Why I Prefer a Hybrid Model (Hourly + Fixed Fee)
I’ve learned that the best setup isn’t purely hourly or purely fixed fee—it’s a hybrid. Here’s how it works: I’m a Finance/Accounting freelancer (think fractional CFO + financial modeling), so most of my work starts with building out budgets, forecasts, or full 3-statement investor models. Phase 1 – Heavy Lift, Hourly: Most clients come to me for a one-time project: a 5-year plan, annual budget, or 3-statement investor model. This is where the real labor happens—building, analyzing, and structuring a financial model that actually works. I charge hourly here because the upfront work is intensive. Phase 2 – Recurring Value, Fixed Fee: Once the model is in place, I ask the client: - “You now have a budget—doesn’t it make sense to track against it?” - “Results are coming in—shouldn’t we update forecasts monthly to stay ahead?” That’s when the real partnership starts. Forecasting, updates, monthly reviews—I become ingrained in the client’s operations. How It Scales: Here’s the beauty: the heavy lifting is done, the model is automated, and my hours per client drop dramatically. But my earnings don’t. A buildout may take 30–40 hours, but monthly support only a fraction of that time. I charge a flat monthly fee (typically 60–80% of the buildout cost). The client gets ongoing strategic support, and my effective hourly rate goes 2–4x higher. Now I’ve got a system: 1. Deliver the buildout. 2. Transition to flat-fee support. 3. Free up hours to bid on new hourly projects 4. Rinse and repeat. Soon enough—you’ve got multiple high-value clients paying you not for hours, but for the VALUE you deliver. What are everybody's' thoughts?