3 ms·

Great advice. With smaller companies I've used an advance to start work, but I like the retainer against final invoice better.

• brudgers 12y ago
  Just to extend it a bit, when later invoices are very likely to be smaller than earlier invoices, I will partially apply the retainer to intermediate invoices to reduce the amount I am holding. The initial retainer is at least the maximum amount that I will bill in a cycle - e.g. for a two week billing cycle at least 80 hours when the project takes "full time" effort. More if there is a delay between handing over the invoice and getting a check. There are clients for which it is not appropriate - those where the managers are beholden to public shareholders or with substantial well-financed income producing ongoing operations. It's a risk mitigation strategy. And I am willing to walk away where my gut tells me there is enough risk to justify it and the client balks.