My billing is currently set at retainer rates.

I had a bad hourly billing experience, where no deposit was made, I did two weeks of service, billed the client, and never received payment. Suffice it to say I no longer have that client.

I am considering my billing to include an hourly rate, but I am not sure how to structure that.

For example, Client A would like the hourly rate - but has NO idea how many hourse he needs me. So, what deposit do I charge? A non-refundable 2 hr. minimum deposit?

If I was charging a per project rate, I understand the 50% deposit, then once work is completed, bill for the remainder, and the results will be given to the client once payment if full is received.

Just not sure what you do when a new client has no idea how many hours they will need, but you don't want to work 2 wks. for a client and not receive any payment.

Thanks for your time and I would appreciate your comments.

Stacey

Hi Stacey - after a similar experience; we take a deposit (always the same amount for regular admin work) from all new clients against 6 months regularly paid invoices. When they're paid 6 months of invoices on time that money goes back to them via subsequent invoices. It works well and I've never had anyone offer negative feedback on the process.

Hope that helps!

I'm curious, did you have the client sign a contract at least?

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Hi Tess,

Thanks for your reply. But, I am wondering how much of a deposit do you take when they don't know how many hours they need.

And, no, I did not have an agreement that they signed - another lesson I learned. We had a verbal agreement about my rate and billing policy. This was my FIRST client. Sometimes you do learn the hard way. And, actually I think it was before I found this forum, which has really been helpful.

Thanks.

Hi Stacey,

When you spoke with the client you had to have gotten an idea of the type of work he/she wants done an you know how long it takes for you to do that kind of work. So think about the average time you spend for other clients on similar projects and base your retainer on that.

If the client wants apointment scheduling and your other clients average 2 hours a day, 5 days a week for the same than your retainer would be for a one month period of time at half that assumption. (say you charge $20/hr that would be a retainer of $200)

I like Tess's 6 month holding feature. I may look into doing something similar with my new clients.

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Kristi Bennitt
Virtual Assistant/Bookkeeper

Have you ever thought of having a "minimum" retainer to be revised over the first three months?

I do this with my clients and tell them my rate per hour and they always are game to give the retainer up front. I decided I needed a "do not go below this line" sort of retainer and I chose 5 hours.

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Crystal Curran of www.revaville.com