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If I charge hourly, the better I get the less money I make. I can offset this by raising my rate, but a high rate can be intimidating to clients.

They'd rather hear that a project will cost them $1,000 and they can assume that is 20 hours @ $50. In reality, it might take me 5-10 hours. They would've balked at a $200/hr rate, but don't blink at the $1,000 project fee.

Working hourly means your own interests are directly aligned against the client's.

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