1. Hourly Billing
Best for: Maintenance work, vague scopes
Trading time for money is the most common starting point. It protects you from "scope creep" but limits your earning potential.
Pros
You get paid for every single minute you work. Low risk.
Cons
Punishes efficiency. Re-doing work feels like "stealing" time.
2. Project-Based (Fixed Price)
Best for: Defined deliverables (e.g. "Logo Design")
This is where you want to be. You sell the value of the result, not the time it took you to make it.
Pros
High profit margins. Rewards efficiency. Client knows the exact cost.
Cons
Risk of scope creep eating your profits if not managed well.
3. Monthly Retainers
Best for: Long-term relationships
The holy grail of freelancing. Recurring revenue that helps you sleep at night.
How to Invoice: Always invoice retainers at the start of the month (pre-paid). Never work a retainer in arrears.
The Golden Rule: Use Deposits
For any project over $500, ask for a deposit (usually 50%) upfront. It validates the client has money, commits them to the project, and improves your cash flow.
Validates Client
Improves Cashflow
50% Deposit
Standard Industry Practice