Engagement models and payments

Engagement models and payments Link to heading

To save time in the early stage, here’s a concise overview of common ways we work (consulting, development, training, and support) and typical payment structures.

Note: this does not replace a proposal. After a discovery call we’ll recommend the best model and define a clear scope and deliverables.

  • Discovery Sprint (fixed) → Implementation T&M with cap → Support retainer
  • Milestone-based fixed price + changes via T&M (change requests)
  • Course/workshop (fixed) + monthly mentorship (subscription)
  • Performance optimization (base + gainshare) when savings are measurable

1) Technical consulting Link to heading

A) Time & Materials (T&M) Link to heading

  • Payment: hourly/daily/weekly (rate × time).
  • When it fits: scope is not fully defined or changes frequently.
  • Common variants:
    • Prepaid bundle of X hours/month + weekly reporting.
    • Biweekly/monthly invoicing with an agreed cap (“not to exceed”).
    • Different rates: normal vs urgent (SLA).

B) Monthly retainer (ongoing advisory) Link to heading

  • Payment: fixed monthly fee for availability + a monthly hours limit (or on-call retainer + hours billed separately).
  • When it fits: teams that want an “external CTO” / continuous guidance.
  • Typical structures:
    • “X included hours + additional hours at a discount or surcharge”.
    • “Availability + SLA (e.g., response within 24h)”.

C) Fixed-scope diagnostic / audit Link to heading

  • Payment: fixed price for a clearly defined deliverable (e.g., architecture or performance audit).
  • Typical deliverables: report, prioritized recommendations, roadmap, risks, quick wins.
  • Suggested payment split: 40% start / 40% draft delivery / 20% final delivery.

2) Training (courses, workshops, mentorship) Link to heading

A) Fixed-price course (cohort) Link to heading

  • Payment: per course (per group) or per participant.
  • Common terms:
    • 50% to reserve / 50% before starting.
    • Cohort pricing with max attendees; extra fee for additional attendees.

B) Mentorship program (subscription) Link to heading

  • Payment: monthly fee for mentorship + reviews (e.g., 4 sessions/month + PR/architecture reviews).
  • Best for: teams adopting a new technology (Rust, Kubernetes, performance, etc.).

C) In-company workshop (day rate) Link to heading

  • Payment: daily rate + travel expenses if applicable.
  • Useful clauses: 1-day minimum; cancellation with X days notice.

3) Custom software development Link to heading

A) Fixed price (fixed scope) Link to heading

  • Payment: milestone-based.
  • When it fits: scope is stable and the client accepts a formal change process.
  • Recommended milestones:
    • Discovery and design (20–30%)
    • MVP (30–40%)
    • Final delivery + stabilization (30–40%)
    • Short warranty (included) or support as a separate retainer

B) T&M with budget guardrails Link to heading

  • Payment: time-based, with a “not to exceed” budget and regular checkpoints.
  • When it fits: uncertainty in integrations, performance constraints, incomplete data.

C) Sprint packs Link to heading

  • Payment: fixed price per sprint (1–2 weeks), negotiated backlog.
  • Benefit: clients buy capacity and see fast progress.

D) Unit pricing (per deliverable) Link to heading

  • Payment: per agreed “unit” (endpoint, integration, dashboard, module).
  • Risk: requires a very clear definition of a “unit”.

4) Outcome-based models (case by case) Link to heading

A) Success fee Link to heading

  • Payment: base (T&M or fixed) + bonus tied to KPIs (latency, costs, conversion, etc.).
  • Key: measurable KPIs, baseline, measurement method, and exclusions.

B) Gainshare Link to heading

  • Payment: % of realized savings (e.g., cloud cost reduction) for X months.
  • Best for: performance/cost optimization when savings are clear and auditable.

5) Support and continuity (post-delivery) Link to heading

A) Tiered support plans Link to heading

  • Payment: monthly.
  • Common differentiators: hours, response times, channel (email/Slack), on-call coverage, patches.

B) Maintenance hour bundles Link to heading

  • Payment: monthly/quarterly prepay.
  • Good practice: partial expiration to prevent infinite accumulation.

Simple clauses that prevent headaches Link to heading

  • Advance payment to reserve capacity.
  • Acceptance criteria per milestone defined in writing.
  • Change management: scope changes imply cost/time changes.
  • IP ownership: bespoke work (client) vs reusable components (SIMYL).
  • Confidentiality (NDA) and portfolio usage only if allowed.
  • Late payment terms and work suspension for overdue invoices.