Ultimate flexibility comes with hourly pricing, join me to hear a bit about the pros and cons of using the hourly pricing model. It works for the Garrett Planning Network folks and it may be just the thing for you.
Remember fee structures are limited by compliance and your creativity. So we're going to talk today about hourly. We’ll be working through AUM, retainer/subscription, and a combo in the next few videos so stay tuned. But today is hourly.
If you're a person who likes simplicity in pricing and variety in your work, hourly is a great fit for you. An hourly model is simple to understand and explain to your clients and it's perfect for those folks who come in, they just need a few hours of work, and then they want to go on their merry way. Hourly pricing really puts the focus on what you’re doing for the client.The cost-benefit is clear and simple for everyone involved to see. So if you like that variety and simplicity of pricing it's a great fit.
The cons: it doesn't lend itself to a long-term relationship. So if you got in this business because you want to work with people for 10 years, hourly is going to be a little more of a struggle for you. You need to be really intentional about how you communicate with the client, that you're painting that picture of an ongoing relationship. Or, you may need to pick a different pricing model.
Hourly pricing also puts the onus on your client to decide if they're going to call you. So there may be a tendency for you to need to play clean up a little bit more than you would with a retainer or subscription model. That's okay. I'm not here to say right, wrong, necessarily good, bad. I want you to be matching things up.
The final con and, again not necessarily, is marketing. Hourly planning will necessitate a little more marketing because your practice will never truly be full since folks can come and go with a little more rapidity than they with other pricing models. If you love the marketing side, if you love a new challenge and meeting new people and that one-and-done style than hourly is absolutely the model for you