Paying by the hour is not ideal, as it generally lends to an employee model. That said, if it is the “norm” in the industry, you can do it. If you do, however, be sure that the documentation (meaning invoices submitted for payment) clearly display billable hours and avoid what may appear to be time and attendance tracking. For example, it should display: 9.5 hours @ $25 p/h. It should not display: Start Time 8 a.m., Stop Time 5:30 p.m. = 9.5 hours.