How Retainers Alleviate (Some) Freelancer Anxiety

Freelance work comes in several different forms. While the most common models are hourly or project-based, I want to share one that doesn’t get the attention it deserves: retainers.

Retainers aren’t just for lawyers; freelancers can take advantage of them too. Retainers are one of the best ways to charge for freelance work. In my opinion, they are like the “silver bullet” of freelance charging models. A retainer means you work with a client on an ongoing basis, paying you monthly in exchange for a certain number of hours worked or deliverables. They make freelance life so much easier, as they are not based on an hourly wage but rather on value. You work based on a scope of work versus individual projects.

Whether you’re just starting your freelance journey or are a seasoned pro, consider implementing a retainer-based model for your work. Retainers have several benefits for freelancers. Not only will it make you feel a little less anxious about finances, but it also benefits the client.

Pros of Retainers

It’s like getting that steady paycheck you got at corporate

One aspect of freelancing that causes anxiety for many is stability around finances. It’s one reason many people are hesitant to leave corporate and freelance full-time. Many of us like getting that bi-weekly paycheck. It’s like a security blanket because you know exactly when the money is coming in. With a monthly retainer, you get the same feeling. Most of the time, it’s a lump-sum payment at the beginning or end of the month or divided into two payments. Even in slow months, you’re still getting a guaranteed income.

You’re charging the appropriate amount for your work

Let’s be honest; unless your hourly rate is hundreds per hour, you will work yourself to the bone to try to make ends meet if you’re relying on work based on an hourly rate (I’ve done this, and it’s not pretty). Retainers allow you to make sure you’re charging appropriately for your work. Instead of charging hourly, you can charge based on the value of the work for your client. Often, this can cover you for other financial aspects you need to consider, such as taxes, time off, etc.

You can bundle multiple services together

In my experience, clients like to see if you offer more than one service, especially if it is a startup or SMB. Some freelancers prefer this, while others do not. Retainers are a great way to bundle adjacent or complementary services together and charge one comprehensive rate.

Only offer one service? Offer a package or a minimum number of deliverables instead. That way, you get guaranteed work all month (and offer the client a steady stream of content).

You’re usually not chasing people down to pay the invoice for that one-off project they claim they “forgot” about

I’ve never (knock on wood) had an issue with a client paying a retainer on time. Clients who want retainers are top-tier, professional, and are a dream to work with. You’re set up in their direct deposit system and get paid simultaneously as their other vendors. Because you’re usually on the hook for more than with an article or a project, clients are more inclined to pay the invoice. In most cases, both parties have signed a contract (often put together by an in-house lawyer) outlining payment terms, so you have a legally binding document.

You get a steady flow of work because the client wants to get their money’s worth

Retainers also benefit the client. Because the client is paying you a more significant sum, they want to ensure they’re getting their money’s worth. A higher rate means more regular work, so you’re not sitting there twiddling your thumbs, waiting for work to come in, or actively going out and pitching. You usually always have a set of projects you’re working on and can suggest other projects as long as they fit within your scope of work. There is no shortage of work, and the client will take advantage of you as a contributor and often ask you to take a more prominent role in the company’s operations.

You don’t need to be as strict in tracking your time

As we get better at our craft, it takes us less time to complete projects and tasks. This is one of the reasons why hourly rates don’t work in the long term. Suddenly the five hours to write a blog reduces to two, and you’ve lost three hours’ worth of income. If you’re charging on a retainer basis, you can be more relaxed about tracking your time. You can give yourself a ballpark estimate of how many hours you work with the client per week. Some weeks might entail more work than others, but you don’t have to worry about fulfilling a certain number of hours (unless outlined by your retainer agreement).

You have more flexibility with projects

When you’re on a retainer, you have more flexibility in your work. You sign on for a specific scope of work versus a single, specified project. Hence, you have more flexibility in your tasks (within reason, of course). You can offer to take on more work or less depending on what the projects look like regarding your scope of work. Plus, from a client perspective, you can pivot projects as their priorities change. Let’s face it, how many times have we had to deal with changing priorities and projects? So instead of having a project you were counting on pause unexpectedly, you pivot to another priority project instead.

More autonomy

One of the best perks of retainers is having autonomy. Simply put, you usually don’t have clients micromanaging you the way, let’s say, an agency would. These clients typically don’t need something done in 48–72 hours. You’re almost treated like one of their full-time employees, meaning you can work at your own pace and complete projects. Granted, you have to check in more frequently with the client, but in exchange for autonomy? I’ll take it.

Long-term work & client relationship

Results take time, especially if you provide outcome-based services. For example, if a business hires you to grow its social media audience or build up its blog, these activities take time to produce results. Clients usually recognize that, so they are willing to keep you on long-term (at least three months, if not more). If you want to ensure you’re in it for the long run, you can add it to your scope of work when talking with a prospective client. For example, add a minimum three-month commitment if they go the retainer route.

Not only do you get consistent work, but you also build your relationship, which can translate to more work opportunities, and referrals in the future. Plus, the client doesn’t have to worry about training a new freelancer to get up to speed on their processes and procedures.

Downsides of Retainers

Scope creep

Scope creep is the number one concern of a retainer model. It’s easy for clients to go outside your proposed scope once you start and get in the weeds of the work. Putting up boundaries with your clients is key to preventing scope creep. If a task or project is outside the scope of your retainer, communicate that you’d be happy to help out, but since it’s outside of the agreed scope, it’ll be an extra charge to them. It’s up to your discretion to determine what tasks or projects fall under scope creep.

You might still be undercharging

Depending on how you and the client see it, you might still be undercharging for your work. One strategy for retainers is to offer more than one service at a discounted price to the client. Another approach is charging more because you’re offering more than one service. When you propose your price to your client, make sure it’s reasonable enough for the client and high enough for you to find value based on the effort of the work.

Retainers might not work depending on the type of work you do

Not everyone can operate on retainers, and a lot of it does depend on the client and the nature of the work. Retainers can work for almost every size of client or any type of project across several industries. Freelancers can do anything from content creation to social media to tax and accounting work on a retainer basis. You have an advantage if you already offer adjacent services.

More involvement & responsibility in the clients’ business

In some cases, as a retainer-based freelancer, the company might treat you as a full-time employee, likely because you are more involved in the business. For example, if you’re a project-based freelancer, you’re likely not going to be involved in more effective marketing and business growth discussions. However, if you’re on a retainer as a social media manager, you might be involved in marketing meetings and planning, especially with a smaller marketing department. As a result, you become a more integral part of the business than just working on one ad-hoc project.

You’re “on call”

There is no doubt that the line between “freelancer” and “employee” is blurry when you’re on a retainer. You’re more involved with your client’s business, which translates to employees or the person managing you reaching out to you more frequently, whether for sync meetings or if they need something. To mitigate the on-call effect, set boundaries with your clients around communication in your scope of work. For example, say that you can set aside one hour per week for the client to use however they like. That way, you’re not bogged down by constant meetings.

You might be more hours than you anticipate on a client project

In the world of retainers, there are two models you can implement: an hourly-based model and a deliverable-based model. In the hourly-based model, you sign on for a certain number of hours per week or month for that particular client project. In a deliverable-based model, you sign on for specific deliverables per week, month, or quarter. As a result, if a task takes you longer than anticipated, you could spend more time than you bargained for on that particular client’s work.

Best practices for designing your retainer

• Choose whether you are going with an hourly or deliverable-based model
• Determine if your offerings work for a retainer model
• Offer adjacent or complementary services
• Price yourself appropriately to account for the anticipated scope of work
• Put minimum commitments in place
• Have a clear scope of work and policies for your client (payment terms, onboarding/offboarding, etc.)
• Flexibility around tasks and projects
• Set boundaries with your client around communication and involvement
• Review and adjust your retainer on a six or 12-month basis
• Report your progress and benefits

Retainers benefit both the freelancer and the client

If you’re looking for a solution to ease some of the financial anxiety of freelancing, look no further than retainers. Retainers benefit the freelancer and the client, creating a win-win situation for both parties. You have the potential to build a long-term client relationship, get a consistent stream of work, and receive a stable income. Don’t let retainers be for lawyers — implement one into your freelance business today.