About Kaagaz
Don’t use paper. Use Kaagaz.
Billing for creative agencies is hella complicated. Broadly the models are as follows:

FTE - Pricing models: Used popularly in BPO / Bodyshops. Essentially your project is staffed with x FTE (Full-time employees) and you are paying for their time. ie. x* (8 hours a day, 5 days a week + overtime) * y. [y = hourly price based on annual payout + agency margins].

Flat priced project based models. Billing occurs in 2-4 phases based on deliverables divided at a pre-defined cost per phase.

Retainer models. Client pays a monthly retainer + additional expenses in the form of projects/deliverables at a pre-defined cost per item.

Performance based pricing. Your payout is a base payout + a predefined % of base which is based on the performance of the deliverable. the % is a step function based on performance.

Value based models. This is either a cash or equity based payout as per the long term performance of a delivery. This is based on pre defined KPI goals and payouts can take years.

Hourly pricing. The client pays an hourly price for each resource that is allocated on the project. This rate is varied based on seniority of the resource and skill being delivered. (eg. jr. design vs. senior application developer).

The whole process is too opaque and data plays no part in these calculations and estimates are often gut based.

Pricing is often radically different for a "startup with potential" vs "an industrial stalwart ie. cash cow".

Our aim was to pick out the the best aspects from each model and define our own.