value-based pricing
Setting fees according to the value the work creates for the client rather than the time it takes.
Definition
Value-based pricing links price to outcomes or the economic benefit the client expects. A project that could add major revenue may be priced higher than an hourly estimate suggests, while routine work may be cheaper. It requires trust and a shared understanding of the goal and how success will be judged. Hybrid models add performance bonuses to a base fee. Be wary of promised results that depend on factors the agency cannot control, and write measurement rules into the contract.
In a sentence
The agency proposed a base fee plus a bonus if qualified leads exceeded the agreed target.
Value-based pricing needs agreed definitions of success.
