Choosing how you pay for a design or development project is as important as choosing the agency itself. Fixed price and hourly models both work well, but they suit different types of projects. Understanding the difference helps you avoid surprises.
What is a fixed price project?
In a fixed price project, you agree on a set scope, timeline and cost before work begins. It works best when requirements are clear and unlikely to change much.
What is an hourly project?
In an hourly project, you pay for the time spent. It suits projects where requirements are still developing, such as a new product that will change as you learn from users.
Advantages of fixed price
You know the total cost upfront, you get clear milestones, and it is easier to plan your budget. The agency is motivated to finish efficiently.
Advantages of hourly
You have flexibility to change priorities, add features and adjust direction. You pay only for the work done, which can suit early-stage products.
How to choose
Choose fixed price when your scope is clear and your budget must be predictable. Choose hourly when your idea is evolving and you expect many changes.
Tips to protect your budget
Write a clear brief, agree on milestones, set a monthly budget limit for hourly work and review progress every week.
