Two pricing models that align what you earn with what the client gains. Time-and-materials with a high hourly rate shows clients exactly what they're paying for each minute. Gain-sharing ties your fee to measurable client wins like increased sales, so you only profit when they do.
I find there are two pricing strategies that are usually pretty successful for de-risking an engagement and having the client be more willing to pay more. The first is time materials. When you charge an hourly rate, they say, oh yes, I understand I'm using you for an hour, or I'm getting a certain amount for you. And then that they understand they can turn that off. They can see the bill. They can understand how much they are using and see how valuable each minute of that experience is. And then I'll charge a lot per hour. And I find that it can work pretty well. The second is through gain sharing. And that's going to be where you are taking a piece of the upside. And this only really works when the upside is super, super, super, super clear. When it's about like, hey, they're making more sales and you're taking a rate or you're processing transactions for them, or something along those lines where it's clear that the more you are doing, the more they are paying you is only because they're making even more value. Gain sharing is really the best way for you to attach a spigot where The client wins and you win, aligning profits and delivery.
