This is a great discussion and has really helped me work through this issue. Since my business will be my only source of financial support, it's important to me to generate at least some income as quickly as possible. Somewhere I read that a VA explained to her retainer clients that by paying the retainer fee at the beginning of the month, they were guaranteed that a set number of hours of her time were reserved for their specific needs. I think I've decided to require a deposit from hourly clients with the balance due either at completion or billed monthly for on-going project, but marketing my retainer packages as first priority because they're prepaid. By outlining that difference clearly in my brochure and on my website, I think it will allow potential clients to see the value of a retainer and understand the terms of both options before we sit down to discuss them. Am I on the right track here?

I like the month to month with 30 days notice. @ Dhess I think if you want a retainer don't settle there are alot of people willing to pay and they need you

Wouldn't month-to-month suggest that contracts are up for renewal on a monthly basis and, therefore, no real notice would be necessary if a client is not interested in continuing? Please help me understand. I guess it's about how your contract is worded. I would prefer an annual contract because it helps with long-term projections, including workflow planning.