Split test between flat fee and hourly billing for a small branding client last month

Flat fee made me $400 more but hourly kept the client happier with updates, which approach do you think wins long term?

3 comments

3 Comments

Stick with flat fee but add a monthly check in call to keep them feeling looked after. That way you lock in your profit and they still get that warm fuzzy feeling from regular contact. Hourly billing can make clients nervous about every little question they ask, which hurts the relationship over time. I'd rather give away a few free updates and keep them happy than nickel and dime them and lose the account. Long term the trust pays off way more than that extra $400 upfront.

the_laura18d ago

But honestly $400 adds up QUICK when you're doing this full time and that's money you could put into marketing or software that actually grows your business. Flat fee clients always expect more as time goes on and suddenly that "quick check in" becomes a weekly hour long call you're not billing for. Hourly billing might scare off some clients but it also filters out the ones who don't respect your time, which is worth MORE than keeping a high maintenance client happy.

reesea4919d ago

Stick with the flat fee but bake in 2-3 quick progress updates as part of the deal, like a 10 min Slack check in or a short Loom video each week. That way you control the scope and they feel looped in without the hourly billing anxiety. I've had clients drop $150 invoices over 15 minute email chain questions, it kills the vibe fast. Build the communication into your flat price so you don't lose margin but they still feel like you're all in. That $400 gap matters if you're scaling up.