So, I am getting started with a new client who wants to get on a retainer. Since all my other clients are just hourly and invoiced after the work is completed, I am not sure how to set this up.

Since we are starting in the middle of the month, how do I get started for this month? Do I prorate the amount through the rest of May?

How often should I invoice - just monthly?

Any advice would be great since I am not familiar with retainer agreements!

Thanks!!

Hi Congratulations on the new client!

I don't work on retainer but as I understand it you bill monthly in advance for a specific number of hours. Most VAs who do work on retainer will have clients commit to contracts of an extended period of time (for instance 3, 6, 9, or 12 months).

Since you're starting in the middle of the month I think you could prorate it - that makes the most sense to me...

Hopefully a VA who DOES work on retainer can jump in here and fine tune my answer

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I am not familiar with the particulars of your client or of the services you are offering but... there are a variety of options. One would be i.e. -- ___ hours @ _____ (you can do this straight hours but it is easier to have also within boundaries of time line i.e. 20 hours per month. - hours do not carry over to next month.

Please do NOT use these figures - just to make a point.... (payments made in ADVANCE and hours do not carry over to next month) -- can make agreement as these prices are for minimum of 3 mo/6mo/year --
20 hours - $700 additional hours at $35 each
30 hours - $900 additional hours at $30 each
40 hours - $1,000 additional hours at $25 each

Word of caution - remember you are bound by this as well... -- sometimes month to month especially with new client who you are not familiar with may be better or just 3 months -- after more familiar can give additional incentives for year contract.

I offer my retainer with the following terms: billed monthly and must be paid in advance, hours do not carry over, 3 month minimum and 60 day review clause.

So if I have a client who starts May mid-month, I prorate the hours and get the deposit. I then bill June 1 for June hours (they have 5 days to pay) however most of mine have auto payments set up so I get the payment the day the invoice is sent.

They are obligated for the terms through August and must pay for those 3 months, however I have never had a problem with this since all my retainers have continued. I also bill additional hours at the reduced rate and review the package after 60 days. Some clients will use more hours than they thought so I will adjust the package to reflect this (and therefore have the money up front). For those who are using less hours because processes are streamlined, they usually add other tasks to make up the difference.

I have only had one client that reduced their package but they also added some project only tasks so that worked out in the end too.

Hope this helps.

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Lee Drozak
My Office Assistant

That was a great addition Lee! Would love to hear from others on this. Love VAF as it is like participating in a great brainstorming session and then you can grab various applicable ideas to fit the particular situation!

Hi Lee,

What do you use to set up autopay?

Janine

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FYI -- don't know if anyone will find this helpful but by necessity I had to open an additional bank account so decided would go with Bank of America since will be travelling and they have branches at so many locations. I found out that I can transfer funds from other accounts at other banks to my BOA acct free -- and from BOA to other banks for small fee. This should work great if a customer would like to set this up to pay me directly from their account to mine.

Yes, how can i setup autopay for a new client?

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Thanks in advance, Teresa

I wish I had more experience with this and could be more help.

1. I had clients that were larger and able to do Direct Deposit in the past.

2. My understanding is your client could transfer from his bank to yours if both banks offer this (or check with BOA re setting up acct and this option)

3. ?? I have signed up but never used PAYPAL --

I am sure you can get a lot of feedback from more knowledgeable VAs here and I am really looking forward to it - as I am now on the road and wanting to be more virtual in contrast to past of being more "on-site"

I believe PayPal will allow you to set up 'subscriptions' which are automatic payments that renew until canceled. Perhaps that will accomplish what you want?