Journey To $100 Million

How do you go about charging your clients for the services you provide? In episode 243 of Journey to $100 Million, listen in to Erik as he explains the different pricing recipes almost every agency owner follows. Most agencies start off charging by the hour for their services, maybe $50-$75/hour. The reality with hourly wages is that you are working your tail off, without gaining all of the monetary value you are expecting. The next step would be to charge by the project. With that, you take on a risk with a fixed price project, having to deal with administrative burden, defining a scope of work, as well as having to deal with change orders. Most agencies like to avoid all the weight that comes along with per-project pricing, so most owners move away from that and go into pricing like retainers and recurring revenue. How do you price recurring revenue? You could price based on the value you are delivering due to your skill set/time, based on what the market says the value is, or you could charge based on w