Comments on: Show me the money… honestly!

By: Leo R.

Leo R. — Thu, 30 Dec 2010 15:55:58 +0000

This is definitely a payment model not necessarily “within the box” of what most IT professionals would normally advocate. I’d even venture that most IT professionals would be whole heartedly against it. I appreciate that you’re being very transparent with your on experiences as an IT professional, and maybe our industry would learn a lot by having an incentive to get things right the first time. God knows our clients would appreciate it.

By: Chris Martin

Chris Martin — Tue, 06 Oct 2009 07:43:15 +0000

Hi John.

Thanks for the reply. You’re right of course, how you get paid has an important bearing on how well you do and can do your job.

I was more thinking of support on a fixed cost basis with increments for a) really understanding this speed, communication and advice thing is important to the customer.

On a longer project, I think all things considered a fixed fee is better as you’re unlikely to get the job by refusing a fixed fee.

I ran a support company previously and we did managed services for support and anything which was more than a change, support request was covered by a project fee, eg: supply & install a new PC/Small business Server network.

Thanks for the comment and keeping me on my toes.
Chris

By: John Mello

John Mello — Sat, 03 Oct 2009 15:52:11 +0000

The debate over hourly rates versus fixed fees is one as old as money itself. While races are won by the swift, when getting paid by the hour, the greatest short-term rewards go to the tortise, not the hare. In the long-term, though, customers are more likely to hire vendors who get the job done fast and well. On the other hand, customers have been known to change their requirements for a project in mid-stream. That can turn a fixed fee job into a costly proposition for a vendor. In those cases, hourly compensation schemes can keep a customer focused. They’ll be less likely to tinker with the specs for a job if their alterations cost them money. Fixed fees can obscure to the customer how much work is actually involved in a job. If a vendor goes about his business honestly and customers are sensitive to labor demands of a project, then the compensation issues will work themselves out in a way satisfactory to all parties involved.