I prefer project based payment to hourly payment. I think project based payment puts the incentives in the right place for everyone. If I finish a project in less time than I think I will, my hourly rate goes up. I also have an incentive to complete the project early, whereas with hourly work, the incentive is to take longer so you can charge more. The project-based customers also know exactly what they’re paying and you won’t surprise them with a higher bill than they expected. The downside, though, is if the project takes longer than I expect. So you probably shouldn’t start out with project pricing and should only move there when you have a handle on how long a project might take, how to set boundaries with client requests, and what your time is worth.