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Business model · 5 min read

The retainer trap

The default way to buy services is the retainer: a monthly fee for ongoing time. It feels safe and predictable, which is why it is everywhere. It also points the incentives quietly in the wrong direction.

A retainer pays for activity

It rewards being busy, filling the hours, and staying needed. The moment the problem is actually solved, the reason to keep paying disappears. So there is a soft, rarely spoken pressure never to quite finish, to keep finding the next thing that justifies next month's invoice.

When you pay for hours, finishing fast is a punishment. When you pay for outcomes, it is the point.

Outcomes flip the incentive

Pay for the result instead and everything turns the right way up. The provider wins by solving the problem and moving on. Speed becomes a virtue rather than a threat to the invoice. You are buying the gap closed, not a seat filled for another month.

When a retainer is honest

Some work genuinely recurs. Running paid channels month to month is real, ongoing effort, and a monthly fee maps to it fairly. The trap is using a retainer for work that should have a finish line, and then quietly making sure it never reaches one.

How I price

Scoped to the outcome. A diagnostic is a fixed fee. A build is a fixed price for a defined result. Channel management, which truly recurs, is the one place a monthly arrangement fits. You pay for the thing done, not the hours spent getting there.

There is a simple test for any provider. Ask whether they win when your problem is solved, or when it is not. The answer tells you which way their incentives point, and therefore where yours are headed.

Paying for hours, or outcomes?

Ask any provider which one they win on.

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