An hourly agreement is a common freelance contract where your payment is based on the actual time spent on a project. It's a straightforward way to structure work with clients.
What is Hourly agreement?
An hourly agreement is a contract where you, the freelancer, are paid a set rate for each hour of work you complete. It contrasts with fixed-price contracts where you quote a single project fee. The client pays for your time, not just a delivered outcome.
Why is this important?
This agreement is crucial because it protects you when a project's scope is unclear or likely to change. It ensures you are compensated for all your effort, including revisions and unexpected tasks. It creates a clear, measurable basis for billing your client.
How does it work?
You and the client agree on an hourly rate and a method for tracking time, often using software. You then work and log your hours, submitting timesheets for approval. The client is billed weekly or bi-weekly based on the verified hours worked.
Pros and cons
Key advantages include fair pay for extra work and simplicity. The main drawbacks are the need for diligent time tracking and the potential for clients to question your efficiency. It may also limit your earning potential compared to value-based pricing.
Conclusion
Hourly agreements offer a transparent and secure payment model for freelance work, especially for ongoing or evolving projects. They are a foundational tool for ensuring you are paid for your time. Choosing this model depends on the project's predictability and your client relationship.
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