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An hourly rate is the industry norm.
There is much debate as to whether remuneration should be linked to the financial benefit derived by the client from the work. However, this would require honesty from the client and perfect information-sharing about the related profits; both of which are unlikely, since it is obviously not always feasible or in the client's best interest. i.e An seo works for 5 hours @ $400 / hour and is paid $2000 by the client. Yet the client derives $1,000,000 as a direct result of the work.
So ... hourly.
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