Does your business use freelancers? Here’s how to maximize your investment

This article was originally published in October 2020.

According to a 2019 survey, there are roughly 57 million freelancers in the United States. Together, they comprise more than one-third of the U.S. workforce. That is a substantial segment of the economy, one that will continue to expand in a post-pandemic world.

Of course, as businesses rely more on freelancers, they must determine how to pay them. As a ghostwriter and freelance writer, I have experienced all types of compensation models, including per hour, per word, and per project. All have pros and cons, but the compensation model that I have used almost exclusively for nearly a decade? The model that makes the most sense for me and the client?

Retainer.

Some call it the Holy Grail of freelancing. I call it a sound business decision—for both sides.

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The retainer model is fairly straightforward. A business needs an ongoing package of content and pays a freelancer X dollars per week (or month or quarter or year) to provide it.

For the business, there are three distinct advantages to this type of arrangement: one, it’s a fixed cost; two, it offers a buy-in-bulk discount; and three, it’s much cheaper than hiring an employee.

Allow me to explain in further detail…

It’s a fixed cost

If you hire someone to provide a service, would you rather a) agree to the cost beforehand or b) agree to the hourly rate the person will charge—without knowing exactly how long the job will take?

If you’re like most people, you’d rather agree to the cost beforehand so you know exactly how much money you’ll owe. Once the price is determined, there’s no uncertainty. There’s no, “Well, it’ll probably take me five hours to do this, but it could take eight or ten. We’ll just have to wait and see.”

Actually, we won’t.

The beauty of a retainer lies in its simplicity. You pay X amount of money per month, you know what to expect, and you can budget for it. There are no surprises.

It offers a buy-in-bulk discount

Having a freelancer on retainer is like having a membership to Costco: you’re going to get the most value for your money, and you’re never going to go hungry.

Think about it from a freelancer’s perspective. A freelancer’s primary goal isn’t to make money; it’s to guarantee income. Those goals might sound identical, but they are not one and the same.

If you ask me to write one blog for you, I’m going to charge you $1 per word. But my goal is not to write one blog for you one time; it’s to write many blogs for you over many years.

If you want one 1,000-word blog, that’ll be $1,000. But if you want four 1,000-word blogs per month, I’m not going to charge you $4,000. I’m going to charge you significantly less. Why? Two reasons: one, you might not have that kind of budget, and two, even if you do, you might not want to spend that amount.

But while we’re chatting about blogs, what other services do you need? Do you need social media content for Facebook, Twitter, Instagram, or LinkedIn? Do you need speeches or editorials? White papers or case studies? What about internal communications with staff or marketing emails to prospective clients and stakeholders? Let’s go even bigger-picture than that. What about brand strategy and development? What about a book concept or some other professional project? Does your website need work?

This is what makes the retainer model attractive for you, the client. You can create a specific content package to fit your needs, and I’ll take it from there. The retainer, regardless of amount, would be far less than me charging you per word or per hour.

Why pay à la carte when the buffet awaits?

It’s much cheaper than hiring an employee

You’re probably wondering how much a retainer package costs. Well, price can vary greatly depending on the scope of services requested, but most clients are right around $2,500/month.

I know what you’re thinking. Twenty-five hundred dollars a month?! That’s 30 grand a year! That’s not a deal! That’s a fortune!

It’s not pocket change, I’ll grant you that. But let me ask you this: How much would it cost you to find, hire, and pay a (quality) in-house writer? What would their salary be? What about health care and other benefits? Do you offer a 401k match?

Your annual investment, I promise you, would exceed $30,000. Probably sometime in the second quarter.

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Many businesses prefer to pay freelancers per hour, per word, or per project. Many freelancers prefer it, too. That’s totally fine. Everyone is unique and does what works for them.

In my experience, though, retainer is far and away the best model. You get top-notch content tailored specifically for you—at a discount, no less—and you never have to wonder about price. You also don’t have to go through the hiring process or worry about paying someone a salary and benefits. A retainer is a month-to-month relationship, and some freelancers, myself included, will even give a discount if the client agrees to a longer commitment (6-12 months, for example).

Truly, there is no downside to this model.

If you are looking for high-quality content from a versatile and experienced writer, please reach out. I would be happy to design a content package specifically for you.

Tony Meale is a Chicago-based author, ghostwriter, speaker, and coach who helps leaders elevate and evolve their voice to build their brand and expand their business. He can be reached at 513.519.2812 or on LinkedIn.