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Tried a flat fee model for 6 months and lost 30% of my profit
I switched all my retainer clients to flat monthly fees last January, thinking it'd simplify things, but ended up eating the cost on scope creep from two big accounts. Has anyone figured out a way to make flat fees work without getting burned on revisions?
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the_terry5mo ago
Saw a post on LinkedIn the other day from a guy who does flat fees but builds in a 20% buffer for revisions and scope creep. Said it saved him every time. Maybe try that and see if clients push back.
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briannguyen3mo ago
Yeah @the_terry is onto something with that buffer. I do 15% myself and just call it a "flex fee" in the proposal so it doesn't freak people out. Works like a charm when they want to add random features mid-project.
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theabennett5mo ago
The "scope creep from two big accounts" is exactly where the flat fee model breaks down. You have to define scope really tight in the contract or you're just giving away your time. What worked for me was charging a flat fee for a set list of tasks, then having a separate hourly rate for anything outside that list. I put it right in the proposal so clients can't pretend they didn't see it. Also, I set a hard limit on revisions per month, like three rounds max before it triggers a new invoice. Most clients respect the boundary once they see the numbers.
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