Ongoing Project, Installment 7 ⚒️

Here's a fresh take on that article:

Hey there, folks! Time for another deep dive into the happenings at Dribbble. Today, we're discussing our recent moves to bolster bigger design service transactions through the platform.

We've just unleashed Milestones, a game-changer for designers, enabling 'em to receive their earnings incrementally as each project phase wraps up (even before working begins if they negotiate an upfront payment with their client). You've been hollering for this feature, and we're stoked to deliver!

We've also adjusted the platform fee structure, making it graduated for clients. The larger the transaction, the lower the effective fee. For example, a client pays 4.3% on a $1K payment, 2.2% on a $10K payment, and a meager 2% on a $100K payment. Previously, the fee was a flat 7.5% across all amounts.

Another nifty addition is Project Briefs, allowing clients to submit projects directly to our team, who'll then help match them with the ideal designer (at no extra cost). And to speed up designer payouts, we've decreased the processing time from 7 days to a single day once the milestone or project is completed.

The aim of all these new features—every new feature, policy, and campaign—is to increase the number of users interacting and transacting through the platform, boosting search, interaction, and transactions.

These new features are expected to boost the number of Project Requests receiving Proposals, the number of Proposals accepted by clients, and the average value of Projects completed through the platform.

Since we started facilitating transactions last September, the typical transaction size was around $600. Yet, the average Project Request budget during that period was whopping 10X higher. We've handled—and qualified—project briefs with budgets that are over 100X higher.

Though we've yet to address every reason users transact off-platform (many large enterprises have specific onboarding or invoicing requirements, or contractual terms conflicting with our Terms of Service), we now better support and de-risk complex engagements for both parties:

Milestones help spot issues like misalignment,communication breakdowns, ability issues, or slow execution issues earlier in the engagement. A recent client completed a $7.5K UI design project on Dribbble, giving the designer a stellar 5/5 rating. However, they almost backed out due to concerns about losing critical time before discovering their requirements weren't being met. Milestones would have offered additional peace of mind by providing an early exit strategy had the engagement started poorly.
Designers can now configure Project Proposals and Services to include upfront payments and/or incremental payments as they complete each phase of the Project. Milestones allow designers to earn income while executing longer engagements, unlike before when they had to complete the entire project before funds were released. This has been challenging for weeklong, monthlong, or longer engagements, issues that were further complicated by the seven-day processing period for payouts, now trimmed to one day. To learn more about adding Milestones to a Project Proposal or Service, designers should check out our Help Center.
Clients now pay a lower platform fee as their transaction amount increases: 5% on the first $500, 3.5% on the next $500, and 2% on amounts exceeding $1,000. For example, a $2,000 payment incurs a platform fee of $62.50 ($25.00, $17.50, and $20.00 for each bracket, respectively), equating to an effective fee of just 3.1%. Under our previous flat fee of 7.5%, this same transaction would have incurred a platform fee of $150. Though our median client benefits from this new graduated fee, it significantly helps clients with five- or six-figure projects.
Clients can now work directly with anaccount manager by submitting a Project Brief. Account managers recommend vetted, accomplished designers and help both parties execute their engagement through the platform. This is a free service but requires clients to have a minimum budget of $2K.

In summary, with these new features and UX/UI improvements in the pipeline, we anticipate fewer clients and designers transacting off-platform. Minimizing disintermediation has multiple benefits:

Disintermediation exposes both parties to risks like scams, fraud, intellectual property issues, and other disputes without the safety net we provide.
When transacting off-platform, designers worry about late or nonpayment, while clients risk receiving incomplete or subpar work and missing deadlines.
Collecting data from on-platform transactions helps refine search relevance and user experience, benefiting both parties.
Circumventing our transaction fees means fewer resources for developing new features and deploying paid marketing campaigns, negatively impacting revenue for both us and designers.

Our new features have been a success since their introduction, with transaction activity increasing significantly each month and now being the fastest-growing part of our business (all without any marketing). Time to buckle up, folks—the future of Dribbble is hard at work!

Additional Insights:1. Incorporating AI, real-time content, and immersive technologies like AR/VR across the design industry enhances the value proposition of design services.2. Forming long-term partnerships allows platforms like Dribbble to facilitate connections leading to significant business opportunities, including larger transactions.3. The ability to showcase capabilities and connect with clients on Dribbble can lead to larger transactions, though specific data regarding five-figure transactions was not provided.

With the introduction of Milestones, Project Briefs, and adjusted platform fee structure, Dribbble is leveraging technology to revolutionize the business of design and finance, providing a platform that supports larger design service transactions.
As Dribbble continues to integrate advancements in technology such as AI, real-time content, and immersive technologies like AR/VR, the platform is poised to foster stronger business relationships, driving growth in the value of transactions in the design industry.