November 5, 2022

Hourly Billing Encourages Scope Creep

Imagine that a client asks you to do something that is outside the original scope of the project.

If you are billing by the hour, you have a strong financial incentive to accept the request, even if you believe the request won’t help them reach their ultimate goal.

I mean... it’s hard enough to say no to a request from a client. To be penalized financially on top of it makes it nearly impossible.

Here’s the thing...

Probably the biggest objection I get to value pricing is that, “I will get killed by scope creep if I switch to value pricing!”

The irony is that it’s hourly billing that is creating the scope creep in the first place.

Stop billing by the hour and you’re likely to find that scope creep starts to “magically” diminish when you don’t benefit from it financially.