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Old 06-30-2010
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Default Need Advice on how to bill
I have a fairly new client, and we have been going back and forth on the billing. NOT BAD.....we are just trying to find an agreement that works for both of us. I am taking calls for him, and although I am here for the hours that he needs regardless, I don't always take calls all day long. I need to figure out what will work as far as:

1. bill per call
2. bill for a block of hours
3. bill straight hourly

The problem is that like I said, I am here and available, but don't think it is entirely fair for me to bill him for a full 8 hours a day when technically I am not "working". AHHH!! suggestions are welcome.
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Old 06-30-2010
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Default Re: Need Advice on how to bill
How about bill per call in specific increments? e.g. the average call takes 5 minutes, bill 5 minutes minimum per call and if the call extends over 5 minutes (say 7) you would bill for 10 minutes, if the call took 12 minutes, you would bill for 15, etc.
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Old 06-30-2010
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Default Re: Need Advice on how to bill
I wish I had a cut-n-dry answer for you.

Your #1 could be an accounting and time record issue if you answer many calls.

Your #2 could be more manageable if you bill for X amount of hours regardless of how many calls you take. Although this would guarantee a regular billing amount would this be 'true' billing? Should you be paid the same for taking 1 call per hour vs payment for 20 calls received in the same hour?

Your #3 is really ideal for you but not necessarily for the client. But I feel that if you are committing yourself to X amount of hours per day to work for the client, in any capacity, then you should be compensated for your time.

You could also limit the time you answer calls say, for 3 hours a day and bill per call as Lily mentions in 5 minute increments. That is doable as well.

Much would depend upon the volume of calls you would receive and if you feel your other work will suffer (or not) for being available for phone calls while handling your other clients' workload.

Have you considered using Ring Central (if you don't already) and set up a separate line for the client? The calls can go to voice mail and then when you are ready, log onto the messages, return the calls and bill for the entire time in one 'clump' spent using the phone.

Good Luck!

Janine
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Old 06-30-2010
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Default Re: Need Advice on how to bill
I would charge a flat fee upfront for being available for the calls each day and then bill for the time spent on the calls.

If you're using a service like Ring Central, you can check the calls at the end of the day or week and add the time actually spent on the calls.
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Old 06-30-2010
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Default Re: Need Advice on how to bill
There needs to be a happy medium between only being paid for the calls you take vs. sitting at home 8 hours waiting for the phone to ring. If the client wants you available the full 8 hours, then you should be compensated accordingly.
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Old 07-01-2010
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Default Re: Need Advice on how to bill
I agree with Balancing Act - charge something for the service of being there for the client - that is the service he's buying. It creates an obligation for you - it puts a demand on your time and location. It's kind of like a retainer. It's fair. Then charge per call, based on your time/hourly. I would say he's buying the service of "you answering calls" if the calls were within a specific, short time frame, like 8-10 everyday. But if he is expecting you to be available during a full work day to take random calls, then you should charge for that availability. I have an example of this - I was a unix system administrator, on call 7x24, I got a flat amount above and beyond any actual work I did just for being on call - whether or not any calls came in.
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Old 07-01-2010
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Default Re: Need Advice on how to bill
I am curious to hear what kind of 'formula' you would use to come up with the flat fee for just the 'availability'. It sounds totally fair to me. Just not sure how I would calculate it.
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Old 07-03-2010
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Default Re: Need Advice on how to bill
I would totally go with a flat fee. You have to be there so you have to get paid for that.
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Old 07-04-2010
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Default Re: Need Advice on how to bill
The way I look at it is, you're on-call for your client you need to be compensated for that - usually a flat rate or reduced per hour rate. This is charged whether or not you answer any calls. The charge a per call rate based on the average length of the calls based on the others suggestion or you could charge a rate for a call that is under 5 minutes, another rate for a call 5 to 10 minutes, etc....

Or simply charge your regular rate when you take a call and bill accordingly, but definitely include an "on-call" rate, you're there for the client and doing a service for the client.

This is a service I don't offer my clients just for this reason and when I do have clients request this service I usually refer them to CallRuby which is an answering service that works as receptionists, their pricing is reasonable.
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