33 Tangents – Episode #18 – Agency Billing Models (A.K.A. Jason Hates the Billable Hour)

This week, Jim, Jon, and Jason dig into one of Jason’s favorite topic – agency billing models. Traditionally, agencies and consulting firms bill by the hour. Every minute an employee spends working with a client, needs to billed to them. Employees are also pressured to make sure they maintain a high rate of billable time each week, the dreaded “utilization rate.” What are the problems that can arise from this model? Are there other ways to run an agency or consultancy? What are the pros and cons of other models?