Jonathan Stark on Ditching Hourly Billing and Embracing Value-Based Pricing

The Digital Agency Growth Podcast

Hourly billing is incredibly common throughout the agency space. We’ve all seen it, paid for it, and probably have priced our work that way at one point as well. But hourly billing is not great for anyone involved in the transaction: those providing the service find themselves hitting a ceiling and unable to scale, while clients worry about how many hours a project will take and whether or not the quoted price is actually what they’ll pay. Jonathan Stark is here today to present the full case against hourly billing and guide us in what our pricing models should be instead. This week, episode 235 of The Digital Agency Growth Podcast is about ditching hourly billing and embracing value-based pricing!

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In this episode of The Digital Agency Growth Podcast, Jonathan Stark shares the importance of understanding the value clients get from your contributions and how to package that value for sale. and actionable steps you can take right now to start targeting specific industries to get more leads.

Jonathan Stark is a former software developer who is 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.

In this episode, Dan and Jonathan discuss the following:

• How hourly pricing can lead to a ceiling on income and limits the ability to scale.
• The benefits of specialization and how it can lead to more productization.
• The importance of positioning yourself as the one and only expert in your niche.
• Ways to start shifting to project or performance-based pricing.

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