Listen "Pricing Models That Protect Your Margin"
Episode Synopsis
Most agencies say they want “value-based pricing.” Few actually do it—fewer do it well. In this episode, Craig Baldwin, Partner at Upsourced, breaks down the real-world pricing models agencies use (time & materials, fixed fee, retainers/subscriptions, outcome/value-based, hybrids) and how to choose what protects margin and manages risk. The goal isn’t a perfect model; it’s a consistent 50%+ project/client margin and a healthier mix of recurring revenue so you’re not living project-to-project.You’ll learn:- The core pricing models and when they shine (or sink you)- Why true value-based pricing is rare—and risky—without data- Hybrid structures that share upside while capping downside- How recurring revenue creates a floor (and why projects set your ceiling)- The only metric Craig cares about: reliable marginTIMESTAMPS:00:00 Intro01:00 The big three: time, deliverable, or outcome04:10 Time & Materials (incl. cost-plus)05:54 Fixed-fee/project pricing—scope risk & expectation creep08:14 Retainers & “subscription” models (what’s the real difference?)09:46 What strict value-based pricing actually means12:00 Hybrid pricing (base + performance)13:00 Other models: barter, equity—why they usually disappoint17:24 Productized vs. bespoke retainers19:24 Project vs. recurring revenue (floor vs. ceiling)20:55 The hype vs. the practice of “value-based”24:54 Yes, you’ll still estimate time under the hood26:45 Choosing what fits your strengths28:37 Margin targets and diagnosing shortfalls29:40 Wrap & how to get in touchLinks:Work with Upsourced: www.upsourcedaccounting.comEmail Craig: [email protected] this helped, hit Subscribe—new episodes on building durable, profitable agencies.
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