Seth Godin had a little riff this morning about antiquated ideas that persist, and challenged folks to find the ones in their lives. I know what ours used to be at Ripple. Charging for time. We killed that thinking 2 years ago.
The reason(s) people bill by the hour are:
- They cannot capably predict their cost structure (How long will this trial last???).
- They think in their own terms, rather than terms of customer value.
The former is much less prevalent than people think, and the latter much more prevalent.
Why are you getting charged by the hour?