Money is still a sensitive topic, and software development is not an exception. You can have a brilliant product idea, a strong team and clear goals, but the moment you get to “how much will it cost?” things might get blurry. The way to choose the right pricing model is the way of finding a structure that fits your project’s complexity, risk tolerance and pace of change.
That’s because no two software projects are the same. A fintech app that must meet banking regulations is a world apart from a news CMS or a lifestyle startup MVP.
At Lerpal, we work across several models that balance predictability with flexibility, because the most successful partnerships are well-coded as much as well-structured.
What Is A Pricing Model In Software Development?
A pricing model (also called a delivery model or framework as well) defines how your software development process is organized, managed and billed. It’s the foundation of your collaboration with a tech partner: who owns what, how often you communicate, how progress is tracked and how decisions are made when something changes (because something always does).
A ”good fit“ pricing model gives both sides – client and team – the same rhythm. It sets expectations for scope, budget, ownership and communication. The model you choose determines not just the final invoice but also how fast you can iterate, how transparent reporting will be and how easy it is to adapt your roadmap later.
Here are the five main pricing models we use at Lerpal, with their strengths, real-world fit and what makes each work.
White Label Pricing Model
What it is:
In a white label setup, Lerpal becomes your silent partner.
We embed into your team, use your tools and processes, and deliver on your behalf under your brand. From the outside, everything looks as if it was built by your internal team. Inside, it’s a long-term collaboration based on trust, transparency and seamless integration.
Most White label projects start with a concrete request: a specific set of roles to fill or a task that needs to be handled. Then, we align specialists who match your delivery culture and requirements.
Best for:
Agencies, media companies, or tech enterprises that need reliable, scalable delivery capacity without hiring full-time staff or expanding internal infrastructure.
Pros:
– deep integration into your existing processes;
– transparent reporting and time tracking;
– predictable quality and easy scaling;
– zero overhead for recruitment or management.
Why it works:
White label partnerships make sense when your business growth depends on consistent delivery. You keep client relationships and brand control, we ensure your pipeline never slows down. Over time we effectively become an extension of your in-house team.
Time & Material (T&M)
What it is:
The Time & material model is all about flexibility. You pay for the actual time and resources used rather than locking everything upfront. This gives space for iteration: refining features, adjusting scope or testing user feedback mid-way.
The process usually starts with delivery, estimation and planning phase based on your idea or initial specification. The team then works in sprints with continuous updates and clear progress reports.
Best for:
Projects that are evolving: startups validating ideas, scaleups experimenting with features or enterprises running dynamic product development cycles.
Pros:
– high flexibility and adaptability;
– transparent time and cost tracking;
– agile planning and iterative delivery;
– easy team scaling as priorities shift.
Why it works:
Software rarely stays static. The T&M model allows you to respond to change fast – whether it’s a new market requirement or user feedback. You stay in control but without the limits of a rigid contract. Predictable reporting ensures there are no surprises on invoices even when the product evolves.
Staff Augmentation
What it is:
You already have a product and internal team, but you’re missing specific skills or capacity.
Staff augmentation fills those gaps with specialists who join your workflow and contribute directly to your roadmap. They follow your processes, use your tools and communicate daily with your team like they’ve always been there.
Onboarding is quick, with role-based matchmaking ensuring the right technical fit from day one.
Best for:
Companies that have internal project management in place and need to expand capabilities, for example, adding a data engineer, a React developer or a QA lead for a defined period.
Pros:
– direct control and communication;
– fast onboarding and low management overhead;
– flexible contracts and extensions;
– clean knowledge transfer and documentation.
Why it works:
This model lets you scale up (or down) without breaking your internal structure. You retain full ownership and visibility, while we make sure you get top-level specialists who can deliver immediately. Many long-term Lerpal partnerships began with a single augmented role and grew into years of collaboration.
Hybrid Model
What it is:
A combination of the predictability of Staff augmentation and the flexibility of Time & material.
You keep a core, long-term team embedded in your structure while additional specialists join temporarily for specific project phases under T&M terms.
Best for:
Businesses managing several products or departments that require different resource levels over time.
Pros:
– balanced flexibility and control;
– easier scaling and team stability;
– consistent knowledge retention;
– optimized budget management.
Why it works:
Hybrid models combine the best of both worlds. You have a steady base of talent that knows your product plus the freedom to bring in new skills when needed. It’s ideal for long-term partnerships where priorities and workloads evolve but continuity matters.
How To Choose The Right Pricing Model
Before signing anything, ask yourself:
– How clear is your scope right now?
– Are you ready to adjust the roadmap as the market or users shift?
– Do you already have internal PMs, or do you need a fully managed process?
– How important is fixed budgeting versus fast iteration?
– Do you want long-term partnership or short-term delivery?
If you’re building something new and experimental – flexibility wins.
If you’re scaling a stable product – control and consistency may matter more.
And often, the best solution is a hybrid one, evolving as your product does.
Our Final Thought
Choosing the right pricing model is finding out the way you want your partnership to work.
Some companies value predictability, others value agility. The truth is, successful software projects rarely fit neatly into a single framework.
The best model is the one that matches your team’s rhythm, gives visibility into progress and leaves room for learning and iteration.
That’s why, at Lerpal, we don’t just pick a model and lock it in. We build around your reality. Yes, pricing definitely is numbers on paper, but most importantly it’s the architecture of trust.
Ready to discuss which pricing model fits your project? Schedule a consultation!
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