Business of Home Podcast
Episode: Seth Kaplowitz knows how designers should charge
Host: Dennis Scully
Guest: Seth Kaplowitz, Lawyer and Advisor, The Kaplowitz Group
Date: February 16, 2026
Episode Overview
In this episode, Dennis Scully sits down with Seth Kaplowitz, founder of The Kaplowitz Group, to discuss the inner workings of charging models for designers, the role of press in gaining new clients, strategic business planning, the importance of optionality, and how designers can future-proof their businesses. Seth brings a unique perspective by blending legal expertise with business and career guidance for creative professionals. He underscores the value of data-driven practice management, strong contracts, intelligent branding, and avoiding common pitfalls—delivered with frank, actionable advice.
Seth Kaplowitz’s Background (03:12–11:02)
- Legal and political roots: Grew up in Massachusetts, interned for Governor Bill Weld, considered political communications before entering law school at Syracuse.
- Quote: "My job was to go to the State House at 5 o'clock in the morning, and my job was to read all the national newspapers, physically cut out the stories that I thought would be of interest to the governor and put them on the governor's desk by 8 o'clock in the morning." (03:27, Seth)
- Worked at large and boutique law firms, then private equity across South Africa and Argentina, restructuring companies.
- Pivot to creative industries after building his own home—realized creatives lacked business/legal representation and support for business tasks outside their main craft.
- Quote: "I just wanted to work with creative people... because I could be a good translator for them." (08:54, Seth)
The Problem Facing Designers: Business Burden (11:02–14:40)
- Solo practitioners and small firms spend too much time on administrative tasks, not creative work.
- Three main questions every designer asks Seth:
- Is my contract correct?
- Am I billing the right way for my time?
- Is my organizational structure correct?
- There’s a significant lack of mentorship and standardized practices in the industry.
Data-Driven Practice Management (14:40–18:00)
- Seth’s firm gathers data from over 100 clients across all studio sizes and geographies to benchmark best practices.
- Solutions are always customized—an audit is done for every new client, reverse engineering outcomes based on career and lifestyle goals.
How Designers Should Charge: Hourly vs Flat Fees (15:29–23:16)
Strong Endorsement of Hourly Billing
- Main insight: Studios billing hourly with diligent time tracking and regular invoicing are more profitable than those using flat fees.
- Quote: “We know that studios that bill on an hourly basis and are diligent... make more money than studios that engage in other practices.” (15:49, Seth)
- Hourly removes “winner/loser” dynamics—avoids undervaluing extra work and allows designers to be "indifferent" about client requests since all time is paid.
- Flat fee contracts introduce more complexity, friction, and risks for designers ("somebody’s always going to lose, and it’s usually the service provider").
- Quote: “There’s a huge difference between an hourly contract and a flat fee contract.” (19:00, Seth)
- Regular, same-day monthly invoicing decreases accounts receivable length; many designers struggle to bill assertively early on.
Nuances and Exceptions
- High-end residential and creative projects suit hourly more; hospitality/commercial often require flat fees.
- If a project brings strategic value (e.g., photo rights), a flat fee may be justified.
The Value of Optionality (06:15, 24:41, 25:21, throughout)
- Seth’s guiding principle: every business decision should preserve or expand future options (optionality).
- Quote: “The theme of my life is optionality.” (24:43, Seth)
- Designers often want freedom—to choose their projects and clients, and craft a portfolio that supports both current enjoyment and long-term flexibility.
The True Value and Limitations of Press Coverage and "Lists" (23:43–32:29)
- Getting published in marquee outlets (AD, Elle Decor) increases inbound inquiries ("optionality") but does NOT automatically translate to better revenue or profitability.
- Quote: “I certainly can’t say that [listed studios] outperform studios that are not on the list in any metric other than volume of inbound traffic... Profit percentage? No.” (29:51, Seth)
- Inbound is often less qualified, leading to more administrative work.
- Some of the most successful firms deliberately keep a low profile and focus on high-value work.
What Marketing Actually Works: Beyond the Shelter Mags (32:29–37:48)
- More effective press for client acquisition: Financial Times’s “How to Spend It,” WSJ’s “Off Duty,” NYT, and similar venues read by HNW individuals.
- Quote: “We’ve seen clients get more inbound traffic out of a one paragraph mention about stair runners in the New York Times than... a 15 page editorial in Architectural Digest.” (33:54, Seth)
- Social media: Reels and video content attract non-followers. Consistent posting (2x per week) gets algorithmic boost, but follower count ≠ client pipeline.
- Designers should cultivate a distinct voice and discuss their passion, process, and opinions—people hire designers they connect with personally.
Mentoring, Team-Building, and Employee Retention (37:48–41:40)
- Mentorship, continuous training, profit sharing, and regular staff engagement are key to firm stability and cultural strength.
- Quote: “The onboarding and offboarding of human capital is the most expensive and disruptive process... We see studios that have longer employee tenure as being more successful.” (39:19, Seth)
- While some name partners and public equity partnerships do exist, most advancement takes the form of profit sharing.
- Firms should minimize disruption by clearly defined roles, process, and internal growth opportunities.
Licensing, Branding, and "Mailbox Money" (43:30–51:43)
Licensing Realities
- Only a minority of licensing deals are truly lucrative (Thomas O’Brien cited as outlier).
- Most successful licensing comes from a deliberate brand-building strategy, not ad hoc deal-chasing.
- Quote: “It’s the minority of licensing deals that actually kick off a large amount of revenue.” (44:13, Seth)
- Steps: solidify studio, curate (highlight other makers), then pursue aspirational, then major deals.
- Caution: early exclusivity or undisciplined contracts can limit future opportunities (“optionality” concern).
- Quote: “A bad licensing deal is bad.” (50:14, Seth)
Legal Challenges for Designers Today (51:43–57:33)
- Top legal value-adds: Strong contracts, clear service/licensing terms, and employment guidance.
- Lawsuits with clients are rare; employment disputes are most common but are manageable with strong onboarding documents and policies.
- Vendor insolvency: an ongoing risk, particularly post-pandemic—mitigated by clear contract language limiting designer liability for third-party vendors.
- Quote: “...as an unsecured creditor... there is very little chance that you’re going to be able to recover anything.” (56:06, Seth)
The Current Market: 2025 Trends & 2026 Outlook (57:33–68:58)
- 2024/25: "Middle" of design market squeezed; high-end and regional firms fared well, mid-tier less so.
- Quote: “Broadly, I would characterize 2025 as the middle of the industry getting squeezed a bit.” (62:47, Seth)
- Wealthy clients are variable; deal structure and involvement (e.g., business managers) matter as much as client net worth.
- Macro factors: robust stock market can increase access to capital but complicate spend decisions; tariffs and interest rates impact job pricing and client skittishness.
- Outlook: Bullish for second half of 2026; designers should aim for stability—avoid staffing “accordion effect” and design for flexible growth/slow periods.
The Future of the Industry: Generational Shifts & Technology (63:40–66:21)
- Demand for design is more about affluence and attitude than age.
- AI will streamline operations, give clients more transparency, but human creativity/connection remains central.
- Quote: “I think people want human connections and I don’t think that they want their home designed by a robot, but I think that the robots are getting pretty good at managing supply chains and logistics and other things.” (65:04, Seth)
Advice for Designers: Big Picture (66:58–68:58)
- Seth’s hard advice: Remember that design is elective, not life-and-death. Fixation on emergencies breeds stress; organization and perspective matter.
- Quote: “Everybody needs to take a breath and remember that we’re not curing cancer here. This is all elective.” (66:58, Seth)
- Organize hiring and projects to maintain stability through market ups and downs.
Notable Quotes
- “We know that studios that bill on an hourly basis...make more money than studios that engage in other practices.” (15:49, Seth)
- “The theme of my life is optionality.” (24:43, Seth)
- “I certainly can’t say that [listed studios] outperform...in any metric other than...inbound traffic.” (29:51, Seth)
- “A bad licensing deal is bad.” (50:14, Seth)
- “Everybody needs to take a breath and remember that we’re not curing cancer here. This is all elective.” (66:58, Seth)
Key Timestamps
- 03:12: Seth’s professional journey and pivot to design-world law
- 11:02: Time and business burden faced by designers
- 14:40: Universality of designer concerns (contract, billing, structure)
- 15:29: Data-backed endorsement of hourly billing
- 19:00: Contractual differences: hourly vs. flat fee
- 23:43: Importance and impact of press, and photo rights
- 24:41: Optionality as a career/business principle
- 29:51: The real effect of being on “the lists”
- 33:54: Press channels that move the needle
- 37:48: Mentoring, employee retention, team building
- 43:30: Licensing deals and brand building
- 51:43: Contracts, lawsuits, and vendor risk
- 57:33: Industry performance and macroeconomic context
- 65:04: AI and the future of design work
- 66:58: Seth’s parting advice for designers
Tone and Takeaway
Candid, practical, and data-driven, Seth Kaplowitz gives clear, unsentimental advice—listen to the numbers, keep your options open, know your worth, and don’t chase strategies (like licensing or press) blindly. Whether you’re a solo designer, building a firm, or managing a legacy studio, Seth’s recommended path is to be organized, contractually bulletproof, and intentional about both revenue and branding. Above all, build a business that serves your creative passion—without sacrificing your peace of mind.