What are the things that one should consider when signing a monthly retainer with a client? The following comes to mind: • Minimum # of hours • Reduced hourly rate (80% of full rate to 50% of full rate?): What's an acceptable range here? It will depend on the number of hours committed. • Overtime: Billing at full rate or the discounted rate? • Minimum duration for the retainer Anything else that we should take into account? Thank you in advance.

• penalty for late payment

Outside of things you're already thinking of, starting point for your negotiation: • No non-compete. • You own all your inventions outside of client work hours. • Overtime is subject to availability with a max limit • Overtime at 2 tiers. X hours full rate. Beyond that extra rate. • X days notice by either party to terminate. • Liability limited to max X days payment. • Support period post end of contract for bugs at some rate. • Retainer is pre-paid. • Invoice past due is breach of contract. • Breach of contract leads to immediate voiding of contract, support and liability included. • Response time outside of pre-determined schedule. See how much you feel comfortable adding and what you can negotiate on.

Reduced hourly rate (80% of full rate to 50% of full rate?): What's an acceptable range here? It will depend on the number of hours committed.

Why on earth are you reducing your hourly rates? You should be increasing it.

Overtime: Billing at full rate or the discounted rate?

1.5 to 2x of regular rates. Same for "emergency" requests.

Minimum # of hours

Minimum duration for the retainer

If you've never worked with this client before OR are unfamiliar with the processes/tech, then don't get locked into anything long term. Start with a pay-as-you-go (hourly billing). Once you get familiarized, then start thinking about: • minimum billable hours per month. As an example, say 40 hrs per month. It's a "use it or lose it" for your client. • 6/9/12 month contract for above.

• Invoice past due is breach of contract.

• Breach of contract leads to immediate voiding of contract, support and liability included.

Damn! these are great points. Thanks Piyush

@hundreds-winter-88791 in the contract I have with my client, we have a 1 month advance notice before termination by either party. If the client decides to end termination, service required each day, up to a month, will be billed at 15x the daily rate. While this was standard and provided in the contract by the client itself, try floating the idea and see what they think about this. It's nothing but a deterrent from ending the contract randomly. Also adding to this, since no one covered this, get an agreement in place for a mandatory 6-month/yearly rate increment. Congratulations on getting a retainer! Don't reduce your rates ;)

I think some additional context is necessary from my side. 1. We’re talking only 15 to 25 hours per month. This isn't my main gig. 2. I have been working with this client since Dec 2021. Have billed him for 30+ hours till date, at my full price, for my nocode development services. 3. The offer for the retainer came from the client as my hourly billing rates were not sustainable for the client (I completely understand it as I am very aware that I charge very high hourly rate, even compared to folks in the US for the same service). 4. A question about reducing hourly rates: why would a client pay you a retainer if you don't reduce rates? As any contract, not all terms will be in your favour alone. 5. @millions-solstice-56787 did you mean 1.5x or 15x?

@hundreds-winter-88791 1. I mean, it's your money. If you want to lower rates, that's your choice. I personally wouldn't feel happy with a company who wants me to lower my rates because they cannot afford me. This signals to me that in the future, possibility of them nagging over a bigger payment and rate increments will be a real issue. 2. A retainer also means that you choose not to work with other clients during the time you are working with them. You increase your hours, yet get paid the same when you were working less. 3. Regarding rates: I am no expert in the no-code segment, but them wanting to keep you on is a strong signal that your rates are not that high, companies are very quick to say no and end terms. What happens when they find someone cheaper? 4. fifteen (15) times the daily rate set out in clause 4.1 if termination occurs after six (6) months of the commencement date set out in clause 3.1.

The offer for the retainer came from the client as my hourly billing rates were not sustainable for the client

How will a retainer of more time than they need be useful for them then? Assume you reduced your rate to 80% and retainer is for 15 hours. That's still more than the work they've been giving you so far (roughly 10 hours a month). Are you in a position where you need this client or are building towards something where this will be useful? Outside of that, I don't understand why you'd lower your rates.

why would a client pay you a retainer if you don't reduce rates?

Because they're trying to buy future blocks of my time. I have other things to do, the client can need me any time. I will not be free then, so they set a retainer up to be guaranteed time if they need me.

Hey @dry-monkey-93718 @magnificent-solstice-42554 @millions-solstice-56787 @witty-gigabyte-47737 @kind-queen-6796 - Wanted to quickly thank you for all your inputs.