Are One-Time Projects or Retainers Right For You?
Episode 729: Show Notes
Today, we discuss the difference between one-time projects and retainer projects for clients and how you can determine which is right for you. There are many filters through which to run your decision-making process when deciding whether to explore one over the other or have a hybrid between the two. In this episode, we share insight into the questions you should be asking yourself in order to make that call.
We break down the financial benefits and challenges of one-time projects and retainers, respectively, and explain how to gauge which model is right for you! You’ll find out when it makes sense to consider the hybrid model, and why it’s essential to hold the future in mind when settling on your service structure. Tune in to find out which model makes the most sense for your business, both financially and systematically.
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The Financial Benefits and Challenges of One-Time Projects Versus Retainers
It goes without saying that the retainer model brings with it a degree of financial security that one-time projects do not. One-time projects do, however, allow for creative play. People tend to think that they have to commit to one model or the other based on their industry, but we believe there are creative ways to do both in any industry. Something we’ve learned along the way is that it’s okay to make decisions based on how you want to feel within your company.
Many years ago, we were following the launch model almost exclusively, which resulted in revenue peaks and valleys, leaving us feeling uncomfortable in the dips. That’s not to say the peaks didn’t tide us over, but the discomfort informed our future decisions. It’s okay to address how you feel and make decisions accordingly! If peaks and valleys stress you out, you need to consider a retainer option and build in recurring revenue. The associated challenge, however, is that you will most likely need more clients, more consistently.
How to Gauge Which Model is For You
You need to decide if you constantly want to be focused on filling the bucket with new projects or maintaining the relationship with current clients. Another thing to consider is whether your ideal client is facing a one-time problem or an ongoing problem and whether you can consistently deliver the same solution, or if it’s better to solve the problem with a single solution. You don’t want to be artificially creating problems for the sake of revenue.
When to Consider the Hybrid Model
If you choose to solve an ongoing problem with a retainer, you may face the challenge of the problem not being urgent enough. It needs to be enough of a problem for them to justify hiring you to solve it for them. Thus it’s important to have a hybrid model with additional one-time projects. In the grand scheme of things, particularly in times of economic downturn, it’s easier to run a hybrid business. It can also aid internal maintenance because processes are going to be completely different for one-time projects versus retainer clients. You need to gauge your capacity for doing both, and whether it makes sense for you both financially and systematically.
Building Towards Future Goals
You can sell things at typically a much higher price point when you add a unique skill set to the mix, but if the goal is to sell the business and you’re not going with it, what are you trying to build towards? It’s important to constantly reevaluate, without changing your mind too often. We recently sat down to set our long-term goals. Eventually, we want to have the freedom to step away, explore new things, and do more creative one-time projects. Thus, we decided that the recurring retainer business model is the best fit for us and we are slowly working towards it; planting seeds and thinking about what we need to do today to set ourselves up for the future success that we want. We’re doing this by doing behind-the-scenes one-time projects and getting paid to learn how we want the system to be set up while fulfilling public-facing services. It’s important to start making short and long-term decisions simultaneously.
Want Extra Support?
If you want even more help streamlining your business, creating your dream work week, and learning how to live life-first again, we’d love to have you learn more about the Incubator. We have thorough conversations packed full of value with each applicant to make sure this is the right next move for your business. Even if you decide not to join, if you’re approved you’ll have instant access to a private training all about how to streamline your work week without increasing your client capacity or sacrificing income.
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You can sell things at typically a much higher price point when you add a unique skill set to the mix.
Highlights
The Financial Benefits and Challenges of One-Time Projects Versus Retainers. [0:13:10]
How to Gauge Which Model is For You. [0:16:52]
When to Consider the Hybrid Model. [0:21:06]
Building Towards Future Goals. [0:27:32]
Today’s Guest:
Abagail & Emylee
The Strategy Hour Podcast
The Strategy Hour Podcast is a twice weekly show hosted by Abagail Pumphrey and Emylee Williams, the founders of Boss Project. Join us for semi-ranty biz conversations for service providers looking to ethically grow their agency businesses. Episodes cover everything from lead generation to leadership mindset to team culture and beyond.
Key Topics:
One-time projects, Retainer projects, Hybrid model, Long-term goals, Service offerings
