The Three Pricing Types
Hourly Rate
The most common pricing model for freelancers and consultants. You bill your client based on the actual hours worked. How it works:- Each performer on the gig has an individual hourly rate.
- Time entries are logged with start/end times or a number of hours.
- The invoice amount is calculated as: hours worked x hourly rate.
- Invoices reflect the actual effort spent.
- Consulting and advisory work
- Software development and design
- Projects with uncertain or evolving scope
- Any engagement where the client expects to pay for actual time spent
Tip: Hourly is the most common pricing type for freelancers. It ensures you are paid for every hour of work you deliver.
Fixed Price
A flat fee for the entire project, agreed upon upfront. The total does not change regardless of how many hours you actually work. How it works:- You agree on a total project price with the client.
- Time tracking is optional but recommended for your own profitability analysis.
- Invoices are based on the agreed amount, not on hours logged.
- You can split the fixed amount across multiple invoices (e.g., milestones).
- Well-defined projects with clear deliverables
- Website builds, design projects, or one-off development tasks
- Situations where the client wants cost certainty
- Projects where you can accurately estimate the effort required
Retainer
A fixed monthly fee for ongoing access to your services. The client pays the same amount each month. How it works:- You set a monthly retainer price on the gig.
- The same amount is invoiced every month.
- Time tracking helps you monitor whether the retainer covers the actual work.
- Often combined with a defined number of included hours per month.
- Long-term advisory or strategic consulting
- Ongoing IT support and maintenance
- Marketing or content management
- Any engagement where both parties benefit from predictable billing
Tip: Retainer pricing provides predictable income and is ideal for ongoing support or advisory roles.
Scope Types
Regardless of pricing type, you can define the expected scope of work using one of two methods:Hours Per Week
Set the number of hours you expect to work each week. This is useful for:- Part-time engagements (e.g., 20 hours/week)
- Retainer gigs with a defined weekly commitment
- Tracking utilization against your available capacity
Total Hours
Set the total number of hours estimated for the entire project. This is useful for:- Fixed-scope projects with a clear hour budget
- Tracking progress toward completion (e.g., 120 of 500 hours used)
- Understanding how much work remains
Invoice Frequency
The invoice frequency determines how often billing occurs:| Frequency | Period | Best For |
|---|---|---|
| Upon completion | End of project | Fixed-price projects, short gigs |
| Weekly | Every 7 days | Short-term, high-activity engagements |
| Biweekly | Every 14 days | Regular ongoing work |
| Monthly | Every calendar month | Most Swedish freelance work (standard) |
| Quarterly | Every 3 months | Long-term retainers, low-activity clients |
| Yearly | Every 12 months | Annual retainers or subscriptions |
Choosing the Right Combination
Here are some common setups:| Scenario | Pricing | Scope | Frequency |
|---|---|---|---|
| Part-time consultant | Hourly | 20 hrs/week | Monthly |
| Website build project | Fixed | 200 total hrs | Upon completion |
| Ongoing IT support | Retainer | 10 hrs/week | Monthly |
| Short-term sprint | Hourly | 40 total hrs | Weekly |
| Annual advisory | Retainer | 5 hrs/week | Monthly |
Tracking Profitability
Even with Fixed Price and Retainer gigs, tracking your time is valuable. It allows you to calculate your effective hourly rate: Effective hourly rate = Total invoiced amount / Total hours worked If your retainer is 30,000 SEK/month and you consistently work 40 hours, your effective rate is 750 SEK/hour. If you work only 20 hours, it rises to 1,500 SEK/hour. This insight helps you price future work more accurately.You can track time on Fixed Price and Retainer gigs too. This helps you understand your effective hourly rate and project profitability.
Frequently Asked Questions
Can I mix pricing types within one gig?
Can I mix pricing types within one gig?
No, each gig has a single pricing type. If you need different pricing for different work streams, create separate gigs for each.
What is the difference between scope type and invoice frequency?
What is the difference between scope type and invoice frequency?
Scope type defines how you measure progress (weekly hours vs. total hours). Invoice frequency defines how often you bill the client (weekly, monthly, or ad hoc). They are independent settings.
Can I change from Hourly to Fixed mid-project?
Can I change from Hourly to Fixed mid-project?
You can change the pricing type while in Draft. Once the gig is active with logged time, it is recommended to complete the current gig and create a new one with the different pricing type.
How does the retainer monthly price work?
How does the retainer monthly price work?
When you set a retainer price, this amount is used as the basis for monthly invoices. You can still track time to understand how many hours you actually work under the retainer.