Stop Selling Your Time and Start Selling Results

Oct 4, 2024 | Building Company Value, Process Improvement, Professional Services

 

The Limitations of Hourly Billing

Stop Selling Your Time and Start Selling Results

If your goal is to build a more valuable company, it’s time to rethink your billing model. Hourly billing can limit your growth potential, reduce customer satisfaction, and make your business more susceptible to competition.

When you sell your time, you’re essentially renting out your services. This can make it difficult to scale your business and achieve significant growth. Additionally, customers may feel like they’re being nickel and dimed, leading to dissatisfaction and potentially damaging your business’s reputation.

The Case for Results-Based Pricing

The Likeable Media Success Story

Carrie and Dave Kerpen, founders of Likeable Media, experienced firsthand the limitations of hourly billing. They realized that their customers wanted tangible results, not just their time.

To address this, they implemented the Content Credit System. This innovative approach allowed customers to purchase a set amount of content credits, which could be used for various services like social media posts and blog articles. This shift to a results-based pricing model transformed their business.

The Benefits of Results-based Pricing

Enhanced Customer Satisfaction

By focusing on delivering results rather than simply tracking hours, you can improve customer satisfaction. Customers appreciate the transparency and value that results-based pricing offers.

Increased Scalability

When you’re not tied to hourly billing, you can more easily scale your business. You can hire additional team members or invest in technology to increase your capacity without worrying about the impact on your profitability.

Competitive Advantage

In a competitive market, differentiating yourself can be crucial. Results-based pricing can give you a unique selling proposition and attract customers who value outcomes over time.

By stopping selling your time and starting selling results, you can build a more valuable and sustainable business. Consider implementing a results-based pricing model to unlock your company’s full potential.

What Does Growth Team Strategies Do For Business Owners?

We help driven, talented entrepreneurs achieve their goals through structured, six-month engagements to maximize growth. Throughout the process, we will guide you to refine your processes to minimize wasted time and resources. We utilize our extensive experience and proven consulting processes to help you turn challenges into opportunities for growth and profitability.

If you own a business, Growth Teams can help you. Our business coaches have all built and sold successful companies and now work to help other business owners do the same.

Click here to connect with a Growth Team’s business coach today.