The Futur with Chris Do
292 - The End of the Billable Hour - With Tim Williams
May 22, 2024
Tim Williams, founder of Ignition Consulting Group and author of "Positioning for Professionals," challenges the traditional billable hour model in professional services. He advocates for value-based pricing that focuses on results instead of time. Williams discusses how agencies can innovate through productization and strategic partnerships with brands. He highlights the necessity of adapting to AI impacts and rethinking pricing strategies to enhance client relationships and agency profitability, urging agencies to reclaim their pricing power.
58:41
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Quick takeaways
- Transition from hourly billing to value-based pricing is crucial for agency success.
- Breaking away from traditional hourly rate models is imperative for agency competitiveness.
Deep dives
Transitioning from Hourly Billing to Value-Based Pricing
Agencies are trapped in the hourly rate treadmill, a model inherited from the past, lacking a focus on value-based pricing. The historical shift from full-service agencies to specialized disciplines has led to agencies struggling to adapt their compensation model. The podcast emphasizes the importance of migrating towards a value-based pricing approach to address the shortcomings of the current hourly rate model.
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