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It’s common that as a freelancer you may go through a feast and famine scenario. Some months you are eating the finest steak, and the next you are back to bread and water. OK, perhaps this is a tad extreme but you understand the point. There’s typically no set level of consistency as a freelancer; you ride the wave out and see what the next month brings.
My experience has been a little different. I’ve always had regular retainers since I became more established as a freelancer. My approach is smaller retainers.
What’s a retainer?
A retainer agreement is a contract where your client retains access to your professional services on an ongoing basis. This typically involves the client paying you a fixed monthly fee which can be, but not always, a discount of your usual day rate.
Retainers are the equivalent to a regular monthly salary. Contractually, you have a financial agreement in place, and unless the business has cash flow problems, you should receive your payment.
Retainers can be packaged in all sorts of ways. Some of mine are that I supply xx amount of time/coverage in exchange for money. The clients get to tap into my digital knowledge amassed over the past 9 years and I get some stability in terms of income.
Other retainers tend to be for management of PPC campaigns. As digital marketers we are incredibly fortunate that retainers are an easier sell than that of a web designer; our rankings fluctuate, keywords need to be monitored and so forth. It’s a continuous cycle of refinement.
I’ve spoken with a number of freelancers recently and one recurring theme was that they don’t accept retainers of less than £1,000 a month. This surprised me a little bit as all my retainers currently are below £1,000 and I make a nice living from my freelance clients. Their rationale was that clients below a specific pay threshold are harder to work with and you end up working more than the pay deserves. I’d argue they either have had bad experiences or haven’t taken on the right clients.
I’ve actually gone full circle and identified clients slightly below that £1,000 a month threshold as my ideal clients. Having worked with larger clients I have questioned the longevity of the work due to internal bureaucracy, red tape and ever changing targets. My experience with smaller, agile clients has been vastly superior.
Small retainers:
One of my struggles when in employment was the monotonous nature of working on one singular product/website. I struggled with more of the same everyday. The same drive, same colleagues, same work. It felt impersonal.
With retainers I have a bunch of clients who lean on my specialism which allows me to flourish and get them moving in the right direction.
This could be the same for you too. Having 6/7/8 clients can be challenging to juggle initially however it’s also super exciting working on a variety of projects across different sectors instead of focusing on 1-2 main clients.
Summarised, I would break my liking for smaller retainers down to the following:
- Excitement and variety
- Rounded knowledge of multiple industries
- Becoming a specialist & advising where your skills set is strong
- Balancing the financial risk across multiple clients.
- Meeting a bunch of people who then refer you work.
- Helping genuine, decent people achieve success.
- Growing the retainer size in line with your clients growth.
Customer types:
What also saddens me about larger retainers is the customers you are alienating. Good, hardworking people looking for talent who can help them nurture and grow their business. I’m not talking about the tyre kickers and ‘I will give you equity in exchange for your time’ enquiries. I’m talking good, honest businesses looking to dip their toe into the world of digital.
Here are a couple of examples of clients you may miss out on if you have a rigid approach to retainers.
Smaller, growing businesses:
Businesses may approach you in their infancy and if you do your job online they may grow. I’ve had a number of clients start with smaller retainers which have grown to additional time. This wouldn’t have happened if I hadn’t jumped on the project early within their business cycle and helped them grow. There are a tonne of great businesses in your area more than likely looking for some direction.
Traditional businesses new to online marketing:
I’ve come across a vast amount of traditional businesses who want an introduction to online marketing but are completely scared off by digital agencies commanding thousands of pounds in retainers. These clients are willing to spend money but need the education from the specialist and time to understand the financial commitment. Living in the North these tend to be industrial clients looking to generate more leads and who need an element of guidance from a trusted source. Hardworking, honest business owners.
Creatives who want to work with other independents:
I personally work with a musician and a videographer; both of whom approached me because they related to my approach on work. They are two outstanding clients as they get it and it’s like I’m working with a couple of mates. They pay me within days of sending the invoice. I’m invested in their success as they are great people. Who doesn’t want a client like that?
I understand as a digital agency you have overheads to pay for so entertaining smaller clients might not be of interest. However as a freelancer I believe there are huge opportunities missed by chasing the larger clients. Leave them to the agencies. Focus on the creatives, the independents, the traditional businesses who require an honest voice to help them grow their business. They will reward you in the long run.