Speculation (or "spec") work is often standard fare in the world of advertising. An agency could be expected to create elaborate concept designs to present to a potential client. That client would then make their decision based on which concept they liked the best. However, the agency is usually bidding for a substantial or long term commitment from a client, an in essence, are not giving away a whole campaign by putting together a few art boards to show in a meeting.
However, in the field of graphic and web design, the standards are different.
Years ago, professional designers came to realize how doing work in this manner devaluated and compromised the quality of the work. Often times an unscrupulous company would take a design submitted and have another designer work on it who placed a lower bid on the job. Another problem came simply from companies expecting initial work to be done up-front, for free, and without any contractual agreement.
For print and web design, the best work can be obtained through collaboration and thoroughly exploring a client's needs and objectives. This simply can not be accomplished though an RPF that asks for a general concept. For companies looking to take this route, I would highly recommend purchasing a pre-made template. But for professional design, working with a single designer or company to achieve a customized, branded appearance is a far superior approach.
A professional designer should be able to produce a Creative Brief, in lieu of concept designs, that explains in detail how an end result will be achieved. Also, it is not out of the ordinary to request samples of previous projects by the designer to get a feel for their work.
Design standards such as those set forth by the American Institute of Graphic Arts (http://www.aiga.org/content.cfm?ContentAlias=policy_on_practice), should be followed to not only uphold the integrity of the field of design, but also to educate the potential client as to why "spec" work is detrimental.
When a client asks for original work to be produced for free and without a contract, it demonstrates not only a lack of understanding, but also a lack of respect. A great analogy would be, "Would you ask three plumbers all to fix a problem in your house and say you'll hire the one whose work you liked the best?" A professional designer is highly trained and skilled in their field, and should be paid accordingly for any actual design work provided. Through a well written creative brief and a strong portfolio, a potential client should have enough information to choose the right candidate for the job.

Sherry Holub received her degree in design from UCLA in 1995. She is now the Lead Designer and Creative Director at Southern California firm, JV Media Design. Sherry is also a member of the AIGA.







