more-arw search

Q&A Forum

Retainer/Upfront Deposit for Consulting

What percentage up front do you pay or charge for a consulting project? Or do you advocate different retainer models not based on a percentage?

Answers

Topic Expert
Malak Kazan
Title: VP, Special Projects
Company: ERI Economic Research Institute
(VP, Special Projects, ERI Economic Research Institute) |

Depends on how you quoted the work. If project, then I have seen 10-20% to start the project. If hours, typically would not require retainer, but rather payment of billed hours on a shorter cycle (net 15 days). Hope this helps.

Topic Expert
Jaime Campbell
Title: Chief Financial Officer
Company: Tier One Services, LLC
(Chief Financial Officer, Tier One Services, LLC) |

Thank you, Malak.

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

I agree with Malak on project (depending on whether there are misc expenses involved (travel, special software, etc.).

On daily, hourly rate you need to get a feel for the client, but based on how many days, I would get a weeks worth up-front. So if in one week on average you work 2 days, take a 2 day retainer.

NEVER START A PROJECT without a contract, proposal or some sort of document signed by the client that details the scope of the project, your responsibility, theirs and the terms (rates)..

Jake Feldman
Title: Managing Director
Company: Global TaxFin Advisory Group LLC
(Managing Director, Global TaxFin Advisory Group LLC) |

If there are milestones or interim deliverables, I would recommend estimating the charge time to the first milestone and request that amount as retainer.

3470 views
Topics

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.