Show Notes
In episode 160, consultant Jonathan Stark tells us why hourly billing is nuts.
Jonathan Stark built a six figure solo consultancy by ditching hourly billing for value-based fees. He has a decade of real-world experience successfully applying value-based theories to software development projects. With his coaching program, he teaches freelancers, solo consultants, and boutique firm owners how to do the same.
You can join his daily email list at: https://expensiveproblem.com/daily
You can also sign up at: https://valuepricingbootcamp.com
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Our episode this week is sponsored by WP Security Audit Log
https://www.wpsecurityauditlog.com
Use Coupon Code WPTONIC25 for 25% off your checkout.
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Table of Contents for Episode 160
0:00 Podcast intros.
3:32 How does value based pricing differ from traditional hourly billing?
4:55 Hourly billing puts the client and service provider at cross-purposes.
6:10 What are the side effects of basing project work on hourly pricing as opposed to value based pricing?
9:05 Is value pricing evil? How does discovery differ between an hourly project and a value-based project?
16:10 Why value pricing is the only way to guarantee 100% customer satisfaction.
18:31 Why discovery doesn't work with hourly pricing.
19:38 The reason most agencies and freelancers default to hourly billing instead of value based pricing.
24:46 What's a good way to transition into value pricing?
30:56 Thoughts on paid discovery, productized consulting, and retainers.
46:50 Podcast outros.
48:26 Bonus content begins.
48:32 The thing you must keep in mind when selling a retainer offering.
51:58 Become a recognized expert by your buyers, not your peers.
56:56 How do you decide on an area of specialization?
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Find bonus content for this episode on the WP-Tonic website:
https://www.wp-tonic.com/podcast/160-value-pricing-jonathan-stark/
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https://itunes.apple.com/us/podcast/wp-tonic-wordpress-podcast/id893083124?mt=2
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WP-Tonic is both a WordPress support and development service, and the publisher of a twice-weekly WordPress business podcast, where we talk to the sharpest minds in web development, business, nad online marketing.