It’s really interesting to Erik to see new entrepreneurs who start off billing by the hour. He’s not quite sure why they do it but he has a few theories. He himself started off billing by the hour as a new entrepreneur. He saw so many problems with it though that he knew there had to be a better way. He moved toward billing by the project, but that had its shortcomings too. There were always issues with estimating how long a project would take, tracking time, and ultimately working for free.
One of Array Digital’s biggest turning points has been moving toward monthly recurring revenue. It eliminates all the problems with billing by the hour or project, and provides stable revenue you can count on. If you’re a service provider think about how you could move toward recurring revenue and providing ongoing services. It has been a game-changer for us.