Captain’s log, stardate 20220429
Chris Ronzio invited me to join him on Organize Chaos to talk about why hourly billing is nuts (and what to do instead).
Here’s a summary from the description on CR’s site:
In this episode, I chat with Jonathan Stark, who’s on a mission to rid the world of hourly billing. He is the author of Hourly Billing Is Nuts, the host of Ditching Hourly, and writes a daily newsletter on pricing for independent professionals.
Do you bill clients hourly or do you know someone that does? Well, Jonathan says, experts don’t bill hourly. In this conversation, you’ll get a framework for evaluating clients, how to charge them, and how to retain them by billing something other than hourly.
- What’s wrong with hourly billing? (3:45)
- Alternatives to hourly billing. Info product, packaged service, and value pricing. (5:50)
- Have the “why” conversation with your client to determine your value based pricing. (12:30)
- If you’re not tracking hours, because you’re not billing hours, how do you analyze a project’s profitability when it’s all said and done? (19:20)
- How to control scope creep on projects. (28:50)
- What happens if my client goes dark, no communication? (29:10)
Here’s a link to listen:
LISTEN NOW »
(There’s also a full transcript on the episode page if you prefer to read)
If you enjoy the episode, please let Chris know on Twitter. Thanks!