Short conversational excerpt from a YouTube video ("Charge for Outcomes, Not Hours") in which two speakers discuss shifting from freelancing to providing services and charging based on outcomes (results/revenue) rather than hours worked. They use an example: if a two-hour-created ad generates $1M in revenue, billing should reflect the outcome rather than just hours.
Trying to make the shift away from being the freelancer into being the service provider. The service provider, the business, and then charging accordingly to the outcomes that you're providing. Not necessarily for your hours worked.
No, because like, if. If I come in and create a piece of. If I create a piece of content that you run as an ad, for example, that makes you a million dollars, but it only took me two hours to make it. Should I be billing you based on the hours or based on the money that I made you?
The money that. I mean, you should theoretically be billing me on the money that you maybe should be billing me, however you agree to in the beginning, but.
Exactly. Yeah, that's what I'm saying is like, they're paying you for your experience and your knowledge and your unique mechanism, quote, unquote. Like, they're paying for that mechanism. They're paying for your experience. They're paying for the. The businesses experience, the businesses mechanism. They're paying for the solution. It doesn't matter how many hours it took me to put it together. So that's why I wouldn't even talk about it.
