November 15, 2024
Jonathan Stark on Law Subscribed with Mathew Kerbis
Mathew Kerbis - aka The Subscription Attorney - had me on Law Subscribed to talk about building healthier client relationships, adopting more sustainable business practices, the impact of generative AI on traditional billing models, and more.
Episode Summary
(ai generated)
Jonathan Stark, an advocate against hourly billing, shares his journey from being a software developer to helping professionals transition to value-based pricing models. His mission highlights the inefficiencies of hourly billing and the transformative potential of alternative models, particularly in the era of AI-driven productivity.
Key Points:
(ai generated)
- Transition from Hourly Billing:
- Stark’s 2006 realization about the issues with hourly billing led to a career shift focused on teaching alternative business models.
- Transitioning requires significant changes in mindset and organizational systems.
- Challenges with Hourly Thinking:
- Deeply ingrained hourly billing culture in industries like consulting, software development, and legal services makes the shift difficult.
- Stark highlights the resistance to change and the need for education on alternative methods.
- Broader Implications:
- Moving away from hourly billing fosters healthier client relationships and more sustainable practices.
- Independent consultants and freelancers are gradually adopting alternative pricing models.
- Role of Technology:
- Stark uses tools like Slack, Grammarly, and AI platforms to streamline productivity.
- He emphasizes how technology supports value-based pricing by improving service efficiency.
- Impact of Generative AI:
- AI’s ability to reduce task time undermines the viability of time-based billing.
- Stark sees AI as an enabler for innovative service delivery and opportunities for value-based pricing.
- Vision for the Future:
- Stark envisions professional services shifting to value-based pricing, transforming industries reliant on hourly models.
Sharing is caring!
If you enjoyed this episode, please consider letting Matt know. Thanks!
Yours,
—J