Star Wars Pricing

Ben Obi-Wan Kenobi: Let’s just say we’d like to avoid any Imperial entanglements.

Han Solo: Well, that’s the real trick isn’t it? And it’s going to cost you something extra. (pauses) Ten thousand, all in advance.

Luke Skywalker: Ten thousand? We could almost buy our own ship for that.

Han Solo: But who’s going to fly it kid? You?

Luke Skywalker: You bet I could, I’m not such a bad pilot myself. (starts to get up) We don’t have to sit here and listen…

Ben Obi-Wan Kenobi: We can pay you two thousand now plus fifteen when we reach Alderaan.

Han Solo: Seventeen huh? Ok you guys got yourself a ship. We’ll leave as soon as you’re ready. Docking bay ninety-four

Star Wars: A New Hope

The Star Wars Pricing Model

I’ve been working through a number of startup projects recently. As a non-technical founder, these projects usually end up coming to a spot where we need to discuss how to get an MVP into place – and agencies all want to be there at the beginning, but can’t afford to take the time-adjusted risk of being there at the beginning.

But without getting into the detail of any specific projects, it’s exactly the same scenario as in Star Wars.

What an agency wants: $10k all in advance

A derisked standard transaction and exchange of value, appropriate in a standard world with a well-set brief, a huge amount of research and project planning undertaken before undertaking development, and a contract that works to deliver a known quantity and quality of work to a specific milestone.

What a founder needs: $2k now, $15k when we reach Alderaan

A partner to share the risk, and the upside when the uncertain objective is reached, having navigated past a huge number of unforeseen challenges on the way (including blasting out of a wretched hive of scum and villainy). Of course, that presupposes the destination hasn’t been blown up in the meantime, and the whole team isn’t now on the run for their lives having joined the Rebel Alliance.

And that’s why most agencies don’t usually make sense at the founding stage.