FAQs

Engagement Models & Contracts

What is Strike Labs' engagement model?

Our engagements are governed by a Master Service Agreement (MSA), which covers all legalities. Under the MSA, individual Statements of Work (SOWs) define the specific work, timing, and pricing. Each SOW is designed to clarify the scope and deliverables.

Why choose a fixed-fee SOW with a performance factor?

There are a few reasons for this approach:

1. Efficiency and Expertise: We pride ourselves on being extremely efficient—often 10x faster than others in the industry. If you were to compare our effective hourly rate, it might seem like $2,000/hour compared to the typical $200/hour, simply because we achieve in one hour what might take others ten.

2. Alignment of Interests: Hourly billing tends to misalign incentives. When people are paid per hour, there’s often a tendency to do just enough to avoid getting fired, as they’re financially rewarded the longer something takes. This creates a misalignment of interests, which we find unacceptable.

3. Fair Value for Both Sides: Fixed fees ensure you pay for the value delivered, not the time spent. You get the results you need, and we get compensated fairly for our expertise.

4. Motivation and Timeliness: The performance factor incentivizes us to work efficiently and with urgency. It ensures we stay focused, preventing delays similar to a general contractor who disappears for months without completing the final touches.

This model keeps everyone’s interests aligned: you get quality work delivered on time, and we stay motivated to achieve the best results as quickly as possible.

How do fixed-fee SOWs work?

Strike Labs proposes fixed-fee SOWs based on a defined number of user stories, a set price, and a targeted completion date. The client completes and executes the SOW by adding their chosen performance factor (5%, 10%, 15%, or 20%). Once the work is completed, the client has full control and determines when the project is complete. This approach ensures transparency and client satisfaction.

What is Strike Labs’ process for working with clients?

Our process is designed to be dynamic and transparent:

1. Master Service Agreement (MSA): We establish the foundational contract.

2. Statement of Work (SOW): Defines project scope, timeline, and cost.

3. Agile Development: We work iteratively, with regular feedback and updates.

4. Quality Assurance & Deployment: Ensures a smooth, reliable launch.

5. Completion & Acknowledgment: After you approve the final product, we invoice for the completed SOW.

Additionally, we offer a 30-day tweak period for post-deployment adjustments.

Does Strike Labs conduct regular weekly meetings?

Yes, we’re open to weekly meetings, but we generally work at a faster pace than standard weekly sprints. We maintain active communication with the client, talking a few times a week and sending quick updates or questions via text message throughout the week. This approach keeps the project moving rapidly while ensuring you’re always in the loop.

What happens after the majority of the work is complete?

Typically, clients transition to a monthly servicing contract after most of the work is finished. This arrangement maintains the software, addresses minor enhancements, and ensures smooth operation. Larger, more intensive enhancements are handled under separate SOWs.

What kind of projects does Strike Labs take on?

We work with a select number of clients at a time, focusing on those we trust to maintain integrity throughout the project. Given that clients can revoke our permissions and claim incomplete work, we prioritize relationships built on mutual respect and trust.

How are performance bonuses handled?

We generally achieve the performance bonus about half of the time, reflecting our commitment to exceeding client expectations within defined project timelines and deliverables.

How do clients budget for a performance factor?

Clients must budget accordingly when entering a fixed-fee SOW with Strike Labs. For example, if an SOW is $200k with a 20% performance factor, the client will need to pay $240k if completed before the threshold, $200k if completed on the threshold, and $160k if completed after the threshold. Clients should ensure they have sufficient funds to cover the performance factor, as they are legally obligated to pay it if reached. Similarly, Strike Labs is legally bound to apply the discount if the work is completed late.

What happens if a client doesn't pay within the agreed terms?

Payment is due exactly as defined in the contract. If a client has a standard practice of paying later than the agreed-upon terms—such as 30 days instead of the 5 business days stated in the invoice—they are in breach of the contract. This damages the relationship, as it indicates a failure to honor the legal agreement. If we cannot operate in accordance with the terms we’ve all agreed to, there is no foundation for maintaining a business relationship.

What are the alternative collaboration models offered by Strike Labs?
We understand that different projects require different approaches. Here are two flexible models we offer:

1. Be Our First Client: We build a unique solution for your needs, you purchase it, and we retain the IP. This is cost-effective and includes ongoing support via a Service Level Agreement (SLA).

2. Joint Venture Partnership: We develop a product together, with you leading sales efforts. Strike Labs retains the IP and recoups development costs from future revenue, with profits split thereafter. Ideal for companies exploring new markets or limited by budget constraints.

These models ensure adaptable, creative collaboration that aligns with your goals.