Freelance to Founder Switch From Hourly to Flat Rate (w/out Losing Money)
Nov 19, 2025
Chanda Koston, a Navy veteran and business strategist, shares her expertise on transitioning from hourly to flat-rate pricing, especially for purpose-driven entrepreneurs, particularly women over 40. She emphasizes the importance of researching market rates and realistically estimating project timeframes to avoid underpricing. Chanda suggests piloting flat fees and considering hybrid pricing models. The duo discusses how flat rates reward efficiency and the significance of effective messaging to enhance perceived value. They also tackle strategies for transitioning existing clients smoothly.
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Research Competitors Before Changing Rates
- Do market research to set flat fees at or above the median of competitors in your niche.
- Create or adjust packages to hit your financial targets before switching from hourly.
Use Time Tracking And Leverage Resources
- Track and analyze your actual hours and costs to set flat fees that protect margin.
- Consider leveraging contractors or automation so flat fees cover operational costs.
Pilot A Hybrid Flat+Hourly Model
- Pilot flat-rate offers with a small group to measure average time and profitability.
- Use contracts that include a base flat fee plus hourly add-ons for outliers.