- Before co-founding FreshBooks, I ran a small design agency. I felt like I was on a treadmill, billing by the hour, and not earning as much as I thought I was worth.
So I rethought everything.
The result was powerful: In 2004, I only worked 19 days, and made over $200,000.
The strategy change I’m about to talk about gave me the funds and the time to work on my startup. That startup would later become FreshBooks, which we were able to grow to over 5 million users.
So, how did I do this?
I wrote a book about how I did it (you can get the book for free) but essentially, I moved from billing by the hour, to billing based on the value I delivered to my customers.
Sounds like a simple enough change, right?
The truth is that value-based pricing did not mean slapping a bigger price tag on the services I delivered.
It meant thinking about my design business in a whole new way, and changing the way I worked with my clients.
Here are five ways I changed my thinking and the way I worked.