Post author here. That quote was just his shorthand for saying that if he's advising clients or investors, he's billing for that time. He talks to his clients to tell them how to set boundaries for investors and how to best communicate with them.

Check out what Spark Capital is doing to help alleviate this problem: http://bijansabet.com/post/48787521538/picking-up-our-own-ta...

But yes, time-based billing sets up an inherent conflict of interest. Flat fee is great when it makes sense. Our company advisor setup a flat fee matter at his prior company to cover any phone calls or emails. No more watching the clock.