APLawrence.com -  Resources for Unix and Linux Systems, Bloggers and the self-employed

Prepaid hours

© December 2005 Tony Lawrence

I prefer to sell blocks of prepaid time when possible. I offer a $10.00 an hour discount on small blocks and more on larger amounts.

The advantages to me are obvious: I have my money. Both the client and I enjoy the benefit of not having to deal with multiple small invoices. I submit logs of time used against the time purchased, which has a side benefit of being able to find all related information in one place.

Yet, some clients just won't do this. In most cases, it's not that they object to paying the money, but rather that they can't seem to grasp the idea of deducting time from a banked amount. I don't know why that's so, but I've had one or two clients tell me they find it confusing.

I do set an expiration on prepaid time. If it's not used in a year, it's gone. I don't enforce that rigidly; if a customer runs a month or two over I don't care. I just don't want to have to track small left over hours forever.

Consider combining prepaid hours with retainers.

Prepaid time can be particularly valuable when your business is just starting as it dampen the wildly fluctuating income that often happens with a startup, but it's also useful long after those fluctuations are a thing of the past. However, many consultants I have recommended this to seem to think that it would be a "hard sell" to their clients. I have never found that to be the case at all - clients understand the advantage and like the discounts and the single invoice. As I offer it as a choice, not a requirement, it isn't anything they have to do, yet most of my clients do purchase these blocks. Try it with your customers; they probably will like it.

Got something to add? Send me email.

(OLDER)    <- More Stuff -> (NEWER)    (NEWEST)   

Printer Friendly Version

-> Prepaid hours

Inexpensive and informative Apple related e-books:

Take Control of iCloud, Fifth Edition

El Capitan: A Take Control Crash Course

Take Control of Apple Mail, Third Edition

Sierra: A Take Control Crash Course

Take Control of OS X Server

More Articles by © Tony Lawrence

Printer Friendly Version

Have you tried Searching this site?

This is a Unix/Linux resource website. It contains technical articles about Unix, Linux and general computing related subjects, opinion, news, help files, how-to's, tutorials and more.

Contact us

Printer Friendly Version

Let us change our traditional attitude to the construction of programs: Instead of imagining that our main task is to instruct a computer what to do, let us concentrate rather on explaining to human beings what we want a computer to do. (Donald Knuth)

Linux posts

Troubleshooting posts

This post tagged:



Unix/Linux Consultants

Skills Tests

Unix/Linux Book Reviews

My Unix/Linux Troubleshooting Book

This site runs on Linode

SCO Unix Sales, Support, & Service

Phone:  707-SCO-UNIX (707-726-8649Toll Free: 833-SCO-UNIX (833-726-8649)