🔴 Hourly Billing Is Nuts- Stop Trading Time For Money
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- Опубліковано 3 сер 2024
- 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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The value in this 0:00:00-1:25:31 is nuts!!!
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"
we are speaking the same language.
I think Chris is my "brother from another mother" (can I say that on UA-cam?)
Jonathan Stark UA-cam? Yes. Twitter? Probs not
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I was so thrilled watching Chris get excited for this reason!
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.
that's why we are here Clifton.
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
1:24:28 Hit LIKE if you literally applauded!!
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
Thanks
This guy's voice... so convincing and confident!
Reminds me of Ray Liotta's voiceover from Goodfellas evey time I hear it lol such an awesome video 👍
No kidding I am buying and I don’t need anything but he convinced me! Lol
@@sam-harrison ພ...ຢະະະະະະະຕະີີີີີເີີຮນນພພນຸນຸຍຸຸຍຸຍຸຈນພຸຮີນຖຂຂຂຂຖຮຖພໂນຮໂຕໂໂຸຢຂຸຄຄຄຸັຟ...ຸຄຸກຈທຄຄຄະ
ຢຊຊຖຖໍ7
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!
Then you hope that they say anything besides "because that's how it's always been done"
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!
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!👏🙌
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.
Bro I'm going to listen to this every year. It is gold. Verbal gold
Yaaaheard
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!
Well done.
I am now redpilled on hourly billing.
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!
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!
This is a masterclass. At least for financial illiterate guys like me.
This information contained in this video solves so much more than just the challenge of hourly billing. Genius work.
Can't say how useful this video is and how inspiring...thank you so much for taking the time.
The Timex/Rolex analogy is awesome.,,
This episode was extraordinary! And you got straight to the point, one of my favorites😍
This is best guest who came on the show. Really looking forward to the next episode with mr.Stark
he was great.
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!
This was absolutely fantastic! Thank you to all who brought this to us fans!
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.
Yay! Thanks for subbing.
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.
As a business analyst working in software and dealing a lot with requirements elicitation this video is PURE GOLD 🥇
Thank you both!!
Very smooth. Very great episode. Thanks for the content!!!
Nice Summary Chris. You are Excellent at taking notes. That means you are a Great Listener.
Appreciate it!
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
This is probably one of the biggest how to rethink your approach teachings I've ever heard. This just changed my life.
Meaty content from start to end!
#Bam
Ha! That's awesome ;-)
Probably the most valuable video I’ve watched on UA-cam in recent times.
The best! Thank you Jonathan and Chris and your amazing team!!!
Amazing show!
Thanks for this Future team.
I wound love to work with interesting people like this.
This is a brilliant interview...
Great in-depth content with context and examples. Thanks so much guys
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!
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
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.
love it... every word is pure gold.. thanks for this great interview and tips :)
The WHY and HOW or story behind is the strategy. Every pitch should be rooted in the brands vision and mission.
This is the most valuable video I've ever watched. Thank you so much.
Thank you for sharing about this, perfect for my season of freelancing
Excellent stuff! Working with software development I relate 100% to this.
Great video! Looking forward to listening to it, again... and again...
The best video on pricing I have ever seen. Thanks guys!
Wow, that's really nice of you to say. Thanks!
lol "who actually likes good coffee" lol I feel ya man!
1:09:00 The answer I was looking for!
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!
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.
Our pleasure!
Thank you so much for this awesome content!
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.
great content guys, thank you for sharing this.
Wow. What a great video. This man is so highly intelligent on ALL Levels!! So much gold in there. Thx u
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.
Wow, I really loved this talk and how a lot of confidence and experience open more doors and making better decisions 😍😁
I love this conversations. So many insights.
1:10:44 I see the Rolex analogy was captured perfectly ahah
Excellent information. Thank you for sharing! 👊
A bomb of an interview. Thanks Chris and the team. 🤯
i can’t believe i just found this. thank you for having this illuminating conversation with him. he’s brilliant.
So much uncommon-common-sense in this conversation. So, so, so good. So helpful, thank you!
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 ❤️❤️❤️
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.
congratulations Long.
@@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.
Great interview, gems as usual. Give thanks!
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!
We told you at the top.
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!
Very helpful
Thank you all
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".
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.
thank you so much for this!!
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!
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!
That was awesome! Thank you so much!
Wow, love this....amazing interview and direct answers from Jonathan (love the down to earth approach)
He’s so good.
Thank you Chris and Jonathan, so many great insights as always. Quality content!
You're welcome, Colin! thanks for your encouragement :)
Absolute gold, as ever. Thanks guys!
So, I have two pages of notes by 20:17...amazing talk, and so informative!
Wow! Thank you so much for this.
Love this interview and knowledge! Thank you.
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!
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!🙏🙏🙏😄💛💛💛
I'm going to try this. This information is life changing.
So a year later how did it go?
This was so good, I am going to have to watch this more!
Thanks
super helpful, amazing work and lots of love for both of you:)))
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 👍👍👍❗
48:52 great explanation!!
"What's your rate?"...Jonathan:"I don't have one." Legend!
Amazing guest, and amazing questions as well! This is thousands of dollars worth of information that we are lucky to get for free. Thank you Futur team!
Such amazing talk, I learn a lot of this. I have to rewatch it XD
VALUABLE CONTENT!!! Thank you 🙏🏼
That was Priceless
Thank you guys
thanks for this deep interview, was really nice to get to know Jonathan stark. thanks!
Pure gold. Thank you.
This is amazing beyond just design. This is just awesome selling practices and getting to know your clients
Amazing Talk and Spirit!
THIS IS ONE OF THE BEST VIDS OF THE FUTUR SO FAR
Changed my perspective on how to do business!!! THANKS Chris & Jonathan!
You’re very welcome
Great questions and great answers! This is sooo valuable. Thanks