hill.margaret•28d agoProlific Poster

Chat with a client last week flipped my view on retainer pricing

Had a client tell me he'd rather pay $3,000 a month for results-based work than $2,000 for a flat retainer that included stuff he didn't need. He said he felt nickel-and-dimed with the retainer because he was paying for internal meetings and reports he never read. Has anyone else switched to performance-based pricing and seen better client retention?

3 comments

3 Comments

reed.elliot28d ago

Yeah, did you ever stop and think about why clients hate paying for stuff they can't see? I had a guy once who said the same thing about reports. I used to send him a 10 page monthly breakdown... he told me he just deleted them. So I switched to a model where I charged a smaller base fee plus a bonus if we hit a certain number. He liked that way more. But here's the funny thing, he ended up paying the same or more most months because he was motivated to hit those targets. Kinda made me realize clients just want to feel like they're in control of what they're paying for.

patricia_gonzalez28d ago

Drop the base fee low enough that they don't worry then structure the bonus so they feel they earned it.

mary_west28d ago

What you said about clients wanting to feel in control really hit home. I once tried to explain my process to a guy and he said 'just don't tell me how the sausage gets made,' so I started charging a flat fee plus a 'don't ask questions' bonus if he didn't bother me. He paid the full amount every month and I'm pretty sure he was too embarrassed to ask for his money back.