Switched from flat retainers to performance-based pricing for my agency clients

I used to charge all my clients a flat $2000 per month no matter what results they got. It was easy to budget but I kept losing clients after 3 months because they didn't see enough ROI. Last January I switched to a base fee of $1000 plus 10% of new revenue we generate. Now clients actually stay because they only pay more when they make more. Has anyone else tried a hybrid pricing model like this?

3 comments

3 Comments

blair_taylor3211d ago

My accountant went through this exact same headache... tracking variable revenue each month was a nightmare until we set up a simple spreadsheet that auto-calculates based on client sales data imports. It saved us maybe 5 hours a month of manual math.

karen_sanchez4910d ago

Funny how once you automate one thing, you start noticing a dozen other areas in life that could use the same fix. It's like once you build that spreadsheet muscle, you see inefficiencies everywhere.

allen.kai11d ago

Yeah, I feel that. My neighbor runs a landscaping business and tried something similar. He started charging less upfront but added a bonus if his work actually boosted property value for home sales. Clients loved it. It changed how he approached jobs too, he started caring way more about the finished look. But man, keeping track of all that variable math each month drove him nuts.