Value-Based Fees: How to Charge—and Get—What You're Worth: A Guide for Consultants, Second Edition

6.6. CHAPTER ROI

• Retainers are not always the best alternative, but they make a great deal of sense when the client wants access to your smarts. The key is to position having that access as the value you are providing.

• Projects may arise that will require a separate proposal and fee. Don't confuse a retainer with the responsibility to accept every project that might come along as a part of that retainer.

• Establish realistic expectations with the buyer early, and stipulate them in a letter of agreement before the actual work begins. That way you can establish "rules of engagement" short of the legal department.

• Quarterly and semiannual time frames are probably ideal, although monthly and annual retainers can work well in specific circumstances. Anything longer or shorter is problematic.

• Make sure you create conditions that are maximally supportive of the retainer arrangement. Organize the scope and the parameters so that they are crystal-clear.

• Exploit and capitalize on the retainer success—you may choose to move your practice partially or predominantly in that direction.

• Arrange for retainer renewals well before the period is over. Either party can unilaterally end it, but both are required to extend it.

• If you don't include retainer work as a service offering, you aren't providing a full range of opportunities for your client and your practice.

• Retainers are often the least labor-intensive of all client work and relationships; they are also highly profitable.

Your mind and your talent ...