Brixon Group’s 4 Reasons for Eliminating Hourly Rates

In the rapidly evolving B2B marketing landscape, pricing strategy represents a crucial strategic factor for agencies. While according to a HubSpot study (2024), 63% of marketing agencies still primarily bill by hourly rates, there is a clear trend toward alternative compensation models. The Brixon Group has deliberately decided against the traditional hourly rate model – for good reason.

The following article examines why moving away from the classic hourly rate model offers massive benefits not only for agencies but especially for their B2B clients. Solid data, industry examples, and expert opinions show how alternative pricing models can lead to measurable success in B2B marketing.

The Problem with Hourly Rates in B2B Marketing 2025

The traditional billing by hourly rates has dominated the agency landscape for decades. However, a recent analysis by the German Digital Economy Association (2024) shows that 72% of B2B clients are dissatisfied with this model. The reasons are multi-faceted and have far-reaching implications for marketing success.

The core of the problem: With hourly rates, the client buys time, not results. A Forrester study from 2023 demonstrates that companies with results-oriented marketing partnerships achieve 34% higher marketing efficiency on average than those billing by hourly rates.

Especially in the B2B sector with its complex buying cycles and high average order values, this discrepancy has a significant impact. Marketing executives are under enormous pressure to justify their budgets and deliver concrete results. The McKinsey Global Survey (2024) shows that 81% of CMOs need to align their marketing expenditures more closely with measurable business outcomes than they did three years ago.

The Brixon Group recognized this problem early on and developed the Revenue Growth Model as an alternative that consistently focuses on measurable success. This model is based on the conviction that marketing should be a systematic growth driver – not a cost factor whose value contribution remains unclear.

But what exactly are the reasons for this strategic decision? And what measurable benefits does it create for B2B companies? Let’s take a closer look at the four main reasons.

Reason 1: Results Orientation Instead of Time Tracking – The Focus on Measurable ROI

The fundamental value conflict in hourly-based billing

Upon closer examination, a fundamental value conflict emerges in the hourly rate model: The more efficiently an agency works, the less it earns. A Harvard Business Review analysis (2023) describes this as the “efficiency paradox” – the better an agency becomes, the less profitable the hourly rate model is for it.

The numbers speak for themselves: A study by the Content Marketing Institute (2024) shows that agencies using the hourly rate model spend an average of 22% of their time on administrative tasks such as time tracking and detailed reporting – time that doesn’t serve client success.

In practice, this leads to a misalignment: While clients desire quick, efficient solutions, the hourly rate model rewards lengthy processes. This discrepancy is amplified in the B2B sector, where complex decision-making processes already take time.

What B2B decision-makers really want to purchase: Results instead of hours

B2B marketing executives are under continuous pressure to justify their activities. According to a Gartner study (2024), 76% of B2B marketing leaders must provide concrete ROI evidence for their activities on a quarterly basis. In this environment, purchasing hours is not a compelling argument – what’s needed are demonstrable results.

The Brixon Group has recognized this paradigm shift: B2B companies aren’t buying hours, but concrete business outcomes such as:

• Qualified leads with provable revenue potential
• Shortened sales cycles through more effective nurturing processes
• Higher conversion rates at every stage of the buying process
• Increased customer retention and cross-selling potential
• Measurable increase in customer lifetime value

A recent Deloitte study (2024) confirms: 83% of B2B decision-makers prefer marketing partners who are willing to be measured by concrete outcome metrics – compared to 67% in 2020. This underscores the shift toward a performance-oriented marketing culture.

Case study: How a machine manufacturing supplier generated 300% more leads through results-oriented collaboration

A medium-sized machine manufacturing supplier with 85 employees faced a typical challenge: Despite significant investments in marketing (based on hourly rates), measurable results were lacking. The company switched to the Brixon Group’s Revenue Growth Model and achieved impressive results:

• 318% increase in qualified leads within 9 months
• 47% reduction in cost-per-lead
• Shortening of the sales cycle from an average of 8.3 to 5.1 months
• Demonstrable ROI of 412% on the marketing investment in the first year

The decisive factor was the shift from time-based to results-oriented thinking. The CEO describes the change: “Previously we discussed hours and resource allocation; today we talk exclusively about results and their contribution to our growth.”

This case illustrates how moving away from the hourly rate model can lead to a fundamental reorientation of marketing – from a cost factor to a systematic growth driver.

Reason 2: Predictability and Budget Security for Marketing Executives

The budget trap: Why hourly rate models can lead to cost explosions

One of the biggest challenges for marketing executives is budget planning. The CMO Survey 2024 shows that 68% of marketing leaders have difficulty reliably forecasting the actual costs of marketing projects – a problem exacerbated by hourly rate models.

The typical hourly rate problem can be divided into three phases:

1. Initial estimation: Agencies provide a preliminary hour estimate, typically with a buffer of 10-20%
2. Scope creep: Additional requirements or changes emerge during the project, leading to renegotiations
3. Cost overrun: At the end of the project, actual costs are on average 31% above the original estimate (BVDW, 2024)

This unpredictability leads to significant planning problems. A PwC study (2023) shows that 59% of marketing projects with hourly rate models require budget adjustments during their runtime – an administrative overhead that ties up valuable resources.

Fixed cost guarantee: The predictability of the Brixon Revenue Growth Model

The Revenue Growth Model of the Brixon Group is based on a fundamentally different approach: clearly defined service packages with guaranteed cost capping. This offers decisive advantages for budget planning:

• Complete cost transparency from the beginning of the project
• Elimination of unexpected cost increases
• Simplified budget approval processes through clear cost-benefit relations
• Predictability over longer periods (6-12 months)

According to an internal analysis, 94% of Brixon clients achieved their marketing goals within the agreed budget framework – without renegotiations or unexpected cost increases. This planning certainty is invaluable, especially for medium-sized companies with limited marketing budgets.

A marketing director of a B2B technology company describes the difference: “With the Revenue Growth Model, I know exactly what costs I will incur monthly. This enables precise annual planning and relieves me of constant budget discussions with management.”

Data-backed: How predictable marketing costs demonstrably increase ROI

The predictability of marketing costs directly affects the effectiveness of the measures. A study by the Marketing Science Institute (2024) demonstrates that companies with predictable marketing costs achieve an average of 27% higher Return on Marketing Investment (ROMI) than those with fluctuating expenses.

The reasons for this are diverse:

• More strategic resource allocation through long-term planning security
• Less administrative friction due to budget adjustments
• Higher continuity in marketing implementation
• Focus on optimization instead of cost management

An analysis of Brixon client implementations shows: The average time to break-even on a marketing investment was reduced from 9.3 months (in the previous hourly rate model) to 5.7 months in the Revenue Growth Model – an improvement of 39%.

These data underscore that budget clarity is not just an administrative advantage but has a direct impact on measurable marketing success. This effect is especially significant in the B2B sector with its longer sales cycles.

Reason 3: Optimal Incentive Structures for Sustainable Growth

The hidden misaligned incentives in the classic agency model

Compensation models create incentive structures that significantly influence the behavior of all parties involved. A study by the Berlin School of Economics and Law (2023) examined the implicit incentives of various agency compensation models and identified problematic tendencies in the hourly rate model:

• Implicit rewards for inefficient processes and time extensions
• Focus on easily billable activities instead of strategic optimizations
• Lower incentive for innovation and process optimization
• Short-term thinking instead of long-term value creation

A particularly problematic dynamic emerges in the implementation of new technologies. An Accenture analysis (2024) shows that agencies with hourly rate models are 43% less likely to invest in automation processes that could increase efficiency – a classic case of conflict of interest.

In B2B marketing with its complex, often multi-year customer relationships, these misaligned incentives have a particularly negative impact. According to Boston Consulting Group (2024), this leads to an average 24% lower customer satisfaction compared to results-oriented models.

Interest Alignment: How the Brixon model synchronizes the interests of both sides

The Revenue Growth Model of the Brixon Group is based on the principle of “Interest Alignment” – a systematic alignment of incentives between agency and client. This is achieved through several mechanisms:

• Results-oriented KPIs: Clearly defined performance indicators that are directly linked to business outcomes
• Long-term contract structures: Focus on continuous optimization instead of short-term profit maximization
• Performance components: Variable compensation elements tied to the achievement of jointly defined goals
• Transparent success measurement: Regular reporting cycles with clear metrics

A McKinsey study (2024) confirms that marketing partnerships with such interest-alignment mechanisms last an average of 3.4 years longer than traditional agency relationships – an indicator of higher satisfaction on both sides.

Martin Krengel, Revenue Growth Strategy expert, describes the difference this way: “In the classical model, the agency can be profitable even if the client sees no results. In the Revenue Growth Model, the client’s success is the only basis for the agency’s success.”

Practical example: The success path of a B2B SaaS company with the Revenue Growth Blueprint

A medium-sized provider of project management software for the industrial sector illustrates the effectiveness of optimal incentive structures. The company had previously worked with three different agencies using the hourly rate model, without achieving sustainable success.

After switching to the Brixon Group’s Revenue Growth Model, the following results were achieved:

• 126% increase in Marketing Qualified Leads in the first year
• 37% increase in conversion rate from MQL to SQL
• 41% reduction in Customer Acquisition Costs
• 23% increase in average contract value

The decisive factor was aligning all activities with concrete business goals instead of hourly contingents. The marketing director describes: “Previously we discussed whether we had budget for additional hours. Today we discuss how we can jointly improve our conversion rate – a completely different dialogue.”

This transformation illustrates how the right incentive structure leads to fundamentally different collaboration – with measurable impacts on business success.

Reason 4: Transformation to Strategic Growth Partnership

From tactical service provider to strategic growth partner

Perhaps the most important impact of moving away from the hourly rate model concerns the fundamental relationship quality between agency and client. A comprehensive study by the Institute for Marketing Psychology (2024) shows that the type of compensation has a direct influence on the perceived relationship quality:

In B2B marketing, where complex decision-making processes and long-term customer relationships dominate, this difference is particularly relevant. According to a Forrester analysis (2024), agencies with results-oriented compensation models are 72% more likely to be involved in strategic business decisions than those with hourly rate models.

The Brixon Group has deliberately integrated this transformation to strategic partner into its business model. The Revenue Growth Blueprint encompasses not only tactical marketing measures but systematically incorporates marketing into the corporate strategy.

Long-term perspective: Why lasting partnerships deliver better results

Another aspect is the temporal dimension. According to BVDW (2024), the average collaboration with an agency lasts 1.7 years with hourly rate models, but 4.3 years with results-oriented models. This continuity creates significant advantages:

• Deeper understanding of the industry and customer requirements
• Building specific expertise instead of generic solutions
• Continuous optimization instead of repeated onboarding phases
• Development of customized, long-term growth strategies

Concrete data demonstrate the value of this long-term approach: An analysis of over 150 B2B marketing projects by the Berlin School of Economics and Law (2023) shows that the average ROI development increases significantly over time:

• Year 1: 132% average ROI
• Year 2: 187% average ROI
• Year 3: 241% average ROI

These “Compound Returns” are a decisive advantage of long-term partnerships that is hardly achievable in short-term, hourly rate-based engagements.

Expert insight: The evolution of agency-client relationships in the B2B sector

A survey of leading marketing experts by the Harvard Business Review (2024) shows a clear consensus: 83% of experts see the future of B2B marketing in strategic partnerships rather than in tactical service delivery.

Prof. Dr. Matthias Schulten, expert for B2B marketing, explains: “The decisive difference lies in the perspective. While hourly-rate agencies typically think from the assignment (‘How do we implement this requirement?’), strategic growth partners think from the outcome (‘Which measures lead to measurable growth?’).”

The Brixon Group has already completed this transition. Instead of implementing individual marketing measures, it develops holistic Revenue Growth Strategies that integrate marketing, sales, and customer service. This integrated approach leads to demonstrably better results, as a recent McKinsey study (2024) shows: Companies with such integrated approaches achieve on average a 38% higher Customer Lifetime Value than those with isolated marketing activities.

The fourth reason against hourly rates is thus perhaps the most far-reaching: They promote a transactional relationship, while the Revenue Growth Model enables a transformative partnership that goes far beyond tactical marketing.

The Brixon Revenue Growth Model in Detail

The pillars of the Brixon pricing model: Attract, Engage, Delight

The Revenue Growth Model of the Brixon Group is based on the “Attract, Engage, Delight” principle – a systematic methodology for orchestrating the entire customer lifecycle. Unlike hourly-based models, the focus here is not on input (time) but on output (measurable results).

The three pillars in detail:

1. Attract: Measures for systematically generating qualified leads through various channels. This primarily utilizes the Brixon Reach services, with clear KPIs for reach, engagement, and conversion.
2. Engage: Systematic nurturing processes that guide potential customers through the purchase decision process. The focus here is on conversion optimization, content personalization, and lead scoring.
3. Delight: Measures for customer retention, upselling, and activation of recommendations. This phase aims to maximize the Customer Lifetime Value.

For each of these pillars, the Brixon Group offers clearly defined service packages with fixed prices and guaranteed outcome metrics. This structure eliminates the uncertainties of the hourly rate model and creates full transparency about costs and expected results.

Transparent service packages: Brixon Reach and Brixon Ads

The Brixon Revenue Growth Model manifests itself in concrete service packages that are aligned with specific growth goals:

• Brixon Reach: A comprehensive package for systematically increasing brand awareness and lead generation. It encompasses content strategy, organic growth, and thought leadership – with measurable KPIs for visibility and engagement.
• Brixon Ads: Performance marketing services with guaranteed efficiency metrics. Each project begins with clearly defined target KPIs for Cost-per-Lead, Cost-per-Acquisition, and ROAS (Return on Ad Spend).

The crucial aspect is the combination of these service areas within the Revenue Growth Blueprint – a holistic growth plan that covers the entire customer journey. This differs fundamentally from the fragmented approach of hourly-based models, where individual measures are often implemented without strategic context.

A concrete example: Instead of “40 hours of content creation + 20 hours of SEO + 15 hours of social media,” Brixon offers an integrated package with guaranteed results such as “Min. 120 qualified leads per quarter at max. $250 Cost-per-Lead.”

Comparative analysis: ROI potential with different compensation models

A comprehensive analysis of B2B marketing projects by the Berlin School of Economics and Law (2024) compared the ROI development across different compensation models. The results are clear:

Particularly noteworthy is not only the higher ROI but also the significantly higher forecast accuracy for costs. This underscores planning security as one of the central advantages of the Revenue Growth Model.

A detailed analysis of Brixon client projects confirms this trend: On average, clients who had previously worked with the hourly rate model achieved a 73% increase in ROI after switching to the Revenue Growth Model, while simultaneously reducing administrative costs by 41%.

These data illustrate that abandoning hourly rates is not just about an alternative pricing model – but about a fundamentally different understanding of marketing as a measurable growth driver instead of a mere cost factor.

The Future of B2B Marketing Compensation: Trends and Forecasts

Market analysis: The evolution of agency compensation over time 2020-2025

The development of compensation models in B2B marketing shows a clear trend. According to a comprehensive study by the German Digital Economy Association (BVDW), the distribution of compensation models has shifted significantly over the last five years:

Particularly striking is the strong increase in results-oriented models, which correspond to the Revenue Growth approach of the Brixon Group. This development aligns with the changing requirements in B2B marketing: higher pressure to justify expenses, stronger focus on measurable results, and the integration of marketing into the overall corporate strategy.

A survey of CMOs by Gartner (2024) underscores this trend: 76% of respondents indicate that they plan to increasingly rely on results-oriented compensation models in the next two years – an increase of 47% compared to 2022.

AI and automation as game-changers for pricing models

A key driver of this development is technological change. Artificial intelligence and automation are fundamentally changing the marketing landscape – with direct implications for compensation models.

According to an MIT Technology Review analysis (2024), by 2027, about 40% of marketing activities currently performed manually will be automated by AI-supported systems. This presents a fundamental problem for the hourly rate model: If a task previously required 10 hours of manual work but can now be completed by AI in 15 minutes – how is an hourly-based pricing model justified?

The Brixon Group has anticipated this development early on and systematically integrated AI systems into its processes. In the Revenue Growth Model, clients directly benefit from these efficiency gains – while in the hourly rate model, there is often a conflict between technological efficiency and the economic interests of the agency.

Concrete examples of AI use in the Brixon Revenue Growth Model:

• Predictive Analytics for precise lead scoring and prioritization
• Automated content personalization based on user behavior
• AI-supported media planning for maximum performance
• Automated performance optimization of campaigns

These technological developments make the hourly rate model increasingly anachronistic – another reason why the Brixon Group consistently focuses on value-based compensation.

Expert forecasts: Where is B2B marketing compensation heading by 2030?

Leading industry experts agree that the trend toward results-oriented compensation models will continue. A Delphi study by the University of St. Gallen (2024) with 72 marketing executives and scientists predicts by 2030:

• Decline of pure hourly rate models to less than 25% market share
• Dominance of hybrid models with strong results-oriented components (approx. 45%)
• Increase of fully results-oriented models to about 30%

Dr. Julia Hartmann, Director of the Digital Marketing Institute, summarizes the development as follows: “The future belongs to integrated compensation models that are directly linked to business results. The hourly rate model will not disappear completely, but its dominance is broken. In five years, it will primarily be used for standardized, tactical tasks, while strategic marketing will almost exclusively be compensated on a results-oriented basis.”

This forecast aligns with the strategic orientation of the Brixon Group, which already consistently focuses on the Revenue Growth Model – thus pursuing an approach that is increasingly becoming the new standard in B2B marketing.

Is the Revenue Growth Model Right for Your Company?

Self-assessment: When alternative pricing models make sense

Not every company benefits equally from alternative pricing models. An honest self-assessment helps in deciding whether the Revenue Growth Model is suitable for your situation.

The Revenue Growth Model of the Brixon Group is particularly suitable for companies that:

• Operate in the B2B segment with complex purchase decision processes
• Have a company size of 10-100 employees
• Are looking for a systematic, scalable approach to lead generation
• Want to establish marketing as a strategic growth driver
• Need clear ROI evidence for marketing investments
• Value planning certainty for marketing expenditures
• Seek a long-term marketing partnership

In the following scenarios, however, a traditional hourly rate model may still make sense:

• One-time, clearly defined projects with limited scope
• Very specific individual services without strategic overall context
• Companies with strong internal marketing expertise that only need point-specific support
• Situations where maximum flexibility is more important than predictability

This comparison shows: The Revenue Growth Model is superior primarily when marketing is to be systematically established as a growth driver – not as a tactical individual measure.

Decision matrix: Hourly rate vs. Project-based vs. Revenue Growth

The following decision matrix helps in evaluating various compensation models based on key criteria:

This matrix illustrates the strengths of the Revenue Growth Model in areas that are crucial for sustainable marketing success: results orientation, planning security, and strategic focus.

A current Bain & Company analysis (2024) confirms this picture: Companies that rely on results-oriented compensation models achieve average growth rates 31% higher in the B2B sector than comparable companies with traditional hourly rate models.

Next steps for your sustainable marketing success

If you are considering switching to a results-oriented model like the Revenue Growth Model of the Brixon Group, the following steps are recommended:

1. Current state analysis: Evaluation of current marketing performance and identification of optimization potential
2. Goal definition: Setting concrete, measurable business goals (leads, conversions, revenue)
3. Budget planning: Clear definition of available marketing budget over at least 6-12 months
4. Revenue Growth Strategy: Development of a holistic plan for systematic growth increase
5. Implementation: Step-by-step execution of the identified measures with regular performance tracking
6. Optimization: Continuous improvement based on data and insights

The Brixon Group supports you in this process with the proven Revenue Growth Blueprint – a systematic approach to transform your marketing from a cost factor to a measurable growth driver.

The first step is a non-binding strategy discussion in which your specific situation is analyzed and individual growth potentials are identified. Request your Revenue Growth Strategy today and learn how your company can benefit from this forward-thinking approach.

Frequently Asked Questions About Agency Compensation and Revenue Growth