HOURLY BILLING also know as “selling time”. This a straightforward and widely understood pricing model, suitable for almost any kind of service-based business. In a nutshell, charge clients for the actual time, generally by the hour, spent on their projects … simples. In its conventional form, however, it comes with challenges and downsides: clients may become overly focused on the number of hours spent rather than the value you provide or the quality of the deliverables, and you’ll need to carefully track time in ways that can feel obtrusive and nit-picky. Additionally, this model often requires pitching, estimating hours and creating custom offers for each client – very dull and not very rebel. In the context of a “platform for independence”, we find it less than ideal (for you and your clients) as it brings with it unpredictable income (or expenses), having to justify units of time, doesn’t play well with SOPs (Standard Operating Procedures), temptations to “rack up hours”, etc. If you no less find yourself attracted to “selling time”, we recommend opting for the sexier and more rebellious version of the hourly rate; the day rate.

RETAINERS or, in its modern form, subscriptions. This pricing model has clients paying a fixed upfront fee, typically monthly or quarterly, to secure your services for a predetermined amount of time or scope of work. It provides steady recurring revenue, beneficial for cash flow and, depending on the length of each engagement, can be conducive to annual ON / AMP / OFF planning. Retainers or subscriptions work well for services that are ongoing in nature i.e. consulting, coaching, marketing, etc. and/or projects with a well-defined scope. Downsides include the feeling of always being ON, beholden to your clients not unlike an employee, and potential overwhelm and burnout by succumbing to the temptation of saying “yes” to too many clients at a given time. This said and in the context of a “platform for independence”, we find the model has merits, if structured with clearly defined availability, deliverables and expectations to avoid scope creep. And that each retainer has a maximum runtime, for example 3-months, or a “pause” option, ideally for both you and the client.  

PRODUCTISED SERVICES, packages or project-based pricing. In this pricing model you bundle your service(s) into fixed-price offerings based on a particular scope of work and/or a specific outcome. It allows you to communicate the aggregate value of your services, as opposed to attaching a price tag to units of time. Like with any product you are not dealing in abstractions, but something tangible and concrete (for you and your clients). Now, we might be biased, but there is something elegant about selling a valuable service, based on skills, experience and expertise, packaged as a product, at a fixed price with clearly predefined deliverables. It is excellent from a branding perspective (be the “go to”), goes hand in glove with SOPs (Standard Operating Procedures), and plays well with annual ON / AMP / OFF planning. Indeed, Rebel U is partial to this model as it fits swimmingly in the context of a “platform for independence”. You will find it, with rare exceptions, as the proposed model in CARTE BLANCHE or as an implemented model in REBELLION. This does not mean it is the way …

The choice, as it should be, is yours. Consider each model in the context of your target market, the nature of your services, your overall business goals and your branding. You might – at least at the outset – employ a combination of these models; hourly billing for ad-hoc or one-off projects, retainers for ongoing services, and productised services or packages for specific types of projects or deliverables. This said and as parting advice: keep things simple.