Fixed Price or Hourly or close the contract

[#1]

I took up a fixed-price gig a few days back. The client told me that it would be a long-term thing (8 graphics per month for 6 months or so). But when I saw the content, it was 11 graphics and the client then requested to pick up the other 3 graphics as well because his client has already approved for the content. I asked him to set up a new hourly contract or a new milestone, so he created a new milestone for the extra work..but once I submitted my work..I ended up doing more revisions than we agreed because that work was for his client and she is a perfectionist. The milestones finally got approved.

The client has again pinged me asking me to design 1 post and how much I'll charge for that.

The problem is I'm not sure if I should continue with this  - random requirements and more revisions, or just give some excuse and close the contract

I don't think he is ready for the hourly contract because I had asked him to set up an hourly contract for the extra work he asked me for, but he asked me the cost and created a new milestone. Please guide.

[#2 · Accepted solution]

It is better to close the contract, as the revisions should be limited only to what was initially agreed upon. The client not opting for an hourly contract clearly puts you at a disadvantage, as he can always delay paying for the funded milestone and instead request revisions.    

[#3]

If an hourly contract is what you want from this clueless client don't settle for a fixed price contract.

He isn't going to change his stripes otherwise. But he may just go away.