Pricing & Contracts
Value-Based Pricing
Definition
Setting your price based on the business outcome the client receives, not the hours it takes. Example: charging $50K for a website that will generate $500K in annual revenue, even if it only takes 200 hours to build.
Why It Matters
Highest margin ceiling of any pricing model but hardest to sell. Requires understanding the client's business well enough to tie your work to a measurable outcome.
Related Terms
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