Retainers - Set Packages or Suited toward Clients' Needs? - Page 3 - Virtual Assistant Forums

#21 (**permalink**) 02-29-2008

That's a really good analogy but I wasn't taking issue with retainers as a concept, just the rationale that some kind of 'guaranteed income' should be par for the course...and I've never said that others shouldn't bill via retainer, just that I don't - it's personal preference, which is yet another great aspect of running our own biz!

#22 (**permalink**) 02-29-2008

Agreed. Income can never be guaranteed nor should it be expected. And, there will be clients who don't have the need for retainers nor do they want them. Fortunately there are enough of both types of clients that each business model can be successful.

#23 (**permalink**) 03-01-2008

Quote:

Originally Posted by shari VA View Post

Okay. Well then lets talk about daycare. They charge their clients whether the children are there or not. You pay for the whole week but if your child only goes for 2 days you still pay for 5. They do this because they have overhead expenses and they have staff ratios to maintain. This as compared to drop in centers where you just take your chances there is enough staff to take care of your kids and also that there is enough space for your kids to be there that day. If not, then you go somewhere else.

In this way I see hourly rates as drop in rates. Retainers are for those who require stability. When you drop in you are taking your chances there is a space available for you. With a retainer you are guaranteed a spot. If you're a drop in you take your chances there will be a spot for you.

I only have so many hours available each month. I prefer to fill them with retainer clients because its easier for me to gauge how many hours I have left before I'm at capacity.

I'm not saying either way is the right way. I'm just offering a different viewpoint.

Good point Shari, I always think of the Daycare example too. Even though I'm constantly working to build my business with new clients there's only so many hours in a day. I wanna know how many hours "realistically" I can offer new clients on a weekly basis without being overworked and hating life.

Also, once we have sold ourselves as being a really good VA to the client they have no problem reserving time with us on a monthly basis. I mean I wouldn't wanna go to a dentist that says "come on in whenever you want...we'll be here" My first impression would be they have little or no business and they're waiting on my call. But then the denist that has a waiting list is the one that everyone wants because he's "GOOOOOOOD"

My first month with a new client is a trial period. We don't immediately jump into a retainer package because I allow them to feel me out and also get a better idea of how many hours they'll need if they decide to continue working with me. For those of you that are uncomfortable with offering retainers then maybe the trial period would work for you too.

Either way, however you guys run your business, is your business. If aint broke...don't charge retainers.

lol

Good night!

-Crystal
Dymin Services, Inc.

#24 (**permalink**) 03-24-2008

Does everyone, who offer retainer packages, get the full payment up front or does anyone accept half payments for the beginning of the month & the second half at the end of the month? I guess what I'm asking is does anyone offer payment plans for retainers?

#25 (**permalink**) 03-25-2008

I am glad to see this discussion as I am just getting started and was concerned about pay/fee structure. I haven't been paid by the hour in 15 years, and so am having a hard time thinking in that direction.

It seems to me it might be beneficial to be flexible...offer certain services by the hour, some on a project basis, and others on a retainer basis and also offer flexible payment options.

#26 (**permalink**) 04-01-2008

Quote:

Originally Posted by misskimble View Post

I'm trying to figure out why so many virtual assistants don't use retainers?

Without retainers we're stuck in that same trap of TRADING DOLLARS FOR HOURS. We're an asset to these companies, and our time is very valuable.

It sounds crazy but one of my CLIENTS had to break this down for me one day. He said:

"You need to understand how valuable you are to companies.If you think about it, If a client is on a retainer for a max of 20 hours per month and he only uses 16...then he's paying that monthly rate to have access to you as his assistant. If your clients have the luxuary of saying "I have a virtual assistant" then they should be paying whether they use you the entire month or not. Trust me, if a client is on retainer, they'll do their best to get their money's worth each month. But if they don't, you get paid for being "accessible" and not just getting paid for each "hour" of labor you put in.

Whoa! He was right.

Don't give away every hour of your day for a price. In my opinion we should all have a monthly fee and be someone's assistant instead of a temp that's paid by the hour. We pay a monthly fee to have access to cable channels on our televisions right? And you know if we go the entire month without clicking on the t.v we still pay that monthly fee. This is no different. We have "access" to cable if we want it just like they have "access" to their virtual assistant every month.

New entrepreneurs that come in saying they don't know how much time they'll need every month...start them off small based on their budget and adjust it as necessary if they start to go above that. I'm telling you guys...retainers benefit both you and your clients. My favorite client had to show me my value...and I'm soooo glad he did.

This was eye opening! You make very good points...I was just reading through this thread and thought ... "hmm, maybe I should think twice about retainer packages" ... but then I read this and I am now convinced more than ever that having retainer packages are going to be an essential for the practice I wish to build.

Thank you!

#27 (**permalink**) 04-01-2008

On reading this topic even further, I can very well see all points to this topic.

I think the important thing is knowing your client market.

For me, I believe the best approach will be a trial period with a "good faith" retainer (that can be applied towards project time on the final invoice), then, you as the VA with the client can set up an appropriate agreement. This will most likely be a month-to-month agreement/retainer for me, as I'm targeting Wedding Professionals and it can be a very seasonal business and busier during certain times of the year and their needs will change.

For example: During the wedding season, their needs might be more about supporting their customer service needs, dealing with details and product for their bride/groom's event.

During the off-season, the focus might shift towards building business with marketing campaigns or other business needs such as organization, database updates, website updates with new rates, etc.

So, for me, I think it will be best to have multiple "partnership" opportunities that will fit their needs, but with me helping them to understand the value of maintaining a retainer.

Aaah, the details! Gotta love it!

- Isabel

#28 (**permalink**) 04-01-2008

I'm very glad I ran into this thread - many good points was made - those that I never thought of! Excellent thread.

#29 (**permalink**) 04-04-2008

Quote:

Originally Posted by misskimble View Post

I'm trying to figure out why so many virtual assistants don't use retainers?

Without retainers we're stuck in that same trap of TRADING DOLLARS FOR HOURS. We're an asset to these companies, and our time is very valuable.

It sounds crazy but one of my CLIENTS had to break this down for me one day. He said:

"You need to understand how valuable you are to companies.If you think about it, If a client is on a retainer for a max of 20 hours per month and he only uses 16...then he's paying that monthly rate to have access to you as his assistant. If your clients have the luxuary of saying "I have a virtual assistant" then they should be paying whether they use you the entire month or not. Trust me, if a client is on retainer, they'll do their best to get their money's worth each month. But if they don't, you get paid for being "accessible" and not just getting paid for each "hour" of labor you put in.

Whoa! He was right.

Don't give away every hour of your day for a price. In my opinion we should all have a monthly fee and be someone's assistant instead of a temp that's paid by the hour. We pay a monthly fee to have access to cable channels on our televisions right? And you know if we go the entire month without clicking on the t.v we still pay that monthly fee. This is no different. We have "access" to cable if we want it just like they have "access" to their virtual assistant every month.

New entrepreneurs that come in saying they don't know how much time they'll need every month...start them off small based on their budget and adjust it as necessary if they start to go above that. I'm telling you guys...retainers benefit both you and your clients. My favorite client had to show me my value...and I'm soooo glad he did.

This makes sense but what about the benefit of "only paying for hours we work" as opposed to paying for down time. That's one of the benefits that the VA promotes. Doesn't that conflict? I guess it could be packaged as use-em or loose-em hours.

#30 (**permalink**) 04-06-2008

Quote:

Originally Posted by isabelSNC

This was eye opening! You make very good points...I was just reading through this thread and thought ... "hmm, maybe I should think twice about retainer packages" ... but then I read this and I am now convinced more than ever that having retainer packages are going to be an essential for the practice I wish to build.

Thank you!

Awww thanks Isabel. I felt the same way after my client showed me light so I'm glad I could help. Of course always do what works best for your business and don't be afraid to get paid for what you're worth.

Good luck with your business