For your consultants, a retainer would mean that they have to dedicate a dedicated portion of the time each month to the work planned for each client. For your customers, this would mean that they have experts they can refer to at any time when they need certain services. For you, as the owner, CFO or business owner of a consulting firm, Retainer builds a bridge between you and your client, where consultants can, if necessary, leave without problems and without obstacles. Indeed, you will be able to position yourself as a long-term partner and not as a single producer. Suppose the customer opts for a $1,000/month re-enterer. What happens next is they start thinking, “Well, that`s $100 an hour. $1000 divided by 10 hours is $100. Wouldn`t it be better for me to pay you $100 an hour if I need one of your advisors? A retainer model ensures that you have a stable relationship with the customer. Depending on your consultant loyalty contract and the timeframe indicated, you can get some income each month from that particular business relationship, and the client is guaranteed access to services or expertise (if you perform certain work for them).
A simple way to manage this: set the monthly payment you have accepted as a “floor” or a minimum payment that the customer will make regardless of the workload. You can then set what happens to the payment if the workload exceeds the number of tasks (or hours) you have agreed to each month. In ingenious terms, a retainer agreement is a legal agreement between a company/client and a service provider to collaborate on multiple projects over a long period of time. The consulting fee agreement sets out the details of the retainer agreement and could include the scope of the order, payment details or retainer fees for consultants and the termination process. XYZ Company undertakes to pay a fixed amount of $1,500 (fifteen hundred dollars) per month. This amount is retained by ABC Agency for a maximum of 20 (20) hours of online marketing consulting per month. Each additional time that ABC AGENCY works during the month for Company XYZ is billed at $75 (seventy-five dollars) per hour, billed at the end of the monthly period and payable until the 10th business day of the following month. This problem is the reason why consulting professionals get better results when they sell repair agreements with already established clients. The first impression is crucial if you want to successfully market the idea of a consulting fee agreement to its clients afterwards. Selling a pay for Access Retainer requires a deep bond of trust with your customer. You need to identify with them as you can support them and determine together why it justifies you to be an ongoing advisor to them. Thus, I sell and make monthly retainers with my customers.