September 18, 2024

Prepayment vs Retainer

The word “retainer” is very poorly understood.

For example, I saw a post on LinkedIn that referenced hiring an expert witness on a “five-hour retainer” for $4,000.

Five hours?

That’s not a retainer.

That’s just prepayment for a block of hours.

Which is still hourly.

I mean... it’s right in the name:

Five HOUR retainer.

In my universe, a retainer is:

A specific type of productized service where an expert offers their clients 24/7 access to their advice on a subscription basis. Retainers are typically paid in advance on a monthly basis but sometimes quarterly or even annually.

What ISN’T a retainer?

It is not a support contract.

It is not a maintenance contract.

And it most certainly IS NOT prepayment for a block of hours.

Yours,

—J

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