[consulting] Retainer Plans

[Patrick Teglia]

Domenic,

"understand (or at least, they've been sold to understand) that a small
> monthly investment results in larger monthly gains"
>

Could you expand for us upon those gains, help us all help our clients?

Thanks!

Patrick Teglia
http://patrickteglia.com

On Wed, Sep 17, 2008 at 8:31 AM, Domenic Santangelo
<domenic at workhabit.com>wrote:

> "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."
>
> In my experience, it's more along the lines of:
> "People are still getting used to the idea that web development is an
> ongoing cost and often don't see the associated value."
>
> This is something you should be thinking about when you first engage a
> client -- show them how the web is an /ongoing strategy/, not just an
> electronic business card. Clients don't blink an eye when they pay month
> after month for IRL advertising; that's because they understand (or at
> least, they've been sold to understand) that a small monthly investment
> results in larger monthly gains.
>
> -D
>
>
> On Wed, Sep 17, 2008 at 10:15 AM, Sam Cohen <sam at samcohen.com> wrote:
>
>>
>>
>> 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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>>
>
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