EP 386: Restructuring agency billing and pricing models based on scope value with Jonathan Stark

Build a Better Agency Podcast

If you’re tired of assessing your agency’s project values based on an average hourly rate and having your team constantly updating timesheets, you’ll want to take some notes on this episode. Today’s topic is all about restructuring pricing models to focus more on the scope value rather than an average billable hourly rate. Our guest, Jonathan Stark, is a former software developer on a mission to rid the world of hourly billing. He’ll teach us to reevaluate the work scopes we’re pitching to prospects and customize it so you can focus on their actual needs rather than what they think they need.

By using this method, you will not only remove the headache of hourly billing but also have better conversations with prospects, establish yourself as a thought leader, and have the potential to increase your profit exponentially — just by changing this small aspect of your sales and discovery calls.

A big thank you to our podcast’s presenting sponsor, White Label IQ. They’re an amazing resource for agencies who want to outsource their design, dev, or PPC work at wholesale prices. Check out their special offer (10 free hours!) for podcast listeners here.

What You Will Learn in This Episode:

• How and why Jonathan became so passionate about eliminating hourly billing from his agency structure
• Why fixed pricing models based on scope value are both easier and more profitable
• Asking the right questions to get to the bottom of your prospect’s actual needs and weed out bad clients
• Talking about the value of the outcome of the work you’re going to do for clients
• Building proposals with 3 budget options based on a fixed-price value
• How to engage with a prospect to discover what they need and how to price it out
• The pros and cons of changing your pricing strategy
• Productizing some of your services as “off-the-shelf offerings”
• How to implement this strategy as a smaller agency without too much risk