![]() Scope creep can be a serious problem with retainer contracts. Your ability to get a raise will depend on how much your client feels their success or wellbeing is dependent on your unique skills and work. Unless you’re producing fantastic results, this is difficult. You will need to prove to an existing retainer client that a raise in rates is justifiable. Clients are less likely to budge once they have become accustomed to a certain recurring fee amount. Once you are set in a retainer contract with a certain rate, it’s difficult to then raise your rates at a later date. Although the benefits of familiarity and speed, as mentioned previously, can mitigate this issue somewhat. It’s difficult to push against this prevailing retainer fee practice.Īs such, you might find yourself working for a lower rate than you might do for a single project. This might not seem fair but it’s common practice among freelancers and even agencies to offer a slightly lower price for recurring work. Many clients will expect you to offer a discounted rate for ongoing work, as opposed to a one-off project. If you’re not careful you can find yourself out of pocket and seriously overworked. There are also some drawbacks to retainer agreements. Retainers are perfect, right? Well, not quite. What are the cons of freelancer retainer contracts? Developing retainer agreements is a great way to avoid the constant need to meet new people. If you’re shy, for example, or socially anxious, constantly meeting and getting to know new clients can be stressful. ![]() Steady retainer work can suit freelancers who thrive on stability and familiarity. This differs from one-off projects where you work with a client for a few weeks and then never hear from them again. You get to know each other over months and even years. Working on a monthly (or quarterly) retainer also increases the chances of developing good long-term relationships with a select few clients. The more you streamline your processes and increase familiarity with client projects, the more you’ll earn. This enables you to complete projects faster and with more precision. When you work with the same clients, month after month, over a long period of time you get to know their businesses and target markets. Retainer work breeds familiarity and this can be a huge benefit when it comes to both workflow and cash flow. What’s more, you won’t have to repeatedly look for new clients every week. It’s scary not knowing how much you’ll be earning from one month to the next.Ī series of retainer agreements with different clients brings some stability to your freelance career and ensures you have a reasonably good idea of your minimum income each quarter. The main benefits of creating a client retainer include:įor anyone who has turned to freelancing after working in traditional employment, the shock of suddenly having no fixed salary can be rather brutal. With Invoice Ninja, for example, you can create a recurring billing system that invoices clients at predetermined intervals. They are also easy to set up, especially with automated invoicing software. There are many benefits to creating retainer contracts. What are the pros of freelancer retainer contracts? Examples of such services might include virtual assistance tasks, consulting or coaching, business blogging, and social media management. Some freelancers base the majority of their income around retainer work, especially if their freelance services can be repeated month after month for the same client. ![]() The client pays a set amount of money, usually monthly, in return for work being carried out according to pre-planned frameworks. One of these systems is what is known as a retainer agreement.Ī retainer is a contract between a freelancer and a client in which the client pays in advance for certain services on a recurring schedule. Consistent pay is a dream for freelance professionals but unless there are certain systems in place, it can remain elusive. One month you might be invoicing for thousands of dollars, and the next, nothing at all. A big worry for many freelancers is financial security.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |