Hi, I'm working on my rates right now and trying to understand the differences between hourly, project based and retainer. I'm sorry I've tried searching through the rates and billing threads and am still confused.

1)hourly: So from what I understand lets say I set my rates at X$/hour from 1-10 hours and give a 5% discount for 10-15 hours and so forth. Would this be ideal for the client who doesn't need my services on an ongoing basis? So is this way normally the most expensive for the client?

2)retainer: I think I understand what a retainer is and that my ideal client would be someone who needs my services for a certain amount of time over the period of whatever the contract is set for. But how do I go about determining a pricing structure? I'm thinking being that the client will sign a contract they would get a better "deal" by going this route. Is that right? Do I take the amount I want to make hourly and discount that when creating my retainer packages? or can i use the same packages and give them a further discount for signing a contract? R

As you can see I'm very confused. Maybe I'm just overlooking things. But if anyone can explain or refer me to an article I would appreciate it.

I believe hourly rates and project based rates are quite similar. I plan on charging an hourly rate for those customers who only need me for occasional projects, are not sure of how long they will need a VA, and for general admin work. I, personally, would not limit the number of hours or give a discount on the hourly rate and you are correct that this could be more expensive for the client. This is also a great way for you and a client to begin a relationship that would lead to a retainer agreement.

As far as the retainer packages, you are correct that they are based upon your hourly rate and discounted based upon the number of hours the client requires. You would not give a client another discount for signing the contract as the retainer package is already discounted. It is the better deal for the client to sign a contract if they know that they will need you for a certain number of hours over the course of the month.

I hope this helps you!

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Margaret

Margaret,
thanks so much for the quick reply. It makes more sense now. I really appreciate you responding.