Coudal Partners, our officemates, are a great example of what a design firm can do when it decides to take control of its own destiny.
Coudal used to generate revenues almost exclusively from client work. Anyone who’s done client work knows the inherent frustrations that come along with that. But instead of merely accepting these frustrations as “the real world” (aka The Way It Has To Be), Coudal searched for another path.
From Jewelboxing to Field Notes
When they had trouble finding great CD packaging, they realized other designers probably had the same issue. So Jewelboxing was born.
It was a hit and soon more products came down the pipe: lowercase tees, The Deck, Pinsetter, and Field Notes. Some were bigger hits than others, but, overall, the strategy has succeeded: Coudal now gets the majority of its income from products it creates.
And you can tell they’re having fun along the way too. They also created Swap Meat “in an attempt to make lots of people as happy as we are when the FedEx guy shows up unannounced.” And they even financed and shot a movie, Copy Goes Here, “for no very good reason.”
Client work
They still do client work, but it’s for clients who get it instead of whomever comes along. They partnered with a restaurant chain to do design work and agreed to a deal that involved a percentage of the business instead of just a flat rate.
Risky? Sure, but it’s paid off. Sometimes you need to risk to get reward. The reward for Coudal is a real sense of ownership in the project, from both a financial and creative standpoint.
Advice from Jim Coudal
I asked Jim Coudal if he had any advice for work-for-hire types that want to into selling their own products. His reply:
Two quick points. Not every idea is going to work. Know that going in. Ideas tend to follow the path of least resistance and more often than not that path is the one where you find yourself talking an idea to death, by getting hung up on the “what ifs.” So you need to actively push ideas out and embrace failure. Fail spectacularly whenever possible.
Secondly, every single person I have ever met or corresponded with about leaving the work-for-hire world and trying to create something of their own, something that they really care about, says exactly the same thing. Win, lose or draw they always express the same thought and most of the time they say it in exactly these words.
What they say is, “I should have done this sooner.”
Nice. For more on the idea of embracing failure, check out these related SvN posts: James Dyson on living a life of failure, Define your own success, and Embrace Obscurity.
More on the company’s approach
This Print Solutions profile of Coudal offers more insight into the company’s approach:
Forming Jewelboxing enabled Coudal Partners to become choosier when picking clients, Bedell says, because the company doesn’t have to rely on as much conventional income. “If we can think of a way to improve a product or design, or solve a problem that’ll make us happier, chances are the client will feel the same way,” he says…
The company prefers working with clients that don’t expect 100-page reports that justify what it provides. “Our idea is to get the creative work as close as possible to the place where the decision is made.” Says Everett: “To me, design is primarily a verb, not a noun. The interactions and conversations that guide it are very important to the final result.”
Coudal shows you don’t have to just accept the traditional status quo model when you run a business. Thanks for the inspiration guys!
Joseph
on 22 Apr 08Brilliant. If one of the agencies I worked for - full of incredibly talented people - had produced products instead of redesigning their Web sites and portfolios during downtime they might still be in business…
And if Coudal is planning some kind of Field-Tested Books Book approach to the Tournament of Books, I’ve got my money ready.
Don Schenck
on 22 Apr 08So I’m going into the teardrop trailer business!? ‘Cause I’m building one.
coudal
on 22 Apr 08We won’t be having wagering on Field-Tested Books this year but we will have tons of new reviews and lots of other stuff as a part of that project. In fact, Steve and Bryan are out right now, shooting video at the unstoppable Spike Press. Our new limited-edition FTB posters are being screened today. Stay tuned.
Daniel Perlaky
on 22 Apr 08You’re absolutely right, but the challenge we’ve been facing at City On Fire is trying to build up enough of a cache of funding from our client-work to research and develop and launch the products…. Despite the fact that an idea is financially lucrative and artistically and otherwise rewarding, we must still endure the pain of watching a product linger on the drawing board while the minimal financing it requires can be met.
Jim: were investors crucial in your development of the products or was it all funded internally?
Coudal
on 22 Apr 08Our situation was such that we lost a couple of large pieces of client business through no fault of our own and had to decide whether scrambling after replacement clients was what we wanted to do. We decided it wasn’t.
It wasn’t all rainbows and unicorns. We used our line of credit, cut off bonuses and and I didn’t always take a paycheck but we made it through. In some ways, the best thing that ever happened to us was having a chunk of our client biz go south.
Coudal
on 22 Apr 08One other thing. And I’ve said this before but it’s important.
Working for months on some damn project that gets watered down and compromised and eats up your time and your soul until when you’re all done with it you realize you’re not proud of it and you don’t even want to show it to anyone… well, there’s no amount of money that is going to make that feel better.
Javier [EmaStudios]
on 22 Apr 08Coudal, I cannot agree more with that last comment. Working on a project for months until the point of “let me jump out of the window” is something that can destroy anyone (and I mean anyone) confidence. I’m there with you; being there, done that. It really sucks. That’s why people like 37signals are necessary; we need examples that show the way (or at least another way of doing things).
Only thing I hated most in the past than working for months in a project is feeling you actually didn’t went as far as you needed to avoid that situation where no one wins, and everyone loses.
That feeling stick with you for the rest of the year. It sucks big time.
Javier [EmaStudios]
on 22 Apr 08I forgot to mention the ugly client approach where you accept the job, knowing the client will be a pain, because “it is good for business” and actually, end up being not good for business. Anyone of us took one of those clients that became “that client”... the truth is, there are little projects one can put a tremendous effort and end up being compensated for it; not by money, but by the feel of having finished something amazing.
I usually try to sign with one of those ones, but the other get in the way all the time.
Matt, great post fellow, great post.
J. Ray
on 22 Apr 08jc, I like the ‘Stuff you make’, your web site, and really enjoyed ‘Hobbies’!
Just curious, if/when you get to the point where you’re not dependent on any client work that comes along in order to “make payroll”, what criteria do you use (have the luxury of using) in choosing the client work you do want to do?
Keep up the great work. [Wish I could go to the SEED conference, maybe another edition in the future.]
jRm
Nathan Bowers
on 22 Apr 08“Working for months on some damn project that gets watered down and compromised and eats up your time and your soul until when you’re all done with it you realize you’re not proud of it and you don’t even want to show it to anyone… well, there’s no amount of money that is going to make that feel better.”
I might just tattoo that twice on my face. Once for clients, once for me in mirror writing.
coudal
on 22 Apr 08If we can answer yes to these three questions then a job or project is usually worth considering.
1. Can we do good creative work? 2. Can we make some money? 3. Will we learn something new along the way?
Eran Friedman
on 22 Apr 08thanks for the inspiration – it is always a lovely and ispiring thing to see that someone else shares the same feelings as you – and he did something to get outside of this loop with great success. love your work and your thought. both the host and coudal.
Peter
on 22 Apr 08So smart because it’s so simple and straightforward. One key insight from the article is simply that 47signals and Coudal are in the same officespace. That is an awful lot of good thinking for one building.
What independent creative/interactive shop hasn’t been there at some point? The tough part is making the decision on what the best course of action is and then making it happen.Paul Montwill | MightyWorkshop.com
on 23 Apr 08Design and internet agencies have this advantage that they can create their own products not only to diversify the source of income, but also to make sure people stay motivated by working on the projects the like. It seems very risky these days to rely on clients only. Especially if you are a group of ambitious and hungry individuals.
ilya
on 23 Apr 08It is very nice to see other companies undergoing the same transition as we went (or are going) through, and get as much energy and creativity out of it….
In 2005 we started the design consultancy innberg and we did pretty well. We had nice customers and we even did a few shared risk/reward deals with our customers. They all paid off.
We started getting into the atoms business (designing and making things) when our end-of-year gift was such a big hit that people kept on asking for it and we decided to make/sell them (innskines.
This really gave us a taste for more, and for a large number of reasons in 2007 we set out designing and marketing our < a href=”http://www.innvire.com”>innvire product concept. Innvire aims to bring getting real ways of working and doing meetings to any workplace and office, simply, aesthetically…
We are now in 2008 and we see we do customer projects less and less, and we can also be more picky, although we don’t have the luxury to really choose to say no, but it seems that time constraints make you choose anyway…
It is not easy to transition from an (internet/interaction/user experience) design consultancy into a physical product company, but you’d be amazed how much mileage you get from GOOD design principles and getting real in the real world.
you might notice a trend here, most of the sites mentioned here are shopify or mephisto, and the frequent usage of the word: getting real..
Kudo’s
ilya Devèrs
on 23 Apr 08the transition has also weakened my html-foo: lets try again: innvire
Don Schenck
on 23 Apr 08Jim Coudal’s biggest contribution to this meme - in my opinion - is his willingness and advice to Just Try Stuff.
Try something that gets your interest. If you lose interest, set the business plan (for, say, a movie house!) aside and move to the next shiny thing you see!
I love that.
Eventually, things “stick” and one day you turn around and you’re doing something you love and making a decent income, too.
Simon Graham
on 23 Apr 08@coudal
I don’t have any major comment to make other than good luck and thanks for all the feedback on this thread. Really enjoying it.
@Javier [EmaStudios] – agree with you totally, I think we all have had “that client”.
When I first started working for myself, I found it hard to say no, it took a while to learn that it is ok to say no to work. Something else will always come along and it will most likely be something more fun.
Simon
This discussion is closed.