Project-based

You quote a fixed price for a specific project, so the client knows upfront exactly what they'll receive and what it’ll cost.

Best for

Agencies with defined deliverables and tight scopes, like web design, branding, or video production.

Pros
  • Provides clear expectations for clients — they know exactly what they're getting
  • Is easier to sell than abstract concepts like hours or retainers
  • Provides more time freedom if you’re efficient
  • Has the potential for higher profit margins
Cons
  • Needs rigid boundaries to avoid the scope creep monster
  • May eat into margins based on the volume of client revisions
  • Expect cash flow gaps between projects
  • Risks eroding your margin if you underestimate the scope of work
Real Example

A digital marketing agency charges $15,000 for a complete website redesign package that includes discovery, wireframing, design, development, and launch. They require 50% upfront and 50% upon completion, with a clear change request process that bills additional revisions at $150/hour.

Productized Packages

You create standardized service packages with set deliverables and price points – think "essentials, premium, elite" packages. Clients choose a tier based on their needs.

Best for

Agencies with repeatable processes and similar client needs across projects, like SEO services or social media management.

Pros
  • Simplifies sales with predefined packages
  • Streamlines operations through standardization
  • Creates natural upsell paths for clients
  • Positions you above "custom quote" competitors
  • Provides more time freedom if you’re efficient
Cons
  • Limits flexibility for unique client needs
  • Risks selling solutions that don't fit the problem
  • Can severely limit growth potential
Real Example

An SEO agency offers three packages: Essentials ($2,500/month) covering basic optimization, Premium ($5,000/month) adding content creation and link building, and Elite ($10,000/month) including advanced technical SEO and custom reporting. Each package lists exactly what deliverables the client receives monthly.

Retainer

The client pays a recurring monthly fee to “book” a set number of hours per month. The specific work delivered may vary month to month based on changing needs and priorities, but the commitment and revenue remain stable.

Best for

Agencies providing ongoing services where needs evolve over time, like PR, content marketing, or growth marketing.

Pros
  • Creates predictable, stable revenue for smoother cash flow
  • Builds deeper, ongoing client relationships
  • Allows flexibility to adjust tactics based on what's working
  • Reduces constant pitching and proposal writing
Cons
  • Can result in clients treating you like employees
  • Requires clear boundaries to prevent scope creep
  • May be difficult for clients to see ongoing value,
  • Trades time for money, so is difficult to scale profit without robust time tracking
Real Example

A digital PR agency charges clients $8,000/month for 40 hours of senior-level PR work. They hold monthly strategy sessions to determine the best use of hours — whether media pitching, content creation, or crisis management — allowing flexibility to address changing priorities while maintaining predictable revenue.

Day Rate

You charge a flat rate per day for your time, regardless of the exact deliverables. Clients pay for access, focus, and speed rather than a laundry list of outputs.

Best for

Specialized consultants, workshop facilitators, or agencies doing intensive on-site work.

Pros
  • Is simple to explain and implement
  • Works well for intensive, focused work
  • Eliminates hourly penny-pinching
  • Delivers specialized, high-value consulting
Cons
  • Struggles to scale (limited by calendar days)
  • Incentivizes slow delivery over efficiency
  • Undervalues work that delivers high impact in less amount of time
  • Lacks opportunities for passive or leveraged income
Real Example

A brand strategy consultant charges $3,500 for a full-day workshop with a client's leadership team, delivering a facilitated session that results in core brand positioning and messaging frameworks. The day rate includes pre-work and a summary document but emphasizes high-value collaboration within a set timeframe.

Revenue Share

Instead of charging for time or deliverables, your agency takes a percentage of the revenue or profit directly attributed to your work. This model aligns your compensation directly with the client’s success.

Best for

Agencies with a direct impact on revenue generation, like paid media, conversion optimization, or sales enablement.

Pros
  • Aligns incentives — when the client wins, you win
  • Unlocks significantly higher earnings if your work performs well
  • Demonstrates confidence in your capabilities
  • Takes price sensitivity out of initial conversations
Cons
  • Produces unpredictable cash flow
  • May be vulnerable to factors outside your control
  • Creates complex contractual relationships
  • Struggles to work for creative agencies like design or branding where monetary attribution is tricky (advanced tracking is the solution here)
Real Example

A PPC agency manages Google Ads campaigns for e-commerce clients and charges a 15% management fee on ad spend plus 5% of revenue directly attributed to their marketing campaigns. They require a $2,500 monthly minimum to ensure baseline compensation even during slower months.

Performance-driven

Similar to revenue share, you earn based on performance outcomes the client agrees to in advance, like leads generated, conversion rates, or other KPIs central to the client's business.

Best for

Agencies that deliver work with clear measurable outcomes, like lead generation, recruitment marketing, or direct response campaigns.

Pros
  • Focuses everyone on clearly defined goals
  • Commands premium rates when you deliver results
  • Builds client retention naturally — clients don’t want to lose a top performer
  • Positions your agency as a partner, not a vendor
Cons
  • Requires clear definition of success metrics
  • Can be contentious in terms of attribution
  • Depends on client implementation for success (for example, sales teams following up)
  • May be challenging for services with delayed or indirect impact
Real Example

A B2B lead generation agency charges a base retainer of $5,000/month plus $250 per qualified lead delivered. They work with the client to clearly define lead qualification criteria and use a shared CRM to track attribution, creating transparency and alignment around success metrics.

Value-based

You price based on the economic value your work creates for clients rather than inputs (time) or outputs (deliverables). This model positions your service as an investment, not an expense.

Best for

Agencies with proven track records and clear ROI models, like vertical-specific marketing agencies, conversion specialists, or business transformation consultants.

Pros
  • Maximizes profit margins by decoupling price from effort
  • Elevates conversations from cost to investment
  • Attracts clients who value results over deliverables
  • Creates differentiation from commodity service providers
  • Removes you from price comparisons — you’re in a category of one
Cons
  • Requires sophisticated selling skills
  • Depends on a strong track record and reputation
  • Relies on measurable outcomes
  • May require education for clients unfamiliar with value-based thinking
Real Example

A specialized SaaS marketing agency has a track record of generating six figures in revenue for new clients in the first 30 days. They charge $55,000 for their services, regardless of the time or tactics it takes. Despite the high price, it’s still a no-brainer investment.

Hybrid Models

You blend two or more pricing models, for example, combining a base retainer with performance bonuses or pairing fixed fees with value-based pricing elements. Hybrid models allow you to adapt while maintaining profitability and flexibility.

Best for

Agencies serving diverse clients or offering a wide range of services — especially those looking to balance stability with upside.

Pros
  • Balances predictability with upside potential
  • Creates flexibility for diverse client needs
  • Mitigates risks for both parties
  • Allows testing of new models with lower commitment
Cons
  • Can be complex to explain and administer
  • Requires sophisticated tracking systems
  • Can create confusion without clear documentation
  • May be challenging to compare across different client agreements
Real Example

Grey Matter's "Toolbox Method" is a perfect example of a successful hybrid approach.