SitePoint Sponsor

User Tag List

Results 1 to 6 of 6
  1. #1
    SitePoint Zealot naynay99's Avatar
    Join Date
    Jan 2010
    Location
    Los Angeles
    Posts
    173
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Value Billing - Jonathan Stark

    I did a search, didn't see this posted. This is Jonathan Stark and he is a web and filemaker developer. He talks about his value based billing. This has inspired me to up my skills so much so I can use it!

    Jonathan Stark: Value based billing
    http://filemakertalk.com/matt-squared/09016

    He starts talking about it at 6:31

    This is a must listen for anyone who has clients. I am so sick of the hourly based billing it is B.S.

    we can talk about why later...

  2. #2
    It's all Geek to me silver trophybronze trophy
    ralph.m's Avatar
    Join Date
    Mar 2009
    Location
    Melbourne, AU
    Posts
    24,331
    Mentioned
    463 Post(s)
    Tagged
    8 Thread(s)
    It makes a lot of sense to base the price for a job on its value to the customer. If the client estimates that a new website will make them $20K per year and you charge $10K for it, they will get a ROI in 6 months. The problem is judging what the job is worth to you, and that's the bit I have trouble with. Stark sounds pretty confident about setting the price, which I guess is based on more experience. It's pretty important to establish is a lot of detail what is required, but it sounds like he makes a pretty quick decision about price.

  3. #3
    SitePoint Zealot naynay99's Avatar
    Join Date
    Jan 2010
    Location
    Los Angeles
    Posts
    173
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Thanks for your reply ralph. This has really inspired me. It's funny what gets you going. I had a revelation of sorts in the early 2000s. I was a web developer back then just starting my business, it was doing really well. Then I was offered a job as an assistant to a famous person who toured. She had a designer design t-shirts she would sell after performances. Since I was the assistant everything went through me. The designer charged her $60hr to make the design. Took him about 6 hrs = $360. He probably thought "wow, I'm getting $60hr to do this easy design.

    When we would tour she would sell the shirts after each show and depending on the size of the audience (300-1000) people, she would make $1000-$4000 PER NIGHT on shirt sales alone. I remember thinking at that time that there is something really wrong with hrly billing! Fast forward, I saw her recently on tour, she is STILL selling those shirts. That is why some of us are in the 1% and some of us are in the 99%.

    But you are right, the problem is determining the value.

  4. #4
    SitePoint Author silver trophybronze trophy
    wwb_99's Avatar
    Join Date
    May 2003
    Location
    Washington, DC
    Posts
    10,653
    Mentioned
    4 Post(s)
    Tagged
    0 Thread(s)
    But could the designer make the shirt and get it in front of 300-1000 very interested buyers on a regular basis without a whole lot of effort? And how many other people was she charging $60/hr to design stuff for?

  5. #5
    SitePoint Member
    Join Date
    Nov 2011
    Location
    USA
    Posts
    1
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    As I understand it, value billing (as discussed by proponents like Ron Baker) is a system of determining the fee for a particular matter based not on the inputs involved (i.e. time, expenses, etc.).
    Last edited by ralph.m; Nov 22, 2011 at 06:31.

  6. #6
    SitePoint Zealot naynay99's Avatar
    Join Date
    Jan 2010
    Location
    Los Angeles
    Posts
    173
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by wwb_99 View Post
    But could the designer make the shirt and get it in front of 300-1000 very interested buyers on a regular basis without a whole lot of effort? And how many other people was she charging $60/hr to design stuff for?
    That is the beauty of it. It all about what it's worth to the client. The fact that she can get it in front of that many people means it's worth a lot to her.


Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •