Modernizing the Buggy Whip

Mentor Program member David Gammel sent me a fascinating url—it is a “modern” technique to calculate hourly fees (http://freelanceswitch.com/rates/)!!

I’m now off to create an electric buggy whip, larger vacuum tube, and stronger struts for biplanes.


One thought on “Modernizing the Buggy Whip

  1. Alan,

    I checked this out and played around with it and concluded the following:

    1.I would be spending all my time quelling clients complaints about the hourly rate
    2.Finding ways to justify the rate by creating more work which may not be needed
    3.Worrying about having to be billable all the time
    4.Billing clients for everything under the sun
    5.Always looking for new clients because once the project was done they would move on to someone whose “hourly rate” was less
    6.Relegated to the purchasing department because that’s were “hourly” vendors are sent
    7.Constantly trying to get the economic buyer to see me as an advisor, not their lawyer or accountant who will bill them in 15 minute increments because of my “hourly” rate

    Hourly rates require so much attention as one is always adjusting the rate when expenses increase.

    They also inhibit one’s ability to follow through on the creative process in developing new products because you’re worried about how to factor in the development time.

    The value based fee process you’ve developed is much simpler and much more profitable.

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