Retainer Contracts
Out of context: Reply #11
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- jtb260
@freedom. Yes. A retainer is a way of having guaranteed time. Let's put it this way:
You work 50 hours a week. That's 200 hours a month of billable time.
The client wants you to put aside 40 hours a month. That's 20% of your billable hours. Knowing that 20% of your billable time is reserved you might limit the amount of work you take on to some degree to maintain that affordance. That 20% represents revenue you would other wise make. If the client wants to reserve it they need to pay for it. If they don't use it you've still essentially agreed not to work during that time because they've purchased it.It's like buying a ticket for a game. That seat is yours. The ball park can't sell it to anyone else. If you decide not to show up you don't get your money back.