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: