Why we don’t charge by the hour
Hourly pricing is problematic. There, I said it. I know it’s wildly popular, considered to be the “standard” pricing model for freelancers and agencies, and you likely are currently billing or paying someone that way. Stick with me.
It punishes freelancers and agencies
Hourly pricing is an issue because it punishes the freelancer/agency for improving. The better they are at their craft, the more efficient they are, the less they make. This leads to a system rewarding inefficiency, incompetence, and dishonesty, while punishing experience and skill. Two freelancers could do the same exact work with the same exact results, yet you’d pay the slower one… more?
It’s terrible for the companies who work with us
Clients end up paying more for their product if those doing the work are worse at what they do. That’s so backwards! If they’re slow, you, as the client, pay more. On top of that, you’re never quite sure how much will be on the invoice.
It leads to dishonest relationships
The natural incentive of hourly is for those billing to artificially slow their workflow. Or, even worse, work on other hourly projects on your dime. This leads to constant distrust and micromanagement, making everyone unhappy.
How we do it
We don’t believe in any of that. For fairness all around, we’re strong advocates for project-based pricing. After agreeing on a price that’s equitable for everyone involved, clients get their product for a fair, guaranteed price. Agencies and freelancers know how much they’ll make and are incentivized to do great work up front to finish the project.
Of course, there are drawbacks to any pricing system. With project-based, there’s a risk of scope creep and excessive edit requests. The answer to both are very clear project parameters up front. As long as both parties understand the clear borders of the project, and that if crossed, additional fees will be required, then the project should go smoothly. Give it a try!
