TIL our agency had to pick between a $5k retainer or a project fee for a new e-commerce client.

We went with the project fee for the first three months, thinking it would build trust faster. It actually made our cash flow pretty tight until we switched them to a retainer. Do you think starting with a project fee is ever worth the risk?

4 comments

4 Comments

seth_singh201mo agoTop Commenter

Disagree with the project fee start. It puts you in a weak spot from day one when you need to pay bills. A retainer sets the right tone and keeps your business healthy.

margareto261mo ago

We tried the project fee route once and it was a real struggle to cover our basic costs. It actually made the client see our work as a series of one off tasks instead of a real partnership. Switching to a retainer later felt like we were asking for a favor, which was awkward. Starting with a clear retainer now just makes the whole relationship feel more solid from the beginning, don't you agree?

linda1141mo agoMost Upvoted

Our best client started with a project fee.

the_linda1mo ago

Ugh, it's like giving a friend a free place to stay. They never value it until you start charging rent.