Estimating retainer fee
Out of context: Reply #2
- Started
- Last post
- 13 Responses
- JSK0
Few things to consider.
Duration
Lose of business due to retainer (competitive or hours)
Actual cost
Retainer cost (at discounted from actual cost)
Over flow or lack of work
Overage and under spend per periodIt depends on how you structure the retainer.
Example
Retainer for 6 months with payment of $4800 per month.
Your actual cost with out retainer could be $6000 per month
Paying 20% less for guaranteed work for next 6 months.
Total guaranteed income of $28,800 for 6 months
Overage will come out of next month's retainer.
Underage will apply to next month's retainer.
If in case where underage equates to less than $28,800 in 6 months, the clients have the right to either sign another retainer for 6 months or try to spend the left over with in that time.
But the underage transfer to next retainer contract can not be more than 10% of the total retainer.
You can either get paid monthly or paid up from or 50% of the retainer or 25% per quarter.
In contract that if the client terminates the work or ceases to do anymore work, minus the work already done, they are responsible for the whole retainer.