Businesses Hiring Designers on Retainer Find Huge Benefits
The Cost Of Doing Business
Payroll can be a beast. Keeping employees is usually the most significant expense for businesses and can easily account for up to 70% of a company’s total spending. Day-to-day spending is also a colossal money-sink. In addition, labor costs are steadily on the rise. In 2019, most U.S. industries saw rising labor costs, the highest being Air Transportation which saw a nearly 107% increase in the price of keeping employees on the payroll, followed closely by Amusement Parks and Arcades (+76.4%) and Travel Services (+73.7%).
So what do we do when hiring more staff is just too expensive? Can hiring freelance creatives or an agency on retainer help fill the production gaps and keep our businesses at the top of our game while maintaining or even lowering overhead costs?
What Is A Retainer Agreement?
A retainer is a fee paid to a person or agency to secure or keep their services when required. Unlike payroll employees, businesses won’t pay enormous salary costs despite the amount of work an employee may or may not do. It’s also better than pay-per-project agreements because most persons or agencies give a more significant discount to brands and businesses that sign retainer agreements. When working with companies on retainer, a business usually pays an amount in advance, and the individual or agency agrees to be available to provide their professional services for a set number of hours.
Four Worthwhile Benefits Of Hiring By Retainer
Why would you ever hire for creative or marketing on retainer? Here’s a quick look at five great reasons your business could benefit from retainers:
1. Readily Available On-Hand Resources
As business spikes and dips throughout the year, the volume of your marketing needs rise and fall as well. When times get tough, it can be hard to increase your marketing efforts. Hiring an agency or professional on retainer is a great way to relieve some of that stress. These additional assets can significantly lighten the burden on you and your business by providing the option for expanded marketing and creative efforts when you need them the most.
2. Familiarity and Consistency
A long-lasting retainer agreement is a relationship, not just a business arrangement. Instead of working with multiple freelancers or agencies, both parties commit to growing your business. The individual or agency works to understand your exact needs and delivers on those assets. They also become more familiar with your business’ branding and creative strategy, making them far more effective at providing relevant, on-time, high-quality creative more efficiently.
3. Consistent Billing and Overhead
Businesses can eliminate fluctuating costs by hiring on retainer instead of working on a project-by-project basis. You get to book professional services on a consistent month-to-month basis which helps you plan your budget accordingly. In addition, retainer contract billing is an immediate budget deduction versus a complicated payroll calculation every week and even more time at end-of-year. Consistency means everything when planning your business’ financial future.
4. Priority Status
You’ll never have to worry about your project being lost in the shuffle or put on the back burner. Retainer agreements are often given higher priority over project-based work. Retainer projects are often worked on tighter timelines and offer more outstanding results. In other words, a retainer makes sure your project comes first.
Is A Retainer Right For You?
Hiring by retainer has vast benefits for most businesses. Having creative and design resources readily on hand can help you be sure you quickly respond when opportunities come. Retainers mean that an individual or agency gets to know your needs. You can plan your budget every month without fearing an unexpected expense. Most of all, hiring a retainer ensures you come first.
Want to know about how hiring a creative/designer or agency on retainer can help grow your business? Please email me at my agency email info@traviswalser.com.
