[steverb]

Wait. There are people who don't bill for meetings?

I understand not charging for the initial meeting where we figure out if we're going to be able to work together, but after that if I'm in a meeting with the customer then it's billable.

That's part of the reason for charging by the hour. An hour of my time is worth X dollars, if the customer wants to pay that so that I can listen to he and his business partner argue about spending money to get more whiteboards in the meeting room (true story) then that's their choice.

[jacquesm]

I don't charge every billable hour. This costs me a couple of hours every now and then but it gets me tons of goodwill back because I'm not the guy that bills for every little tidbit. This translates into customers not being shy about calling me, which in turn translates (more often than not) into business, either direct or by referral. I've made the conscious choice to let the longer term be more important than the shorter term. The near term cost is << 5%, the long term gains have been immense.

Typical things I don't count as billable:

- short phone calls

- meetings that can lead to substantial business

- referrals

- introductions / finding employees

Not always, not with everybody, but more often than not those come at 0 charge and it cements the relationship. If all someone wants from me is an introduction or a referral then they will most likely find a closed door, but for existing customers I really could not justify putting a price on every interaction. Note that this works for me, it could very well not work for you.

[orangethirty]

I do the same and the goodwill generated more than pays for any money made on billing for everything. I also go as far as sending new business towards my client's way. They see me as a part of their team, rather than an outsider. Plus I enjoy helping others succeed.

[jrs235]

Do either of you minimally make note of the time you spent on an invoice and mark it as No Charge or skip that altogether too?

I wonder what method results in better good will? I would guess not putting it on the invoice since putting it on the invoice a) moves the social aspect/norm to a market norm/aspect and b) shows you track time and are knowingly and willing to give some away for FREE (which I would assume might lead to a client abusing it later or questioning why or pointing out that you didn't charge for X or for that one time but now you are charging me this time or for similar thing Y and then having to explain yourself.

[sherm8n]

I only work with clients that know what my value is. They never have a problem paying me to make their business a lot more money. In fact they love paying me for that because I'm very business goal oriented. I am obsessed with making businesses money.

These clients would never want me to do something for free. They always want to compensate me appropriately. It works our great for everyone.

[jrs235]

Do you only focus on engagements with the primary goal to increase revenue/profits? In other words, do you avoid cost cutting/saving business goal engagements?

Is it true that going after the limitless (no, in theory, ceiling) and higher risk higher reward income generating projects pays better than the limited (there is a floor) expense reduction projects?

[jacquesm]

What is your hourly rate?

[sherm8n]

I don't do hourly rates because I don't like trading time for money. I trade value added to the business for money though.

[orangethirty]

Mine is rather low due to my low overhead.

[orangethirty]

I only put what was agreed upon. If there is a big amount of extra time to be added upon their request then a new additional agreement is done. Small bits of time are not mentioned on invoices but done verbally. As in "Sure Bob, I always make time to help my team."

[sherm8n]

Being part of the team is super important. Clients want people who want to help the business grow. Not make money writing some code and then never been seen again.

[steverb]

I don't charge every billable hour simply because I'm not willing to take on the cognitive overhead to keep track of everything.

I do however charge for any phone stuff that takes more than 15 minutes, which is the amount of time it usually takes me to think to myself "I should be billing this", or anything that requires me to be onsite.

I do however put in the occasional discount for things that I feel took me way longer to do than they should have.

[sherm8n]

Charging by the hour caps your income at the number of hours you can physically work. The amount of money they're paying for your service is minimal compared to the amount of money their business will make from it.

[steverb]

Yes, which is why I bill the hourly rate I do and the customer is happy to pay it.

I realize that some people bill by spec, but I personally don't like the overhead that gives to me and I'm quite happy with what billing by the hour brings in.