As it rewards effort, the [amount of time X rate] formula might seem like a fair way to charge. But it has at least two important flaws that deserve a closer look.
First, let’s ditch the idea that more hours equals more effort. An expert will teach you in less time, solve the problem with less code, design using fewer lines or reach an audience with less words. _Reducing hours while amplifying impact requires more effort, but less time.
Secondly, clients typically expect us to bill based on what we contribute directly to their project—let’s call this “project-specific effort.” It’s the hands-on work tailored to meet the unique needs of a single client.
And yet, the client will choose you because of a different kind of effort: “legacy effort.” This is the cumulative expertise, refined skills, and knowledge we’ve built over the years. It gives your work its unique quality and credibility, setting you apart from less experienced professionals – the ones with less effort in their past.
So while [amount of time X rate] formula can still work, It’s important to understand that the amount of time represents only project-specific effort, which promises your immediate impact, and a degree of transparency.
The rate, meanwhile, represents the credibility based on the legacy effort you bring —a value that’s justified even if it’s invisible in real-time effort on this specific project.