Pro tip: Stop giving hourly rates for project work, it's costing you money

I keep seeing freelancers in our field quote an hourly rate for a full project, like saying 'my rate is $75 an hour' when asked for a project price. This is a huge mistake. I learned this the hard way last month when a client agreed to my $75 rate for a website build, then nickel and dimed every single email and phone call, demanding I log exactly 15 minutes for each. The project scope ballooned but the client expected it to fit the original 'hours' estimate. Now I only give a flat project fee after a detailed scope call. It sets clear boundaries from the start and protects you from scope creep. The client gets a fixed cost, and you get paid for the value delivered, not just the time spent. Has anyone else switched to flat rates and found a good way to explain it to clients who are used to hourly?

3 comments

3 Comments

thomasb4129d ago

Flat rates can totally screw you over too though. You end up eating the cost if the project takes way longer than you thought. Hourly at least pays for the extra time.

jennybailey29d ago

Wait, you actually lost money on a flat rate project? That's a hard way to learn the lesson Thomasb41 is talking about. Hourly billing really does save you from that kind of surprise. I'd be so frustrated giving away my time for free.

avery26029d ago

You know, I always thought flat rates were the safer bet for freelancers. But you're right, getting stuck with a project that drags on forever is a nightmare. That exact situation happened to me last year and I lost money. Now I see why hourly protects you when things go off track. It's a tough lesson to learn!