Russ

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Reaction: Billing by the Hour

A very common mistake I see among engineers of all stripes is a failure to fully appreciate the value of time—both what it is worth, and how to make your time more valuable.

What I normally see is something like this—I should be making $x/hour, because I have this specific experience, or that specific skill set. This focus on hourly pay, however, is actually counter productive. For instance, I recently ran across an article in a publication for graphic designers and illustrators (a world I have followed since I lived it in many years ago)—

Billing by the hour is the most popular pricing method across the world in most industries. Of course, there are many web designers/developers out there who make a great living by using the hourly billing method, but in my opinion, value-based billing is far better than hourly billing. —Kyle Prinsloo @Web Designer Depot

To begin, what does Kyle mean when he says to “bill by value” rather than billing by the hour? Once, when I went into a lawyers office, I noticed he had a sign on the wall that said, “Lawyers don’t charge by the bullet.” The point the lawyer was making Continue reading

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