The End of the Hourly Billing Era?
In the latest RSW/US interview episode, Founder & CEO Mark Sneider sits down with Tim Williams, Founding Partner of Ignition Consulting Group and an expert strategist on revenue models in professional services. to investigate what may be the end of the hourly billing era.
Their discussion dives deep into why agencies, consultancies, and professional firms should consider rethinking pricing models that are seemingly outdated and how productization can transform both client relationships and the bottom line.
For decades, the professional services industry has been dominated by the billable hour.
But as Tim points out, the cracks in that model are widening.
Today, marketers and clients are looking for clarity, certainty, and results — not unpredictable hourly tallies.
And with AI further eroding the time-value equation, the time for change may be here.
Here are five key takeaways from their conversation:
The End of the Hourly Billing Era?
💡 Deliverables > Hours
Marketers increasingly prefer clear, deliverable-based pricing over traditional billable hours. This approach eliminates surprise costs, creates greater price certainty, and builds stronger trust between client and agency.
Instead of focusing on how long something takes, both sides zero in on the value and outcomes of the work.
📦 Productization Unlocks Scale
By bundling services into standardized, nameable products (and even larger programs), firms can achieve remarkable efficiency, scalability, and profitability.
Productization doesn’t mean cookie-cutter work — rather, it offers a flexible framework that allows firms to deliver tailored solutions more efficiently, like building with Lego blocks.
⚡ AI Is Forcing Change
AI is dismantling the old value-for-time model faster than many realize.
As automation and AI tools take over repetitive tasks, agencies and consultancies must consider a pivot toward pricing that reflects outcomes, expertise, and solutions rather than time spent.
AI isn’t just a tool; it’s a trigger for a fundamental shift in how firms structure and monetize their services.
🎯 Aligned Incentives Build Stronger Partnerships
Hourly billing creates a misalignment: clients want fewer hours, while agencies often benefit from more.
Switching to outcome- and deliverable-based models aligns incentives, removes friction over time estimates, and creates a stronger foundation for long-term partnerships.
Both sides focus on what matters: results.
🛠 Start Top-Down, Solve Real Problems
Effective productization doesn’t begin with a list of internal capabilities.
It starts by asking: What recurring problems do we solve for our clients?
By identifying common patterns and building solution sets around those, firms can offer products that feel both tailored and proven — maximizing value for both the client and the firm.
Tim closes the conversation with a clear message: the agencies and firms that embrace productization and rethink their pricing strategies now will gain a critical first-mover advantage in the market.
Those that cling to the old ways risk being left behind, especially as AI accelerates industry disruption.
It’s an exciting — and urgent — moment for professional services leaders.
To stay competitive and profitable, the time to evolve is here.
Want to hear the full discussion? Watch the interview with Tim Williams here.
