Ways to work together

Engagement models and typical budgets

There is no single right way to buy software development. A clearly defined store or billing system suits a fixed price; an evolving product suits a dedicated developer; a live system suits a monthly retainer.

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Below are the six ways clients work with RED SAG, how each is billed, the honest pros and cons, and typical budgets in rupees, US dollars, pounds, Australian dollars and Canadian dollars.

At a glance

Compare the six models

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Comparison of RED SAG engagement models
ModelTypical budgetBillingScopeYour involvementCost riskCommitment
Fixed-price project₹15,000–24 lakh+ (≈ $200–36,000+)Typical budgets across our published solution pagesPer milestoneFixed; changes quoted separatelyMedium: approve scope, review demosMostly on usOne project
Dedicated developer or team₹65,000–1.7 lakh/month (≈ $1,700–3,500/month)Per full-time developerMonthly per personFlexible; you set prioritiesHigh: you direct the workShared; you control scopeMonthly, with notice
Hourly (time and material)₹450–1,150/hour (≈ $15–30/hour)Hourly ratePer hour, in arrearsOpen; estimate per taskMedium to highMostly on you (use a cap)None beyond the task
Monthly retainer (maintenance and support)₹3,000–25,000/month (≈ $40–350/month)Website and store care plansFixed monthly feeCare tasks + included hoursLowOn us for included tasksMonthly
White-label partnership for agencies₹450–1,150/hour (≈ $15–30/hour)Hourly work₹65,000–1.7 lakh/month (≈ $1,700–3,500/month)Dedicated developerPer project, hour or monthPer briefMedium: you manage the clientDepends on model chosenPer brief or monthly
Paid discovery sprint or pilot₹450–1,150/hour (≈ $15–30/hour)Priced from our hourly rate, quoted as a fixed feeFixed fee, upfrontResearch and specificationHigh for a short timeLow: small, fixed costOne sprint

Indicative ranges, not quotes. Your price is fixed only in a written proposal. Converted amounts are rounded.

Model 1 of 6

Fixed-price project

One agreed scope, one agreed price, paid in milestones.

Best for

  • A first project with us, when you want the cost known before work starts
  • Websites, online stores, billing systems, MVPs and internal tools with a clear feature list
  • Businesses that need a firm number for a budget approval, loan or investor plan

How billing works

We write the scope into the proposal and quote a fixed price. Payments are split across milestones such as kick-off, design sign-off, first working version and go-live. Changes outside the agreed scope are quoted separately, and only go ahead when you approve them.

Pros

  • Cost is known before you commit
  • We carry the risk if the agreed work takes longer than we estimated
  • Milestones tie payments to visible progress

Cons

  • Needs a clear scope up front, which takes time to write
  • Changing direction mid-project means change notes and re-quoting
  • Quotes include a margin for uncertainty
Model 2 of 6

Dedicated developer or team

Full-time people working only on your roadmap, billed monthly.

Best for

  • Startups and product companies with a continuing roadmap rather than one fixed project
  • Teams that already have a product owner or CTO to set priorities
  • Businesses that want to grow capacity without hiring locally

How billing works

A monthly fee per person, depending on seniority and technology. The developer works your priorities, joins your stand-ups during the overlap window and uses your tools. You can scale up or down with a notice period agreed in the contract rather than a long lock-in.

Pros

  • Maximum flexibility: reprioritise every sprint
  • Knowledge of your product builds up in one team
  • Predictable monthly cost

Cons

  • You manage priorities, so it needs someone on your side with time
  • You pay for the time whether or not the backlog is ready
  • Less suited to a single small project
Model 3 of 6

Hourly (time and material)

Pay for the hours actually worked, reported transparently.

Best for

  • Work that is hard to specify in advance, such as fixing or extending an existing codebase
  • Short tasks, integrations and investigations
  • Projects that start small and may grow once you see results

How billing works

We log hours against tasks and share the timesheet with every invoice, usually monthly or at agreed checkpoints. We give an estimate before each piece of work and tell you early if it is going to be exceeded. You can set a monthly cap.

Pros

  • Start quickly without a detailed specification
  • You pay only for work actually done
  • Easy to change direction

Cons

  • Final cost is not fixed in advance
  • Needs regular review of timesheets and priorities
  • Can cost more than fixed price if scope keeps growing
Model 4 of 6

Monthly retainer (maintenance and support)

A fixed monthly fee to keep live software healthy and improving.

Best for

  • Websites, stores and apps that are already live
  • Businesses without their own developer who want someone responsible for updates, backups and fixes
  • Systems affected by outside changes, such as payment gateway API updates, app store rules or tax changes

How billing works

A fixed monthly fee covering routine care (updates, backups, monitoring, security checks) and a set number of hours for fixes and small changes. Work beyond the included hours is billed at the hourly rate or quoted.

Pros

  • Someone is always responsible for your system
  • Problems are caught by monitoring, often before users notice
  • Predictable monthly cost

Cons

  • Included hours are sized per month, so agree how unused hours are handled
  • Large new features are quoted separately
  • Least useful for software that rarely changes
Model 5 of 6

White-label partnership for agencies

We build under your brand and NDA; you keep the client.

Best for

  • Design, marketing and digital agencies without enough developers
  • Freelancers and consultants who win projects bigger than they can build alone
  • IT firms that need custom modules built quietly in the background

How billing works

Choose per project: a fixed quote for each brief, a dedicated developer billed monthly, or hourly work for smaller tasks. Everything is under NDA, unbranded or in your agency name, and we never contact your clients unless you ask us to.

Pros

  • Take on more work without hiring
  • Known costs let you price your own proposals with a margin
  • Your client relationship stays yours

Cons

  • You remain the client-facing project manager
  • Needs a clear brief from your side
  • Best started with a small paid pilot to test fit
Model 6 of 6

Paid discovery sprint or pilot

A short, fixed-fee first step that turns an idea into a plan.

Best for

  • Larger or complex products where a fixed quote would be guesswork
  • Regulated products, such as lending, payments or anything handling KYC data
  • Agencies and companies who want to test working with us on something small but real

How billing works

A fixed fee quoted upfront, sized to the questions to be answered and priced at our standard hourly rates. The output is yours: specification, wireframes, data model, integration notes and a firm quote for the build. A pilot is a small real piece of work, delivered the same way as a full project.

Pros

  • Replaces guesswork with a real plan and firm quote
  • Low commitment before the main build
  • Documents are yours even if you build elsewhere

Cons

  • Adds a short step before development starts
  • It is a cost, even if you decide not to build
  • Not needed for small, well-defined projects
FAQ

Questions about pricing and contracts

Which engagement model should I choose?

If you can describe what you need in a list of features and screens, start with a fixed-price project. If you have a continuing roadmap and someone to set priorities, a dedicated developer is usually better value. If the work is hard to define, such as extending an unfamiliar codebase, hourly works best with a monthly cap. If the product is large or regulated, begin with a paid discovery sprint.

Can we switch models later?

Yes, and many clients do. A common path is a paid discovery sprint, then a fixed-price first release, then a dedicated developer or retainer for ongoing improvements. The agreement for each phase is separate, so switching does not mean renegotiating everything.

Are the prices on this page quotes?

No. They are indicative ranges based on our typical work, shown in your local currency for convenience. A price becomes binding only when it is written into a proposal or agreement that we both accept. Currency conversions are rounded and do not track exchange rates daily.

Which currency will you invoice in?

Indian clients are invoiced in INR with GST as applicable. Clients abroad can usually be invoiced in USD, GBP, AUD or CAD; we confirm the currency and payment method in your proposal.

What is the difference between fixed price and time and material?

With fixed price, the scope and price are agreed in advance and we carry the risk of the work taking longer than estimated. With time and material, you pay for the hours actually worked, which is more flexible but leaves the final cost open. Fixed price needs clearer scope; time and material needs more of your attention.

Do you require long contracts for dedicated developers?

No long lock-in. Dedicated developers are billed monthly with a notice period, written into the contract, to scale up or down. That notice gives us time to plan and gives you time to arrange a handover if you move the work elsewhere.

What is included in a paid discovery sprint?

Typically user flows, clickable wireframes of the main screens, a data model, research into the integrations and regulations that affect the build, a technical plan and a firm quote for development. The exact deliverables are listed in the sprint proposal, and you own all of them.

Not sure which model fits? Ask us.

Share a few lines about your idea. We reply within one working day with questions, a rough budget and the next step, with no obligation.

  • Reply within one working day
  • Fixed-price quote, no obligation
  • You own the code and the data
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