Landing a retainer client is a huge win—it means guaranteed monthly revenue. However, retainers often come with the burden of "Time Tracking."
If you don't track your hours correctly, you end up doing 20 hours of work for 10 hours of pay. Here is how to manage it.
1. Define the "Cap"
Your retainer should be for a specific number of hours (e.g., 20 hours/month). Anything over that cap should be billed at your "Overage Rate." You should clearly state this in your initial contract to prevent the client from treating you like a 24/7 employee.
2. Invoicing the Retainer
Most freelancers invoice upfront for the retainer month.
- Invoice #1 (1st of the month): "Retainer Fee - 20 Hours for October"
- Invoice #2 (end of the month): Only if you went over the cap, bill for the "Overage Hours."
3. Transparancy via "Timesheet Summaries"
Clients hate paying for a black hole. When you send your monthly invoice, include a simple bullet-point summary of what was accomplished. You don't need a minute-by-minute log; a high-level overview of tasks is enough to prove your value.
Frequently Asked Questions (FAQ)
Do unused hours roll over to the next month?
This is a negotiation point. To protect your income, it is best to have a "Use it or Lose it" policy. This ensures your schedule remains predictable. If you allow rollovers, limit them to 10% of the total hours.
What if I work faster than expected?
That is the "Freelancer's Bonus." You are billing for the availability and expertise, not just the raw minutes. As long as the deliverables are met and the quality is high, the client is getting exactly what they paid for.
Should I use a live time-tracking app?
Only if the client requires it and you've verified the privacy terms. Many time-tracking apps take screenshots of your desktop. Always check the legal traps in your contract regarding surveillance before starting work.