pay-as-you-go billing??? - Virtual Assistant Forums

#1 (**permalink**) 02-02-2008

Yesterday I received an email from a potential client interested in administrative services. His last VA in the UK offered him billing on a pay-as-you-go structure and he wanted to know if I could offer him the same. We are scheduled to chat on Monday and I was wondering if anyone here has or is currently offering that billing structure to their clients and if so, what are their views on that structure. For some reason I'm thinking he means a retainer but he seems to keep stressing on the term pay-as-you-go.

#2 (**permalink**) 02-02-2008

Maybe he doesn't want to commit to a retainer. You could offer him to do pay-as-you-go as long as he pre-pays you. Perhaps, sell him 5-10 hours of your time to start with and when you use up that time bill him again for another chunk of time.

Some entrepreneurs are afraid to commit to a retainer because their businesses fluctuate so much that they fear getting locked in to a retainer agreement.

If you only want to do a retainer agreement maybe he just needs a little education on how retainers work.

Good luck!

#3 (**permalink**) 02-02-2008

It sounds like he just wants to be billed for the actual time he uses - which is how I bill all of my clients (I've actually never even offered retainers).
If you're going to bill him that way, I'd suggest requiring a decent deposit with the understanding that after six months (or however long you're comfortable with) of properly paid invoices the deposit will be returned to the client via his invoices.

Of course, you're the business owner, so you're under no obligation to change your policies if you only ordinarily bill on retainer.

Edit: just adding that I bill every other week, on net 14 terms

#4 (**permalink**) 02-03-2008

Like Tess, I'm thinking that he's looking to avoid retainers and wants to pay for each project as he goes. I like Tess's suggestion about requiring a deposit that will be returned to him after so many months of prompt payments.

#5 (**permalink**) 02-03-2008

I have never used retainers either. I just invoice my clients monthly and they pay within 7-10 days of the invoice - usually. If they're new though, they always pay on delivery - they have to prove themselves first. I have had some clients (only a small number) who actually pay on delivery of each job. I think they prefer to do this as the bill doesn't mount up for them and they literally pay as they go. The last one I offered to do a monthly invoice for him as he had had several jobs done and paid on each one and I felt I could trust him enough to put him on monthly invoicing and he agreed - perhaps he was testing me too.

#6 (**permalink**) 02-04-2008

I only have one client on retainer, the rest pay as they go. I invoice the 15th and 30th of each month due in 7 days. Keeps the cash flow happening...

#7 (**permalink**) 02-04-2008

Just wanted to touch in and let you all know that thanks to your feedback, I got my first pay-as-you-go client today. I'm now considering offering the pay-as-you structure as part of my plans as well.