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Hourly Billing vs Value Based Pricing for Web Designers | freeCodeCamp

If you are a web designer/developer who currently bills per hour, I hope I can persuade you to change your pricing method to value based pricing.

In this article, I discuss both of these methods in detail and without the fluff so you can just get the nuggets and practical understanding to make an informed decision from there.

On a serious note, if you apply what you will read about today, you can really earn more, work less and be a more fulfilled freelancer – and I don’t just say this half-heartedly.

Enough fluff, let’s get straight to it:

Billing By The Hour

I’ll start with this pricing method first because it’s the most popular.

I am well aware that there are many web designers/developers out there who make a very good living by using the hourly billing method, but in my opinion, value based billing is far better than hourly billing.

To explain why, these are some common truths about hourly billing:

  • There are times when you argue over invoices and timesheets which wastes time for both parties (yes, there are software programs to track this, but even that can be disputed by a client).
  • Feeling like you have to be “micro-managed” by the hour. Clients would often want an estimate of the total hours before the project starts. They would then make a decision to go ahead with the project based on the estimate and not the final cost.
  • There’s no incentive to stay up to date with the latest technologies, software or tools to make your job easier because if you do, you get paid less.
  • The longer the project is, the better it is for you (more income) and the worse it is for the client (more expense).

Read complete article here:

Hourly Billing vs Value Based Pricing for Web Designers.

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