Tried hourly billing for 3 months and it backfired hard

Switched a client to hourly billing last quarter thinking it'd be fairer, but they started questioning every 15-minute increment on invoices. Lost 2 hours a week just explaining time entries. Has anyone else had hourly billing actually work for retainer clients?

2 comments

2 Comments

bailey.sandra1d ago

My old agency moved a $4k monthly retainer client to hourly and it was a disaster. What finally worked was going back to a flat monthly fee but breaking it into three clear buckets: strategy calls, execution time, and admin work. I gave them a simple one-page breakdown showing exactly what fell in each bucket. They stopped nitpicking my time after that because they could see the value without the clock watching. Have you tried offering a flat fee with clear scope boundaries instead?

finleybutler1d ago

Damn, $4k a month and they were watching the clock that close? Honestly that blows my mind. I've never had a client that nitpicky but I can see how that would drive you up a wall. The bucket system sounds smart though, keeps it simple for them and you don't have to feel like you're punching a time card every hour. Ngl, breaking it down like that probably helps both sides sleep better at night.