🔴 Hourly Billing Is Nuts- Stop Trading Time For Money

Рет қаралды 269,414

5 жыл бұрын

Why is it a bad idea to bill hourly? How can you make more money and work less? How hourly billing limits the growth of your business. How hourly billing damages your relationships with clients. How does value pricing work? How does value pricing differs from hourly billing? How to start the transition from hourly billing to value pricing.
Never charge an overage again. Never justify your price.
Jonathan Stark is a former software developer who is now on a mission to rid the world of hourly billing. He is the author of Hourly Billing Is Nuts, the host of Ditching Hourly, and writes a daily newsletter on pricing for independent professionals.
Find more on Jonathan:
Hourly Billing Is Nuts
jonathanstark.com/
@jonathanstark
Value Pricing Bootcamp:
valuepricingbootcamp.com
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2:23 Ridding the World of Hourly Based Pricing
5:58 Transitioning from hourly
7:48 Former Boss
11:29 Going Solo w/ Value Based Pricing
12:29 Jonathan Pricing Clients
14:25 The Why Conversation
17:08 Confirm they need you
18:34 How to Price
20:20 Set the Boundaries
23:19 Mindset
26:44 Profits
29:04 Calculating Costs
36:50 Keep Asking Why
42:02 Value Pricing VS Retainer
43:42 Retainer
44:50 Time Vampires
47:42 Value Based Client Factors
49:47 The Gate Keeper
53:53 Guarantees
57:27 Pricing Tier Process
1:01:30 Professional Courtesy
1:05:09 Jonathan's Disaster Story
1:08:18 Transitioning to Value Based Pricing
1:11:10 Buying with Emotion
1:12:20 Jonathan's Rate
1:13:00 Most Expensive Option
1:13:52 Jonathan's Guarantees
1:16:39 Summary
1:20:13 Spotting a Time Vampire
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Пікірлер: 583

@SamirPatnaik 5 жыл бұрын

The value in this 0:00:00-1:25:31 is nuts!!!

@KaneSanMiguel 5 жыл бұрын

17 minutes in and I feel like Chris is just saying to himself "THIS GUYS GETS IT. THIS IS WHAT I'VE BEEN TRYING TO TELL EVERYONE FOR YEEEEEARS"

@thefutur 5 жыл бұрын

we are speaking the same language.

@jonathanstark6921 5 жыл бұрын

I think Chris is my "brother from another mother" (can I say that on KZfaq?)

@2getherstudiosAu 5 жыл бұрын

Jonathan Stark KZfaq? Yes. Twitter? Probs not

@MisterGiant 5 жыл бұрын

8 n hij hij 'n y in. BP Bob B mlm'n mm m'n nib nm M m'n 'm l blom m'n 'm mul my MBA MLB nl m nm BM l BM n mij b m'n 'm know 'm numb nm nl job MLB b mmm BM nm mm NK km bomb Blvd nm mm mm nl h numbness hmm nm nm M'n NBA NK NK nm McKenzie nun NJ nmnm mengmodus k 'm 7min 8b 700m 8 tyne 60ml ñ ñ minpuntje unintentionally 6min ultimatum 7min Ñ ñ miming ñ n7 honing of nu

@ignacio560 5 жыл бұрын

I was so thrilled watching Chris get excited for this reason!

@CLesley89 5 жыл бұрын

Every time I watch one of Chris's videos I can feel my business sense as a designer jumping leaps and bounds. Again, this video was pure gold.

@thefutur 5 жыл бұрын

that's why we are here Clifton.

@Gameboob 2 жыл бұрын

41:49, selling retainers with value based pricing. 45:53, Avoid time vampires 47:45, how to know when to use value based pricing. Value based pricing cuts both ways (48:57). You can make more when the value to your client is greater, so larger clients tend to be more profitable for you. 50:00, who do you talk to in the organization to get the job? 53:44, discounting for uncertainty 56:58, setting multiple pricing tiers 1:00:26, avoid things outside your expertise, and refer them to an expert 1:04:20, Jonathan's worst client story (which ironically highlights the trouble with hourly billing!) 1:07:43, how do you transition from hourly billing to value based pricing? You gotta specialize. 1:11:34, 3 quick questions 1:16:03, Summary

@savvy5178 5 жыл бұрын

This is positively one of THE most valuable talks I have heard! Thank you for having Jonathan on the show! I’m pumped! Rob G

@thefutur 5 жыл бұрын

Thanks

@esaarokki8897 5 жыл бұрын

1:24:28 Hit LIKE if you literally applauded!!

@djinnwheeler 4 жыл бұрын

I'm a software developer, and I always asked my bosses the question, "But why do I gotta track my hours" So Jonathan is like a god send. Thank you Chris for bringing this to us, I will carry on this mission on bringing hourly billing to an end!

@Daniel_WR_Hart 2 жыл бұрын

Then you hope that they say anything besides "because that's how it's always been done"

@arnievankerwel9343 5 жыл бұрын

As a freelancer, I tried Jonathan's advice of Valued Based Pricing (VBP) for the first time with two projects pitches at the same time. First as an event coordinator proposal for a festival and then for another project as a creative advisor for a non-profit. The crazy thing is that with my VBP questionnaire, I had the possibility to go way more in-depth (from what they thought they could get from me to finding insights on what their real obstacles were and what I really love to do). Thus the VBP proposal becomes a more eco-proposal, from light interaction to agency level from a one-person service provider. Not to mention that own pricing becomes a bit easier (no signed projects on the VBP yet), but in general I feel the insights + proposal delivery + deadline on proposal urgency (x2 weeks) just give the whole process between you and client a more fluent flow. The event proposal wasnt quite on the level of "national corporate", but the discussions from it uplifted a whole new way from the client how to approach me for future work. Thanks Chris and Co for this interview piece and Jonathan!

@thefutur 5 жыл бұрын

Well done.

@SleazysWonderland 5 жыл бұрын

To solve the problem of clients asking for changes on design (or any) projects - simply add onto the contractual agreements before starting the project that the client needs to allow the project to finish without minor input or changes on graphical (or other) detail. This will allow the client to see full value when the project goes live.

@darlingtonjonesimagery9247 3 жыл бұрын

Bro I'm going to listen to this every year. It is gold. Verbal gold

@lordperezident 3 жыл бұрын

Yaaaheard

@bethsnider5796 5 жыл бұрын

This guy's voice... so convincing and confident!

@sam-harrison 3 жыл бұрын

Reminds me of Ray Liotta's voiceover from Goodfellas evey time I hear it lol such an awesome video 👍

@sgtfatboy1 2 жыл бұрын

No kidding I am buying and I don’t need anything but he convinced me! Lol

@xffcgh3891 2 жыл бұрын

@@sam-harrison ພ...ຢະະະະະະະຕະີີີີີເີີຮນນພພນຸນຸຍຸຸຍຸຍຸຈນພຸຮີນຖຂຂຂຂຖຮຖພໂນຮໂຕໂໂຸຢຂຸຄຄຄຸັຟ...ຸຄຸກຈທຄຄຄະ ຢຊຊຖຖໍ7

@bakingloveco3406 2 жыл бұрын

Thank you so much for sharing all your knowledge!! I'm a Professional Patisserie Chef based in Argentina, working from home and a Mum to 2 beautiful kids! I can totally relate to Value for Outcome instead of charging by the hour. Building the confidence to valuing my work, talent and experience in order to charge for the outcome the client is asking for. 🤗 Thank you so much!👏🙌

@EuropeanEconomics 2 жыл бұрын

I'm pretty confident I never had a single lecture in University as valuable as this talk was. I am thinking about starting a Consulting Agency and found this just in time. Many thanks!

@HectorGarciaCPA 5 жыл бұрын

The Timex/Rolex analogy is awesome.,,

@daffertube 5 жыл бұрын

I am now redpilled on hourly billing.

@chill_fugu Жыл бұрын

As a business analyst working in software and dealing a lot with requirements elicitation this video is PURE GOLD 🥇 Thank you both!!

@irvanpratama8898 5 жыл бұрын

Meaty content from start to end!

@thefutur 5 жыл бұрын

#Bam

@jonathanstark6921 5 жыл бұрын

Ha! That's awesome ;-)

@jennyhowesdesign5458 5 жыл бұрын

Can't say how useful this video is and how inspiring...thank you so much for taking the time.

@Denym2955 5 жыл бұрын

This episode was extraordinary! And you got straight to the point, one of my favorites😍

@aminasonus Жыл бұрын

I'm late to the party - just seeing this, but it was AMAZING! I don't think I've EVER watched and been this engaged in a 2 hour video. I took a ton of notes. I love Jonathan and you did a terrific job really pulling out actionable information. Thanks!

@BJJSubArtist 5 жыл бұрын

I had been wondering how to break down numerous pricing tiers and Jonathan broke it down perfectly! Amazing content, thank you! I've subscribed to both podcasts (Jonathan & Chris) and excited to listen to gain more insight.

@thefutur 5 жыл бұрын

Yay! Thanks for subbing.

@PswACC 5 жыл бұрын

Nice Summary Chris. You are Excellent at taking notes. That means you are a Great Listener.

@thefutur 5 жыл бұрын

Appreciate it!

@taciasoares2022 3 жыл бұрын

How can you honestly dislike this video? I mean... helping creators get paid for their value rather than the time it takes them to do something? You discount all the years of experience and becoming a professional. What’s the incentive to be the best if you’re not valued for the value you provide to someone else? Why should businesses benefit exponentially greater for a service that brings them so much profit, but the creators who made that happen don’t benefit? Too many years of not valuing the creatives. That’s what I think. This was such an eye opening and amazing video! Thank you Jonathan Stark and Chris Do for making it happen!

@aljayweale4479 4 жыл бұрын

This information contained in this video solves so much more than just the challenge of hourly billing. Genius work.

@roland3698 4 жыл бұрын

Awesome, awesome guest! But hats off to Chris and his team, they did a great job facilitating this. Unlike other hosts who keeps interrupting their guests or asking low value questions.

@MaritzaBarrios 5 жыл бұрын

This it's excellent! And I agree he really is smooth. The answers are not overly long at all - they're very thorough and insightful. I'm inspired and so grateful for this.

@paweantkowiak2199 5 жыл бұрын

WOW! Just extraordinary! Jonathan is speaking so clearly and readily and he has so vast knowlegde on that topic. Super useful informations, super useful phrases and super useful mindset. Thank you Jonathan, and thank you The Futur Team for guests like Jonathan. Amazing job

@insightdesignsolutionsinc. 5 жыл бұрын

HANDS DOWN the BEST guest and informative discussion I’ve witnessed from you on value-based pricing. Jonathan’s responses and the Futur’s questions and direction meshed perfectly. This video will be filed in my “to memorize” pile. Excellence. Thank you all!

@Luckeydogs 5 жыл бұрын

This was absolutely fantastic! Thank you to all who brought this to us fans!

@leodebrito5894 5 жыл бұрын

I´ve been watching it for only 10 minuts and it already makes a lot of sense! Right now I´m investing time and money with new softwares and personal traning in order to be abble to deliver a better product in less time and of course I should not keep charging my clients by hour billing. Thanks for opening my eyes!

@tonybrookes4524 5 жыл бұрын

Great in-depth content with context and examples. Thanks so much guys

@matiasgoinheix366 5 жыл бұрын

This is a masterclass. At least for financial illiterate guys like me.

@clearviewproducts 3 жыл бұрын

This is probably one of the biggest how to rethink your approach teachings I've ever heard. This just changed my life.

@iamnickcurran 3 жыл бұрын

Probably the most valuable video I’ve watched on KZfaq in recent times.

@HectorGarciaCPA 5 жыл бұрын

This is a brilliant interview...

@manosalexakis 5 жыл бұрын

1:09:00 The answer I was looking for!

@IndreSolodov 5 жыл бұрын

Excellent stuff! Working with software development I relate 100% to this.

@danielhincapie1807 5 жыл бұрын

Very smooth. Very great episode. Thanks for the content!!!

@Sidsaraiya 4 жыл бұрын

Really nice to watch. I follow a lot of these philosophies. It was taught to me by other mentors. I certainly make a good markup and I have a great relationships with my clients. Focus on the value not the price for sure. Some things I try to keep in mind when it comes to clients and pitches; "never assume how much money they have", "If you've shown how you bring real value to the service, they will find the money to hire you".

@LongXayYoutube 2 жыл бұрын

Thanks to The Futur, I have just landed a $2,500 job. It is crazy because I used to charge only $30/hr for my service.

@thefutur 2 жыл бұрын

congratulations Long.

@LongXayYoutube 2 жыл бұрын

@@thefutur Please keep making long-form content like this one. I watch it every time when I am going to have a call with my client. Appreciate it.

@vidromedia 5 жыл бұрын

Seriously, Chris & team - LOVED THIS! By far one of the most valuable videos of yours yet - SO much good advice and perspective - but the main tricky thing about this is how to figure out what that value is -how to get that out of the client when you're not a total numbers person. I guess it boils down to learn, learn, learn, practice, practice, practice. Thanks again Futur team - you rock!

@thefutur 5 жыл бұрын

We told you at the top.

@Stewblack23 5 жыл бұрын

This is great content. I have two clients right now that I'm about to put out a proposal for and I'm going to use this exact formula. Johnathan ability to deal with clients is also very smooth.

@urssounds 4 жыл бұрын

Wow. What a great video. This man is so highly intelligent on ALL Levels!! So much gold in there. Thx u

@gustavosaliola 4 жыл бұрын

It would be fantastic an useful to have this talk again in times of quarantine, and how things pan out in the industries. Really great talk. Super informative and educative. Thanks!

@kreativemyndmedia Жыл бұрын

Thanks to the both of you. You explained exactly where I’m at and what I’m going thru and I started value based pricing and it changed my life.

@thefutur Жыл бұрын

Our pleasure!

@erinjohnson5546 2 жыл бұрын

The best! Thank you Jonathan and Chris and your amazing team!!!

@MonieMuse 5 жыл бұрын

Thank you for sharing about this, perfect for my season of freelancing

@williamtpenningtonart 5 жыл бұрын

22:50 was something that I never hear studios I've worked for agreeing to. After all we are in the service business, especially if you are a "brick layer". But it's because a lot of us are still playing an old game. Often studios are beat up by agencies who do not want to be pulled back into scope. The idea of Value-Based Pricing makes more sense to me. And this video further clarifies and has different nuances than some of Chris's past videos. Great content. Not sure how I missed this one!

@thefutur 5 жыл бұрын

There’s a brand new one on value based pricing. Check it out.

@sarahcommand5830 Жыл бұрын

I've been working on a monthly retainer for the last 8 years of running my freelance business! ONE time I did hourly.. and boy did I learn how much that DID NOT work. Not only did I do 5x more work than the client paid for (because I am fast) - I also found the client somehow valued the work less. It was more productivity based vs results based. It feels so great to hear others feel the same! I've never been more financially successful - and it is all due to retainers. (And being speedy!)

@HoangNguyen-zv3xb 3 жыл бұрын

This is best guest who came on the show. Really looking forward to the next episode with mr.Stark

@thefutur 3 жыл бұрын

he was great.

@JimeJadon 5 жыл бұрын

love it... every word is pure gold.. thanks for this great interview and tips :)

@DavaughnuBanks Жыл бұрын

The WHY and HOW or story behind is the strategy. Every pitch should be rooted in the brands vision and mission.

@creativecore77 3 жыл бұрын

This is the most valuable video I've ever watched. Thank you so much.

@DavidNW_ 5 жыл бұрын

Woww! Really enjoyed Jonathan's explanations! I'm really interested in checking out his books now too! Thank you for having him on the show, I hope you can invite him back again, he had very clear advice. Have a great week The Futur, thanks for all of the content you have put out!

@drushki808 5 жыл бұрын

This channel keeps giving and giving. Every time I click on one of Futur's videos I am pleased, and this has become one of my favorite channels. Kudos for amazing content and thanks for sharing these valuable insights!

@jazzyjon0007 5 жыл бұрын

I'm going to try this. This information is life changing.

@ubernoob458 3 жыл бұрын

So a year later how did it go?

@jpelasio 5 жыл бұрын

Maaaaaaaan, if Chris Do hadn't convinced you before... You better be convinced now! Have just jumped in the deep end with an existing client on how I've left hourly-based pricing. Amped!

@sampeitz4407 5 жыл бұрын

The best video on pricing I have ever seen. Thanks guys!

@jonathanstark6921 5 жыл бұрын

Wow, that's really nice of you to say. Thanks!

@brynludlow9197 3 жыл бұрын

So, I have two pages of notes by 20:17...amazing talk, and so informative!

@MarcoBezoetdeBie 5 жыл бұрын

Wow, love this....amazing interview and direct answers from Jonathan (love the down to earth approach)

@thefutur 5 жыл бұрын

He’s so good.

@HutchinsFreeRangeCreative 3 жыл бұрын

i can’t believe i just found this. thank you for having this illuminating conversation with him. he’s brilliant.

@IanEfford 5 жыл бұрын

Another amazing video from you guys! It was very helpful, it allowed me to think about pricing and strategy in a different way. Thanks The Futur & Jonathan!

@Beast-ms4gl Жыл бұрын

Timestamps for self future assistance on major parts of video : 22:20 29:00 45:55 , next three questions , 2nd question was by that studio guy , also he third question 57:15 1:14:55 , until summary ends 1:19:27 , upto summary ends is important ends

@fastfutureforwardbychristi9064 5 жыл бұрын

super helpful, amazing work and lots of love for both of you:)))

@mawrmcmahan 5 жыл бұрын

Great video! Looking forward to listening to it, again... and again...

@skinnyfat8423 5 жыл бұрын

Damn, this was really valuable to watch! Gonna dig deeper into value pricing 🙏🏼

@thefutur 5 жыл бұрын

Check out his site.

@artsvanberg 5 жыл бұрын

Wow, I really loved this talk and how a lot of confidence and experience open more doors and making better decisions 😍😁

@akabilly 5 жыл бұрын

Thank you Chris and Jonathan, so many great insights as always. Quality content!

@jonathanstark6921 5 жыл бұрын

You're welcome, Colin! thanks for your encouragement :)

@avikpaul2312 3 жыл бұрын

Loved it. It's gonna help me a lot, I'm a beginner hope to start value based pricing from the get go. Thanks a lot ❤️❤️❤️

@MordioMusic 5 жыл бұрын

Amazing show! Thanks for this Future team. I wound love to work with interesting people like this.

@DFFRNTWRLD 5 жыл бұрын

Great interview, gems as usual. Give thanks!

@samuri2011 4 жыл бұрын

no chris, you are smooth. The way you asked Jonathan if he can answer in shorter amount of words was perfect. like.... i aspire to be smart and clever with my words like you.

@throwpap 3 жыл бұрын

So much uncommon-common-sense in this conversation. So, so, so good. So helpful, thank you!

@darkrose71194 5 жыл бұрын

Love this! and all the other videos. Learned so much! Helps me so much as I applied this into my work as a freelancer and how I communicate to my clients. Definitely helps boost up my game and leveling up as a designer and as a person. Love from Malaysia :)

@pavankukreja6554 2 жыл бұрын

Chris - Thankyou Much for bringing on an Amazing Guest J. STARK. This clip was every minute of the 1 hr 25 mins, GOLDEN NUGGETS shared - Deeply appreciate Jonathan sharing amazing negotiation Tips on value pricing vs Hourly rates. Mind blowing session ... Feeling Empowered & Ready to implement. Thks 👍👍👍❗

@ashiebbyyx 5 жыл бұрын

See now THIS is good content marketing. I ended that stream with so much incredible information gained and still wanting more because he was willing to share so much and go into more depth than I’ve probably ever seen out of any of your prior guests. I appreciated his openness and for that I will absolutely pay him for more of his expertise. If you’ve read Gary Vee’s book ‘Crushing it’ he touches on this.

@thefutur 5 жыл бұрын

Jonathan is crushing it. For sure.

@shiriprasad6328 2 жыл бұрын

Excellent information. Thank you for sharing! 👊

@Abdullah-fe5dh 5 жыл бұрын

Thank you so much for this awesome content!

@williammahler4798 Жыл бұрын

Changed my perspective on how to do business!!! THANKS Chris & Jonathan!

@thefutur Жыл бұрын

You’re very welcome

@jamesstlouis 5 жыл бұрын

This session has been revolutionary for me! WOW! I have literally listened to this session at least 8 times already. It just keeps giving! I do have one question. How does the verbiage sound like speaking to a client about the 3 tiers of investment? Would we actually use the word "attention"? (this is in regards to the bit at 57:27)

@AFMCarlos 4 жыл бұрын

It's bizarre how much truth there is to this video and this guy's expertise. It's like he summarized everything I feel about freelancers and value.

@alexc7689 3 жыл бұрын

At 26:53 my mind just blown, burst, like I haven't even understand that I was not understading the concept of "profit" and like.. just wow.. Thank you so much.. I'm a really young designer who is preparing himself for the big jump and I feel so blessed and thankful for those advices and videos.. Thanks you, Big love from France

@AnaMarcu 5 жыл бұрын

Wow! I love how you jumped right in and delivered a ton of info right in the first 20 min. I appreciate skipping over a long dragged out and soapy background and went for the main topic. Also, great topic! Thank you! More of this please!

@thefutur 5 жыл бұрын

You're very welcome Ana.

@jonathanstark6921 5 жыл бұрын

Chris likes to cut to the chase! ;-)

@skankty 5 жыл бұрын

great content guys, thank you for sharing this.

@picklepirate 4 жыл бұрын

This is amazing beyond just design. This is just awesome selling practices and getting to know your clients

@mequable 5 жыл бұрын

I love this conversations. So many insights.

@spahzz 5 жыл бұрын

You guys are changing the landscape of how we do business. Keep the kick-ass content coming!

@jonathanstark6921 5 жыл бұрын

Amen!

@ramygamal91 5 жыл бұрын

That was Priceless Thank you guys

@icecaper 4 жыл бұрын

Absolute gold, as ever. Thanks guys!

@martinazevedo3747 5 жыл бұрын

GREAT SESSION GUYS, LOVED IT!!! Though I have this recurrent question coming to my head: How do you know the results the client is estimating or "guestimating" are real? What if they are dreaming about something is not going to happen? Can they blame you about it? Cheers!

@lucasgabule 5 жыл бұрын

Such amazing talk, I learn a lot of this. I have to rewatch it XD

@sbug51 5 жыл бұрын

This was so good, I am going to have to watch this more!

@thefutur 5 жыл бұрын

Thanks

@sugengwahyudi999 2 жыл бұрын

This one is amazing... listening Jonathan make me feel like having a close friend as mentor who break it down bit by bit for me to easily understand, and also some part of the conversation kind of justify habit for being decisive as a freelancer... it's just superb...!!! :)

@deiferete9247 3 жыл бұрын

Very helpful Thank you all

@GreenFoal-Equine-SDG-Journey 2 жыл бұрын

Jonathan feels like a great guy with great integrity always in every video appearance to me !🙏😄👍💛 Thank you for all you share Jonathan & Chris & Team!🙏🙏🙏😄💛💛💛

@artsyweirdo 5 жыл бұрын

Omg this was amazing and so informative. This guy is eloquent AF.

@jonathanstark6921 5 жыл бұрын

Aaaand... now I know what my gear should say: "Eloquent AF"

@napolunatico 5 жыл бұрын

One of the best I've seen!

@thenumber6022 5 жыл бұрын

THIS IS ONE OF THE BEST VIDS OF THE FUTUR SO FAR

@mayurn9343 3 жыл бұрын

The content is so so valuable. I became a fan.

@stephaniep5945 5 жыл бұрын

This was absolutely fantastic. I'm so thankful that it's here to play, replay, and learn from. Chris and Team, thank you isn't enough for your generosity, curiosity, and curation. You provide such a trustworthy platform for information & inspiration. Big Thanks and Love!

@thefutur 5 жыл бұрын

You’re very welcome.