At some point in a conversation with a prospect client, the question gets asked;
“What is your hourly rate?”
“We don’t have an hourly rate. If you want to pay an hourly rate, you should think about hiring an employee.”
As you can imagine, this confuses a lot of people. Many of those confused people go away and hire some other consultant who will probably either get reamed by the client or end up reaming the client. Either way, it will probably not end up well as eventually one or the other party will feel like they are being taken advantage of.
At some point in the exchange of skills for money, we have been conditioned to think about the value of our time in hourly rates. Whoever thought of this measure was either a genius or a madman. When you think about it, the more time you spend doing something, the better you get at it so it takes you less time to do. When a client compares your hourly rate to someone else’s — who may not be as proficient — and awards the job based on lowest bid, they are inherently paying for lessor quality. Who spends time honing a craft just to get paid less today than they did yesterday for better work? Nobody I want working on our brands.
An hourly rate rewards the slow and unskilled. A project rate rewards those who are proficient and quick.
It’s your success that is ultimately at stake. You decide who you want to work with. We already know.