[Hidden-tech] Retainer Fees?

[Jeanne Yocum]

Hi,

In my experience with retainers, they are often charged at a discounted
hourly rate, but not always.  Giving a discount does encourage people to go
with the retainer arrangement and, in exchange, you get the benefit of a
predictable income.  The discount I generally give is 10 to 20%.  If people
really seem concerned about the budget, I go with the higher discount.  If
money doesn't seem to be a big issue with them, I go with just the 10%
discount; I'm still giving up something, which makes them feel, good, but it
really isn't much.

Any work per month above the agreed upon retainer hours should, of course,
be charged at your regular rate.  Thus, if they have an emergency and need
you to do an extra project, you get your regular rate for that project.

Regarding whether the hours are carried over or it's a "use it or lose it"
approach, I think that depends on two things:
1.  Some clients will strongly resist the "use it or lose it" approach and
you might lose the business if you insist on this.

2.  How good are you at estimating the time needed to do their work and
therefore how accurate is the retainer base?  If you have a lot of
experience and you've worked with a client for a while and know how long
they take to get things done (like how many changes they require, etc.) and
can set a pretty accurate retainer base, then you're not in too much danger
if you allow them to carry over hours from month to month if this makes them
feel better.  But what I always do if a client insists on this is to say
that we will review the retainer hours (and change up or down as needed)  in
three months.  This benefits them if it turns out you've underbudgeted on
the hours and they are ending up paying you your regular rate on extra hours
per month.  And if you've overbudgeted on the hours and are having to carry
a lot forward each month, you can fix this problem, too.

Good luck!

-- Jeanne Yocum
Tuscarora Communications, Ltd.
www.yourghostwriter.com
Member:  National Writers Union




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