[consulting] Retainer Plans

[Sam Cohen]

On Wed, Sep 17, 2008 at 9:47 AM, Fred Jones <fredthejonester at gmail.com>wrote:

> > Can you share how you structured your retainer program?
>
> >From July of this year, this precise discussion:
> http://drupal.org/node/286539
>
> > My biggest stuggle now is finding time for all my smaller clients who
> want
> > changes to their sites -- I'm finding it really hard to fit them in.  I'm
> at
> > the point where I have far more work than I can do and let's face it, the
> > big clients need to come first.
>
> I have the same problem. I have not yet come up with a good solution.
> Prepaid hours doesn't really help, though, now does it? You still need
> to give them the hours. In fact, the advantage of prepaid hours
> (retainer) seems to be your 'insurance' that you have work, and the
> client gets a lower rate.
>
> But if you have no lack of work, I see it as a bit of a mistake--you
> are reducing your rate without too much reason.
>
> Unless I am misunderstanding something.



Well I definitely wasn't thinking of reducing my rate for a retainer -- if
anything raising my rate for those not on a retainer!

I think one of the main benefit would be not feeling bad about not having
the time to service smaller clients who don't go on a retainer.   It's sort
of gives me a way out -- I say to them, look here's the offer -- say $225 a
month for three hours guaranteed work.  If they don't take the offer they
either pay a rush fee or may have to wait a while to get their job done?

Another benefit might be having a number of these agreements with clients
would make it far less riskier to take on an employee or contractor, in fact
you can hand them all the retainer work and focus on new business.

But to me, for it to work, you really have to have a use it or lose it
policy.  No rollover hours.

Otherwise, how can plan your time.  I'm negotiating this very thing with by
biggest client tomorrow -- and what I think I will propose is they get x
hours a month.  If they don't have work for me I will pro-actively work on
their site (SEO, layout issues, recommend improvements, upgrades)

Of course, this whole strategy might work for clients already dependent upon
me and who already see the value in what they recieve.  It might not be easy
convincing clients to pay a large monthly fee.

I think people are still getting used to the idea that web development is an
ongoing project -- not something you pay for upfront and you're done.

Sam
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