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 margin

TIMESTAMPS:

00:00 Intro

01:00 The big three: time, deliverable, or outcome

04:10 Time & Materials (incl. cost-plus)

05:54 Fixed-fee/project pricing—scope risk & expectation creep

08:14 Retainers & “subscription” models (what’s the real difference?)

09:46 What strict value-based pricing actually means

12:00 Hybrid pricing (base + performance)

13:00 Other models: barter, equity—why they usually disappoint

17:24 Productized vs. bespoke retainers

19:24 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 hood

26:45 Choosing what fits your strengths

28:37 Margin targets and diagnosing shortfalls

29:40 Wrap & how to get in touch

Links:

Work with Upsourced: www.upsourcedaccounting.com

Email Craig: [email protected]

If this helped, hit Subscribe—new episodes on building durable, profitable agencies.