Strong Points: Predictable revenue Supports ongoing relationships with clients Scalable – In other words, as you continue to add retainer clients, you'll get more team members and cash flow to grow your business. Cons: Disadvantages: Encourage clients to spend as little time as possible Scope creep can eat up your time / happiness / results Clients should always re-justify your costs when they write a check to you Who needs to use this model
Far away, the best part of ghost mannequin effect service retainer-based work is that it is predictable. For both you and your business - it provides stability. You can always know how much money will come in and plan your business around it. It's like getting paid as a regular employee. Therefore, there are two cases where the retainer model is optimal. First of all, this is great for agencies that want to scale up.
Retainer stability provides a solid foundation for growth. This is especially important when hiring new team members. Signing a $ 5ka / month contract will allow you to pay an additional $ 5ka / month to your subcontractors and salaries. Secondly, this is great for freelancers who don't want to worry about micro-invoice management. Or track the billable time. Or if you need a stable salary.