Charging by the hour tells your clients that you mean business. Time is money and you’re keeping the meter running with every meeting and phone conference. No matter how many times I set limits on design iterations or halted work when clients didn’t respond in a timely manner, I learned (the hard way) that flat-fee bids gave clients license to extend projects well beyond reasonable deadlines. Yes, I had client work, but I wasn’t making any money on my projects and found it harder to line up future work with project milestones that slipped often.
I took a look at how I managed my projects. Communication with clients was always good and I provided changes to the work in a timely basis. I couldn’t figure out why so many of my projects were taking forever to complete. Cue Miriam Aarons.
I hope (and pray to Sweet Baby Jesus) that you know this scene from The Women – the 1939 classic which is the only version you should watch and love – like the back of your hand:
“I made him pay for what he wanted… you made him pay for what he didn’t want.”
That was Miriam Aarons speaking to Sylvia Fowler about Sylvia’s husband. Skip a few minutes in the film and Sylvia bites Miriam in the leg. An untidy act, certainly, but the point is, Ms Aarons knew what all freelance designers should regard as universal law: never give a client a proposal with a flat-fee, always charge an hourly rate for your services.
When I changed tactics and provided services on an hourly basis, I had surprising results. Clients were quick with feedback and knew exactly what they wanted. Design iterations were quick and meetings covered only what was relevant to the project. My bottom line was less affected and I could schedule future client projects with greater confidence of start-end dates.
When I meet with potential clients, I establish project milestones and assign a required number of hours for each milestone. I state in my bulleted contract that I will immediately contact the client when I require additional hours to complete a project milestone. This method allows me to focus on the work without wasting any time or effort, and the client benefits from paying only for what they want. More often than not, I spend less time on the project than expected and deliver under what was originally budgeted. Potential clients are always delighted to know that bit of information.
But what if you switch to an hourly rate with your clients and the projects are still taking forever to complete? The answer may be that you are simply not charging enough money for your services. (Were that always the case.) Don’t negotiate a number with clients that will break your bank at the end of the day, but do reach a monetary amount that keeps you sane and your clients focused. Just don’t shoot yourself in the foot—or have someone bite you in the leg. God forbid.
Reading this with “The Constant Lover” by Magneta Lane playing felt oddly appropriate…
Did you ever try a hybrid method, like a project fee up to a set # of hours + hourly charges for overages?
I like your proposal but I would use that method for a client project intended as long-term or in-house. Most client projects are short-term but I work with the clients time and time again.