Why does nobody talk about how much better a fixed monthly retainer is than project work?

I ran my agency on project work for the first two years, and it was a constant scramble. Last year, I switched my top three clients to a flat $3,500 monthly retainer for a set list of services. The difference is night and day. My income is predictable, I can plan my team's time months ahead, and the clients get better results because we're not rushing to finish a one-off. It took about 6 months to get the contracts and scope right, but now I wouldn't go back. Has anyone else made this switch and found it changed their whole business model?

3 comments

3 Comments

angela58713d ago

My first year freelancing I spent more time making invoices than doing the actual work. I had this one client, a bakery, where I was basically their part-time bookkeeper for three months because I kept billing them for tiny things. Switching to a flat monthly rate felt like getting off a hamster wheel. Now I just send the same invoice on the first, and we both know exactly what's coming. It's so simple I'm almost embarrassed I didn't figure it out before.

parker_palmer4413d ago

So you were basically the bakery's free accountant?

keith90013d ago

Oh man, preach. I spent so long chasing project payments I felt like a dog chasing a car, and I wouldn't know what to do if I actually caught one. Switching to retainers was the first time I could actually breathe and pay my bills without a panic attack. It turns out clients like having a go-to person all the time way more than dealing with project chaos. I'm just mad I didn't do it way sooner.