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A retainer agreement

A retainer agreement for website maintenance is a contract where a client pays a fixed, recurring fee for a specified set of services over a defined period, typically a year. This model ensures a steady cash flow for your business and provides the client with consistent, reliable support and maintenance.

Why Retainers Are a Smart Financial Strategy​

Retainers offer several financial benefits for a web development business:

  • Predictable Revenue: A fixed monthly or quarterly fee creates a stable, predictable income stream, making it easier to forecast revenue and manage business finances.
  • Improved Cash Flow: Retainers help you avoid the "feast or famine" cycle often associated with project-based work, ensuring you have funds coming in regularly.
  • Strengthened Client Relationships: A long-term retainer agreement fosters an ongoing partnership, which can lead to more opportunities for upselling and cross-selling additional services.
  • Time Management: Having a set number of hours or services for each client helps you better allocate your time and resources, preventing scope creep and burnout.

Structuring the 1-Year Maintenance Retainer​

A typical retainer agreement for a website maintenance service should clearly outline the scope of work and payment terms. It should be a separate document from the initial project agreement. Here are key components to include:

  • Scope of Services: Clearly define what is included in the retainer. This might include:
    • Routine Updates: CMS (e.g., WordPress, Shopify) core, theme, and plugin updates.
    • Security Monitoring: Regular security scans and vulnerability checks.
    • Backups: Automated daily or weekly backups of the website.
    • Performance Optimization: Routine checks to ensure the site is loading quickly.
    • Content Edits: A specific number of hours for minor content changes or bug fixes.
  • Excluded Services: Explicitly state what is not covered, such as major redesigns, new feature development, or custom coding projects.
  • Payment Terms: Clearly state the retainer fee, the billing frequency (e.g., monthly), and the payment due date.
  • Termination Clause: Include terms for how either party can terminate the agreement, such as a 30-day written notice.

Setting Up ACH Auto-Payments 💸​

Automated Clearing House (ACH) payments are an excellent way to ensure on-time payments for your retainers. ACH is an electronic network for financial transactions in the U.S. that processes large volumes of credit and debit transactions in batches. To set this up:

  1. Choose a Payment Processor: Select a payment processor that supports ACH payments, such as Stripe, QuickBooks Payments, or FreshBooks. These services provide the infrastructure to securely collect banking information and process transactions.
  2. Request Client's Information: You will need the client's routing number and bank account number. Your payment processor will provide a secure way to collect this information.
  3. Set Up Recurring Billing: Within your payment processor's dashboard, you can create a recurring invoice or subscription plan for the agreed-upon retainer fee and schedule the automatic debits from the client's account on a specific date each month.

Transitioning a Client from Fixed-Cost to Retainer 📈​

Transitioning a client from a fixed-cost project to a retainer agreement requires a clear, value-focused conversation. Don't spring it on them; introduce the idea early in the project.

  1. Highlight the "Why": Explain the benefits for them. Emphasize how a retainer provides proactive support and peace of mind, preventing potential issues and ensuring their site remains secure, fast, and up-to-date. Frame it as a partnership for their long-term success.
  2. Timing is Key: The best time to introduce the retainer is near the project completion, during the final project review or handover. At this point, the client is focused on the site's long-term health.
  3. Create a Clear Proposal: Provide a simple, one-page proposal that clearly outlines the retainer tiers or a single, recommended package. Use an easy-to-understand format with bullet points to list the services and benefits.
  4. Offer a "Founding" Client Discount: To incentivize the first year, consider offering a small discount or a bonus service for the first few months. This can make the transition more appealing.
  5. Separate the Agreements: Clearly state that the fixed-cost project is complete and the new retainer is a separate agreement for ongoing services. Use the new agreement to formalize the terms.