Beware of roll forwards. If you allow the hours to roll forward then you can't recognize the earnings (i.e. spend them). Otherwise you are likely to end up not having your expected income while you still owe time.
For example, let's say you bill $1250 in retainer and $1250 in regular billings every month for roughly 150 hours of work (leaving 10 hours free). One month you have 30 hours rollover. The next month they use the rollover and their regular allowance (i.e. 105 hours). That means you have only 55 hours for regular billings rather than the usual 75 + 10 free. Your regular billings will drop by $200 (or roughly 10% or the total $2500), Which is a fairly sizeable loss in billings.
If you allow rollovers to accumulate the situation gets worse. You could very easily end up owing more hours in a month than you have available. If you do allow accumulation then you need to consider the retainer(s) as your income and any regular billings as bonus. Which can put you back in the role of salaried employee again.
hi guys am a student - and we(my friend and i) have been lucky enough to land a job to design a radio website. Now though we have not yet discussed about the maintenance- they want us to finish the website first. Based on the scope of project they would eventually want a daily updates of news, content etc What kind of price range would you recommend as retainer for a radio station website? Thanx
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