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How can you choose between retainer and project-based clients?

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As a graphic designer, you may have different types of clients who require different types of contracts. Two common options are retainer and project-based contracts, which have their own advantages and disadvantages. How can you choose the best option for your business and your clients? In this article, we will explain the differences between retainer and project-based contracts, the benefits and challenges of each one, and some tips to help you negotiate and manage them effectively.

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Mario Martinez

Founder & Educator | No Marz Design & MARZ AI | Discovering AI’s Potential
Komal Ramani-Makhija

Brand Strategist - Business & Personal Brands | Founder & Principal Designer - Projekt - A design led firm specialising…

1 Retainer contracts

A retainer contract is an agreement where you provide a fixed amount of graphic design services to a client every month, for a fixed fee. This means that you have a steady income, a long-term relationship, and a clear scope of work. However, it also means that you have to commit to a certain number of hours, deliver high-quality work consistently, and deal with possible changes or cancellations from the client. To make a retainer contract work, you need to communicate well with your client, set realistic expectations, and track your time and progress.

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Mario Martinez

Founder & Educator | No Marz Design & MARZ AI | Discovering AI’s Potential
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Another way to think about this is to consider a subscription based service. Depending on your target customer, you may want to consider offering something packaged into a month to month cost.

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2 Project-based contracts

A project-based contract is an agreement where you provide a specific graphic design service to a client for a specific project, for a fixed or variable fee. This means that you have more flexibility, variety, and control over your work. However, it also means that you have to find new clients regularly, deal with uncertain income, and manage multiple projects at once. To make a project-based contract work, you need to define the scope, timeline, and budget of the project, create a detailed proposal, and get feedback and approval from the client.

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Komal Ramani-Makhija

Brand Strategist - Business & Personal Brands | Founder & Principal Designer - Projekt - A design led firm specialising in Logo & Packaging Design | Branding Consultant | Professional Speaker
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?? A good way to get more clients is to set up a referral system for existing clients. ?? This can help in avoiding fluctuations of income and maintaining a healthy relationship with old clients.

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3 Benefits of retainer contracts

Retainer contracts can offer many benefits to graphic designers, such as providing a stable and predictable income, allowing for the formation of a long-term relationship with the client, reducing the amount of time and effort needed for marketing, and increasing efficiency by streamlining workflow and processes. Knowing how much you will earn each month can help you plan your budget and expenses, while building trust and rapport with your client may open up more opportunities and referrals. Additionally, being familiar with the client's needs and preferences can make your work more efficient.

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4 Benefits of project-based contracts

Project-based contracts can offer many benefits to graphic designers, such as flexibility and variety in choosing projects that suit their skills and schedule. They can also gain control and creativity by setting their own rates, terms, and conditions, while also learning and growing their portfolio, network, and knowledge by working with different types of clients. Furthermore, they can experience satisfaction and recognition in seeing the results of their work and receiving feedback and appreciation from their clients.

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Komal Ramani-Makhija

Brand Strategist - Business & Personal Brands | Founder & Principal Designer - Projekt - A design led firm specialising in Logo & Packaging Design | Branding Consultant | Professional Speaker
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?? It’s easier to experiment with different styles & projects when taking project based clients. ??This can help in building a diverse portfolio.

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5 Challenges of retainer contracts

Retainer contracts can present some difficulties for graphic designers, such as having to commit a certain amount of time and energy to a client every month, which can limit their capacity to take on other projects or clients. Additionally, they must maintain a high standard of work and meet the client's expectations and deadlines. Moreover, changes or cancellations to the contract can affect their income and plans. Furthermore, they may become bored or unmotivated if they are doing the same thing repeatedly.

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Komal Ramani-Makhija

Brand Strategist - Business & Personal Brands | Founder & Principal Designer - Projekt - A design led firm specialising in Logo & Packaging Design | Branding Consultant | Professional Speaker
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?? It gets difficult to raise your prices from a retainer client once they are used to a set rate. ?? To avoid this, set up an yearly increment rate at the start of the project so the client is well prepared for it in advance

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6 Challenges of project-based contracts

Project-based contracts can also pose some challenges for graphic designers, such as uncertainty and instability in terms of income, the need for marketing and negotiation to secure new clients and projects, managing multiple projects and clients, as well as communicating effectively with clients to handle requests, revisions, and complaints. This can make it difficult to manage finances and cash flow, keep track of the scope, timeline, and budget of each project, and ensure that clients are satisfied with the work.

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7 Tips for choosing between retainer and project-based contracts

As a graphic designer, there is no definitive answer as to whether retainer or project-based contracts are better for you. It depends on your goals, preferences, and situation. To help you make an informed decision, you should assess your skills, experience, and portfolio to determine if you have the expertise and reputation to attract and retain clients. You should also evaluate your income and expenses to determine how much you need to earn every month to cover your costs and save for the future. Additionally, consider your availability and capacity to determine how much time and energy you can devote to your graphic design work every month. Furthermore, think about your interests and values regarding the kind of projects and clients you enjoy working with as well as your professional and personal aspirations. Additionally, compare your options and opportunities by weighing the pros and cons of each type of contract while considering the market demand for your services. Finally, negotiate and manage your contracts by setting clear and fair terms and conditions while delivering quality work and maintaining good relationships with your clients.

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8 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you choose between retainer and project-based clients?

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1 Retainer contracts

2 Project-based contracts

3 Benefits of retainer contracts

4 Benefits of project-based contracts

5 Challenges of retainer contracts

6 Challenges of project-based contracts

7 Tips for choosing between retainer and project-based contracts

8 Here’s what else to consider

Graphic Design

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How can you choose between retainer and project-based clients?

1

2

3

4

5

6

7

8

1 Retainer contracts

2 Project-based contracts

3 Benefits of retainer contracts

4 Benefits of project-based contracts

5 Challenges of retainer contracts

6 Challenges of project-based contracts

7 Tips for choosing between retainer and project-based contracts

8 Here’s what else to consider

Graphic Design

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