E. 88: Truth Bombs About Retainer Models and Why They Are Not Profitable
Retainer model clients. Are they the holy grail of small agencies? Or the source of their eventual downfall.
So many small agency owners are stuck in a feast or famine cycle with client work and marketing. They’re either spending all of their time on client projects or they’re spending all of their time hustling for clients and not making money.
It’s a stressful way to run a business.
Eventually, a lot of business owners get to a point of asking themselves, “Wouldn’t it make more sense to put some of these clients on retainer? A monthly fee for ongoing work would stop the feast or famine work/client chasing cycle, give me a steady income, and give me a sense of security.”
It makes logical sense.
And yet, I still get contacted by a lot of one to two person branding agencies, who have clients on retainer, and they’re still working all the time and they’re still not making enough money to actually feel safe.
And they still ask me if the answer is to get more retainer clients. To that, I always say, NO.
I am avidly against retainer clients for small agency owners. And I’m going to tell you exactly why I think they give a false sense of security and are the absolutely wrong strategy to implement if you want more profit and more freedom in your life.
Find this episode for free on your favorite podcast player.
Tune into this episode to hear:
Why it’s almost impossible to make a real profit on retainer clients
How retainer clients can leave you feeling like an employee with no benefits
How retainer clients can hurt the foundation building of your business by giving you a false sense of security
How to get off the retainer treadmill and sell profitable, project-based work
