Tuesday, September 30, 2008

Section 1.4.2 from The Value-Based Fee Manifesto

"While the hourly fee allows the client to receive an estimate based on the amount of time the marketer will spend, the number is not written in stone. Furthermore, it is a variable that has the semblance of being an even exchange--hours for a task being completed--without respect to the importance of the task or how successfully the result meets the client need. In fact, if the results are off the mark, and more time must be spent to complete the project to the client's satisfaction, that time is billable. When a client selects a project fee, (s)he is not charged for additional time."

This is one reason why I create a custom proposal for each client that includes a project fee, not an estimate of how long it will take multiplied by an hourly rate.

What is your take on the subject?

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