# Top 4 consulting pricing models that (actually) work

Knowing how to price your consulting services can be the difference between you doing this as a part-time hustle, or as a full-time career that will pay you more than you ever thought possible.

That’s why in this article, I’m going to go over four different consulting pricing models (and their pros and cons) so you can decide how to price your services

Number three is my favorite as it’s the one I personally use with my clients. But, all of these pricing models have their time and place. And I’ll even show website examples from real consultants so you can see how much they charge towards the end of this article.

Alright, I don’t want to waste your time so let’s get right into it.

## 4 consulting pricing models that work (with pros & cons)

Here are four business models you can use to price your consulting services:

1. [Hourly pricing](/content/blog/consulting-pricing-models#hourly-pricing/index.html)
2. [Project-based pricing](/content/blog/consulting-pricing-models#project-based-pricing/index.html)
3. [Subscription or retainer pricing](/content/blog/consulting-pricing-models#subscription-pricing/index.html)
4. [Value-based pricing](/content/blog/consulting-pricing-models#value-based-pricing/index.html)

Let’s dive deeper into each of these.

## 1. Hourly pricing

Hourly pricing is one of the most popular pricing methods for service providers. It’s when you charge your clients for each hour you work — like getting paid by the hour at a regular job.

First, you set a price for your time, say $100 per hour. Then, you keep track of how many hours you spend working for a client — usually done through some time tracking software. At the end, you multiply your hours by your rate to get the total bill that you then [invoice to your client](/content/blog/client-invoicing/index.html).

**Pros about hourly pricing:**

- It's simple to understand.
- You get paid for all the time you put in.
- It works well for projects that might change or take longer than expected.

**Cons about hourly pricing:**

- You might earn less if you work quickly (or you’re good at what you do).
- Clients might worry about how many hours you're billing.
- It can be hard to guess the final cost of a project (most set a range to manage client expectations).

Hourly pricing is often good for new consultants or for short-term projects. It's also helpful when you're not sure how long a job will take.

## 2. Project-based pricing

Project-based pricing is a popular option for consultants who work on a one-off basis. This is when you charge one set price for a whole project, no matter how long it takes you to finish it.

Essentially, you and your client agree on what needs to be done and how much it will cost before you start. For example, you might charge $5,000 to create a social media marketing plan. As we get into a few examples in a later section of this article, you’ll notice that project-based pricing tends to be a popular choice for those in creative fields.

**Pros of project-based pricing:**

- Clients know exactly how much they'll pay from the start.
- You can earn more if you work efficiently.
- It's easier to show the value of your work, not just your time.

**Cons of project-based pricing:**

- If the project takes longer than you thought, you might earn less.
- Clients might ask for extra work without wanting to pay more (scope creep).
- It can be tricky to price projects when you're just starting out.

Project-based pricing works well for tasks with clear goals and timelines. It's good for experienced consultants who know how long projects usually take.

## 3. Subscription or retainer pricing

This model is my favorite, and it’s the one I use [for my business](/content/blog/how-to-start-a-consulting-business/index.html). Subscription or [retainer pricing](/content/blog/marketing-retainer-packages/index.html) means your client pays you a set amount regularly, like every month, for your services. It’s sort of like turning your service business into a SaaS product.

This pricing model is popular among design, web development, and marketing agencies as it helps these firms [productize their services](/content/blog/productized-service-examples/index.html) and give them more predictable revenue.

In this model, you and your client agree on what services you'll provide and how much they'll pay. For example, you might charge $2,000 per month for 20 hours of work. Or, you could charge a set amount per month for certain deliverables.

**Pros of subscription pricing:**

- You know how much money you'll make each month.
- Clients can budget easily for your services.
- It builds long-term relationships with clients.
- You can plan your work schedule better.

**Cons of subscription pricing:**

- Some months you might work more or less than planned.
- Clients might expect you to be always available.
- It can be hard to raise your prices later.

Subscription pricing works well for ongoing services, like content creation or business coaching. It's great for consultants who want steady income and long-term clients, which is why I love it so much.

## 4. Value-based pricing

Value-based pricing means you charge based on the value your work brings to the client, not just your time or effort. Essentially, you only get paid when your client makes money.

You figure out how much money or benefit your work will create for the client. Then, you set your price as a portion of that value. For example, if your work will help a client earn $100,000 more, you might charge $20,000 (20%).

This model tends to work with very experienced consultants who are in specific fields related to high-ticket products. It’s pretty much getting paid based on commissions.

**Pros of value-based pricing:**

- You can earn much more than with other pricing methods.
- It focuses on results, not just your time.
- Clients see your work as an investment, not just a cost.
- It can set you apart from other consultants.

**Not-so-good things:**

- It can be hard to figure out the exact value of your work.
- Some clients might not understand or like this pricing method.
- You need to be very confident in the results you can deliver.

Value-based pricing works best when you can clearly show how your work will help your client. It's great for experienced consultants who bring a lot of value to their clients' businesses.

## How to figure out how much to charge

Setting the right price for [your consulting services](/content/blog/consulting-services-examples/index.html) is a big step in building a successful business. It's not just about picking a number that your competitors have — it's about finding a balance between what you're worth, what the market will bear, and what will help your business grow profitably.

Charging too little might lead to overwork and frustration (which happens to a lot of beginner consultants), while charging too much could scare away potential clients. The key is to consider several important factors and find a sweet spot that works for both you and your clients. Here are 10 essential things to think about when deciding your consulting rates:

1. **Your experience:** If you've been consulting for a long time or have specific knowledge & skills, you can usually charge more.
2. **The market rate:** Look at what other consultants in your field charge. This gives you an idea of what clients expect to pay.
3. **Your overhead costs:** Think about your expenses, [like software](/content/blog/consulting-software/index.html), office space, or travel.
4. **The value you provide:** Consider how much value your work will bring to your client.
5. **Your target clients:** Different clients have different budgets.
6. **The project complexity:** More difficult or time-consuming projects should cost more.
7. **Your financial goals:** Think about how much money you need to make to support yourself and keep your business alive.
8. **Your availability:** If you're in high demand, you might be able to charge more.
9. **The length of the project:** Long-term projects might have different pricing than short-term ones.
10. **Your location:** Prices can be different depending on where you live or where your clients are.

Remember, it's okay to adjust your prices as you learn more about what works for you and your clients. I’ve done it. What I charge today is not what I charged two years ago. Start somewhere, and don't be afraid to change your prices later if you need to.

## 3 pricing examples from real consultants

One of the best ways to know how to price your services is to look at real examples. If you have people in your niche who are already selling services and getting clients, it’s a good indicator that there’s money to be made in your niche.

Here are three examples from real consultants:

1. [Laura Busche](/content/blog/consulting-pricing-models#laura-busche/index.html)
2. [Timothy Financial Counsel](/content/blog/consulting-pricing-models#timothy-financial-counsel/index.html)
3. [Dara Denney](/content/blog/consulting-pricing-models#dara-denney/index.html)

Let’s take a look at each of them.