Billable: Monetization for a freelancer CRM
Billable is a freelancing CRM for designers.
Freelancers and creators often spend more time chasing invoices than doing paid work. Most existing tools are too complex or too expensive for someone managing 1–2 clients.
I wanted to explore how a simple invoicing app could balance usability, trust, and monetization, and how different pricing tiers could shape user behavior and retention.
Market analysis
What’s the potential of this tool?
| Metric | Estimated value | |
|---|---|---|
| TAM | ~ US$ 95 millones/año | Relevant freelancer market in Peru. |
| SAM | ~ US$ 28.6 millones/año | Freelancers working in the digital economy. |
| SOM | ~ US$ 1.4 millones/año | Estimated reach (5% capture) |
Research and Surveys
How much do freelancers actually earn?
Based on 50 answers (designers, marketers, developers):
- 42% earn between S/1500–3000 (≈US$400–800) monthly
- 36% earn between S/3000–6000 (≈US$800–1600)
- 22% earn over S/6000
- 61% reported irregular income from month to month
- 58% said clients pay late at least once
How do they work?
Most are independent professionals with 2–3 clients per month, relying on informal channels (mostly WhatsApp, Instagram, Behance). Few use dedicated CRMs.
Common pains:
- Late or forgotten payments (82%)
- Time wasted chasing invoices (64%)
- Lack of visibility with pending payments(47%)
- No single place to manage clients (52%)
So, Is there a market for a tool like this?
Yes. 76% of respondents said they’d use a tool that helps with invoices + managing clients if it’s simple and of course, affordable (<US$10/month).
Testing Pricing
There are two dominant pricing models in freelancer tools:
- Subscription-based (predictable for the business, rigid for the user)
- Commission-based (flexible for the user, variable for the business)
At first, I assumed a monthly subscription would make sense. But after testing it in early surveys, most freelancers hesitated, mostly because of timing.
“What if I don’t get paid this month? I’ll have to cancel it.”
— Survey respondent
“If this tool could automatically send reminders and track payments, how much would you pay per month?”
| Price range | % willing to pay |
|---|---|
| US$0–5 | 38% |
| US$5–10 | 41% |
| US$10–15 | 14% |
| >US$15 | 7% |
Users expect value at an affordable price.
Most freelancers prefer low-commitment models: per invoice, per client to relieve the pain of irregular finances.
So, what’s the solution?
Adapt. While monthly subscriptions can be troubling, commission based pricing could work for them. However, another problem comes to the table: ROI.
Finding Balance
| Model | Pros | Cons |
|---|---|---|
| Monthly Subscription | Predictable revenue | Doesn’t match freelancer cash flow, low adoption (13%) |
| Quarterly Subscription | Easier to budget, fits project rhythm | Slightly delayed revenue for company |
| Commission-based | Flexible, fair, instant value link | Less predictable, requires tracking infrastructure |
Final Pricing Model
It’s all about flexibility for our target. The Essential subscription introduces value to the user and is a good enough entry point to the tool. The quarterly pro is our ideal plan for our ideal customer: a freelancer who gets variation on their income but ultimately can afford a quarterly plan.
| Essential | Quarterly Pro | ||
|---|---|---|---|
| Price | Free | US$25 / quarter | |
| Ideal for | Students & new freelancers | Freelancers with irregular income cycles | |
| Invoices / month | Up to 2 | Unlimited | |
| Automatic reminders | ✅ | ✅ | |
| Invoice templates | Basic | Custom + branded | |
| Client management | Basic list | Project view | |
| Analytics | — | Income, overdue payments | |
| Reports / Export | — | Quarterly summary (CSV/PDF) | |
| Integrations | — | Stripe, PayPal | |
| Support | Priority email |
There’s also a logic to bundling different features.
Rather than pricing each feature separately, I grouped them into two value bundles:
- Automation bundle (Pro): reminders + analytics + project management → retention driver
- Efficiency bundle (Free): quick invoicing and reminders → awareness driver
Building a Product Our Users Love
The point of the product is to make payments effortless and smooth.
Key design principles:
- Remove friction from invoicing (just email and client name).
- Make invoices feel professional and trustworthy.
- Provide structure without complexity (clients, deadlines, payments in one view).
Core features:
- 2-click invoice creation
- Smart reminders
- Lightweight client management
- Simple analytics to track overdue payments
Conclusions and reflections
“Pricing is a design decision.”
This project helped me understand how pricing, bundling, and usability work together to shape product perception and retention.
Key learnings:
- Pricing must align with cash flow and money habits, perceived value isn’t the only variable.
- Usage-based and quarterly plans can drive retention when tied to user success.
- Bundling can communicate value faster than long feature lists.
- Removing the monthly plan made adoption easier and messaging clearer.