Comprehensive Guide to Pricing Automation Services

Introduction and Context

In this guide, we’ll look at eight different ways to price your automation projects. These methods come from my own experience and what works for others in my community.

No pricing method is perfect in every way, shape, or form. All of them actually have drawbacks, and not a lot of people that are talking about this are gonna tell you.

A Few Important Points

  1. This is based on my journey – it helped me reach $72,000 monthly with my automation agency
  2. Take what works for you and leave what doesn’t
  3. Different methods work better for different situations
  4. Your pricing should change based on:
    • Company size (small business vs enterprise)
    • Project type
    • Your business stage

Getting Started

Some methods, like hourly pricing, are great for beginners. They’re simple and work well on platforms like Upwork. But keep in mind that these basic methods might limit your growth later on.

Key to Success

The best agencies always look for better ways to price their services. They know that good pricing helps them give more value to clients while growing their business.

Stay tuned as we dive into each pricing method in detail. Get ready to learn practical ways to price your automation services!

Hourly Pricing Fundamentals

Hourly Pricing Fundamentals

Let’s dive into hourly pricing – the most common way to charge for automation services. I’ll break down how it works and when to use it.

How Hourly Pricing Works

Here’s a simple example: Say you get a client on Upwork who needs a custom automation for data entry tasks. You estimate it’ll take 4-5 hours. You set your rate (like $100 per hour), and bill the client until the work is done. If they want changes, you keep billing at that same rate.

Best Uses for Hourly Pricing

Hourly pricing works well for:

  • Small projects
  • Discovery phases where scope is unclear
  • New automation agencies and freelancers
  • Projects where clients aren’t sure what they need yet

The Good Parts

  1. Easy to start with
  2. Everyone understands how it works
  3. All major freelance platforms support it
  4. Clients see it as low-risk
  5. Great for learning client management

The Challenges

If you’re really, really good, you’re gonna work much faster than other people, and you’re gonna make less money because of it.

Some key drawbacks:

  • Your time spent doesn’t match the value you bring
  • Working faster means earning less
  • Clients may worry about costs growing too high
  • No clear cost cap for clients
  • Doesn’t account for your expertise and templates

Moving Forward

While hourly pricing is a good starting point, it’s best to use it just for your first few projects. Once you’ve got some experience, look into other pricing models we’ll cover next. This helps you grow your business and better reflect your true value.

Quick Tip

Remember: The real value isn’t just in the hours you spend building something. It’s in the time you’ve invested learning your craft and developing efficient solutions. Don’t let hourly pricing hold you back once you’ve mastered your skills.

Value-Based Fixed Price Methods

Value-Based Fixed Price Methods

Let’s move beyond hourly pricing into more valuable ways to price your services. These value-based methods all use fixed pricing – meaning you charge a set amount rather than billing by time.

You can only ever save a hundred percent of your revenue, but you can make an infinite percentage more of your revenue.

Cost Savings Model

Example Scenario

A consulting business pays $50,000 yearly for a staff member to generate reports, analyses, and spreadsheets. You’re confident you can automate this completely. You’d charge about 25% of the savings ($10,000-$15,000) for your solution.

Best For

  • Automations that directly cut operating costs
  • Streamlining resource-heavy tasks
  • Larger companies with high revenue but poor margins
  • Companies with inefficient operations

Benefits

  • Not tied to your time
  • More scalable than hourly pricing
  • Lets you template your work
  • Aligns incentives between you and client
  • Can earn $10,000+ in just a few hours

Limitations

  • Harder to justify saving money than making money
  • Can’t charge the full amount saved (usually max 50%)
  • Gap between savings and charges depends on:
    • Client confidence/risk tolerance
    • Maintenance costs
    • Infrastructure costs

Revenue Uplift Model

Example

Building a cold email system projected to generate $10,000 monthly in sales ($120K/year):

  • One-time setup fee: $3,000 (30% of monthly revenue)
  • Monthly management: $2,000 (20% of revenue)

Best For

  • Sales and marketing automations
  • Systems with clear revenue impact
  • Front-end business processes

Benefits

  • Not time-based
  • Highly scalable
  • Templates possible
  • Aligned incentives

Limitations

  • Usually can charge only 10-20% of revenue generated
  • Companies have operational costs to consider
  • Revenue uncertainty factors

Per Outcome Pricing

Example

Instead of fixed pricing, charge per result:

  • $150 per meeting booked
  • Target: 20 meetings/month
  • Potential earnings: $3,000+ monthly

Best For

  • Projects with measurable outcomes
  • Situations where you’re very confident
  • Recruiting or sales automations

Benefits

  • Easier for clients to understand
  • Unlimited earning potential
  • You control your success

Challenges

  • No guaranteed income
  • No upfront revenue
  • External factors can affect results
  • Startup costs not covered
  • Payment scheduling can be tricky

Tips for Success

  • Bill in shorter intervals (weekly vs monthly)
  • Set up autopay when possible
  • Get some upfront payment if possible
  • Build confidence through experience
  • Start with simpler models if you’re new

Retainer-Based Models

Retainer-Based Models

Let’s explore two powerful ways to structure retainer-based pricing for your automation services.

Hourly Retainer Model

This is a great first step from pure hourly billing to monthly recurring revenue (MRR).

How It Works

Let’s say you work with a law firm creating client intake systems:

  • Current: 20 hours at $120/hour = $2,400 post-month
  • Proposed: 20 hours at $100/hour = $2,000 pre-paid monthly

This creates a win-win:

  • Client gets a lower hourly rate
  • You get guaranteed work and predictable income

Best Uses

  • Ongoing automation maintenance
  • Small system improvements
  • Regular clients who hire you consistently

Benefits

  • Easy transition to monthly payments
  • Great for beginners
  • Enables auto-pay setup
  • Provides financial certainty
  • Helps with long-term planning

Drawbacks

  • Still tied to hourly work
  • Doesn’t fully reflect your value
  • Limited growth potential

Deliverable-Based Retainer

A more advanced model that focuses on value rather than time.

Example Package

For five thousand two hundred dollars a month, you’ll get a weekly strategy call with me… one of those systems every single month and install it in your business myself.

Typical package includes:

  • Weekly strategy calls
  • Monthly priority planning
  • Daily Slack support
  • Team training sessions
  • Unlimited maintenance
  • Monthly system implementation

Best For

  • Clients who value your systems
  • Long-term partnerships
  • Growth-oriented relationships
  • Inbound clients who trust your expertise

Benefits

  • High leverage potential
  • Control over deliverables
  • Better earning potential
  • Predictable MRR
  • Value-based pricing

Challenges

  • Harder for beginners
  • Must consistently prove ROI
  • Higher risk/reward ratio
  • Requires mature business processes

Choosing Your Model

Start with hourly retainers if you’re new. As you gain experience and confidence, transition to deliverable-based retainers. This progression helps you build a stable business while growing your value proposition.

Advanced Pricing Strategies

Advanced Pricing Strategies

Let’s explore two powerful advanced pricing models that can take your automation business to the next level.

Per-Asset Based Pricing

This model is growing popular, especially among those building SaaS companies with no-code tools.

How It Works

You create a system and charge per deliverable instead of selling the system itself. For example:

  • Content production system charging $20 per article
  • SEO agencies pay per asset they generate
  • Credit-based system for better client spending

Best Uses

  • Modular SaaS-like products
  • Content (articles, blogs)
  • Assets (PDFs, whitepapers)
  • Legal documents (contracts, reports)

Benefits

  • Easy to productize
  • Low upfront cost for customers
  • Fixed costs and predictable margins
  • Most software-like pricing approach
  • Highly scalable

Challenges

  • Slower growth compared to other models
  • Starting from zero each month
  • Need infrastructure to track outputs
  • No upfront deposits
  • Reduced perceived value due to lack of client lock-in

Percentage of Revenue Model

Partnerships like these are how you make the multi six figure revenues.

This is the “daddy of pricing models” – a powerful approach for scaling your automation business.

Example Implementation

  • Build a LinkedIn DM + voicemail system
  • Handle lead generation and closing
  • Client only handles fulfillment
  • Take 25% of gross revenue per deal

Best Uses

  • Revenue-generating automations
  • Front-end sales processes
  • Clear correlation between automation and income
  • Partnerships with trusted businesses

Benefits

  • Unlimited earning potential
  • Perfect for strong offers
  • Zero risk for clients
  • Partnership-based growth
  • Potential for multi-six figure revenue

Challenges

  • Need high skill level
  • Must trust your partners
  • No upfront payment (unless structured)
  • Less control over outcomes
  • Not suitable for beginners

Implementation Tips

  1. Start with simpler models if you’re new
  2. Build trust and expertise first
  3. Have a strong vetting process
  4. Consider hybrid approaches
  5. Focus on clear value delivery

Remember: These advanced models require experience and confidence in your systems. They’re not ideal starting points but can be incredibly powerful once you’ve mastered your craft.

Strategic Implementation Guide

Strategic Implementation Guide

Let’s break down the best pricing strategy for your stage in business. Here’s my proven roadmap for success.

If you’re a total newbie, the fastest way to go from that total newbie to that expert that I talked about earlier is to go hourly.

Step 1: Starting Out – Hourly Pricing

For beginners, start with hourly pricing because:

  • It’s well-established and familiar
  • Makes an easy switch from a 9-to-5 job
  • Feels comfortable for both you and clients
  • Helps you make your first money online
  • Reduces friction when starting out

Step 2: First Few Clients – Value-Based Pricing

After getting your initial clients:

  1. Move to value-based pricing
  2. Choose between:
    • Cost savings (best for large businesses with small margins)
    • Revenue uplift (best for small businesses with large margins)
  3. Add a retainer or subscription model for steady income

Step 3: Professional Level – Advanced Methods

When you’re confident in your skills:

  1. Try per-outcome pricing
  2. Experiment with percentage-based sales methods
  3. Keep using retainers or subscriptions for stable income
  4. Scale up your revenue quickly
  5. Look for repeatable success patterns

Implementation Tips

  1. Start simple with hourly rates
  2. Add value-based pricing for clients 1-3
  3. Expand to advanced methods for clients 3-15
  4. Always combine with retainers when possible
  5. Focus on building confidence before moving to advanced models

Remember: Each stage builds on the previous one. Don’t rush – master each level before moving to the next. This progression helps you build a strong, profitable automation business.

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