Carole and I have worked together for a few years as mentee / mentor and she’s also now my VA! She felt she turned a corner in her business when she stopped focusing on getting clients on retainers. Here’s her story (so that you can have a nice little break from me, for a while):

What were your thoughts on retainers before you started working with me as a mentee?

I’d always been made to feel that retainers were the epitome of success; like I’d made it as a business owner if I’d got a client on a retainer.

What are your thoughts now?

My thoughts have now totally changed. You’ve taught me that it doesn’t matter if the client is ad hoc or retainer. What’s important is that they are on the right contract for the both of you, relationships are being built, and that you are both happy with how things are progressing.

What made you think differently?

I think I started feeling differently about this once I actually had a couple of retainer clients and realised that there wasn’t really all that much difference to ad hoc work. Yes, a retainer is a guaranteed monthly income, but if the client suddenly can’t afford to be tied into the commitment for whatever reason, or just can’t always find enough work to fill the hours, they’re soon going to end the contract and leave you with nothing. So in some ways, it can be easier to just have lots of ad hoc clients which still equate to enough of an income for you.

Do you now see the importance of building a relationship over anything else?

I can see it’s really important to build relationships with clients and get to know them and their business properly, so you can then advise on the type of work needed and the amount of time tasks are likely to take, etc. They can then make a more informed decision as to whether a retainer or ad hoc contract is the right choice for them. It can also make these kinds of conversations more comfortable to have with each other, as it makes the client feel more relaxed and not under pressure to commit to more hours if they don’t really need or want them. They trust you, which, as you always say, contributes to there likely being a longer-term working relationship anyway.

If I were the business owner who had someone constantly trying to push me into spending money every month that I’m not sure I’ll be able to always afford – and for work that I can’t guarantee I’ll always need doing – it would probably make me feel stressed and resentful of the contract and so I’d eventually want to end it anyway.

Yes, ad hoc work isn’t a guaranteed income, but it can be so much better in other ways. It’s still an income, and it gives flexibility to your client, which will in return help build a great relationship with them and maybe in the future lead to more work from them when they are in that position. You can take on more work with several different clients, along with a range of different tasks, so that you’re not doing the same thing every month or becoming reliant too heavily on one client.

What was the biggest lightbulb moment for you in your mentoring?

The turning point for me was just recently. I had a client who signed up for a retainer (through their own choice) but a few months down the line, they realised that they couldn’t afford it due to still being in the early stages of growing their own business. I’d have panicked before because of the ‘I must get everyone on a retainer’ mindset.

I knew that the client still needed help, though, so I suggested instead of stopping working together totally, why not swap to an ad hoc contract instead and that way, they could just call on my services as and when they needed me – with no commitment on their part to have to guarantee giving me work. They immediately agreed to this as it was a much better solution for them at that moment in time.

They’re happy now that there’s no pressure on them to provide work all the time, and love that if they do come up with anything that needs doing, they know they can contact me and I will schedule it in for them asap.

Building relationships is far more important than getting clients on retainers, and this is what I help my mentees with. Once you get out of the mindset that retainers are the key to success you will relax a little, and do the one thing that’s more important – building long term relationships, building trust, and creating a model of longevity in your business.

There are ways to move ad hoc clients onto retainers successfully if you so want to, of course. I do it regularly in my own business and help others to do it as well. If you’d like to work towards that.