Home – New Forums Marketing mastery Retainer, prepaid and cancellation

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  • #983293
    vxd
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    I didn’t want to Hijack Jenny’s thread thread .

    If a you set up a client on a 12 months retainer which receives a x% discount for the prepayment and after 7 months the clients wants to end the retainer.

    Do you refund them the remaining 5 months?
    Do you refund them the remaining 5 months + the discount?
    Do you not refund them because they are locked in a 12 month contract?

    I know this may very depending on business to business but I’m looking for best practice.

    Thanks.

    #1141629
    MatthewKeath
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    vxd, post: 161757 wrote:
    I didn’t want to Hijack Jenny’s thread thread .

    If a you set up a client on a 12 months retainer which receives a x% discount for the prepayment and after 7 months the clients wants to end the retainer.

    Do you refund them the remaining 5 months?
    Do you refund them the remaining 5 months + the discount?
    Do you not refund them because they are locked in a 12 month contract?

    I know this may very depending on business to business but I’m looking for best practice.

    Thanks.Well you can straight up say – nope – your are locked so no refund – and have them go away angry and unlikely to refer.

    Or you can give them a pro rata refund and them go away happy.

    #1141630
    The Copy Chick
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    My conditions state up front that if they cancel before the term of the retainer period, that they are liable to pay out the remainder of the contract. This is because I offer a larger discount for longer retainer periods, so it’s my way of discouraging someone from signing on for a larger 12 month discount, then cancelling after 3 months.

    Of course, it also depends on why they have cancelled, and because my retainer payments are paid monthly in advance, if they were to get all huffy over it I may decide to cut my losses and accept that I’d been paid for work already done (albeit at a much reduced rate).

    I guess it really depends on what you feel comfortable with.

    So long as you spell it out clearly BEFORE the client signs on, then they’re free to negotiate the terms or not sign up at all. It’s when people don’t know what to expect and feel they’ve been mislead that they get upset.

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