Web Design to Agency & Beyond: Issue #18 - What Type Of Billing Serves The Best?🧐

Hello there! 😍

Deciding what kind of billing you should move forward with can be confusing especially if you're a new agency owner or at a point in your career where you're still streamlining your work process. 💭

So to ease up your dilemma, I'm going to discuss the pros & cons of flat vs hour rates in a nutshell. 🎯

Starting with hourly rates: you charge a base rate for each hour that you spend working on the project. 

Pros ✅ Every worked hour gets paid (you've to keep in mind to use an efficient time-tracking software )

✅ Flexible pricing ✅ Easier to land clients ✅ Reduce scope creep

✅ Improve communication

Cons❗️Innacurate accuracy while tracking time❗️Smaller projects often pay less❗️Complicated budgeting❗️Complicated calculations❗️Clients may underestimate costs

Here's the in-depth explanation of the pros & cons of hourly rates

Flat rate: you charge a fixed price for the services you offer. Unlike hourly rate, you get paid at the end of the project this these type of billing.

Pros ✅ Transparency ✅ Potential for higher earnings ✅ Easier to plan for resource allocation ✅ Cost efficient

Cons❗️ Risk of being underpaid❗️Difficult to create accurate estimates❗️Difficulty in getting clients❗️Project control

You can find a deeper understanding of how to set a fixed rate here 😊

So the kind of billing that might suit you is based entirely on the type of project or service your are working on and also what the clients wants.

With time & varied experiences with clients its gets easier to select the best type of billing in an agency.

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