João

Roque Dias, CT

jrdias.com

EL TRADUCTOR

EL CLIENTE

EL PARNÉ

Vigo –

April, 4, 2014

©

2014 João Roque Dias.All

rights

reserved.

No part

of

this

document

may

be

published, stored

in a retrieval

system, or

transmitted

in any

form

or

by

any

means, electronic, mechanical, photocopying, recording

or

otherwise, without

prior written

permission.

All

product

names

and

images

mentioned

in this

document

are for identification

purposes

only

and

may

be

trademarks

or

registered

trademarks

of

their

respective

companies

and

the

exclusive propertyof

their

respective

owners.

I make

no warranties as to the

accuracy

or

currency

of

the

information

contained

on

this

document. This

document

is

available

to all

users

"as is”, without

any

representations

or

warranties of

any

kind, either

express

or

implied, including

warranties

or

fitness for a particular purpose

or

of

regular updating

or

otherwise. I also

make

no representations, warranties or

undertakings

that

this

document

will

be

free

from

defects, including, but

not

limited

to inaccuracies

or

typographical

errors.

April

2014

www.jrdias.com

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 PLANTODAY’S FLIGHT PLAN

jrdias.com

3 rolls

of

the

iconic, seriouslychic, Portuguese

black

toilet

paper

from

Renova.

Give

the

right

answer

to the

questionasked

at

the

end

of

this

session.

More than

one

right

answerer?

The

younger

one

wins...

jrdias.com

WIN! WIN! WIN!WIN! WIN! WIN!

Will I ever makeenough moneytranslating?

Enough moneyfor what?

jrdias.com

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 CAUTIONA WORD OF CAUTION

jrdias.com

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.

jrdias.com

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...

jrdias.com

A VERY SPECIAL COMMODITYA 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 TRANSLATORSGLOSSARY OF TIME FOR TRANSLATORS

day

–

nounThe period of 24 hours.

jrdias.com

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...

jrdias.com

MEASURING OUR WORKMEASURING 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.

jrdias.com

MEASURING OUR WORKMEASURING 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?

jrdias.com

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 & DevelopmentEngineeringMaterialsProduction (machine time and labor)Quality AssuranceScrap partsPackagingMarketingDistributionCompany overhead

And...some profit, too!

PRICE TAG

jrdias.com

How much should I charge for my

translation?

WRONG QUESTION, LADY…WRONG QUESTION, LADY…

jrdias.com

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 QUESTIONASK THE RIGHT QUESTION

jrdias.com

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 observancesFamily 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.)

Because you just don’t feel like it...

2153015

363620

62 days2 months

HOW MUCH OF YOUR TIME?HOW MUCH OF YOUR TIME?

jrdias.com

TO DO YOUR WORK, YOU ALSO NEED TIME FOR

Procuring Clients and Building Up a ClienteleLearning how to use a TM (or yet another TM)Making good / correcting / revising your own translationsAnswering to prospective clientsMaintaining your equipment and softwareKeeping 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...

jrdias.com

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 feesTraveling expenses

(from subway fares, to tolls and airline tickets...)

HOW MUCH OF YOUR MONEY?HOW MUCH OF YOUR MONEY?

jrdias.com

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

€

200,00Mouse, 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 computerjrdias.com

Common scenarioCommon scenario

Income from Translation Services rendered

€

1 000 000,00

10% of the income paid 3 months late*

€

100 000,001,000,000.00 x 10%

Application of DIRECTIVE 2011/7/EU

€

2125,00Interest 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.Just another cost your business has to pay for.

LATE MONEY COSTS MONEYLATE MONEY COSTS MONEY

* NEW DIRECTIVE: PAYMENTS WITHIN 60 DAYS

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House rent / mortgage

(residence, apartment in Manhattan)Eating (in and out)Clothing (go ahead, go wild...)TransportationKids 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?

jrdias.com

DON’T YOU HAVE A LIFE?

DO I NEED MONEYFOR ALL THAT?

I JUST WANT TOTRANSLATE...

jrdias.com

HOW MUCH MONEY DO I HAVETO MAKE AS A TRANSLATOR?HOW MUCH MONEY DO I HAVETO 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 FEE

THIS IS YOUR MINIMUM HOURLY FEE.CHARGE LESS AND YOU’RE IN TROUBLE!

jrdias.com

DO NOT STARVE YOUR BUSINESSDO 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.

3.

Earn

1000 euros EVERY DAY: you

go

out

of

business.

YOUR BUSINESS

REMEMBER: BUSINESSES DON’T NEED DIETS!

jrdias.com

TALKING ABOUT TIME & MONEYTALKING ABOUT TIME & MONEY

Average

Total Hours

Worked

in 2009:

2032Average

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)

jrdias.com

THE Ω0,03 MARKETTHE 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.

jrdias.com

THE COMPETITION AND THE MARKET GOING RATES?

THE ONE-CENT CLIENTS AND TRANSLATORS?

THE GLOBALIZATION?

THE I CAN’T FIND WORK SUITABLEFOR 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 LOTSOF WORK, RIGHT?

WRONGWRONGBECAUSE ALL THE WORK YOU GET MAY NOT BE ENOUGH TO PAY FORYOU TO DO IT.

BUT, I NEED WORKBUT, I NEED WORK

jrdias.com

ACTION PLANACTION 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

HOWMUCHMONEY?

HOWMUCHMONEY?

jrdias.com

YOU’LL BE SUPRISED!

5 RULES FOR YOUR BUSINESS5 RULES FOR YOUR BUSINESS

Adapted: The

Translation

Job, 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.

jrdias.com

3 RULES OF NEGOTIATING3 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

jrdias.com

1.

FREQUENCY OF NEW JOBS 365 DAYS / NUMBER OF JOBS = FREQUENCY OF NEW JOBS

Probability

of

a new

job

coming

in, when

we’re

busy

Estimate

of

LOSS OF WORK, when

we’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 when

we’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)

jrdias.com

TRANSLATOR

CLIENT MONEY

TIGHT / CHEAP BUDGETSSUB-FINANCED BUSINESS

LOW FEESLATE

PAYMENTS

UNBALANCED TRIANGLE

POOR BUSINESSPOOR CLIENT

POOR TRANSLATOR

jrdias.com

TRANSLATOR

CLIENT MONEY

FAIR AND TIMELY

PAYMENTS

FAIR / JUSTSELECTION

QUALITYSERVICE

HEALTHY BUDGETS HEALTHY BUSINESS

GOLDEN TRIANGLE

jrdias.com

YOUR BUSINESS INCOME SHOULD NOT LOOK LIKE THISYOUR BUSINESS INCOME SHOULD NOT LOOK LIKE THIS

jrdias.com

YOUR INCOME SHOULD LOOK LIKE THISYOUR INCOME SHOULD LOOK LIKE THIS

jrdias.com

IT’S UP TO YOU...IT’S UP TO YOU...

A haircut

is

a haircut, a haircut, a haircut.

jrdias.com

www.jrdias.com

Go

ahead!You

can

ask

him

questions, now!

PREGUNTAS ?PREGUNTAS ?

How do you calculate your HOURLY FEE?

jrdias.com

BUSINESS EXPENSES + PERSONAL INCOME

BILLABLE HOURS= HOURLY FEE

For 3 rolls

of

the

iconic,seriously

chic, Portuguese

black

toilet

paper

from

Renova...

In how many slideshave 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 Nogueirahttp://www.proz.com/translation-articles/articles/286/

Translation Economics 101 by Danilo

Nogueirahttp://www.proz.com/translation-articles/articles/298/

The Business of Freelance Translation by Fester Leenstrahttp://www.kwintessential.co.uk/translation/articles/business-freelance-translation.html

The Translation Job

by Roger Chrisshttp://www.translation-services-usa.com/articles/translation-job.shtml

Personal Finance for Freelancers

by

Sara Freitas-Maltavernehttp://www.proz.com/translation-articles/articles/567/1/Personal-Finance-for-Freelancers

Payment Collection by Andrei Gerasimovhttp://accurapid.com/journal/26collection.htm

Beach Time, Bridge Time, and Billable Hours: The Temporal Structure of Technical Contractingwww.stanford.edu/group/WTO/cgi-bin/uploads/Evans_2004.pdf

Work Life Balance Calculatorhttp://www.envoyglobal.net/jdbliss/test/calculator2.htm

USEFUL READINGUSEFUL READING

WARNINGThis will not cost you money, but it will cost you time.WARNINGThis will not cost you money, but it will cost you time.

jrdias.com

Don’t

forget

to include

it

in your

costs

calculations

THANK YOU FOR YOUR TIMETHANK YOU FOR YOUR TIME

João

Roque Dias, CT

jrdias.com