Hi,

 

This is a question that comes up in freelancing but we really can’t have it enough.

 

Which is better? Charging by the hour or by the project?

 

There are plenty of longer and well thought out articles on it, but here’s the basics.

 

Hourly can great if you’re slower on production, still scoping projects without a net (a bit more on that in a second), or have a really unorganized client. As you get better in those areas — faster, more efficient, and learn how to infuse your work with all kinds of extras you’ve picked up through experience…well…you won’t see a dime of benefit for it on an hourly set up. That all goes to the client.

 

That’s where project pricing comes in.

 

You can start raising your rates based on the value you provide. And every little bit of efficiency you pick up? That’s an increase for you, while your clients are still getting the value of your great work.

 

Of course, at first, when you’re learning how to scope a project and you haven’t gotten your speed up, hourly can work in your favor, but eventually it will turn against you. If you feel like you’re not making enough and you’re still charging hourly? That might be why.

 

A quick side note on that “safety net” I mentioned earlier.

 

I still charge 99% of my work by the project…but I also include my hourly rate in contracts for any experimental, or new, or just plain weird tasks a client brings up (or if someone is unorganized and I’m willing to deal with that). That way I always have the option of switching to hourly in those cases.

 

Got questions about your pricing structure, come by the Academy group and let’s talk.

 

 

Megan