When I first started out in the business world—working out of San Diego with just a partner and a laptop—I didn’t think much about contracts beyond the basics. You provided a service, you got paid, and that was the end of the story. Back then, simple, one-size-fits-all agreements got the job done. But times have changed. Clients expect more, industries are more complex, and entrepreneurs—especially those of us in service-based fields—need to think more strategically about how we structure deals.

Over the years, whether it was in health insurance, marketing consulting, or real estate development, I’ve learned that how you contract your services is just as important as the services you deliver. Contracting isn’t just paperwork—it’s the foundation of your revenue, your client relationships, and your ability to grow in a sustainable way.

Rethinking the Traditional Model

The traditional model most service providers follow is simple: deliver a service, get paid once, and maybe hope for a follow-up project down the line. That’s fine if you’re focused on short-term wins. But if you want to build recurring revenue, long-term partnerships, and more predictable growth, you need a smarter approach.

At MAIS Consulting, and in other businesses I’ve led, I’ve moved toward what I call “Contracting 2.0.” This is a more flexible, value-based, and forward-thinking approach to deal structures. It moves away from charging purely by the hour or per project and leans into partnerships that reward performance, long-term results, and strategic alignment. It’s not about locking clients in—it’s about building agreements that work for both sides over the long haul.

Building Around Value, Not Just Time

One of the biggest shifts I made early on was moving away from billing by the hour. When you charge for time, your income is capped by your availability. Worse, it puts you and the client in a race against the clock—“How fast can you finish?” instead of “How much impact can you make?”

Instead, I started pricing based on outcomes. For example, in the lead generation and digital marketing space, I’ve worked with clients on performance-based models, where we share in the results—whether it’s qualified leads, conversions, or new business. In these situations, we’re truly aligned. The client knows I’m not just showing up for a paycheck, and I know that when I help them win, I win too.

This also encourages innovation. When you’re tied to results instead of hours, you find faster, better ways to do things. You start solving problems instead of simply fulfilling tasks. That shift in mindset is what separates contractors from strategic partners.

Creating Hybrid Agreements

In today’s world, businesses are dealing with multiple overlapping needs—marketing, compliance, real estate, insurance, and so on. That’s why I’ve become a big advocate of hybrid agreements. These are contracts that combine multiple services or outcomes into one cohesive structure.

For example, with some of the clients I advise through Iyer CRSI, a contract might involve both consulting on their insurance strategy and helping them evaluate property investments. Instead of writing up two different deals, we create one smart agreement that ties everything together and outlines what success looks like in a holistic way.

These types of agreements require clear communication and strong planning, but they create better results. Clients aren’t forced to juggle five different vendors. And from my side, I can look at their situation from a full 360-degree view and offer solutions that actually work together.

The Role of Flexibility and Exit Planning

Another aspect of Contracting 2.0 is recognizing that not all deals need to last forever—and that’s okay. Good contracts give both parties room to grow, adapt, or even exit if things change. I’ve seen too many service-based entrepreneurs sign rigid contracts that box them in or lead to resentment when things don’t evolve the way they expected.

Instead, I recommend building in flexibility from the start. This could mean milestone check-ins, phased deliverables, or clearly defined exit clauses. The key is clarity—both parties should know what success looks like, what happens if priorities shift, and how the relationship can evolve without conflict.

This kind of structure has been crucial in both my business ventures and nonprofit work—especially with 4-Humans.org, where we’re often working with evolving partnerships and cause-based collaborations. Having flexible but thoughtful contracts helps everyone stay aligned while also making space for change.

Making Contracting Part of Your Growth Strategy

For service-based entrepreneurs, your contracts should do more than protect you—they should position you for growth. When you structure deals around recurring value, long-term collaboration, and measurable outcomes, you create stability in your revenue and confidence in your operations.

I always tell newer entrepreneurs: don’t think of contracts as paperwork. Think of them as business plans in disguise. They outline not just what you’re doing—but where you’re going, how you’ll get there, and how everyone involved benefits along the way.

At this point in my career, whether I’m working with a private client, a business, or building out a new consulting arm, I put a lot of time and intention into how the deal is structured. Because I’ve learned that a great idea can fall apart with a bad contract—and even a simple service can flourish with the right one.

As more businesses turn to consultants and service providers to help them navigate complexity, the ones who will stand out are those who bring clarity and creativity to their deal structures. Contracting 2.0 isn’t about reinventing the wheel—it’s about taking everything you’ve learned and building smarter, stronger partnerships.

In a world that’s moving faster than ever, those partnerships are what will carry your business forward. And the right contract is where that partnership begins.