Why Monthly Rates, Not Hourly, Are Ideal for Long-Term Work
If you’re a contractor, service provider, or even an employee working in a long-term agreement, there’s one simple way to keep things clean and fair:
Charge a monthly rate.
One number. One agreement. One steady rhythm.
Not based on hours.
Based on value and a shared understanding of what success looks like.
You and your client (or employer) agree on the outcomes you're aiming for. You both commit to doing the work that matters.
Then you show up and deliver.
As I reflect over 20 years… I’ve hired people and billed based on a number of different ways (hourly, weekly, monthly, fixed project, etc). In retrospect, Monthly has always been the best (from both perspectives) when it’s done fairly and professionally.
Why Monthly Makes Sense
A monthly rate isn’t just clean… it’s smart. It gives predictable cash flow to both sides:
The service provider gets stability and focus, without obsessing over every billable hour.
The buyer gets a clear, steady cost—and an easy way to track whether value is being delivered.
It creates trust through consistency.
But it’s not fixed forever.
Value Changes. So Should the Rate
If it’s clear that the value you’re creating is far greater than what you’re charging, raise your rate. That’s not greed… it’s fair alignment.
If you’re falling short, be honest. Adjust. Re-scope. Or step back.
The monthly rhythm creates space for honest check-ins and smart changes.
Track. Reflect. Stay in Integrity.
Here’s the real differentiator between professionals and everyone else:
You track your time.
You reflect on your work.
Not to justify your rate—
But to stay honest with yourself and clear with your client.
Each week, ask:
What did I actually do?
Where did I create movement?
Where did I lose time or energy?
What was the highest-leverage thing I did?
This isn’t about micromanagement.
It’s about alignment between effort and outcome.
You're not billing by the hour.
But you’re not hiding behind fuzziness either.
Incentives are aligned
For longer term agreements, this monthly rate is a perfect way to ensure incentives are based on results and not the number of hours worked, especially when requirements are fuzzy. In today’s world, most requirements are fuzzy as market conditions shift and the pace of change accelerates.
When service providers are only billing based on hours worked, then what is the incentive for that provider to achieve better results in less time?
There really isn’t.
Ultimately, what any sane business (and provider) wants is better results with less time invested.
The Rhythm That Builds Trust
This monthly rhythm, with weekly reflection, creates:
Trust (through transparency)
Focus (through alignment)
Momentum (through compounding small wins)
Over time, it makes everyone involved sharper.
It makes the value clearer.
It makes the partnership better… for both sides.