Time’s Up. Why The Billable Hour Is Dead.

It was never a good idea in the first place. But now it's not even a choice.

The old agency model—charging clients for every minute spent—is officially out of sync with today’s fast-paced, tech-driven world. Selling time might have made sense in the past (I actually never thought it did). But in the age of AI, automation, and digital acceleration, it’s no longer a winning formula.

Time works well for measuring your costs, but not as a measurement of effort or value. As long as we pay salaries to employees based on “time spent”, rather than outcomes, time is our most accurate yard stick for costs. It still makes sense to measure time spent by employees on a project, because that way we can measure our profitability. But pricing based on time, that never made sense as clients wanted agencies to use as little time as possible on work, while agencies got paid more the longer projects took to complete. Misaligned motives never tend to work out in the long run.

But recent changes in technology, AI in particular, will likely mean that our industry needs to wave goodbye to time-based billing.

Here’s Why:

• With rising automation and AI tools handling routine tasks faster and cheaper, clients aren’t buying hours—they’re buying results that lead to business growth. Paying for time means paying for processes that can be streamlined or mechanized. And most tasks that can be measured in terms of cost of input vs. value of output will be done by AI and robots. Creative work is not like flipping hamburgers, after all.

• Outcomes build trust; clock-watching breeds doubt: Clients want certainty—clear deliverables that move the needle. When agencies bill for time, clients obsess over timesheets and legitimacy rather than results. This undermines trust and long-term partnership.

• Innovation thrives outside the hourly cage: Charging for outcomes frees agencies to innovate, experiment, and customize solutions without watching the clock. It cultivates creativity by shifting focus from “billable hours” to meaningful impact.

• AI accelerates the shift: Tech advances mean faster turnaround and smarter workflows. If agencies insist on time-based billing, clients will wonder if they’re paying a premium for efficiency gains they’re not benefiting from. Outcome-based pricing aligns with today’s capabilities and client expectations.

The Future of Agency Billing: Charge for What Counts

To stay competitive in the AI and tech revolution, agencies must pivot to models based on tangible results and measurable impact. That means:

• Offering packages and productized services tied to specific business outcomes (e.g., lead growth, brand engagement, conversion rates).

• Creating transparent success metrics clients can understand and trust

• Building long-term partnerships based on aligned goals—not just deliverables

• Embracing agility, creativity, and tech to exceed expectations within value-driven frameworks

Bottom line: Selling time is yesterday’s formula. Today, agencies that sell trustworthy outcomes are the ones winning clients, loyalty, and growth. It’s time to reinvent your pricing — and show clients you’re not just renting your hours, but investing in their future.

I’ve been preaching productization since I transformed my brand consultancy and sold mostly service products and made 45% net profit margins in my multi-seven figure business.

I never looked back.

psst. We can help you productize your offering and bring it to market really fast. We have a program called Beta™ for this, and more than 100 creative entrepreneurs have already productized with us.

It's included in the Original Minds membership, and can also be purchased directly from The Simple Company - our sister company.