Do you think running a pay‑per‑result offer is a good differentiator in a market that makes it easier to close, or am I being scarcity‑minded by thinking retainers are harder to sign?
Pay‑per‑result is a great differentiator because few people will take money only for results. You’re right that retainers are harder to sign than pay‑per‑result, but that doesn’t mean you have a scarcity mindset—it’s just pragmatic. Ideally, get money up front to lock commitment and cash flow. You could start with a hybrid: half setup fee, half pay‑per‑result contingent on hitting a guarantee (e.g., 10‑30 appointments), then later weave that into a retainer with pay‑per‑lead or pay‑per‑result.
Retainers are essentially a pricing arrangement that trades off stability for a discount. Think of your normal rate—say $125 per hour. If a client uses you for 10 hours a month, that’s $1,250. But hours can fluctuate: one month they might need 10 hours, the next 15, then 5, leaving you with unpredictable cash flow, and the client with no guarantee of your availability. A retainer solves this by offering a discounted rate (for example $100 per hour) in exchange for a fixed, prepaid sum each month. The client gets predictable costs and you get upfront cash and stable revenue, aligning both parties’ incentives. It also reduces the need to chase invoices, as the money is already in the bank. In short, retainers give the client stability and you stable income, with the discount serving as the incentive for both sides.
Don’t lock yourself into a single offer right away. Test three niches with two offers each (six offers total) for 30 days using a high‑volume channel such as cold email or cold DMs, sending hundreds of messages daily. At the end of the test, look at which offer got the highest reply rate—that’s your winning combination. This lets you validate a niche and pricing without guessing. You can charge a high‑ticket retainer by focusing on the outcomes you’ll deliver (e.g., guaranteed lead volume or revenue increase) and back it with a strong guarantee or performance‑based component. The key is to run fast experiments, pick the offer that resonates, and then double down.
He explains that a retainer works by bundling a set number of hours (e.g., 20 hours per month) and selling them upfront at a discounted rate, which stabilizes income and removes the variability of hourly billing. For example, at $120/hour, 20 hours would be $2,400; offering a discount to $100/hour makes it a $2,000 monthly retainer. The client gets guaranteed availability and easier planning, while you gain predictable revenue. You can then add value‑adds—monthly reports, weekly calls, standardized Slack availability—that increase perceived value without consuming extra billable time, effectively raising your effective hourly rate. The retainer shifts the sale from pure time to outcomes and ongoing benefits.
When a business likes the build but balks at a recurring fee, I reframe the conversation by offering a ladder of options. First, I sell a fixed‑price project (typically $1‑2k) that delivers a system I claim can add $10k of monthly value. If they accept, I then pitch a monthly retainer (e.g., $5k/month) based on the roadmap of additional improvements I uncovered while building the system—this can represent tens of thousands in lifetime value. If they decline the retainer, I fall back to a fixed‑price version of the same scope (around $3.5k) or a low‑cost maintenance retainer (about $250/month for Slack access). Should none of those work, I downsell them to my agency school—a low‑cost or free educational resource—where I can periodically re‑engage and upsell them later to any of the higher tiers. This creates a self‑reinforcing ecosystem: customers can start low and move up, or start high and later add services, mirroring the way high‑performing service businesses operate today.