Jonathan Stark | The Better Alternative to Hourly Billing

If you’re an independent professional service provider this is a must-listen, especially if you’re still stuck in the hourly billing trap. Yes, it’s a trap, says my guest Jonathan Stark. One that robs you of time and money.

Jonathan, a former software developer, advocates a value-based pricing model, which leads to better quality work and better client relationships. But getting paid this way requires a whole different approach to marketing your services and how you talk to potential clients.

Tune in to find out…

  • A simple way to “productize” your services
  • The easy way to eliminate worry about scope creep
  • Why you don’t have to profit in the traditional sense with hourly billing
  • How to make sure you don’t work “too much” on a fixed-bid project
  • And more

Episode TimeLine

00:11 Today Steve speaks with Jonathan Stark, the author of Hourly Billing is Nuts.

01:26 Jonathan talks about when he realised that billing by the hour was a terrible idea.

05:40 Jonathan talks about the transition to billing for quality.

07:29 Steve explains hour billing per hour was the first pyramid scheme.

10:57 Jonathan discuss at length about cost, price and value.

17:56 Jonathan talks about his unusual process of trying to talk his potential client OUT of hiring him…in order to get hired.

27:46 Jonathan talks about the pushback points from clients on billing for value.

30:25 John talks about the billing practices of small businesses tacking 15% on for scope creep.

33:16 Steve speaks about even more benefits of not billing by the hour.

35:14 John talks about the practice of hoarding hours in the legal profession and how value based billing creates a rush service.

38:20 Jonathan talks about whether or not you should bill a client for needing to learn a new skill on the job.

43:13 Steve talks about having the courage to have a deeper conversation with a the client about the job.

45:39 Jonathan talks about how billing for value changes the tone of the conversation with the client and not to try it right away but instead try his method of practicing value billing.

50:35 Jonathan tells us about his free email course, Value Pricing Bootcamp.

Mentioned in the show

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