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> Framing this product in terms of time spent rather than value created gives rise to all the wrong incentives Mostly agreed, however, when you leave the deter
by jacobyoder 8y ago
> Framing this product in terms of time spent rather than value created gives rise to all the wrong incentives
Mostly agreed, however, when you leave the determination of the value created in someone else's hands, other wrong incentives come up. And... the value is often reliant on execution of other areas of business outside your control (support, marketing, pricing, etc). I can do the same project for 2 companies - one will struggle to get any value from it, another will get millions.
- BjoernKW 8y agoI get your point. However, is a client who tries to play down the value you create for them really the right client? If what I can contribute has so little value to the client why would they need my services in the first place? As for vastly different execution on the client's part: Yes, that's why it's a value projection and not a revenue or profit share model.