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by chrisoconnell 1014 days ago
Have you considered a monthly retainer with an hour cap?

This prevents you from being treated like a salaried employee, maintains your work life balance, and ensures the client is still providing solid requirements and thinking through their ideas.

We have found a lot of great success with this model, and our clients respect it. It ensure we can have multiple clients, without one taking up all of our time, and taking it from others.

If we spend under X hours, that's fine. But there's simply a cap. It essentially means that each client gives enough work for us to work for those total number of hours, and we still have MRR regardless. We can help our clients maximize usable time, and it makes our project management valuable to the client as well.

To combat long Net Terms, you can kickoff a client with a project, which begins upon receipt of payment, and is continued with the retainer. This initial project should be able to support you until your retainer payments start (180 days in length) but your retainer should start ASAP.

It also allows the client to see your value, and you get to feel the client out.

1 comments

At this point in life, I've moved on to a new field altogether, but some of the ideas you are sharing above are exactly the types of models I experimented with.
What did you learn from these experiments?
A number of years ago, the term "F*ck you, pay me" was going around in popular vernacular. That jives with my own experiences - ask for deposits up front, make payment net-15, tack on a giant fee in the event of slow / failure to pay, and make sure your contracts are written so that the client pays legal bills in the event you have to sue. Create contract disincentives to encourage good behavior. Keep your rates high and don't give anyone a deal. Be willing to say no both to prospective clients as well as individual projects - even with good clients.