Retainer
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- bombadil
I have had a good sized company decide they like my work a lot and have asked me to be on retainer with them. They asked me to send them a figure. How does this work? Do I give them some arbitrary amount of money that I require?
Suggestions much appreciated.
- bombadil0
and if I give them a flat monthyly fee, won't I be losing my shirt on the projects which I know they can pay me more on?
- hiten0
i have to wear mine still once a week.
:(
- gruntt0
depends on the amount of work you think you'll be providing throughout the year. estimate that and divide by 12. if it seems low double it.
congrats by the way. retainer is a good thing.
- jpea0
and make sure to pad it a bit for their luxury of having you at their beckon call cause you can't take on as many projects as you would if you weren't on retainer
- gruntt0
write out a contract of some sort spelling out the estimated amount of work you predict you'll be doing for them - keep it somewhat vague but write in something that states if the workload goes beyond what is resonable as set in the contract the contract will be renegotiated.
- bombadil0
Thanks. I believe they want a monthly estimate.
- bombadil0
Great advice, guys. THanks. Any other pointers. I'm sort of fishing for an exact $$ to tell them. Too scared to come up with an amount.
- jpea0
1 million bucks then.
- bombadil0
done.
- gruntt0
walk in all cocky and say "i have a number in my head. you have a number in your head. take your number and double it. my number was 69 ....as always" then lick your fingertips and smooooth out your eyebrows.
- bombadil0
next scene:
the office door blows open and I'm hurled out onto the pavement.
- jpea0
- gruntt0
next scene:
the office door blows open and I'm hurled out onto the pavement.
bombadil
(Mar 8 06, 12:47don't let that phase ya. stand up, dust off, lick fingertips and smoooth out eyebrows.
you badass you.
=)
- in8_v40
might be a good idea to put a limit to the hours. once they go over a certain number of hours, it becomes an additional hourly or day rate. Always better to specify things up front and set the expectations clearly. You could easily find yourself taken advantage of, once you're no longer taking an hourly or day rate.
- DRIFTMONKEY0
My "personal" rule on retainers:
Whatever you change hourly for freelance, estimate 75% of that. Multiply by the number of hours you anticipate per month.
ex:
your current rate: $75/hour
75 x .75 = 56.25your current hours: 20/week
56.25 x 20 = 1125/week
or $4500/monthSavings to them: $1500/month
If you think 75% is too high, go lower, but a good rule of thumb is don't go less than 50% unless they offer you a full time in house position.
There you have it.
- horton0
don't commit to a monthly figure.
use the retainer as a contract that has them commit a minimum XX amount of hours to you a month, for which in return you will bill them at a competitive discounted rate.
any hours beyond the amount spelled out in the retainer are invoiced ontop at the discounted rate.
or at least that's how I've done it.
- bombadil0
My concern is that there are some projects I could get upwards of $6,000 by doing it by the project, and in a reasonable amount of time.
Maybe I should just tell them I want to stay doing things project by project.
- Mimio0
You usually bill beyond your retainer each month.
- willhaven0
being on retainer has ups and downs, some months they will slam you with work and you think geez why did i do it.
Other months they may have nothing for you and its a free pay check.
My opinion is to estimate based on past projects with them, get a fair number together that you can live with, then pad it 10-15%.when you sign a retainer they can call you at a moments notice to do something and you have to jump.
but that just means they love your work and they ttrust you enough to do this.
Otherwise you may want to think of saying the retainer includes X,Y, and Z above and beyond these criteria- it may cost you this much.
either way CONGRATS!
