Flat Fee Retainer Survival Skills

February 22, 2012
Sedona, Arizona

One of the drawbacks of the life of an independent professional is that sometimes you go through “dry spells.”

Clients seem to disappear and, if you haven’t developed other income streams, you start to get nervous.

That’s when you start thinking to yourself that you should go into a business where there’s some “stability.”

I’ve been through times like that…

Those are the times that make having a long term retainer arrangement with a client look really good.

Hopefully this message will get you to think twice about entering into a relationship like that with a client.

For long term success, you need to “sit on the same side of the table” as your client.

In other words, you don’t want to be viewed as an expense (to be minimized) but a “partner” in the success of your client’s business.

Traditional fixed fee retainers, where you get $X per month for a specific amount of work, have some very large drawbacks you need to know about.

First, they effectively cap your income from that client.

Second, an arrangement like this sets you up to deal with a fun little part of human nature called, “What was once new is soon old.”

When a client gets used to working with you, your once shiny rockstar gloss begins to fade.

It doesn’t matter how awesome you are. Eventually, you just become one of the gang and every one gets used to you and your level of execution.

What was once special becomes commonplace.

I’m not saying that fixed fee retainers are dumb. I’ve done them. I do them.

But you need to be aware of some of these drawbacks so you can prepare for them, prevent them or at the very least, be realistic about them.

Go in with your eyes wide open… Nothing is forever, and that’s fine.

See you next time,

Jason Leister
Editor, The Client Letter
Creating Success for Independent Professionals
ClientsSuck.net