As a freelancer I think overall, clients prefer fixed prices over hourly rates. I take this approach, if project takes less than 10h I bill per hour otherwise I offer different packages and add-ons. Say client wants a fairly big responsive site with WordPress backend etc:
---- Essential ----
* Basic site (static, up to 5 pages)
* 8 extra pages
* WordPress + Blog
* Mobile/Responsive Layout
* Social Media Integration
* Usability, feedback by professionals
* Basic SEO
---- Additional ----
* Maintenance 24/7
* Setup server and domain
These packages have a fixed price that has been pre-estimated in hours. Obviously not every project is them same, so sometimes you work more and sometimes less that what was quoted. For out of the ordinary features such as complex grids, user profiles or highly dynamic sites I estimate the extra work in hours as well and add it to the total cost.
Then I divide the project in 3 milestones: Pre-Production, Production and Post-Production. A 25% deposit must be payed after signing the contract, another 25% after Pre-Production and the rest on completion. The contact also clearly states that any major changes in layout, design or content after the Pre-Production phase will be quoted extra.
This has been working for me over the years. Clients seem happy with the process.
A word of advice. Never, ever set yourself up for this if you're a solo freelancer, unless there's 3 of you (or at a pinch 2).
The time the client needs this will be when you're a) on an airplane b) in bed with the flu c) on holiday d) having a romantic evening/weekend with your other half.
Nice money and the client likes it, but you have signed away your entire life in exchange.
Maintenance is a monthly fee, forgot to mention that. Sometimes clients do call in unfortunate situations, but they pay for that privilege. All additional services are opt-in.
Then I divide the project in 3 milestones: Pre-Production, Production and Post-Production. A 25% deposit must be payed after signing the contract, another 25% after Pre-Production and the rest on completion. The contact also clearly states that any major changes in layout, design or content after the Pre-Production phase will be quoted extra.
This has been working for me over the years. Clients seem happy with the process.