Setting Rates For instance, a consultant who charges $50 an hour and expects to give a client 40 hours of time each month would set a monthly retainer fee at $2,000.

What is a retainer for consultant?

A retainer fee is an amount of money paid upfront to secure the services of a consultant, freelancer, lawyer, or other professional. A retainer fee is most commonly paid to individual third parties that have been engaged by the payer to perform a specific action on their behalf.

How does a consulting retainer work?

A consulting retainer is a fixed sum of money paid in full, upfront to hire a consultant for an allotted period of time. It’s a pricing model that covers a consultant’s assistance with specific deliverables or expertise to guide more general operations.

What is a retainer agreement in business?

A retainer agreement is a long-term work-for-hire contract between a company and a client that retains ongoing services from you (as a consulting business) and provides you with a stable amount of payments. In exchange for a regular monthly retainer fee, the attorney agrees to provide a set number of hours of service.

How much should I charge for a retainer?

A good rule of thumb is to charge at least $3,000 per month for your retained clients because this way you’ll only need 3 clients to sign retainer agreements in order to earn a six-figure income. Your goal should be to develop high-income skills so that each client is paying a $10,000 per month retainer fee.

How do you price a retainer?

Multiply the number of hours by your hourly rate to calculate your monthly retainer. For example, multiplying 25 hours by an hourly rate of $107 equals a $2,675 monthly retainer.

Is a retainer legally binding?

A retainer is a legally binding contract, and violating it could have serious consequences. If you’re not sure you should agree to a retainer, don’t do it without consulting a lawyer — because once you sign that document, it’s hard to go back.

How can I get a retainer for my consulting business?

Getting a retainer is a huge asset to your consulting business, and you can start with your current clients. Choose customers you enjoy working with and whose business has been fairly steady. Spend some time brainstorming how a retainer would help solve some of your client’s problems.

What can I do with a retainer fee?

Start by brainstorming how a retainer would help solve some of your clients’ problems. Perhaps in your consulting business, you propose a project, but the client isn’t sure how to implement it. As part of your consultant retainer agreement, you could provide guidance and assistance on the project.

How long does it take to respond to a consulting retainer?

By having you on retainer, they have the peace of mind that any time that something comes up they can give you a quick call, send you an email, and you’ll respond to them as quickly as possible. Ideally, your response will be within a few hours or whatever you set as being a reasonable amount of time.

Can a retainer agreement be extended for longer?

The key is to offer a useful solution to clients in exchange for a set regular fee. Initially, your agreement may be for only a couple of months, but if you provide value, the client will extend the retainer longer.