this, I love the project. However, I do not like being approached for free. These were her words,
"If I use the design then I'll buy it. I'll need the vector format if I am paying." I think this is unfair, Just because I have already worked on a design for free. I want half at least!
I am a creative, but my business sense is not there! I NEED HELP! I NEED ADVICE ON WHAT TO DO! PLEASE
 
If a 'friend' treats you like that then un-friend them very quickly!! IF you do business with friends or family tell them upfront that this is your LIVING, it's what pays your bills, then give them a quote for the work. Get a 50% deposit for the first stage design work and tell them that they only get final files/copyright when final bill is paid. If they don't like it then tough. Also, what does your 'friend'/client do? Ask for the equivalent value of their service/product and tell them you'll maybe pay them if you like it! Boils my piss to hear about this kind of thing! Ahhh…Monday morning rants, can't beat 'em :)
 
If a 'friend' treats you like that then un-friend them very quickly!! IF you do business with friends or family tell them upfront that this is your LIVING, it's what pays your bills, then give them a quote for the work. Get a 50% deposit for the first stage design work and tell them that they only get final files/copyright when final bill is paid. If they don't like it then tough. Also, what does your 'friend'/client do? Ask for the equivalent value of their service/product and tell them you'll maybe pay them if you like it! Boils my piss to hear about this kind of thing! Ahhh…Monday morning rants, can't beat 'em :)


I like the bit about "boils my piss".

That funny. That make Scotty chuckle. :D

......Oh....I agree also. ;)
 
I have a simple rule with my business work... I get paid for it. I don't care if you're my friend or not you're still getting an invoice, I 'might' offer a discount if you're a good friend. Family is a little different in that I might do little things for them for free (like my Mum needing a quick something for a class lesson or something similar).

As the saying goes there's no room for friends in business
 
I want to thank everyone for your advice. The situation has been resolved and friendship so far is still intact.

this is the email that I sent.
I just wanted to reach out to you in regards to our last conversation, I just want to start off by saying how thankful I am that you let me take part in this project for your business. I do want you to know that I am ready willing and able to continue working on this project but as my client I need you to understand that I do work on a labor pay scale in which I do charge $20.00 per hour. I honestly think that when we are finished you will have a very high quality design. The value that you are paying for is well worth it, which is why you came to my firm. I definitely enjoy our friendship and I’d rather lose you as a client than as a friend. So if this payment agreement is not worthy in your eyes, I ask you to please shop around and see what you can find, I will be in your corner 100 percent. If you decide to stay with me , you know what I require and we can push forward together on this journey.

If after you shop around and you want to retain my business to continue with the project. Here is what is going to be expected to continue with the project. My business requires that you pay at least half of the work that has already been done. I can provide you with a detailed itinerary that has been completed for the design that was not used.

For the design that is not going the total cost of that design is 295. However, since you are not going to be using the design I am only going to charge you for the labor that was put into the high quality design that was created. 147.50.

this is the response
No thanks. But good for you for standing up for your value.

LESSON:
A. Stand up for my designs, they came to me because they know I can design.
B. Regardless if it is friends or family, create a contract period.
C. If my terms can not be met then express to them I can not do the work.
 
295 for designing a logo…but only 147.50 is labour? curious as to what the rest is for? :) As for the answer…No thanks?? Does that mean no thanks I don't want to pay?! Fair play for your diplomatic response, my patience is sadly not that good!
 
In future just tell every client you require 50% of the money upfront, regardless of who they are. If they refuse, don't do the work and move on to something else.
 
The situation has been taken care of. The friend turned client and I spoke just that one time. NEVER again will i ever work for friends or family. They often say " I want to help you succeed", yet when it comes to pay, they NEVER come through. NEVER again. Definitely a lesson learned.
 
In future just tell every client you require 50% of the money upfront, regardless of who they are. If they refuse, don't do the work and move on to something else.
I don't know why, with friends and family it is harder to ask for money upfront rather than a complete stranger. Oh well just not working for friends or family in the future.
 
295 for designing a logo…but only 147.50 is labour? curious as to what the rest is for? :) As for the answer…No thanks?? Does that mean no thanks I don't want to pay?! Fair play for your diplomatic response, my patience is sadly not that good!
I didn't want to lose a friend, so me and a friend discussed the situation and we came up with the best response, if you want i can privately give the the itinerary of what i kept track of which would explain how i came up with the amount I did.
 
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