Loading ...I work with a few different target markets such as attorneys and marketing consultants and public relations professionals, and in a weird way, it’s always comforting to know that as service providers they struggle with many of the very same issues as Virtual Assistants.
My target markets struggle with managing client expectations; how to deal with–or fire–nightmare clients; how to avoid nightmares in the first place by identifying and focusing on ideal clients; and the whole gamut of issues surrounding getting paid fairly for the value of our services and the results we achieve for clients.
I guess it’s the aspect that we’re all in the same boat and can really understand–and help–each other. As a service professional, I’ve learned quite a bit in my 10+ years of business that has helped me overcome and avoid many of these issues, and I love it whenever there’s an opportunity to share my ideas and solution with clients and fellow professionals.
In one of my target markets, alternative billing methods is a hot topic. There are some really great conversations about this, but of course there’s no single fit for every situation. And as I watch all the agonizations and gyrations of these conversations, I sit back and marvel at what a perfect tool the upfront retainer model is for a service professional business.
Working on advance monthly retainer, you create instant cashflow for your business, which as anyone in business knows is critical to smooth operation and growth.
The retainer is also a perfect tool for value-based billing, another big "trend" that has actually been around for many, many years. You can set a single fee for the value of your services using hours to set the boundaries of that value, or you can package a set of monthly services and price for value with the retainer model.
But just as important, the retainer is great for clients as well.
Retainer clients require far less administration than do project clients, which is a business savings to you. As you work with a retained client, the time you spend on that client administratively is significantly reduced because you’ve gotten the main paperwork out of the way once at the beginning , and then simply bill once a month. That works to the client’s benefit in the same way.
Paying once a month also makes things really simple for clients. With a monthly retainer, they don’t have to constantly think about invoices and budgeting and accounts payable every single time they engage the service of their professional. That means there’s less administration required. And retainers are easier to budget for and contain costs while still working in a relational, rather than transactional basis.
In summary, here are all the advantages and benefits to the retainer model:
- Instant cashflow
- Better productivity
- Increased efficiency
- Decreased administration = business savings (both sides)
- Fits perfectly with value billing
- Easier for client to budget for
- Simple; clients only need to think about it once a month
- Commitment of hours allows provider to get more done, give more value, achieve better results for clients
So when someone tries to sell you on the latest hot trend in billing, remember that if you are billing by retainer based on a value-based rate, you’ve already been value billing for years. 
