About Kaagaz
Don’t use paper. Use Kaagaz.
We're now at a little more than 175 clients, it's been a humbling experience.

Most importantly we have a ton of data we can call our own (no more Google / Quora searches) #winning.

Thus far we have been billing our clients 40 hours at a time and then pegging their rates for 6 months in a pre paid credit system. Business Model 0.1 (Mishti Doi).

The reason this wasn't working with some of our larger clients is because they preferred monthly invoices, which is fair given the levels of clearance some of these companies have.

Since our Principal's compensation is pegged to the client's hourly pricing, once we pegged a client for 6 months to a price, we essentially pegged our Principals to a cost as well. That too for 6 months. This was demotivating for them.

The new Business Model 0.2 (Sandesh), We want to experiment with is as follows:

For any new client we bill them for 40 hours at the hourly pricing for that month. From the 40 hours we keep 20 in reserve for the entirety of the engagement and 20 as credit for that month. We then simply bill automatically on a monthly basis.

Eg. Let's say a new client signs up on Sept 1, they have 20 hours as credit and 20 hours as reserve. During the month of Sept they use 30 hours. End of Sept they would be billed for 10 hours (as they have 20 hours in credit) at September's monthly rate. The 20 hours in reserve remain.

In the month of Oct. if the same client uses 6 hours they will be billed for 6 hours at October's monthly rate at the end of the month. The 20 hours are still in reserve and can be applied on the final month's invoice or refunded back at the end of the engagement.

These monthly invoices are sent automatically by Acht.

If the invoice isn't received on time Acht (our bot) automatically shuts down client access to the slack channels. Work still proceeds, but these hours are used from reserve and refilled with the end of month invoice.

Acht pushes out a weekly usage of hours on the channel automatically every Monday morning. This way our client has clarity of usage patterns.

Although we are still testing this model, we like it thus far as do our clients. This new model helps us slowly push towards our goal of creativity as a utility. Should be interesting. (ps: If you haven't noticed yet, we are naming our models after Bengali Sweets :)