Contract - Retainer Fee

Hi,

I'm Jen, this is my first post. My pre-registration visit is next Tuesday (I'm scared!), and I'm just pulling together the last bits and pieces.

Can I get some advice on retainer fees. A friend of mine would like me to care for her daughter three days a week. She is a teacher though, and won't need to me mind her daughter in the school holidays. This potentially means 12+ weeks of the year without pay (which is just not sustainable for me). Do people charge 50% or more as a retainer during this time?

Many thanks in advance.

Hiya, welcome to the forum :-) you have to make decisions that suit you and your business. With my TTO clients I have decided to only charge for the 39 weeks required but then average out the fee over a year so I get paid every month. I like TTO as I have children myself and prefer quieter holidays so I have more time for them but can't afford to not see an income over summer. A lot of CMs charge a half price retainer, you may find that works for you.

Oh and an extra word of advice, be very wary of caring for friends children. It's very easy taking on friends children as first clients but later down the line you can begin to regret it. If you decide to however keep it very business and don't offer discounts. I saw one of my friendships slipping away when I looked after her children - thank goodness she decided to give notice and now we are back on track (the friendship was too valuable to lose). I personally wouldn't look after friend's children again.

Hello and welcome. :waving:

As with so many CMing things, you simply have to find out what works for you. Don't forget that if it doesn't work for the client too, you probably won't keep many clients. It's important to see both sides. If you're struggling to see both sides I'd recommend an afternoon browsing the Nutmums chatroom 'work & childcare' boards. :thumbsup:

You need a reliable year-round income. Mum may see it differently and wonder why she's (to all intents and purposes) paying you to "do nothing" over the holidays. It's the biggest single gripe I hear from parents over childcare. I don't charge TTO clients for holidays simply because I don't see any point in alienating them. That doesn't mean any other CM has to do what I do.

Sometimes the answer is to have a higher basic rate for TTO contracts. They end up paying the same as basic+retainer but are somehow happier about it.

Try to think ahead and implement practices/policies now that you won't regret in the future. It's all too easy to 'bend over backwards' when you're starting out and then regret being too accommodating later down the line. Invariably, anything you offer client 'A' as an exceptional favour will be expected by clients 'B', 'C', 'D' and 'E-Z' as the norm once they've chatted with 'A' on FarceBook. But if you do find you've made a ballssup, put it down to 'experience' ( = free training :D) and don't be afraid to make changes.

CMs working for friends seems to fall into one of 2 categories: 'absolute joy' or 'total nightmare'. It can be akin to clog dancing across a minefield. Go into it with your eyes open: be clear about it being a business arrangement and that you are serious about policies and little details (such as getting paid properly.)