[Discuss] how to contract correctly?

[eric.chadbourne at gmail.com (Eric Chadbourne)]

Good morning most awesome BLUers.  Question for you contractors.  How do 
you bill your clients?

About a month ago I resigned from my job, paid my bills a few months in 
advance, and have decided I want to and be an independent contractor.  I 
have never done anything like this before.  So far I have been very 
fortunate in picking up more business than I can handle just by talking 
with people and using craigslist.  I've been charging by the hour though 
I notice clients seem to prefer charging by the project or milestone.  
What's the best way to go about billing folks?  Increments of a certain 
dollar amount?  How do you do it?

A second concern is if my luck does not continue and I have to go 
several months without any clients.  How do you stay busy?  Do you 
partner with other contractors and share when you have to much work?

Thanks,

--
Eric Chadbourne