[consulting] Retainer Plans

Sat Sep 20 03:51:23 UTC 2008

Hey Patrick,

What I'm talking about here is the (customers') mistake of seeing a  
web site as an "online business card" or "cheap coupon distribution"  
and so forth as many small (albiet non social networking sites) often  
do -- and further, the consultant's failure to communicate this to the  
client.

Millions and millions of small business owners pay monthly fees for  
print ads, radio spots, coupons in the paper, google ads, on and on  
and on. They do this because -- correctly or not -- they believe that  
recurring expense results in recurring revenue.

Another thing to consider is that If their site isn't tied to revenue,  
somethings wrong. More specifically, everything about their site  
should be tied somehow to generating revenue. You should spend time  
with them during the scoping stage to ask, "how does this tie into  
revenue?"

If everything you build for them (in theory) pads their bottom line or  
drives their business goals, a maintenence contract should be a no- 
brainer. If you spend cycles building a cat picture rotator, you'll  
get called in to add more cat pictures :P

(ymmv, and all that. Clearly this model doesn't fit every client or  
situation)

-D

Sent from my iPhone

On Sep 17, 2008, at 10:10 AM, "Patrick Teglia" <info at 33rdprime.com>  
wrote:

> 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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