The Agency Growth Podcast Understanding Value-Based Pricing for Agencies (ft. Jonathan Stark w/ "Hourly Billing is Nuts") | Episode 189
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Jan 9, 2026 Join Jonathan Stark, a value-pricing advocate and author of 'Hourly Billing is Nuts', as he challenges the norm of hourly billing. He shares his epiphany about the downsides of time tracking and promotes a value-based pricing model that prioritizes client satisfaction. Discover how to uncover client's true value through insightful conversations, the importance of niching for agency success, and creative strategies for transitioning to value pricing. Stark's insights could reshape how agencies think about pricing and profitability.
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Ask Buyers To Reveal Value
- Ask buyers targeted discovery questions to reveal the value the engagement creates for them.
- Use a "why conversation" sales interview to ballpark what it's worth to that buyer.
Productize And Avoid Hour Promises
- Productize your service: publish a fixed-scope offering with clear benefits and a price.
- Avoid promising hours so you can optimize delivery and outcomes instead of time.
Let Price Justify Costs
- If value is high and costs are low, margins become large enough that micro-tracking hours is less useful.
- Price should justify the cost, not the other way around.
